Richmont Mines Begins Drilling at Valentine Lake
Monday, August 20th, 2007
Mountain Lake Resources Inc. and Richmont Mines Inc. announce that diamond drilling began on August 6, 2007, on their Valentine Lake property, located in Central Newfoundland. Eleven (11) initial drill targets were identified based on previous geological and geochemical data as well as geophysical data collected through high-definition helicopter-borne spectrometric and magnetic VLF surveys completed in June 2007. Based on previous exploration work, the Valentine Lake property has total estimated mineral resources of 359,000 ounces of gold, as outlined in the National Instrument 43-101 compliant technical report dated January 2005. In the fall of 2006, InnovExplo Inc., an independent mining and exploration consulting firm, concluded that the main occurrences represent significant gold potential as well as illustrate targets for new discoveries.
The objective of this exploration plan, which will include 2,700 metres of diamond drilling, is designed to evaluate the overall potential of the remainder of the large Valentine Lake property, which has unexplored, strong gold anomalies over 22 kilometres. Five holes will be located on the Valentine Lake intrusion in favourable geological settings around previously identified resources, and the remaining six holes will be located further south in the Dunnage-Gander fault region, a major deformation zone anomalous in gold. Additional potential drill targets identified on the property, but not included in the initial drill plan, will be evaluated by a ground exploration crew over the next month. The drilling program is expected to be completed by mid-September.
Mr. Martin Rivard, President and Chief Executive Officer of Richmont Mines, commented, “Based on InnovExplo’s conclusions and the recent survey results, we believe the potential exists to discover significant mineralization on this property and are excited about the prospects at Valentine Lake. Completion of this exploration work will enable us to acquire our interest in this property which has excellent exploration potential.”
Mr. Gary Woods, President and Chief Executive Officer of Mountain Lake Resources, added, “The survey results completed in June identified promising areas for further exploration, and we are pleased with the efforts and activities that Richmont Mines initiated last week in order to take the next step in exploring the very large land position comprising the entire Valentine Lake project area.”
Richmont Mines will acquire a 70% interest in the Valentine Lake property from Mountain Lake Resources through total 2007 exploration expenditures of $1.0 million by October 31, 2007. Approximately $225,000 in expenses at the Valentine Lake property were incurred through the quarter ended June 30, 2007.