Mountain Lake Reports a Substantial Resource Increase at Bobby’s Pond, Newfoundland
September 23rd, 2008 | by mantrionline |Mountain Lake Resources Inc. is pleased to announce the results of a National Instrument 43-101 (”NI 43-101″) compliant independent resource update on its Bobby’s Pond base metals Project in central Newfoundland, which substantially increases both the indicated and inferred resources on the project.
The independent resource update, prepared by Hrayr Agnerian of Scott Wilson Roscoe Postle Associates Inc. as of July 31, 2008, includes an additional 16 drill holes since the previous resource calculation (January 15, 2007) and estimates that the Bobby’s Pond Deposit contains an indicated resource of 1,095,000 tonnes of 0.86% Cu, 4.61% Zn, 0.44% Pb, 16.6 gpt Ag, and 0.2 gpt Au in addition to an inferred resource of 1,177,000 tonnes of 0.95% Cu, 3.75% Zn, 0.27% Pb, 10.95 gpt Ag and 0.06 gpt Au. Contained copper in the inferred category increased from 11.3 million pounds (lbs) in the NI 43-101 report of Jan. 2007 to 24.6 million lbs; and contained zinc in inferred category increased from 67.3 million lbs to 97.3 million lbs in the latest report. The focus of the latest drilling campaign was to expand the size of the known resource and not to try to upgrade inferred resources to indicated resources.
Along with the inclusion of the results from the additional 16 holes, the change in tonnage and grade is also due in part to different parameters used for the new resource calculation. The price of copper used in the latest NI 43-101 report was $2.50 compared to $2.00 in the former report, which resulted in the use of a lower cut off of 1.1% copper equivalent instead of the previous 2% copper equivalent. The price of zinc used in the latest report was $0.90 instead of $1.00 in the former study. These changes in prices of the metals reflect the prices of the metals in the seventeen months between the reports. The complete list of assumptions used in the study can be found beneath the detailed resource estimate table below.
The deposit comprises 5 mineralized lenses within a 60 metre (m) width and 4 of the lenses are open to depth at > 1% copper equivalent mineralization. The lenses are oriented nearly vertical, with thickness ranging from 2 m to 20 m. The mineralized zones have been traced along strike for approximately 275 m, and are thought to extend from surface to a vertical depth of at least 550 m.
