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Monday, 26th February 2007 (3058 views)

An option and join venture agreement has been struck between Mountain Lake Resources and Cornerstone Capital Resources over the Bobby Pond deposit.

The Letter of Agreement relates to the fact that Mountain Lake now has the option of earning a 51 per cent interest at the Bobby Pond deposit should it choose to spend a total of $2.75 million (£1.4 million) on exploration over a period of five years.

Alongside this, Mountain Lake must, over five years, also offer 200,000 shares to Cornerstone Capital Resources to earn the interest.

The 2.4 square kilometre Bobby Pond mining lease is currently being subjected to a drilling campaign in order to further define a zinc-copper-polymetallic volcanogenic massive sulphide deposit that is described by the firm as "significant".

Earlier this month, a mineral resource estimate came out as 1,340,000 tonnes, both indicated and inferred. From the work completed during this campaign, it was decided that follow up drilling will begin in April at various intercepts that are under 300 metres.

 

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