Mountain Lake Resources Inc. (TSX:MOA) soared more than 50 per cent to 21-month high in heavy trading Thursday after the Halifax-based company released drilling results from the Leprechaun gold deposit in Newfoundland.

The shares traded as high as 47 cents, the highest since July 2008, on the TSX Venture Exchange with nearly 1.9 million traded by mid-afternoon. Average daily volume for the stock is 34,000 shares.

The company said it had found significant amounts of high-grade gold mineralization at the Leprechaun deposit, part of the Valentine Lake gold project in central Newfoundland.

The project is operated by Marathon PGM Corp. of Toronto (TSX:MAR). Its shares gained 31 cents to $1.64, a 23 per cent increase on the Toronto Stock Exchange and above the previous 52-week high of $1.54.

The companies reported that the Leprechaun deposit has an inferred mineral resource of about 1,314,780 tonnes, grading 10.50 grams per tonne of gold. Based on that, the total estimated resource is 359,000 ounces of gold.

Mountain Lake has a 30 per cent interest in the Valentine Lake gold property, with an option to acquire the remaining 70 per cent from Richmont Mines Inc. of Rouyn-Noranda, Que. Richmont's shares (TSX:RIC) fell eight cents to $4.11.

Mountain Lake also has a subsequent suboption and joint venture agreement in which Marathon PGM can earn 50 per cent of the Valentine Lake property.