HOUSTON LAKE MINING INC.
PRESS RELEASE
Financing Closes For Tib Lake Palladium
and Pakeagama Lake Rare Metals Exploration
June 21, 1999: Calgary, Alberta - Houston Lake Mining Inc. ( Houston Lake ) is pleased to announce that it has closed a non-brokered private placement for total gross proceeds of $252,000. The Company has issued 616,666 units consisting of 1,233,332 common shares, 295,000 warrants exercisable at $0.30 for one year, and 13,332 warrants exercisable at $0.40 for one year. Half of the private placement value ($126,000) is renounceable on a flow-through basis for the fiscal year 1999. These funds will be used to commence the Phase 2 exploration program on the Tib Lake Palladium property and to carry out initial work on the Pakeagama Rare Metals Property.
Tib Lake Palladium Property
Phase 2 exploration will begin in the next few days on Houston Lake s Tib Lake Palladium Property which is located 15 km by road from the Lac des Iles Palladium Mine in the Thunder Bay area of Ontario. The Company recently confirmed a 1995 drill hole from the property returning 1.60 g/t PGE s (combined precious metals: palladium, platinum, and gold) over an estimated true width of 13.6 metres. The Phase 2 exploration program recommends geological mapping, trenching and stripping, Induced Polarization (IP) geophysical surveys and diamond drilling. The exploration program is being managed by independent consulting geologist, Andreas Lichtblau, F.G.A.C.
Houston Lake has, to date, expended approximately $150,000, issued 25,000 common shares, and made cash payments of $22,500 on the property . An additional expenditure of $150,000 and issuance of 50,000 common shares is required by March 16, 2000 to complete the 100 per cent option of the Tib Lake property. The agreement is subject to a 2.5 per cent net smelter return royalty (see Press Release dated March 13, 1998).
Pakeagama Lake Rare Metals Property
The Pakeagama Lake property is located approximately 170 km north of Red Lake, Ontario and hosts a rare metals occurrence measuring 270 meters long by 10 to 70 meters wide at surface and is open in both directions along strike. Microprobe analyses of samples taken by Dr. Fred Breaks of the Ontario Geological Survey on Houston Lake's Pakeagama Lake Rare Metals Property during 1998 work, has recently been completed. The 1183 microprobe analyses from 35 samples were conducted by Dr. A. G. Tindle at the Open University in the United Kingdom. Seven tantalum-bearing ore minerals have been identified from the microprobe analyses: manganotantalite, ferrotantalite, manganocolumbite, ferrotapiolite, microlite, stibiotantalite, and wodginite. The presence of wodginite is deemed to be significant as it forms the principal ore mineral at the Tanco Deposit, Manitoba and at Wodgina, Australia. At least three generations of columbite-tantalite crystallization are interpreted to be present. The 120 metre wide lithium-cesium anomaly that flanks the exposed rare metals pegmatite mass is open to the southwest and along strike. The width of the anomaly and a pronounced peak value of 400 g/t cesium are considered to be significant. A property visit is planned in order to prepare an initial program recommendation.
Houston Lake has made its first year option payment of $30,000 and issued 62,500 common shares on the Pakeagama Lake property. The Company is required to issue an additional 137,500 common shares, make further cash payments totaling $120,000, and expend $63,000 over 3 years to earn a 100 percent interest in the Pakeagama Lake Property. The Option Agreement is subject to a 2.5 percent N.S.R. (see Press Release dated March 29, 1999).
The common shares of Houston Lake Mining Inc. trade through the facilities of the Alberta Stock Exchange under the symbol HLM. Houston Lake has a total of 11,339,932 common shares issued and outstanding, inclusive of the financing referred to above.
For more information, please contact:
E. Grayme Anthony Blackwell Investor Relations
Tel: (705) 897-7622 Tel: (416) 869-0632/(416) 364-3123
Fax: (705) 897-7618 Fax: (416) 364-5400
e-mail: houston@vianet.on.ca e-mail: blackwell@myna.com
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Comment: The planned property visit is timely with Dr. Breaks (OGS) on the property.
DRT |
