NEWS RELEASE: Company is starting their drill program.
Regards
Dan
Houston Lake Mining Inc - News Release
Houston to commence drilling at Tib Lake
Houston Lake Mining Inc HLMShares issued 12,228,2662000-09-01 close $0.47Tuesday Sep 5 2000News ReleaseMr. E. Grayme Anthony reports Houston Lake Mining has selected a drilling company from a number of tenders received and a drill is expected to be on the Tib Lake palladium property by early next week. Geological consultants will mobilize in advance of the drill. The $110,000 first closing will yield sufficient moneys to enable the completion of the 1,000-metre (3,280-foot) diamond drilling program and allow the as yet unexplored eastern third of the 1,632 hectare (4,030 acre) property to be prospected. Houston Lake has earned a 100-per-cent interest in the property subject to a 2.5-per-cent net smelter royalty with a buyback of 1 per cent for $1-million. Houston Lake has received conditional approval from the Canadian Venture Exchange for the $150,000 proposed financing announced on July 20, 2000. The company will issue 275,000 units priced at 40 cents in the first closing which was announced on Aug. 16, 2000. Each unit consists of one flow-through common share and one-half of a purchase warrant. One full warrant can be exercised at 50 cents for a period of eight months. The private placement has a four-month hold period subject to Alberta and Ontario resale restrictions of 12 months and 18 months respectively. The Tib Lake property was recently visited to verify targets generated in previous geological mapping, magnetic and IP (induced polarization) geophysical surveys, and stripping programs. Independent consulting geologist, Ken Germundson, PhD, and company president, E. Grayme Anthony, PGeo, FGAC, identified an extensive area containing heterogenous gabbro and gabbro breccia extending about 2.5 kilometres (1.5 miles) from the Jewelweed palladium occurrence to the Kuhner palladium occurrence. This zone may reach over 500 metres (1,640 feet) at its widest extent and is similar to that noted at the Roby zone of the nearby Lac des Iles mine of North American palladium Ltd. Sulphide liquation, magma mixing and volatile flushing are important ore-forming processes identified in platinum-palladium mines elsewhere in the world. These processes have been identified within this heterogenous gabbro/gabbro breccia rock unit, attesting to the potential of the Tib Lake property. The diamond drilling program will consist of six drill holes and total approximately 1,000 metres (3,280 feet). The program will target similar geophysical responses to that registered within the heterogenous gabbro/gabbrobreccia rock unit at the Kuhner occurrence, the site of the 1995 drill hole, TL95-09, which intersected a core length of 18.47 metres grading 1.68 grams per tonne (g/t) PGE's (60.6 feet grading 0.05 ounces per ton PGE's). Prospecting will explore the vicinities of four other IP target areas announced on April 5, 2000. In addition, the property will receive prospecting coverage to confirm the extension of favourable rock units noted on Ontario Geological Survey maps to the east of the Kuhner occurrence. If confirmed, an additional two kilometres (1.2 miles) of strike length would be added to the existing 2.5-kilometre (1.5 mile) strike length of the heterogenous gabbro/gabbro breccia unit on the Tib Lake palladium property. Houston Lake has cancelled a proposed financing announced on May 3, 2000, involving the maximum issuance of 250,000 units at a price of $1.20 per unit for maximum gross proceeds of $300,000. Each unit consisted of one flow-through common share, one non-flow-through common share and a purchase warrant exercisable at 70 cents for a period of one year and 80 cents for the second year. The company has granted to directors and employees of the corporation incentive stock options in the amount of 250,000 common shares at an exercise price of 36 cents. This represents a 25-per-cent discount to the previous day's closing price of 47 cents and is subject to a one-year hold period. |
