Press Release Source: Houston Lake Mining Inc.
Houston Lake Drills 29.90 g/mt Au Over 7.50m Confirming High Grade Gold Mineralization at West Cedartree
Tuesday April 10, 4:10 pm ET
SUDBURY, ON--(MARKET WIRE)--Apr 10, 2007 -- Houston Lake Mining Inc. (CDNX:HLM.V - News) (Other OTC:HLKMF.PK - News) (the "Company") is pleased to announce results from the first 5 drill holes of a 17 hole, 2561m (8400ft) delineation drilling program on the 100% optioned Dogpaw Lake Property. The Dogpaw Lake Property forms part of the Company's 100% owned and optioned 1310 hectare (3236 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario.
All five drill holes encountered significant gold values in excess of 3.5 g/mt Au (0.100 oz/st Au). The 50 samples assayed from trace values to 435.6 g/mt Au (12.705 oz/st Au) and had an arithmetic average of 13.26 g/mt Au (0.387 oz/st Au). The best result was received from Drill Hole DP-2007-042 which yielded a core length intersection grading 29.90 g/mt Au over 7.50m (0.872 oz/st Au over 24.60 ft.). This hole was drilled in the vicinity of Drill hole DP-97-03 and served to confirm the reported historic drill results of 36.44g/mt Au over 8.00m (1.063 oz/st over 26.24ft). Drill hole DP-046 also encountered significant gold grading 13.37g/mt over a core length of 3.80 m (0.390 oz/st Au over 12.46ft) at an approximate depth of 72m (236ft). The next set of drill results are expected to be received within the next several weeks.
Table 1. Drill Hole Results for Holes 42 to 46 on the Dogpaw No. 1 Vein
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Drill Hole Intercept Gold Intercept Gold
Number From To (m.) (g/mt) (ft.) (oz/st)
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DP-042 51.70m 59.20m 7.50m 29.90 24.60ft. 0.872
Incl. 51.70m 56.43m 4.73m 46.91 15.51ft. 1.368
Incl. 53.33m 54.30m 0.97m 115.10 3.18ft. 3.357
Also incl. 56.20m 56.43m 0.23m 435.60 0.75ft. 12.705
DP-043 50.95m 51.80m 0.85m 3.53 2.79ft. 0.103
DP-044 43.37m 44.43m 1.06m 7.32 3.48ft. 0.213
DP-045 37.35m 38.40m 1.05m 4.68 3.44ft. 0.136
DP-046 82.90m 86.70m 3.80m 13.37 12.46ft. 0.390
Incl. 84.80m 86.70m 1.90m 21.52 6.23ft. 0.628
Incl. 85.90m 86.70m 0.80m 36.69 2.62ft. 1.070
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A 2561m (8400ft) delineation drilling program commenced on February 15, 2007 and targeted the historic gold resource of the Dogpaw No. 1 Vein. The aim of the program is to upgrade the historic resource to modern NI 43-101 standards by providing systematic coverage of the gold mineralization and by confirming results of past drill programs where available. The Company's exploration team has located, recovered and racked approximately 6,656m (21,831ft) of drill core from two previous drill programs. This drill core is in the process of being re-logged and audited as part of the resource evaluation.
The drill program successfully intersected the highly altered rock of the vein system to a depth of approximately 200m (656ft) and the vein system remains open to depth and along strike. The first five holes of the program, DP-042 to DP-046, were drilled along Sections 1075W and 1100W and were planned to intersect the Dogpaw No. 1 Vein below the bulk sample pit at depths ranging between 23m to 80m (75ft to 260ft). The Dogpaw No. 1 Vein is presumed to initially dip to Grid North at 70 degrees. True widths would therefore approximately be: 94% of the stated core lengths of the drill holes with 40° dips, 82% of the stated core lengths of the drill holes with 55° dips and 77% of the core lengths of the drill holes with 60° dips.
Table 2. Drill Hole Locations for Holes 42 to 46 on the Dogpaw No. 1 Vein
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Drill Hole No Section Northing Dip Azimuth Drill Hole Length
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DP-042 1075W 1060 -56 Grid South 74m 243ft
DP-043 1100W 1040 -52 Grid South 71m 233ft
DP-044 1075W 1060 -40 Grid South 70m 230ft
DP-045 1100W 1030 -40 Grid South 58m 190ft
DP-046 1100W 1066 -60 Grid South 128m 420ft
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All drill core samples were shipped to TSL Laboratories of Saskatoon, Saskatchewan and analyzed by fire assay utilizing a 50 gram charge. All samples were assayed with an AA finish and those samples assaying above 3 g/mt Au were retested utilizing a gravimetric finish. Results have been received from the first shipment of 50 samples. The samples will be re-checked at a second qualified laboratory in keeping with the Company's standard due diligence procedures.
Approximately 30 line-km of the IP geophysical survey is expected to be completed by the end of the week and affords total coverage of the Dogpaw Lake and Dogpaw West properties. The purpose of the geophysical program is to trace strike extensions of the Angel Hill and McLennan gold zones northward onto the Dogpaw Lake and Dogpaw West properties as well as identify new IP targets for follow up work. The survey is reported to be responding well to the sulfide-bearing rocks associated with the gold mineralization.
Independent Consulting Geologist Dean R. Cutting, P. Geo., is the Qualified Person for the project under the guidelines of NI 43-101 and has reviewed this press release in its entirety.
About the West Cedartree Gold Project
The West Cedartree Gold Project is located near Kenora, Ontario. Three key property acquisitions in the last year including the Dogpaw Lake, Dogpaw West and Gold Sun properties, have increased the land position to 1310 hectares (3236 acres) covering a 6km (3.6 mile) strike length of the key geology. The project contains 2 high-grade gold-bearing zones, the historic McLennan ("MGZ") and the recently discovered Angel Hill Gold Zones ("AHGZ") as well as multiple high grade vein systems contained within the Dogpaw Lake property (DPL).
In April 2006, a 1012 tonne bulk sample (grading 5.67 g/mt Au) was taken from surface on the AHGZ and processed at a third party mill. A total of 5,490.4 grams (176.5 ounces) was produced with a reported recovery of 93%. The bulk sample generated a cash settlement of $131,894 and a net profit of $51,848. The AHGZ has an inferred mineral resource of 106,400 tonnes grading 2.97 g/mt Au (see news release dated October 20, 2005). Houston Lake is in the process of permitting the AHGZ for open pit mining. A revised closure plan and the application will be reviewed by Wardrop Engineering Inc. prior to submission. The permit will enable Houston Lake to take advantage of any profitable third party milling opportunities and complete a 10,000 tonne bulk sample which is the next recommended step in the economic evaluation of the AHGZ.
The DPL has an extensive exploration history dating back to the 1940s. Four main gold zones and ten documented gold occurrences have been discovered thus far on the property. An historic mineral resource estimate of 53,741 metric tonnes grading 15.43 g/mt Au (59,240 short tons grading 0.45 oz/st Au) was calculated for the No. 1 Zone in 1944 by Noranda Minerals. A mineral resource inventory of 18,219 short tons grading 0.26 oz/st to a depth of 150ft was computed by Nuinsco Resources Limited in 1988.
The tonnages, grades, assays and other technical data are taken from historical records prior to the implementation of NI 43-101. While the data are believed to have been acquired, processed and disclosed by persons believed to be technically competent, it is unverifiable at present. The data source for the Dogpaw Lake gold property is largely provided by assessment records and prior work conducted by Houston Lake.
A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Houston Lake is not treating the historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and the historical estimate should not be relied upon.
About Houston Lake Mining Inc.
Houston Lake's objective in the short term is to become a gold producer by surface mining our West Cedartree gold project. The Company has a total of 24,144,156 common shares issued and outstanding. For additional information, we invite you to visit us at www.houstonlakemining.com.
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