Houston Reports Fourth Quarter Results
Friday, July 29, 2011 2:30:00 PM ET
Houston Lake Mining Inc. (TSX.V: HLM), is an advanced exploration
company which has prospected and strategically acquired contiguous gold
properties in Northwestern Ontario with the objective of transitioning
into production. HLM also seeks platinum group and rare metal deposits
in Northwestern Ontario. Today, HLM filed its report for the fourth
quarter, and year ended March 31, 2011.
Year End Highlights:
HOUSTON APPOINTS MARIAN (MIKE) KOZIOL (P.GEO) AS NEW BOARD MEMBER
On January 27, 2011 Houston announced the appointment of Marian (Mike)
Koziol, P.Geo to the board of directors. Mr. Koziol serves as the
President and Director of Alto Ventures Ltd. and resides in Sudbury,
Ontario. Alto Ventures Ltd. (Alto) is a Canadian gold exploration
company with projects in Ontario, Quebec, Manitoba and British
Columbia. Mr. Koziol is a geologist with 32 years of experience
exploring for gold and base metals in the Canadian Shield. He played
key roles in a number of gold and base metals discoveries during his
career with Saskatchewan Mining Development Corporation and Cameco
Gold Inc. (CGI), including the McIlvenna Bay Copper-Zinc deposit,
Saskatchewan, and the Comtois and Destiny gold deposits in Quebec.
During his tenure as District Geologist from 1996 to 2002, Mr. Koziol
was responsible for all exploration activities carried out by CGI in
Eastern Canada, where he evaluated, acquired, and managed a number of
multimillion dollar gold exploration projects in Manitoba, Ontario and
Quebec. While at Alto Mike has acquired a number of high potential
gold projects in Quebec and Ontario and is working to advance them.
HOUSTON ANNOUNCES ACQUISITION OF RARE METALS PROPERTIES,
INCREASING THE SIZE OF THE COMPANYS PAKEAGAMA RARE METALS PROJECT IN
NORTH WESTERN ONTARIO
On January 18, 2011, Houston announced the execution of an option of
prospective and adjacent rare metal properties in order to
substantiate the Companys controlled land position and size of the
Pakeagama Rare Metals Project located in the Red Lake Mining District
of northwestern Ontario, Canada. Houston Lake now holds a 100 percent
interest in 1,024 hectares (2,530 acres) of mining claims at its
Pakeagama Rare Metals Project. This land position covers all known
exposures of the Pakeagama rare metals pegmatite. All four properties
are subject to a 2.5 percent Net Smelter Royalty ("NSR").
HOUSTON DISCOVERS NEW GOLD ZONE AND INTERSECTS FURTHER
In August, HLM reported the results of 100 channel samples taken from
22 lines of surface exploration work which identified a potential new
Robertson gold mineralized zone. The best sample result was 2.97 g/t
Au over a length of 0.43 meters from Line 14. This interval was from a
longer sample of 1.22 meters averaging 2.13 grams per tonne.
In September, HLM commenced a Phase I, 1000 meter, 8 hole Robertson
Prospect Exploration drill program.
Drill hole WC10-05 intersected 22.60 Metres of 2.047g/t Gold Including
4.30 Metres of 4.740 g/t. Further drilling is independently
recommended and commenced on the zone in April 2011.
HOUSTON EXTENDS MCLENNAN GOLD ZONE TO 450M OF MINERALIZED STRIKE
In March, HLM commenced a drill program on the historic 260m long
McLennan Gold Zone. The best hole was WC-11-45 where it intersected
2.54 g/t gold over 4.9 m including 7.43g/t over 0.7 m near surface.
Surface work by HLM in 2010 resulted in the discovery of a 10.79 g/t
gold grab sample. The surface sample was taken 2.5 km southwest of the
McLennan Gold Zone in an unexplored area near the same mafic-gabbro
contact as the McLennan Gold Zone. This is a very positive indicator
that this sheared contact area is a favourable target for gold and
there is an impressive 6.6 km of geology to explore on strike to the
north and south of the present-day McLennan Gold Zone.
Houston issued 2,143,333 Units priced at $0.15 per unit for gross
proceeds of $321,500 through a non-brokered private placement.
"We have taken logical steps in our corporate affairs and in our
exploration efforts, specifically on the West Cedartree Gold Project
during this rebuilding period. HLM continues to work towards being
positioned with access to funds, developing numerous exploration targets
built from historic and NI 43-101 resources, and adding experienced
directors and management in order to properly guide HLMs growth
initiatives." said Trevor Walker, President of Houston. "The current
goal on the West Cedartree Gold Project is to identify the resource
potential based from six known gold zones as fast as possible with the
goal of then building economic ounces through guided drilling. Further
attention is being brought to our project as Northwestern Ontarios gold
exploration is quickly being an exploration focus due to other corporate
consolidation and exploration successes of many gold exploration
companies as of late, more specifically Coventry Resources Limiteds
Cameron Gold Deposit which is in excess of one million ounces and is
located approximately 12 km away."
"Strong market interest in rare metals has made our Pakeagama Rare
Metals Project the chief focus of a staking rush north of Red Lake,"
said Trevor R. Walker, President. "We believe that we hold the key
ground identified by the Ontario Geological Survey (OGS) in their
1998-1999 rare metals evaluation of the region and are happy to have
optioned grounds that strongly suggest the extension of the known
mineralized pegmatite. High grade cesium, tantalum, rubidium and lithium
oxide values have been reported in the Core Zone of the exposed
pegmatite which is open in all directions on our project."
Exploration outlays, salaries and other outlays were funded from
treasury. During the twelve months ended March 31, 2011 Houston spent a
total of $938,735 in the mining properties. A total of $414,447 was
spent in acquisition and exploration costs for the Dubenski property. A
total of $481,890 was spent on exploration for the West Cedartree
Property (specifically on the newly discovered Robertson Gold Zone, and
McLennan Gold Zone) and $8,593 was incurred on the Pakeagama Lake Rare
Expenses for the twelve months ended December, 2010 were $895,057
compared to $589,397 for the same period of the previous year.
For the twelve months ended March 31, 2010 Houston incurred a net loss
of $854,701 ($0.02/share) compared to a net loss of $325,968
($0.01/share) for the same period ending in 2010.
The Companys current rate of cash consumption, excluding expenditures
on work programs, is approximately $55,000 per month.
Houston will continue to focus on exploration and development objectives
of the WCGP with a secondary focus on the Pakeagama Rare Metals Project:
West Cedartree Gold Project
During the twelve months ending, 1500 metres have been drilled on the
Dubenski Property, 1000 metres has been drilled on the newly discovered
Robertson Gold Zone, and 1308m has been drilled on the historic McLennan
Gold Zone. In March 2011, a phase II, 1,214m drill program commenced on
the Robertson Gold Zone.
We have initiated investigation of surface targets at Dogpaw and along
the Angel Hill gold trend, more specifically in the vicinity of the
newly discovered Robertson Gold Zone.
HLM has recently been making progress on the Dogpaw Lake Gold Zone by
compiling and reviewing the data from previous management on the known
gold-bearing veins. Of note, approximately 75% of drilling conducted by
HLM has intersected values of 3 g/t or higher including the best drilled
intercept yielded from drill hole DP07-42 with 7.5 meters of 29.9 g/t
gold. High grades, and close proximity to the underexplored contact
between the large gabbro body and volcanics provide an impressive 4.6 km
of geology to explore on to the north and south of the present-day
Dogpaw Gold Zone and makes it another key exploration target. In 2010
HLM reported up to 105 g/t gold from channel sampling in vein No. 5 on
the Dogpaw Lake Gold Zone. The Dogpaw Vein No. 5 occurs 470 meters
north-northeast of Vein No. 1, and occurs in the same gabbroic host
rocks as the Vein No. 1, No. 2, No. 4 and No. 6 gold mineralizing
system. Currently we are prospecting the Dogpaw with the intent of
quickly conducting a trenching program to reveal the surficial
relationship between the various known high grade veins on the property.
Dependent on results, we will be quick to follow up with washing and
channel sampling with the objective of a delineation program to at least
continue with the existing targets based on past drilling on veins No. 1
and No. 2 and the immediate attention of vein No. 4 and others that may
arise from our current work.
We currently have two NI 43-101 compliant resources on two of our gold
zones (Angel Hill and Dubenski) and a historical resource on a third
(Dogpaw Lake Mineralized Zones). In 2010 we focused a good portion of
our drilling on the Dubenski Gold Zone. We initiated and completed
phases IV and V of drilling which was aimed at expanding the resource
along strike and at depth. Our drilling confirmed the extension of the
Dubenski Mineralized Zone and proving that the Shaft, Central and East
Zones form a continuous gold mineralizing system. The drilling also
extended the gold mineralization to over 465 metres of strike length. We
have encountered mineralization at a depth of 450m vertical, this is
encouraging, despite encountering some cross faulting on the western
extension of the zone. We have accomplished approximately 6000m of
drilling since our last resource calculation, and are working on 3D
modelling to aid in the next exploration holes to be done on strike,
rather than expensive, deep drilling before we look at updating the
Houston Lakes overall goal is to identify enough resources at six
possible locations (Dogpaw, Dubenski, Angel Hill, Robertson, and
McLennan gold zones) in order to justify production or economically
construct a mill facility on site.
Pakeagama Rare Metals Project
Exploration Plans for 2011 include a summer Mobile Metal Ion (MMI)
geochemical survey. The objective of this program is to aid in the
targeting and planning of a Phase I winter diamond drill program. Upon
completion of the MMI survey and the Phase I diamond drill program, the
knowledge gained should allow us to have a rare and exclusive
geochemical survey tool we can use in the exploration for rare-metal
pegmatites in northern Ontario. In order to significantly reduce the
costs associated with a helicopter supported summer drill program, HLM
is planning on drilling Phase I in the winter months of 2012 and
accessing the project utilizing the winter road network that runs within
6 kilometres of the project.
About Houston Lake Mining Inc.
Houston Lake is an advanced, vertically integrated resource exploration
company. The Company is actively exploring for gold, platinum group
metal and rare metal deposits in Northwestern Ontario with a strategic
focus on the West Cedartree Gold Project. Houston Lakes objective is to
become a gold producer by surface mining its West Cedartree Gold Project
and developing its 100% owned and optioned properties. The Company has a
total of 49,532,637 common shares issued and outstanding exclusive of
the announced financing. For additional information, please visit us at www.houstonlakemining.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially
from those in forward looking statements include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and those actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
Investors should review the Companys registered filings what are
available at www.sedar.com.
SOURCE: Houston Lake Mining Inc.
Houston Lake Mining
Trevor R. Walker, MBA