Houston Lake Mining Inc.
TSX VENTURE : HLM

Houston Lake Mining Inc.

November 05, 2009 16:58 ET

Updated NI 43-101 Mineral Resource Estimate Received for Houston Lake Mining's Dubenski Gold Property

Indicated Category Au Ounces Increase by 84%

10,730 Metre Drill Program Independently Recommended

SUDBURY, ONTARIO--(Marketwire - Nov. 5, 2009) - Houston Lake Mining Inc. (TSX VENTURE:HLM), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, is pleased to announce that a National Instrument NI 43-101 compliant updated Mineral Resource estimate on the Dubenski Mineralized Zone has been received from P&E Mining Consultants Inc. ("P&E"), an independent geological and mine engineering consulting firm based in Brampton, Ontario.

"The drilling of the Dubenski Mineralized Zone (DMZ) has exceeded our expectations," said E. Grayme Anthony, P. Geo., President and Chief Executive Officer. "We have increased the Indicated Resource contained ounces by factor of 84%."

Mr. Anthony further stated: "Given that the gold resource is near surface, I believe we have only just started to reveal the potential at Dubenski. We have drilled only a 365 metre strike length of a 1,700 metre IP geophysical anomaly. The IP signature strengthens to a depth of over 450 metres and we have drilled to a depth of scarcely 100 metres. We look forward to the possibility of further expansion of the resource as it remains open in all directions and a large drill program is independently recommended."

In 2008, Watts Griffis and McOuat ("WGM") was contracted to carry out a technical review of the Dubenski Property and design and supervise a definition drilling program in order to prepare a NI 43-101 compliant Mineral Resource estimate for the Dubenski Shaft Zone portion of the historic gold resource. The categorized Mineral Resources from that technical report at a 1.0 g Au/t cut-off grade were as follows:

Table 1. Summary of Shaft Zone Previous Mineral Resource Estimate
(Cutoff of 1.0 g Au/t)
By Watts, Griffis and McOuat (2008)

Category Tonnes Au (g/t)
(uncapped)
 Ounces
(uncapped)
 Au (g/t)
(capped)
 Ounces
(capped)
Indicated 177,400 7.32 41,750 5.97 34,050
Inferred 118,700 5.63 21,500 5.02 19,150

Notes: Au is capped at 50 g/t, assumed gold price was US$650/ounce

In August 2009, P&E was contracted to prepare an updated NI 43-101 compliant Mineral Resource estimate for the Dubenski Mineralized Zone. Independent Consulting Geologist, Bryan McKay, P. Geo. is the main author of the NI 43-101 report. This calculation updates the WGM resource estimate published in January of 2009.

The Dubenski Mineralized Zone resource model was delineated from a database containing 72 diamond drill holes on 15 metre spaced sections and 27 surface trenches over a strike length of 375 metres and a down dip distance of 150 metres. Inverse distance cubed grade interpolation was utilized on one metre composites derived from capped assays. Tonnage calculations utilized a bulk density of 2.77 tonnes per cubic metre.

The optimized open pit resource gives a preliminary indication of potentially extractable mineralization at this point in time. The model is especially useful in indicating where added drilling is needed to upgrade the resource to extractable material as defined by the pit optimization.

Table 2. Dubenski Mineralized Zone Resource Estimate Utilizing Optimized Pit Shell

  INDICATED INFERRED
Cut-Off Au g/t Tonnes Au g/t Au oz. Tonnes Au g/t Au oz.
Pit 0.65 g/t 524,000 3.55 59,800 12,000 1.96 800
UG 2.5 g/t 27,000 3.26 2,900 10,000 3.32 1,000
TOTAL 551,000 3.53 62,700 22,000 2.57 1,800
  1. The updated resource for the Dubenski Mineralized Zone was estimated on the basis of the Oct 31/09 24 month trailing average Au price of US$895/oz and $US exchange rate of $0.92. The open pit cut-off grade of 0.65 g/t Au was derived from $C2.50/tonne mining, C$15/tonne processing, C$5/tonne G&A and 95% process recovery. The open pit portion of the resource was defined in a 50 degree slope optimized pit shell. The underground cut-off grade of 2.5 g/t Au was derived from $55/tonne mining, C$15/tonne processing and C$5/tonne G&A and 95% process recovery.
  2. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  3. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
  4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

Excerpts from Preliminary Notes NI 43-101 Technical Report

"The east-west trending, steeply south dipping, Dubenski Mineralized Zone (DMZ) is now defined as a continuous zone of alteration and auriferous mineralization characterized by intense sericitization and carbonatization overprinted by intense silicification accompanied by patchy fuchsite alteration. Sulphide mineralization within the zone occurs as fine-grained disseminated pyrite and scattered mm to sub-mm scale euhedral pyrite crystals. Rare chalcopyrite and galena occur in quartz veins. Sulphide content varies from trace to 5% and averages 2%. Gold occurs as minute specks and is usually associated with coarse pyrite.

Historically the DMZ was defined as three distinct and separate geographical zones known, from west to east, as the Shaft Zone, the Central Zone and the Peninsula Zone. The Shaft Zone was further divided into the East and Far East Zones based on the results of widely spaced drilling. The recent drilling by Houston Lake has confirmed the continuous nature of the DMZ and merging of the three historical zones.

The latest resource calculations completed by P&E were conducted on the Shaft Zone and western portion of the Central Zone. The Shaft Zone portion of the DMZ is now defined by two distinct mineralized horizons, the North Zone and the South Zone. The earlier calculations by WGM modeled the DMZ as a single unit. A new interpretation of the Dubenski Deposit indicates the presence of distinct zones of mineralization at each contact of the DMZ. These two zones are separated by a zone of low-grade material which has been designated the "Heartless Zone". This Heartless Zone varies in width up to 5-8 meters. Each mineralized zone is further split into an east segment and a west segment at 23+35E. This dividing line occurs at the eastern end of the WGM drilling. The four segments of the Shaft Zone are designated the NW, SW, NE and SE domains.

The NW and SW domains encompass all of the WGM drilling and a few later holes west of the WGM drilling. The NE and SE domains encompass the remainder, lower grade sections of the Shaft Zone. There is no doubt in the author's mind that WGM managed to drill the "Heart" of the Shaft Zone and all subsequent drilling, in the DMZ, was uniformly lower grade. The "Heart" portion of the Shaft Zone is wider than the remainder of the Shaft Zone and contains all occurrences of visible gold detected in the 2008 and 2009 drilling.

A satellite zone to the Shaft Zone, the Footwall Zone, has been included in the latest calculations. The zone is defined solely by drilling and does not extend to surface. This zone was not included in the earlier WGM calculations but was referenced in their report as "Zone 2"."

The first of two proposed drilling campaigns for the Dubenski property are presented to provide some targets for additional drilling and budgeting and is comprised of 14 holes totaling 4,230 meters. These holes have the potential to add resources to the Shaft and Central Zones and to extend the limits of these zones. The initial, dual-purpose, results driven program is designed to continue the evaluation of the Shaft and Central Zones and to examine the down plunge and western extensions of the same zones. A second drill program totaling 6,500 meters is recommended dependent to follow up on these results.

This news release was reviewed by Eugene Puritch, P.Eng. of P&E Mining Consultants and Bryan McKay, P. Geo., who are Qualified Persons under the guidelines of the National Instrument 43-101. The NI 43-101 Technical Report on the Mineral Resource estimate will be filed on SEDAR within 45 days of this news release.

About the Dubenski Property

The Dubenski Property is one of eight contiguous properties comprising the Company's 100% owned and optioned 1,674 hectare (4,135 acre) West Cedartree Gold Project located near Kenora, Ontario. The project area encompasses three zones hosting gold resources at Angel Hill (NI 43-101 compliant resource of 106,400 tonnes grading 2.97 g/t Au), Dogpaw Lake No. 1 Vein (historic resource of 54,011 tonnes grading 15.43 g/t Au) and Dubenski (NI 43-101 compliant resource of 573,242 tonnes grading 3.50 g/t Au).

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.

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 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 Lake's 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 35,957,638 common shares issued and outstanding. For additional information, please visit us at www.houstonlakemining.com.

Forward-looking Statements

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 Company's registered filings what are available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Houston Lake Mining
    E. Grayme Anthony P.Geo., MBA
    President and CEO
    705-897-7622
    705-897-7618 (FAX)
    ganthony@vianet.on.ca
    www.houstonlakemining.com
    or
    In Canada:
    Linx Partners Ltd.
    Wanda Cutler
    416-303-6460
    or
    In United States:
    ICS
    George Duggan
    818-542-6880