SOURCE: Houston Lake Mining Inc.

January 25, 2008 12:01 ET

Houston Lake Begins Search for Option Partner for Tib Lake PGM Project

New Partner to Replace Magma Metals of Australia

SUDBURY, ON--(Marketwire - January 25, 2008) - Houston Lake Mining Inc. (PINKSHEETS: HLKMF) (TSX-V: HLM), an advanced exploration company actively seeking gold, platinum group metals and rare metals in northwestern Ontario, announced today the Company is beginning a search for a new partner to develop its Tib Lake PGM Project located near Thunder Bay, Ontario.

The action followed receipt of formal notice from Magma Metals Limited (ASX: MMB) of Perth, Western Australia that it has terminated its option on the property.

"Tib Lake is an outstanding exploration project located close to a major mill," said Grayme Anthony, President and CEO. "We are confident that we can attract a new partner, given the currently high commodity prices for platinum group metals and positive exploration results on this promising exploration property."

The 100%-owned, 2,496 hectare (6,167 acre) Tib Lake property is located in the Lac Des Iles (LDI) area just 15 km. (9 mi.) from the 15,000 tpd mill at the Roby Zone open pit mine of North American Palladium Ltd. A $40 million underground expansion has recently been completed at the nearby mine. The Tib gabbro, with a surface exposure of some 25 square km. (10 square miles), is the second largest intrusion of the LDI suite of rocks and, as such, is a prime target for PGE (palladium-platinum-gold) exploration.

In excess of $1.0 million in exploration has been expended to date on the Tib Lake property. Four PGE occurrences have been identified: Kuhner, West Shore, Road and Jewelweed. The vicinity of the Kuhner Zone has been the main target of previous exploration. The Kuhner Zone remains open to depth below near surface, core length intersections of:

* 18.5 m grading 1.68 g/t Pt+Pd+Au, 0.14% Cu, 0.18% Ni
* 22.0 m grading 1.26 g/t Pt+Pd+Au, 0.15% Cu, 0.16% Ni
* 14.5 m grading 1.12 g/t Pt+Pd+Au, 0.15% Cu, 0.16% Ni

A relatively new, as yet untested, interpretation of the PGE occurrences on the property indicates that the mineralization may be mainly associated with primary igneous layering similar in style to that of the prolific Merensky Reef of South Africa's Bushveld Complex.

Magma Metals had the right to earn a 70% interest by incurring exploration expenditures of $2.6 million and making total cash payments of $400,000 over a five-year period. Magma Metals was in the second year of the five-year option, having made $100,000 in cash payments and expended in excess of $250,000 in exploration. Under the agreement, Magma was required to make a $50,000 option payment this spring and complete $1.3 million in exploration expenditures by the end of the third year. Houston Lake's ownership interest is subject to a 2.5% NSR.

E. Grayme Anthony, P. Geo. is the Qualified Person for this news release under the guidelines of NI 43-101.

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 in the short term 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 27,364,746 common shares issued and outstanding. For additional information, please visit us at

Forward-looking Statements:

The TSX Venture Exchange has not reviewed and does not accept 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 Company's registered filings what are available at

Contact Information

  • Company Contacts:

    Houston Lake Mining Inc.
    E. Grayme Anthony P. Geo. MBA
    President and CEO
    Tel: 705-897-7622 ext. 225
    Fax: 705-897-7618
    Email Contact

    Barnes McInerney Inc.
    Colin Languedoc
    Senior Account Executive
    Tel: 416-367-5000
    Fax: 416-367-5390
    Email Contact

    Houston Lake Mining Inc.
    2892 White Street
    Val Caron, Ontario
    Canada P3N 1B2