Houston Lake Mining Inc.

Houston Lake Mining Inc.

March 21, 2006 09:00 ET

Houston Lake Completes Bulk Sample Shipment to Mill, IP Survey Increases Angel Hill Gold Zone Strike Length to over 1500m

SUDBURY, ONTARIO--(CCNMatthews - March 21, 2006) - Houston Lake Mining Inc. (TSX VENTURE:HLM) (the "Company") is pleased to report that the Company has completed the trucking of a 1012 metric tonne bulk sample to a third party mill. The bulk sample is expected to be processed in early April. The bulk sample is the next recommended step in the economic evaluation of the inferred mineral resource contained within the Angel Hill Gold Zone "AHGZ"). The AHGZ is one of two gold zones identified thus far on the Company's 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project which is located near Sioux Narrows, Ontario. Houston Lake has also received preliminary maps of the recently completed IP survey. A pronounced IP chargeability anomaly corresponding to the AHGZ has now been traced for over 1500m (4920ft) in a south-southwesterly direction from the site of the bulk sample to the central portions of the project area.

As disclosed in the press release of October 20, 2005 the Angel Hill Gold Zone ("AHGZ") has an estimated inferred mineral resource of 106,400 tonnes grading 2.97 g/mt Au at a cutoff of 2 g/mt (117,286 short tons grading 0.087 oz/st Au at a cutoff of 0.058 oz/st) or 49,700 tonnes grading 4.77 g/mt Au at a cutoff of 4 g/mt (54,785 short tons grading 0.139 oz/st Au at a cutoff of 0.117 oz/st). Average recoveries of 93.4% have been indicated in preliminary bench tests. The AHGZ has a strike of N20ºE and dips to the east at about 70 degrees. The gold mineralization remains open to depth and along strike to the south.

The bulk sampling program forms part of the recommendations outlined in a recently published NI 43-101 report on the AHGZ (see press release dated October 20, 2005). The bulk sample is designed to test a portion of the AHGZ and is not intended to be representative of the entire inferred gold resource. A systematic pattern of vertical percussion drill holes has defined a higher grade core of gold mineralization which is the focus of the bulk sampling program. As previously reported, sampling has yielded assay values ranging from 0.054 g/mt Au over 1.52m to 85.9 g/mt Au over 1.52m (2.205 oz/t Au over 5ft.) and had a weighted average of 9.666 g/mt Au (0.282 oz/st Au). The actual grade of the processed bulk sample may be somewhat lower than this weighted average due to the effects of dilution and other factors.

JVX Limited of Richmond Hill, Ontario has recently completed an IP geophysical survey over a portion of the West Cedartree Gold Project. The survey tested responses from surface to a depth of approximately 75m (246ft) over a width of 1km (3280ft) to encompass both the recently discovered AHGZ and the historic McLennan Gold Zones ("MGZ"). The IP method transmits an electrical current through the ground and measures the ground's ability to maintain an electrical charge. A high chargeability reading equates to a relatively high metal content in the underlying rock. A high metal content is indicative of the presence of disseminated sulphides which may be associated with gold-bearing formations or possibly with finely distributed gold. A chargeability value of over 25 mV/V is considered a reasonably strong response.

Initial data indicated an exceptionally high chargeability response from each of the two gold zones. A pronounced chargeability high of 20.5 to over 50 mV/V is expressed by the MGZ while the AHGZ is defined by a chargeability range of 27.9 to in excess of 70 mV/V. Therefore, the IP survey program was expanded from a test survey of 10 line-km to include 15 line-km (or 1.0km to encompass 1.5km along strike of the gold zones).

A preliminary chargeability map covering the complete survey area has now been received. The AHGZ forms a pronounced chargeability anomaly that can be traced from the vicinity of the bulk sample site along a south-southwesterly trend for a distance of 1500m (4920ft) to the survey limit in the south central portions of the project area. The project boundary lies another 1.1km (3600ft) to the south of the current IP coverage. The MGZ can be traced for approximately 800m (2620 ft) along strike until the gold zone appears to merge with the AHGZ. Both of the gold zones are offset by minor NW-trending faults.

The 1000m (3280ft.) diamond drill program has been rescheduled to begin in April and aims to further delineate the depth and strike extents of the Angel Hill gold mineralization. Independent Consulting Geologist Dean R. Cutting, P. Geo., is the Qualified Person under the guidelines of National Instrument 43-101 and has reviewed this press release in its entirety.

About Houston Lake Mining Inc.

Houston Lake Mining Inc. is an exploration company listed on The TSX Venture Exchange under the symbol HLM. Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on northwestern Ontario. The Company has a total of 19,861,675 common shares issued and outstanding. For additional information, we invite you to visit us at www.houstonlakemining.com. To hear more about HLM.V from CEO Grayme Anthony please go to: http://www.publiccoreport.net/featured/HLM/company.asp.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • A. Schwab & Associates
    Investor Relations
    1 (800) 537-4099 (toll-free)
    Houston Lake Mining Inc.
    E. Grayme Anthony B.Sc., P. Geo., F.G.A.C., M.B.A.
    President & CEO
    (705) 897-7622
    (705) 897-7618 (FAX)