SOURCE: Houston Lake Mining Inc.

May 07, 2007 00:01 ET

Houston Lake Further Confirms High Grade Gold Drill Results at West Cedartree, 100% Earn In of Dogpaw Option Now Completed

SUDBURY, ON -- (MARKET WIRE) -- May 7, 2007 -- Houston Lake Mining Inc. (TSX-V: HLM) (the "Company") is pleased to announce that the Company has received results from the first five holes auditing the 41 hole, 4,323m (14,180ft) 1997 diamond drill program and the second set of five drill holes from the 17 hole, 2,561m (8,400ft) 2007 delineation drilling program on the 100% optioned Dogpaw Lake Property ("DP"). The DP forms part of the Company's 100% owned and optioned 1,310 hectare (3,236 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario. Houston Lake has completed the 100% earn in of the DP from Golden CAML Mines Limited of Timmins, Ontario, two years ahead of schedule by issuing the required 400,000 common shares and expending more than $500,000 in exploration on the property.

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        Table 1. Current Results for Drill Holes on the Dogpaw No. 1 Vein
        ------------------------------------------------------------------
Drill Hole                         Intercept     Gold    Intercept   Gold
Number         From        To         (m.)      (g/mt)      (ft.)   (oz/st)
------         ----        --      ---------    ------   ---------  -------
DP-97-004     15.20m     17.45m       2.25m      17.33     5.06ft.   0.505
       Incl.  16.00m     17.05m       1.05m      19.38     3.44ft.   0.565
DP-97-005     74.20m     74.95m       0.75m       3.33     2.46ft.   0.097
DP-97-006    105.40m    106.50m       1.10m       0.59     3.61ft.   0.017
DP-97-009     13.40m     16.00m       2.60m       3.72     8.96ft.   0.108
       Incl.  13.40m     14.45m       1.05m       7.16     3.44ft.   0.209
DP-97-016     81.10m     86.90m       5.80m       6.16    19.02ft.   0.180
       Incl.  85.60m     86.90m       1.30m      20.87     4.26ft.   0.609
---------------------------------------------------------------------------
DP-07-047     79.30m     81.50m       2.20m       3.51     7.22ft.   0.102
       Incl.  79.30m     79.65m       0.35m       8.98     1.15ft.   0.262
DP-07-048     29.00m     30.65m       1.65m       2.18     5.41ft.   0.064
       Incl.  29.55m     30.08m       0.53m       4.84     1.74ft.   0.141
DP-07-049     76.30m     81.35m       5.05m       1.35    16.56ft.   0.039
       Incl.  80.15m     80.60m       0.45m       3.53     1.48ft.   0.103
DP-07-050     63.30m     63.80m       0.50m       0.02     1.64ft.   0.001
DP-07-051    189.30m    190.80m       1.50m         Tr.    4.92ft.     Tr.

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Seven of the ten drill holes encountered gold values in excess of 3.0 g/mt Au (0.087 oz/st Au). The 111 samples assayed from trace values to 20.87 g/mt Au (0.609 oz/st Au). The best results were received from drill holes DP-97-004 which returned a core length intersection grading 17.33 g/mt Au over 2.25m (0.505 oz/st Au over 5.06ft.) at an approximate depth of 15m (49ft.) and DP-97-016 which intersected a core length of 6.16 g/mt Au over 5.80m (0.180 oz/st Au over 19.02ft.) at a depth of about 62m (203ft.). Additional drill results are expected to be announced within the next few weeks.

A 2,561m (8,400ft) 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 NI43-101 standards by providing systematic coverage of the gold mineralization and by confirming results of past drill programs where available. A preliminary examination of the historic core suggests previous sampling of mineralized sections was incomplete and that more sampling may be required to properly document the Dogpaw Vein No. 1 gold system. The Company's exploration team have located, recovered and racked approximately 6,656m (21,831ft) of drill core from two previous drill programs. Only the portion of this drill core testing the Dogpaw No. 1 Vein is currently being re-logged and audited as part of the resource evaluation.

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Table 3. Drill Hole Locations on the Dogpaw No. 1 Vein.

Drill Hole                                               Drill Hole  Target
Number      Section   Northing      Dip        Azimuth      Length    Depth
---------   -------   --------      ---        -------      ------    -----
DP-97-004    1075W     1032     -60 degrees   Grid South      72m      15m
DP-97-005    1100W     1063     -52 degrees   Grid South     105m      60m
DP-97-006    1125W     1077     -50 degrees   Grid South    126.4m     75m
DP-97-009    1200W      946     -50 degrees   Grid South      60m      15m
DP-97-016    1075W     1092     -49 degrees   Grid South      96m      62m
---------------------------------------------------------------------------
DP-07-047    1125W     1063     -45 degrees   Grid South     104m      63m
DP-07-048    1150W      977     -45 degrees   Grid South      59m      17m
DP-07-049    1150W     1036     -42 degrees   Grid South      98m      56m
DP-07-050    1150W     1036     -55 degrees   Grid South     104m      77m
DP-07-051    1125W     1123     -45 degrees   Grid South     242m     110m

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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 Dogpaw No. 1 Vein is presumed to initially dip to Grid North at 70 degrees. True widths would therefore approximately be: 64% of the stated core lengths of the drill holes with 40 degrees dips, 71% of the stated core lengths of the holes with 45 degrees dips, 77% of the stated core lengths of the holes with 50 degrees dips, 82% of the stated core lengths of the holes with 55 degrees dips and 77% of the core lengths of the drill holes with 60 degrees dips.

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 now been received from a total of 161 samples. A visual comparison of the 57 verification samples with the past results from the 1997 drilling program depicts a roughly similar value distribution. However, a nugget effect is suggested by the lack of repeatability of some of the individual sample results. Therefore, all samples will be re-analyzed utilizing a screen metallic assay method. This methodology provides a higher level of assurance by testing a large quantity of sample (1000g) and by monitoring the size distribution of the gold. The samples will also be re-checked at a second qualified laboratory in keeping with the Company's standard due diligence procedures.

Results from the 30 line-km 2007 IP geophysical survey are expected to be received in the next few weeks. The survey affords total coverage of the DP 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 DP and Dogpaw West properties as well as identify new IP targets for follow up work. The survey was reported to be responding well to the sulfide-bearing rocks associated with the gold mineralization.

Technical crews are mobilizing to the property this week to begin the spring and summer exploration program on the property. Work will entail 70km of grid refurbishment, property-wide geological mapping and prospecting, mechanized trenching and stripping as well as detailed mapping of vein systems on the Dogpaw Lake portion of the project and the southern extension of the Angel Hill Gold Zone ("AHGZ") and continued re-examination and re-assaying of the historic core as well as compilation from the surveying and re-assaying of all previous drilling over the Dogpaw No. 1 Vein. The Company is also gathering quotes for down-hole geophysical surveying to develop drill targets at depth on the AHGZ and Dogpaw No. 1 Veins. The aim of these programs is to define new drill targets and guide drilling on the expansion of resources on the project.

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, has increased the land position to 1,310 hectares (3,236 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 ("DP").

In April 2006, a 1,012 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 DP 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 24,344,156 common shares issued and outstanding. For additional information, we invite you to visit us at www.houstonlakemining.com.

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 www.sedar.com.

Contact Information

  • Company Contacts:

    A. Schwab & Associates
    Investor Relations
    1-800-537-4099 (toll-free)
    Email Contact

    E. Grayme Anthony B.Sc., P. Geo., FGAC, MBA
    President & CEO
    Tel: (705) 897-7622
    Fax: (705) 897-7618
    Email Contact