SOURCE: Houston Lake Mining Inc.

July 06, 2006 08:00 ET

Houston Lake Intersects Significant Gold Values in Six of Nine Drill Holes at West Cedartree

SUDBURY, ON -- (MARKET WIRE) -- July 6, 2006 -- Houston Lake Mining Inc. (TSX-V: HLM), (the "Company") is pleased to provide assay results from the final five holes of a nine hole 1037m (3402ft.) Phase III diamond drill program recently completed on the Company's 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project. The purpose of the delineation drill program was to extend the Angel Hill gold resource from a depth 60m (197ft.) to 100m (328ft.). The Company recently tested the gold zone with a 1042 tonne bulk sample, receiving gross revenues of approximately $131,000. The Company has applied for a Small Scale Mining Permit and has satisfactorily completed the public hearing portion of the application. The project is located about 15km (9 miles) southeast of Sioux Narrows, Ontario.

Six of the nine holes (and three of the last five holes) of the drill program encountered gold values in excess of 7 g/mt Au (0.204 oz/st Au). Holes 28 to 34 targeted the Angel Hill Gold Zone ("AHGZ") while holes 35 and 36 tested the subparallel McLennan Gold Zone ("MGZ"). Drill Hole 35 intersected a core length of 4.25m grading 6.69 g/mt Au (13.37ft. grading 0.195 oz/st Au) including 1.00m grading 15.86 g/mt Au (3.28ft. grading 0.463 oz/st Au).


Table 1.  Results for Drill Holes 32 to 36 on the West
                   Cedartree Gold Project

--------------------------------------------------
Hole       Drill Hole                    Intercept
No. (Dip)   Location     From      To       (m.)
--------------------------------------------------
32 (-60
degrees)    2360mN     117.15m   120.50m   3.35m

33 (-72
degrees)    2360mN     109.15m   112.85m   5.15m

34 (-70
degrees)    2400mN     105.35m   113.75m   8.40m
             Incl.     105.35m   105.75m   0.40m
35 (-60
degrees)    2460mN      26.00m    35.00m   9.00m
             Incl.      28.95m    33.20m   4.25m
             Incl.      29.95m    30.95m   1.00m
36 (-45
degrees)    2440mN      44.25m    60.70m  16.45m
             Incl.      44.25m    47.25m   3.00m
             Incl.      46.25m    47.25m   1.00m
        Also Incl.      58.05m    60.70m   2.65m
             Incl.      59.00m    60.00m   1.00m

--------------------------------------------------
Hole              Gold       Intercept     Gold
No. (Dip)       (g/t Au)       (ft.)     (oz/t Au)
--------------------------------------------------
32 (-60
degrees)         0.24         10.99ft.     0.007

33 (-72
degrees)         0.09         16.89ft.     0.003

34 (-70          1.48         27.55ft.     0.043
degrees)        14.76          1.31ft.     0.430

35 (-60          4.04         29.52ft.     0.118
degrees)         6.69         13.94ft.     0.195
                15.86          3.28ft.     0.463

36 (-45          1.67         53.96ft.     0.049
degrees)         3.39          9.84ft.     0.099
                 7.24          3.28ft.     0.211
                 3.98          8.69ft.     0.116
                 7.61          3.28ft.     0.222
The AHGZ has an approximate dip of 70 degrees to the east while the dip of the MGZ is currently unknown but assumed to be of similar orientation. All drill holes were drilled perpendicular to the geologic strike of the gold zones. True widths are estimated to be 91% of core lengths for dips of -45 degrees, 82% of core lengths for dips of -55 degrees, 77% of core lengths for dips of -60 degrees, 71% of core lengths for dips of -65 degrees, and 64% of core lengths for dips of -70 degrees.

Table 2. Results for Drill Holes 28 to 31 on the
              West Cedartree Gold Project
--------------------------------------------------
Hole       Drill Hole                    Intercept
No. (Dip)   Location     From      To       (m.)
--------------------------------------------------
28 (-60
degrees)     2400N      93.60m   98.85m    5.35m
             Incl.      93.60m   94.70m    1.10m
29 (-60
degrees)     2380N      83.15m   88.75m    5.60m
             Incl.      84.15m   88.00m    3.85m
             Incl.      87.05m   88.00m    0.95m
30 (-70
degrees)     2380N      96.68m   98.85m    2.17m
             Incl.      96.68m   97.45m    0.77m
31 (-55
degrees)     2360N      88.80m   91.10m    2.30m
--------------------------------------------------
Hole         Gold          Intercept        Gold
No. (Dip)   (g/mt)           (ft.)         (oz/st)
--------------------------------------------------
28 (-60     3.06            17.55ft.        0.089
degrees)    9.03             3.61ft.        0.263

29 (-60     6.07            18.37ft.        0.177
degrees)    8.26            12.63ft.        0.241
           27.33             3.12ft.        0.797

30 (-70     3.17             7.12ft.        0.092
degrees)    8.16             2.53ft.        0.238

31 (-55
degrees)    0.22             7.54ft.        0.006
President and CEO, E. Grayme Anthony stated: "The 2006 drill program has now extended the Angel Hill gold mineralization to depths of over 100 metres (328 feet). We are heartened by the intersection of significant gold values in our deepest drilling as well as the increase in average alteration zone widths to the deepest and the southernmost portions of the drilled off area. This speaks well for the potential continuation of the gold zone to depth and along the trace of the coincident 1.4km long IP anomaly.

"The most pleasant surprise of the drill program is the McLennan Gold Zone results. Significant gold values have now been encountered in all three holes that tested this historic zone. Initial compilation of data from the Dogpaw Lake and West Cedartree properties indicates that an IP geophysical anomaly coincides with the McLennan Gold Zone. This anomaly can be followed for over 2.4km along the McLennan trend."


Table 3.  True Widths of the AHGZ Alteration
               Intersected in Drilling.
------------------------------------------------
Depth     2480N      2460N      2440N      2420N
------------------------------------------------
10m                 10.99m     15.04m     10.33m
25m      13.83m     12.46m      8.63m      7.75m
40m      17.43m     15.32m     18.13m     13.48m
60m                 23.55m     20.94m     15.87m
80m
100m
110m
Average  15.63m     15.58m     15.69m     11.80m
------------------------------------------------
Depth     2400N      2380N      2360N    Average
------------------------------------------------
10m      23.77m     19.06m     16.48m     15.95m
25m      18.54m     18.27m     13.10m     13.23m
40m      22.00m     18.61m     17.06m     17.43m
60m      20.26m     17.06m     18.16m     19.31m
80m      10.69m     20.68m     17.41m     16.26m
100m     16.81m     16.91m     22.80m     18.86m
110m                           19.42m     19.42m
Average  18.68m     18.43m     17.78m     17.62m
AHGZ alteration zone is an altered package of rocks that host the gold-bearing quartz pods and lenses. This alteration zone has a true width that varies from 7.75 to 23.55m, averaging 17.62m (25.42 to 77.24ft, averaging 57.79ft). Though pinching and swelling in width, the AHGZ appears to be gently widening to the south and to depth (see Table 3.).

Summer exploration programs on the West Cedartree Gold Project are slated to begin later this month and will involve property mapping and prospecting along the IP anomalies coinciding with the AHGZ and MGZ, stripping and channel sampling to extend the AHGZ for the next 100m (300 feet) along its southerly strike and evaluating surface exposures of the nearby historic MGZ. Grid refurbishment, geophysical surveys, geological mapping and the auditing of previous drilling is planned for the neighbouring Dogpaw Lake property. The aim of these programs will be to generate drill targets for an autumn drilling program.

A total of 297 drill core samples were shipped to TSL Laboratories of Saskatoon, Saskatchewan and analyzed by fire assay utilizing a 50-gram charge. Of this total, 287 samples were assayed with an AA finish and those samples assaying above 3 g/mt Au were retested utilizing a gravimetric finish. The assay results ranged from trace to 27.33 g/mt Au (0.797 oz/st Au). Ten samples, some with visible gold, from Drill Hole 34 were analyzed by fire assay with gravimetric analyses. This methodology provides a higher level of assurance by testing a large quantity of sample and monitoring the size distribution of the gold. Unlike previous Angel Hill gravimetric analyses, the Drill Hole 34 samples contained the majority of the gold in the larger size fraction (+150 mesh). The result of this size distribution was more moderate gold values than had been expected from visual examination of the core.

Independent Consulting Geologist Dean R. Cutting, P. Geo., is the Qualified Person under the guidelines of NI 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's objective in the short term is to become a gold producer and apply the profits towards the development of our 100% owned and optioned northwestern Ontario properties. The Company has a total of 21,281,974 common shares issued. For additional information, we invite you to visit us at www.houstonlakemining.com.

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

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