SOURCE: Houston Lake Mining Inc.

December 18, 2008 15:24 ET

Houston Lake Mining Completes Phase II Drilling on the Dubenski Gold Property

Shaft Zone Extended to Over 165 Metres Along Strike; 3D Modelling Illustrates Strengthening IP Response With Depth

SUDBURY, ON--(Marketwire - December 18, 2008) - Houston Lake Mining Inc. (TSX-V: HLM) (PINKSHEETS: HLKMF), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, is pleased to announce that the Phase II 22 hole, 2,232m (7,321 ft.) diamond drill program has been completed in the vicinity of the Shaft Zone. The Shaft Zone forms a significant portion of the Dubenski historic gold resource of 355,286 tonnes grading 6.32 g/mt gold (391,636 tons averaging 0.184 oz/st gold). The current drill program aims to expand the Shaft Zone resource from the Phase I drilling carried out earlier this year. A total of 205 core samples have been shipped thus far. Results are expected in 6 to 8 weeks and will be announced as soon as they are received.

"Last winter's Phase I drill program at the Dubenski Shaft Zone returned some of the best gold intercepts in Houston Lake's history (see Table 1)," said E. Grayme Anthony, President and Chief Executive Officer. "The Phase II program has successfully extended the Shaft Zone from 60 metres to over 165 metres along strike and 3D models illustrate an improving geophysical response with depth. We are encouraged that the key features that distinguish the Shaft Zone have been intersected in the Phase II drill core."

The recently completed Phase II drill program has added four new drill sections to the east and two new drill sections to the west of the four sections intersecting the highly altered rocks of the Shaft Zone. Drilling by Houston Lake last winter has defined the Shaft Zone for a strike length of 60 metres (197 feet) and to a depth of approximately 100 metres (328 feet). The altered rocks of the Shaft Zone have now been traced for a total strike length of 165 metres (541 feet). Drilling at depth encountered a north-south striking fault which has offset the zone approximately 25 metres (82 feet) to the north. However, the package of rocks hosting the gold zone continues on the other side (to the west) of the fault. It is noted that the altered rocks defining the Shaft Zone have been traced to vertical depth of 230 metres (754 feet) in a hole drilled by Avalon Ventures in 1997.

A deep IP survey was conducted in February and March of 2008 by Matrix GeoTechnologies Ltd. ("Matrix") of Toronto. The survey identified a strong conductive anomaly that is continuous for over 1,200 metres (3,936 ft.) and coincides with the Shaft, Central and East Zones of Dubenski. 3D modeling by Matrix appears to confirm that chargeability responses associated with the resistivity anomaly at Dubenski appear to strengthen with depth and may indicate the possible down plunge extension of the Shaft Zone mineralization on the property.

Table 1. Selected Core Length Intercepts, Dubenski Shaft Zone, 2008 Drill
Program,

-***-
Drill Hole      From         To     Intercept    Gold   Intercept    Gold
  Number        (m)         (m)        (m)      (g/mt)    (ft)      (oz/st)
--------------------------------------------------------------------------
DB-08-15       12.10       51.00     38.90      20.44    127.59      0.596
(-67°)
 Incl.         13.00       35.00     22.00      35.68     72.16      1.041
--------------------------------------------------------------------------
DB-08-09       41.00       68.00     27.00      12.95     88.56      0.378
(-45°)
 Incl.         50.00       58.00      8.00      40.99     26.24      1.196
--------------------------------------------------------------------------
DB-08-07      102.00      135.00     33.00      12.11    108.24      0.353
(-45°)
 Incl.        115.00      124.00      9.00      40.70     29.52      1.187
--------------------------------------------------------------------------
DB-08-06       94.70      132.00     37.30       8.28    122.30      0.241
(-45°)
 Incl.        102.00      109.00      7.00      35.31     22.96      1.030
--------------------------------------------------------------------------

-****-

The above table illustrates highlights of the winter 2008 drill program (see Company press release dated May 1, 2008). The holes were drilled at 45° to 67° and the results are reported as core lengths. True widths will be reported once the geometry of the gold zone has been determined.

The Company announces that 550,000 stock options have been awarded to directors, officers, and employees of the Company at an exercise price of $0.30 with an expiration date of December 18, 2013. The award is subject to regulatory approval.

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), Dogpaw Lake No. 1 Vein (historic) and Dubenski Shaft (historic).

The Dubenski property contains an historic resource of 355,286 tonnes grading 6.32 g/mt gold (391,636 tons averaging 0.184 oz/st gold) which was reported to extend to a depth of 150m (492 ft.) and includes the Shaft, Central and East Zones. However, a Phase I 17 hole, 1,798.6 metre (5,899.4 foot) delineation drill program focused on the Shaft Zone was completed in March and encountered much greater widths than had previously been reported (see Table 1 and Company Press Release dated May 1, 2008).

Consulting geologists Watts Griffis and McOuat (WGM) of Toronto managed the drill program at Dubenski and have been contracted to complete an NI 43-101 report on the Shaft Zone resource. The NI 43-101 compliant Technical Report and Mineral Resource Estimate is expected by January. Results from the Phase II drill program will not be considered in the WGM report.

Due Diligence

All samples reported were shipped to TSL Laboratories, an ISO accredited facility, of Saskatoon, Saskatchewan. Samples taken from the core of the mineralized zone were analyzed utilizing a screen metallic assay method. This methodology provides a higher level of assurance by testing a large quantity of sample (1,000g) and by monitoring the size distribution of the gold. Samples taken from the shoulders of the mineralized zone were 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 gold were retested utilizing a gravimetric finish. The samples will also be re-checked at a second qualified laboratory in keeping with the Company's standard due diligence procedures.

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.

Bryan McKay, P. Geo., Independent Consulting Geologist and E. Grayme Anthony, P. Geo., President of the Company, are the Qualified Persons under the guidelines of NI 43-101 for the technical aspects of this news release.

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 31,198,881 common shares issued and outstanding. For additional information, please visit us at www.houstonlakemining.com.

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 www.sedar.com.

Contact Information


  • Company Contacts

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

    In Canada:
    Linx Partners Ltd.
    Wanda Cutler
    Tel: 416-303-6460

    In United States:
    ICS
    George Duggan
    Tel: 818-542-6880