SOURCE: Houston Lake Mining Inc.

May 01, 2008 08:00 ET

Houston Lake Mining Provides an Update on Exploration at West Cedartree Gold Project

Houston Lake Commits to Second Year on Dubenski Property Option WGM Contracted to Complete NI 43-101 Report on Dubenski Resource First Samples Shipped From Dogpaw Lake Drill Program

SUDBURY, ON--(Marketwire - May 1, 2008) - Houston Lake Mining Inc. (PINKSHEETS: HLKMF) (TSX-V: HLM), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, is pleased to report the Company has made a cash payment of $100,000 to commence the second year of the 10-year, $4.5 million option to earn a 100% interest in the Dubenski property, subject to a 2.5% Net Smelter Royalty. Dubenski is one of eight contiguous properties forming the Company's West Cedartree Gold Project near Kenora. The other seven properties are now 100% owned, with Net Smelter Royalties ranging from 0 to 2.5%.

"We are very pleased with the near surface drill results from Dubenski, which surpassed our expectations," said E. Grayme Anthony, President and Chief Executive Officer. "We are awaiting the results of the deep probing geophysical surveys which are aimed at generating new drill targets at depth below the Shaft Zone. We have just scratched the surface at Dubenski and believe there is great potential to add to the company's overall ounces at the West Cedartree project."

Table 1. Core Length Intercepts for Section 1 Drill Holes, Dubenski Shaft Zone

Drill Hole            From   To   Intercept   Gold   Intercept  Gold
  Number               (m)   (m)     (m)     (g/mt)     (ft)   (oz/st)

DB-08-04              8.10  19.00   10.90     5.01      35.75   0.146
(-45 degrees) Incl.  15.00  19.00    4.00    12.68      13.12   0.370

DB-08-03             24.00  49.00   25.00     3.70      82.00   0.108
(-45 degrees) Incl.  30.00  34.00    4.00    17.59      13.12   0.513

DB-08-02             54.00  84.00   30.00     2.03      98.40   0.059
(-45 degrees) Incl.  55.00  58.00    3.00     6.06       9.84   0.177

DB-08-01             82.00 105.00   23.00     4.66      75.44   0.136
(-45 degrees) Incl.  82.00  91.00    9.00     9.97      29.52   0.291

All assay results have now been received from the 17 hole, 1,798.6 metre (5,899.4 foot) delineation drill program, which was completed in March. The program aimed to upgrade to modern standards a portion of the Dubenski Shaft Zone historic resource of 355,286 tonnes grading 6.32 g/mt gold (322,310 tons averaging 0.184 oz/st gold).

Table 2. Core Length Intercepts for Section 2 Drill Holes, Dubenski Shaft Zone

Drill Hole            From   To   Intercept   Gold   Intercept  Gold
  Number               (m)   (m)     (m)     (g/mt)     (ft)   (oz/st)

DB-08-10A            20.00  38.00   18.00     3.46      59.04   0.102
(-45 degrees) Incl.  26.00  30.00    4.00    13.62      13.12   0.397

DB-08-09             41.00  68.00   27.00    12.95      88.56   0.378
(-45 degrees) Incl.  50.00  58.00    8.00    40.99      26.24   1.196

DB-08-08             66.90  93.40   26.50     3.04      86.92   0.089
(-45 degrees) Incl.  75.00  87.00   12.00     6.02      39.36   0.176

DB-08-07            102.00 135.00   33.00     12.11    108.24   0.353
(-45 degrees) Incl. 115.00 124.00    9.00     40.70     29.52   1.187

Consulting geologists Watts Griffis and McOuat (WGM) of Toronto managed the drill program at Dubenski and have now been contracted to complete an NI 43-101 report on the Shaft Zone resource. The delineation program consisted of four drill sections spaced approximately 15 metres apart. Each section consisted of four or five drill holes that systematically tested a portion of the historic Shaft Zone gold resource to a depth of about 100 metres (328 feet). The best intercepts from each of the 17 drill holes are displayed in Tables 1 to 4, from the shallowest to the deepest holes by section, from west to east.

Table 3. Core Length Intercepts for Section 3 Drill Holes, Dubenski Shaft Zone

Drill Hole            From   To   Intercept   Gold   Intercept  Gold
  Number               (m)   (m)     (m)     (g/mt)     (ft)   (oz/st)

DB-08-14             12.00  35.10   23.10      1.42     75.77   0.041
(-45 degrees) Incl.  22.00  25.00    3.00      5.44      9.84   0.159

DB-08-13             26.00  47.00   21.00      1.22     68.88   0.036
(-45 degrees) Incl.  45.80  47.00    1.20      5.76      3.94   0.168

DB-08-12             46.00  74.00   28.00      4.66     91.84   0.136
(-45 degrees) Incl.  49.00  63.00   14.00      8.78     45.92   0.256

DB-08-11             64.70  92.00   27.30      3.57     89.54   0.104
(-45 degrees) Incl.  73.00  84.00   11.00      7.53     36.08   0.219

DB-08-06             94.70 132.00   37.30      8.28    122.30   0.241
(-45 degrees) Incl. 102.00 109.00    7.00     35.31     22.96   1.030

All 17 holes intersected the strongly altered and silicified meta-volcanic rocks that typify the Shaft Zone. The core samples returned assay results that varied from trace to 763.10 g/mt (22.257 oz/st) gold. DB08-05 was the best hole of the program and intersected 256.94 g/mt gold over a core length of 3.00 metres (7.494 oz/st gold over 9.84 feet) including 763.10 g/mt gold over 1.0 metres (22.257 oz/st gold over 3.28 feet). The holes were drilled at 45º to 67º and the results are reported as core lengths. True widths will be reported once the geometry of the gold zone has been determined.

Table 4. Core Length Intercepts for Section 4 Drill Holes, Dubenski Shaft Zone

Drill Hole            From   To   Intercept   Gold   Intercept  Gold
  Number               (m)   (m)     (m)     (g/mt)     (ft)   (oz/st)

DB-08-16             10.20  36.00   25.80      1.12     84.62   0.033
(-45 degrees) Incl.  22.00  25.00    3.00      4.89      9.84   0.143

DB-08-15             12.10  51.00   38.90     20.44    127.59   0.596
(-67 degrees) Incl.  13.00  35.00   22.00     35.68     72.16   1.041

DB-08-17             43.10  71.00   28.00      1.23     91.51   0.036
(-52 degrees) Incl.  61.40  62.70    2.90      4.54      9.51   0.132

DB-08-05            101.00 126.00   25.00      4.95     82.00   0.144
(-45 degrees) Incl. 108.00 116.00    8.00     13.63     26.24   0.398

A 23 line-km (13.8 line-mile)

IP survey was conducted by Matrix GeoTechnologies of Toronto in February. The survey outlined a 1.7 km (1.0 mile) long, east-west trending chargeability anomaly that appears to coincide with the alteration corridor containing the East, Central and Shaft gold zones. Matrix completed the construction of eight quantitative sections with the aim of generating potential drill targets at depths of up to 400 metres (1,312 feet). The survey was completed in mid-March 2008 and final results will be reported as soon as they are received.

A total of 2,525 metres (8,282 feet) in 23 drill holes has now been completed of a 3,200 metre drill program targeting the McLennan Zone (four holes), the Dogpaw No. 1 Vein (15 holes) and Dogpaw No. 2 Vein (four holes). The drill program's main purpose is to upgrade the No. 1 Vein resource of 54,011 tonnes grading 15.43 g/mt gold to modern standards. The program also is testing the theory that the No. 2 Vein is the lateral extension of the No. 1 Vein. This has possible implications for expanding the tonnage of the historic resource. The remainder of the program will continue to define the No. 2 Vein. The first 118 drill core samples from the program are currently being shipped to assay lab.

Houston Lake is currently raising funds to continue its aggressive exploration programs aimed at defining and expanding the vein systems at Dogpaw and testing the down plunge extension of the Dubenski Shaft Zone.

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

Due Diligence

All samples reported have been analyzed by fire assay with a 50 gram charge at TSL Laboratories, an ISO accredited facility, of Saskatoon, Saskatchewan. All samples were assayed with an AA finish and those samples assaying above 3 g/mt gold were retested utilizing a gravimetric finish.

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.

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 27,364,746 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

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