Houston Lake Mining Plans Delineation Drilling Program on the West Cedartree Gold Projectadmin
Houston Lake Mining Inc. is pleased to announce that a $945,050 exploration program is planned to begin in the next few weeks on the Company’s 100% owned and 100% optioned 862 hectare (2129 acre) West Cedartree Gold Project. The project is located near Sioux Narrows, Ontario. The winter portion of the exploration program involves IP geophysical surveys and 2500m (8200ft) in delineation drilling. The Company is currently assessing drill and geophysical tenders and will announce the timing of the programs once they are finalized.
The bulk of this exploration effort will focus on the recently 100% optioned Dogpaw Lake Gold Property (“DPL”) which forms part of the West Cedartree Gold Project. The winter program is expected to complete the earn in spring of 2007 a full two years earlier than that required by the three-year Dogpaw Lake Option agreement. The purpose of the 2500m (8200ft) delineation drill program is to bring the near surface portion of the historic Dogpaw Lake Vein No. 1 gold resource up to modern NI 43-101 standards. To this end Houston Lake has upgraded the road access into the property, set up a core logging and core storage facility on site and established a local geological office. The Company’s exploration team has located, recovered and racked approximately 6,656m (21,831ft) of drill core from two previous drill programs. This drill core will be re-logged and audited as part of the resource evaluation.
IP geophysics has thus far proven to be an effective tool in extending the Angel Hill and McLennan Gold Zones from the vicinity of the Angel Hill bulk sample site southward for over 1.5km (4900ft) on the West Cedartree Gold Project. The proposed 27 line-km (17 line-mile) IP survey would seek to extend the two gold zones northward onto the DLP. Magnetic surveys carried out this fall have confirmed the continuity of the package of rocks hosting the Angel Hill and McLennan Gold Zones onto and across the DLP.
President & CEO E. Grayme Anthony commented: “With nearly $1.3 million raised in recent financings Houston Lake is well positioned to be aggressive in 2007. Our strategic focus continues to be the identification of sufficient gold resources to justify a mill on site. Upgrading the historic gold resource on the Dogpaw Lake Property is an important step in achieving this objective and at the same time a 100% earn in of this valuable property asset is realized.”
Houston Lake has recently received the results of the Acid Generation Test and has forwarded them to Channel Technical Services to advance the mine permitting process.
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 Dogpaw Lake Property
The Dogpaw Lake Gold Property 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 59,240 short tons grading 0.45 oz/st Au was calculated in 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. A 500 short ton bulk sample was taken in 1995 and assayed 0.21 oz/st Au.
Houston Lake had previously optioned the Dogpaw Lake Gold Property in 1996-7 and conducted an IP geophysical survey in 1997. Three sub parallel northeasterly trending IP zones gave chargeability responses over a total strike length of 3.5km (2.17 miles). A 41 hole, 4,323m (14,180ft) diamond drill program was also completed in 1997.
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 and apply the profits towards the development of our 100% owned and optioned northwestern Ontario properties. The Company has a total of 23,280,234 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.
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A. Schwab & Associates Investor Relations
E. Grayme Anthony B.Sc., P. Geo., FGAC, MBA President & CEO Tel: (705) 897-7622
Fax: (705) 897-7618