Houston Lake Mining Inc. (HLM-TSX.V)
_________________________________________________________________________________________________
For
Immediate Release
Houston Lake Extends Angel Hill Gold Zone at Surface and Completes Drill
Program
June 27,
2007: Sudbury, Ontario, Canada - Houston Lake Mining Inc.
(TSX.V: HLM, the
"Company") is pleased to report that mechanized stripping and washing
carried out on one of the four or more gold systems on the Company’s 100%
owned and optioned 1673.6 hectare (4134.5 acre) West Cedartree Gold Project
located near Sioux Narrows, Ontario, has now extended the Angel Hill Gold Zone
(AHGZ) at surface for a total strike length of more than 200m (656ft.). IP
surveys in 2006 and recently in 2007, have depicted an extremely prominent
chargeability anomaly that can be traced from the AHGZ bulk sample site southward
across the McLennan and West Cedartree properties and northward across the Dogpaw
and Dogpaw West properties for an overall strike length that spans at least 2.8km
(1.7 miles).
Four drill holes totaling
528.2m (1561.7ft.) were drilled in preparation for a down hole spectral IP
survey that was carried out last month. Three of these drill holes were
completed along the trace of the newly exposed southern extension of the AHGZ.
The zone remains open in both directions along strike and to depth. A
fourth drill hole tested the McLennan Gold Zone. Geologic mapping
and prospecting programs are currently underway, including mechanized
stripping, detailed mapping and channel sampling programs. The goal of this
work is to generate new drill targets near existing gold resources.
A total of 275 drill core
samples including historic core from the 1988 drilling of the Dogpaw No. 1 Vein
were shipped for assay analysis late last week. Re-examination of historic core
combined with recent drilling and surface work, will guide a drill program
planned for late summer/early fall with the objective of completing a NI43-101
resource calculation for the Dogpaw No. 1 Vein.
All drill core samples were shipped to TSL
Laboratories of Saskatoon, Saskatchewan and will be analyzed by fire assay
utilizing a 50 gram charge. Samples will be assayed with an AA finish and those
samples assaying above 3 g/mt Au were retested utilizing a gravimetric finish.
Forty-five of the 102 drill core samples will be 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.
Independent Consultant 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.
Angel Hill Gold Zone (“AHGZ”)
The AHGZ has an estimated inferred mineral resource of
106,400 tonnes grading 2.97 g/mt Au at a cutoff of 2 g/mt (117,286 short tons
grading 0.087 oz/st Au at a cutoff of 0.058 oz/st) or 49,700 tonnes grading
4.77 g/mt Au at a cutoff of 4 g/mt (54,785 short tons grading 0.139 oz/st Au at
a cutoff of 0.117 oz/st). The inferred mineral resource was determined by
systematic channel sampling of a 130m (426ft.) strike length of the AHGZ
exposed by stripping and by drilling to a depth of 75m. In 2006 a 1037m (3402ft)
drill program was successful in extending the zone to a depth of 100m (328ft).
In spring of 2006 a bulk sample was taken from the
AHGZ and processed at a third party mill. A total of 1041.2 tonnes (1147.7
short tons) yielded an average head grade of 5.67 g/mt Au (0.165 oz/st Au). The
total contained gold was 5,903.6 grams (189.8 ounces) and 5,490.4 grams (176.5
ounces) of gold was produced at a reported recovery of 93%. The Company
received a cash settlement of $131,893.84 and had a net profit of $51,848.12.
Dogpaw No. 1 Vein System
The Dogpaw
Lake Property “DPL” has an extensive exploration history dating
back to the 1940’s. Four main gold zones and ten documented gold
occurrences have been discovered thus far on the property. An historic resource
estimate of 53,741 metric tonnes grading 15.43 g/mt Au (59,240 short tons
grading 0.45 oz/st Au) remains after the extraction of a 454 metric tonne (500
short ton) bulk sample grading 8.23 g/mt Au (0.24 oz/st Au) from the Dogpaw No.
1 Vein.
A winter 2561m (8400ft)
delineation drilling program targeted the historic gold resource of the Dogpaw No. 1 Vein. Fourteen of 17 drill holes
intersected grades of 3.31 g/mt Au (0.97 oz/st Au) or higher and established
the continuity of the gold mineralization to the maximum depth tested of
approximately 210m (689ft.). The vein system remains open to depth and along
strike. The best result of the drill program was received from drill hole
DP-2007-042 which yielded a core length intersection grading 29.90 g/mt Au over
7.50m (0.872 oz/st Au over 24.60 ft).
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. Thirteen holes from a 2,333m
(7,651ft) 19 hole 1988 drill program are currently being logged and sampled.
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 DPL 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
24,724,989 common shares issued and outstanding. For additional information, we
invite you to visit us at www.houstonlakemining.com.
Company Contacts:
A. Schwab
& Associates E.
Grayme Anthony B.Sc., P. Geo., FGAC, MBA
Investor
Relations President
& CEO
1-800-537-4099
(toll-free) Tel:
(705) 897-7622 Fax: (705) 897-7618
aschwab@silk.net ganthony@vianet.on.ca
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.