Houston Lake Further Confirms High Grade Gold at West Cedartree PDF Print E-mail

Houston Lake Further Confirms High Grade Gold Drill Results at West Cedartree, 100% Earn In of Dogpaw Option now Completed

May 7, 2007: Sudbury, Ontario, Canada - Houston Lake Mining Inc. (TSX.V: HLM, the "Company") is pleased to announce that the Company has received results from the first five holes auditing the 41 hole, 4,323m (14,180ft) 1997 diamond drill program and the second set of five drill holes from the 17 hole, 2561m (8400ft) 2007 delineation drilling program on the 100% optioned Dogpaw Lake Property (“DP”). The DP forms part of the Company’s 100% owned and optioned 1310 hectare (3236 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario. Houston Lake has completed the 100% earn in of the DP from Golden CAML Mines Limited of Timmins, Ontario two years ahead of schedule by issuing the required 400,000 common shares and expending more than $500,000 in exploration on the property.

Table 1. Current Results for Drill Holes on the Dogpaw No. 1 Vein

Drill Hole

Number

From

To

Intercept

(m.)

Gold

(g/mt)

Intercept

(ft.)

Gold

(oz/st)

DP-97-004

15.20m

17.45m

2.25m

17.33

5.06ft.

0.505

Incl.

16.00m

17.05m

1.05m

19.38

3.44ft.

0.565

DP-97-005

74.20m

74.95m

0.75m

3.33

2.46ft.

0.097

DP-97-006

105.40m

106.50m

1.10m

0.59

3.61ft.

0.017

DP-97-009

13.40m

16.00m

2.60m

3.72

8.96ft.

0.108

Incl.

13.40m

14.45m

1.05m

7.16

3.44ft.

0.209

DP-97-016

81.10m

86.90m

5.80m

6.16

19.02ft.

0.180

Incl.

85.60m

86.90m

1.30m

20.87

4.26ft.

0.609

DP-07-047

79.30m

81.50m

2.20m

3.51

7.22ft.

0.102

Incl.

79.30m

79.65m

0.35m

8.98

1.15ft.

0.262

DP-07-048

29.00m

30.65m

1.65m

2.18

5.41ft.

0.064

Incl.

29.55m

30.08m

0.53m

4.84

1.74ft.

0.141

DP-07-049

76.30m

81.35m

5.05m

1.35

16.56ft.

0.039

Incl.

80.15m

80.60m

0.45m

3.53

1.48ft.

0.103

DP-07-050

63.30m

63.80m

0.50m

0.02

1.64ft.

0.001

DP-07-051

189.30m

190.80m

1.50m

Tr.

4.92ft.

Tr.

Seven of the ten drill holes encountered gold values in excess of 3.0 g/mt Au (0.087 oz/st Au). The 111 samples assayed from trace values to 20.87 g/mt Au (0.609 oz/st Au). The best results were received from drill holes DP-97-004 which returned a core length intersection grading 17.33 g/mt Au over 2.25m (0.505 oz/st Au over 5.06ft.) at an approximate depth of 15m (49ft.) and DP-97-016 which intersected a core length of 6.16 g/mt Au over 5.80m (0.180 oz/st Au over 19.02ft.) at a depth of about 62m (203ft.). Additional drill results are expected to be announced within the next few weeks.

A 2561m (8400ft) delineation drilling program commenced on February 15, 2007 and targeted the historic gold resource of the Dogpaw No. 1 Vein. The aim of the program is to upgrade the historic resource to modern NI43-101 standards by providing systematic coverage of the gold mineralization and by confirming results of past drill programs where available. A preliminary examination of the historic core suggests previous sampling of mineralized sections was incomplete and that more sampling may be required to properly document the Dogpaw Vein No. 1 gold system. 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.

Table 3. Drill Hole Locations on the Dogpaw No. 1 Vein.

Drill Hole Number

Section

Northing

Dip

Azimuth

Drill Hole Length

Target Depth

DP-97-004

1075W

1032

-60°

Grid South

72m

15m

DP-97-005

1100W

1063

-52°

Grid South

105m

60m

DP-97-006

1125W

1077

-50°

Grid South

126.4m

75m

DP-97-009

1200W

946

-50°

Grid South

60m

15m

DP-97-016

1075W

1092

-49°

Grid South

96m

62m

DP-07-047

1125W

1063

-45°

Grid South

104m

63m

DP-07-048

1150W

977

-45°

Grid South

59m

17m

DP-07-049

1150W

1036

-42°

Grid South

98m

56m

DP-07-050

1150W

1036

-55°

Grid South

104m

77m

DP-07-051

1125W

1123

-45°

Grid South

242m

110m

The drill program successfully intersected the highly altered rock of the vein system to a depth of approximately 200m (656ft) and the vein system remains open to depth and along strike. The Dogpaw No. 1 Vein is presumed to initially dip to Grid North at 70 degrees. True widths would therefore approximately be: 64% of the stated core lengths of the drill holes with 40° dips, 71% of the stated core lengths of the holes with 45° dips, 77% of the stated core lengths of the holes with 50° dips, 82% of the stated core lengths of the holes with 55° dips and 77% of the core lengths of the drill holes with 60° dips.

All drill core samples were shipped to TSL Laboratories of Saskatoon, Saskatchewan and 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 Au were retested utilizing a gravimetric finish. Results have now been received from a total of 161 samples. A visual comparison of the 57 verification samples with the past results from the 1997 drilling program depicts a roughly similar value distribution. However, a nugget effect is suggested by the lack of repeatability of some of the individual sample results. Therefore, all samples will be re-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.

Results from the 30 line-km 2007 IP geophysical survey are expected to be received in the next few weeks. The survey affords total coverage of the DP and Dogpaw West properties. The purpose of the geophysical program is to trace strike extensions of the Angel Hill and McLennan gold zones northward onto the DP and Dogpaw West properties as well as identify new IP targets for follow up work. The survey was reported to be responding well to the sulfide-bearing rocks associated with the gold mineralization.

Technical crews are mobilizing to the property this week to begin the spring and summer exploration program on the property. Work will entail 70km of grid refurbishment, property-wide geological mapping and prospecting, mechanized trenching and stripping as well as detailed mapping of vein systems on the Dogpaw Lake portion of the project and the southern extension of the Angel Hill Gold Zone (“AHGZ”) and continued re-examination and re-assaying of the historic core as well as compilation from the surveying and re-assaying of all previous drilling over the Dogpaw No. 1 Vein. The Company is also gathering quotes for down-hole geophysical surveying to develop drill targets at depth on the AHGZ and Dogpaw No. 1 Veins. The aim of these programs is to define new drill targets and guide drilling on the expansion of resources on the project.

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 West Cedartree Gold Project

The West Cedartree Gold Project is located near Kenora, Ontario. Three key property acquisitions in the last year including the Dogpaw Lake, Dogpaw West and Gold Sun properties, has increased the land position to 1310 hectares (3236 acres) covering a 6km (3.6 mile) strike length of the key geology. The project contains 2 high-grade gold-bearing zones, the historic McLennan (“MGZ”) and the recently discovered Angel Hill Gold Zones (“AHGZ”) as well as multiple high grade vein systems contained within the Dogpaw Lake property (“DP”).

In April 2006, a 1012 tonne bulk sample (grading 5.67 g/mt Au) was taken from surface on the AHGZ and processed at a third party mill. A total of 5,490.4 grams (176.5 ounces) was produced with a reported recovery of 93%. The bulk sample generated a cash settlement of $131,894 and a net profit of $51,848. The AHGZ has an inferred mineral resource of 106,400 tonnes grading 2.97 g/mt Au (see news release dated October 20, 2005). Houston Lake is in the process of permitting the AHGZ for open pit mining. A revised closure plan and the application will be reviewed by Wardrop Engineering Inc. prior to submission. The permit will enable Houston Lake to take advantage of any profitable third party milling opportunities and complete a 10,000 tonne bulk sample which is the next recommended step in the economic evaluation of the AHGZ.

The DP 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 mineral resource estimate of 53,741 metric tonnes grading 15.43 g/mt Au (59,240 short tons grading 0.45 oz/st Au) was calculated for 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.

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.

 
   
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