IP Survey Extends Angel Hill Gold Trend To Over 3.3 Km On Houston Lake Mining’s West Cedartree Gold PDF Print E-mail

25 Strong Anomalies Independently Recommended for Ground Follow Up

Grab Samples Verify Gold at the Robertson Occurrence 1.4 Km South along Angel Hill IP Trend

Sudbury, Ontario – June 25, 2009 -- Houston Lake Mining Inc. (TSX.V: HLM) is pleased to announce it has received a final geophysical report from JVX Limited of Richmond Hill, Ontario on a recently completed a 24,675 metre spectral IP survey carried out on the Company’s 100% owned and optioned 1,674 hectare (4,135 acre) West Cedartree Gold Project located near Kenora, Ontario. JVX reports that 25 strong IP chargeability anomalies are identified in the new survey area and are recommended for follow up investigation.

“Our experience from drilling West Cedartree tells us that the gold mineralization appears to be closely associated with IP chargeability highs,” said Grayme Anthony, President and CEO.  “The Angel Hill Gold Zone (AHGZ) forms the flank of a coincident magnetic and IP chargeability high that can be traced for over 3.3 km (1.98 miles) on the property. We’ve hit high-grade gold mineralization along this trend in the past, up to 1.22 metres grading 479 g/t gold. What’s truly exciting is that we have identified the largest chargeability anomaly at the extreme southern limit of the IP coverage - an area where we have not yet drilled. The Robertson Occurrence, a historic gold showing, is found near the northern edge of this prominent IP anomaly. This new information leads me to believe we are looking at a much larger system than we originally thought.”

The IP survey builds on the coverage provided by previous surveys undertaken in 2006 and 2007 on the project. A total of 66.975 Line-Km (40 Line-Miles) of IP coverage has now been completed and spans the North Block, Dogpaw Lake, Dogpaw West, McLennan and West Cedartree properties. The survey tested responses from surface to a depth of approximately 75m (246ft) over a width of 1km (3280ft) to encompass the AHGZ, the McLennan Gold Zones (“MGZ”) and the Dogpaw No. 1 Vein. Expanded coverage is also recommended for the Gold Sun property to the south of the current survey limit. The Dubenski property has seen extensive IP coverage and was surveyed by Matrix GeoTechnologies of Toronto, Ontario (see Press Release Dated April 30, 2009).


The IP method transmits an electrical current through the ground and measures the ground’s ability to maintain an electrical charge. A high chargeability reading equates to a relatively high metal content in the underlying rock. A high metal content can be indicative of the presence of disseminated sulphides which may be associated with gold-bearing formations. A chargeability measurement of 25 to 30mV/V is considered a reasonably strong response.

The IP survey depicts two strong, northerly striking, red to fuchsia coloured, IP chargeability anomalies that are associated the Angel Hill and McLennan gold zones. The Angel Hill IP trend is denoted by continuous values of at least 15.3 mV/V with peaks as high as 94.0 mV/V that are traceable for over 3.3km nd span the entire survey area. The McLennan trend is marked by relatively continuous chargeability values of 15.3 mV/V with peaks of up to 56.1 mV/V and are traceable for nearly 2.0 km before appearing to dovetail into the Angel Hill IP trend.  The continuity of these IP defined trends seems disrupted only by offsetting northwest to west-northwest striking faults.

An historic gold showing, the Robertson Occurrence has been rediscovered by Houston Lake prospectors along the Angel Hill trend approximately 1.4 km (0.84 miles) to the south of the Angel Hill gold resource. The gold showing is located proximal to the most prominent IP chargeability anomaly in the southern extreme of the IP survey area. The Robertson occurrence is marked by a series of trenches and pits. Grab samples assayed 1.63 to 1.98 g/mt gold from the trenches and contains features similar to that at the Angel Hill gold resource. A second area also returned 1.90 and 3.05 g/mt gold in grab samples. Mechanized stripping of these showings is planned to follow up on these results in the next several weeks.

Angel Hill Gold Zone (“AHGZ”)

The AHGZ occurs within a large gabbro sill at the contact of ultramafic rocks forming the footwall to the gabbroic rocks of the hanging wall.  Higher gold values (up to 126 g/mt or 3.675 oz/st Au) are associated with discontinuous quartz lenses and pods which tend to be more prolific in wider portions of the zone. The AHGZ can be traced by geophysics for a distance of 3.3km (1.98 miles) on the property to encompass gold-in-soil anomalies and a gold occurrence along its strike extension. The ultramafic-mafic contact is traceable for nearly 6 km (3.6 miles) on the project area.

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) (see press release dated October 20, 2005). 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).  The zone remains open to depth and along strike to the south.

In preparation for a bulk sample a percussion drill hole intersected 1.22 metres grading 479 g/mt gold (4 feet grading 13.97 oz/st Au). 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.

Due Diligence

All samples reported were shipped to TSL Laboratories, an ISO accredited facility, of Saskatoon, Saskatchewan.  Samples 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.

Dean R. Cutting, 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 34,657,638 common shares issued and outstanding.  For additional information, please visit us at www.houstonlakemining.com. 

Company Contacts

Houston Lake Mining
In Canada:              Linx Partners Ltd.
E. Grayme Anthony P.Geo., MBA
Wanda Cutler         Tel: 416-603-4646
President and CEO
 
Tel: 705-897-7622
In United States:    ICS
Fax: 705-897-7618
George Duggan    Tel: 818-542-6880
 

Forward-looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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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