Houston Lake Reports First Quarter Results PDF Print E-mail

Sudbury, Ontario – August 27, 2009 – Houston Lake Mining Inc. (TSX.V: HLM), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, today released its report for the first quarter ended June 30, 2009.

First Quarter Highlights
Dubenski Gold Zone

  • Drilling confirmed the extension of the Dubenski Mineralized Zone suggesting that the Shaft, Central and East Zones may form one large and continuous gold mineralizing system
  • Drilling extended the gold mineralization to over 365 m from Phase I drilling (a factor of six times)
  • 49 of 57 drill holes from Phase I, II and III encountered grades of 3.50 g/t Au or higherPlans to upgrade the Dubenski NI 43-101 resource based on Phase II and III drilling.

Dogpaw and Angel Hill Gold Zones

  • Aims to complete further delineation drilling of the No. 4 Vein before commencing with a NI 43-101 calculation
  • Released IP survey results which traces Angel Hill Gold Zone for over 3.3 km depicting 25 strong IP anomalies
  • Gold verified at the Robertson Occurrence located along IP trend 1.4 km south of Angel Hill

Financings

  • Raised $280,999 for further exploration in two equity financings
  • Hosted site tour of West Cedartree for mining analysts, investors & media


Subsequent to First Quarter
Dogpaw Gold Zone

  • Channel Sampling expands width of gold mineralization. Channel sampling yields 4.31 g/t Gold over 5.50m at Dogpaw Vein No. 4 and up to 13.88 g/t gold from Veins No. 5 & 6.

Corporate Governance

  • Appointed Robert Callander, CFA, MBA as new member of the Board of Directors

“We are on schedule with our updated resource calculation on our Dubenski property which is expected in September,” said Grayme Anthony, President & CEO. “Our drill results and IP surveys to date suggest the presence of a large scale gold system at Dubenski, the resource remains open and geophysics indicate that the zone may be strengthening to depth. We are planning further drilling on the Dubenski and Dogpaw gold zones this year and I believe there is still much to discover on the property.”

The current program on the West Cedartree property is aimed at outlining three open pit working areas (Angel Hill, Dogpaw Lake No. 1 Vein, and Dubenski Shaft Zone) in order to potentially support a proposed mill facility. To date all drilling on the property has been near surface and all resources remain open.

Exploration outlays, salaries and other outlays were funded from treasury. During the first quarter ended June 30, 2009 Houston Lake invested $284,100 in the mining properties. Of the total:

  • $214,079 was incurred in acquisition and exploration costs for the Dubenski property;
  • $40,413 was devoted to exploration on the Dogpaw Lake property;
  • $28,408 was expended on the West Cedartree property; and
  • $1,200 was spent on the Pakeagama Lake and Tib Lake properties.

Expenses during the first quarter decreased from $178,855 to $124,725 reflecting lower transfer agent costs, a timing difference in payment of insurance and decreased in shareholder information costs.

Houston Lake issued 941,425 common shares for gross proceeds of $280,999 during the three month period.

For the three months ended June 30, 2009, Houston Lake incurred a net loss of $127,783 ($0.004/share) compared to a net loss of $183,747 ($0.007/share) in 2008.

At June 30, 2009, working capital totaled $84,685, compared to $278,342 at the same time last year. The Company’s current rate of cash consumption, excluding expenditures on work programs, is approximately $25,000 per month.

Outlook

Looking into the second quarter we will continue to focus on exploration and development of the West Cedartree Gold Project.

The Company’s goal is to identify near surface resources towards the justification of an on-site mill. The company is expecting an upgraded NI 43-101 resources estimate on Dubenski. In addition, the company plans to do further drilling on both Dubenski and Dogpaw gold zones this year.

Houston Lake has made considerable progress on its development timeline, which can be viewed at www.houstonlakemining.com.

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.

Company Contacts

Houston Lake Mining
Linx Partners Ltd.
E. Grayme Anthony P.Geo., MBA
Wanda Cutler
President and CEO
Tel: 416-303-6460
Tel: 705-897-7622
Fax: 705-897-7618
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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.

www.houstonlakemining.com

 

 
   
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