HOUSTON LAKE MINING INC.

(HLM-TSX.V)

 

PRESS RELEASE

 

 

Houston Lake Sampling Confirms Second Gold Zone on the West Cedartree Gold Project

 

July 13, 2004: Sudbury, Ontario, Canada - Houston Lake Mining Inc. ("Houston Lake", TSX.V:HLM) is pleased report on results of sampling of the McLennan Gold Zone on the Company’s 100% owned, 603.6 hectare (1490.9 acre) West Cedartree Gold Project. The project is located near Sioux Narrows in the Kenora Mining District of Ontario and is road-accessible. Recent work by Houston Lake has largely focused on the Angel Hill Gold Zone ("AHGZ"), one of two gold zones discovered thus far on the project. Trenches from the historic McLennan Gold Zone ("MGZ") were recently located and sampled. Results from eight samples have returned values ranging from 1.290 to 15.55 g/t Au (0.037 to 0.454 oz/t Au) and averaging 4.75 g/t Au (0.139 oz/t Au).

The McLennan Gold Zone

The MGZ is located several hundred metres west of and is oriented subparallel to the AHGZ. The gold zone occurs near the northerly-striking contact of mafic volcanics with a large gabbro sill. The zone appears to be 3 to 4.5m (9.8 to 14.8feet) wide, is highly silicified and carbonatized, and carries 5-10% disseminated sulphides. The MGZ is traceable in geophysics for a distance of 2.6km (1.6miles) on the property.

The MGZ is marked by a series of overgrown pits, trenches and drill collars which were completed in the 1940’s. Assessment files indicate that additional work was carried out in the early 1980’s. "Drilling carried out by Noranda Mines in 1944-45 encountered significant gold-bearing intersections over a strike length of 280m. (918 ft.). Typical intersections along the shear zone and off shoot shears are: 0.20 oz/t Au over 1.2 ft., 0.53 oz/t Au over 18.0 ft., 0.25 oz/t Au over 3.0 ft., 0.55 oz/t Au over 1.5 ft., 1.35 oz/t Au over 3.5 ft." (Dr. K. Germundsen, P. Geo., Internal Company Report, 2002).

Eight trench samples were sent to ALS Chemex Laboratories of Vancouver, B. C. for fire assay utilizing a 50gram charge. The samples have returned values ranging from 1.290 to 15.55 g/t Au (0.037 to 0.454 oz/t Au) and averaging 4.75 g/t Au (0.139 oz/t Au). Systematic chip samples returned 2.12g/t Au over 4.0m (0.062 oz/t Au over 13.1 feet) from Trench 2 and 5.85 g/t Au over 1.40m (0.171 oz/t Au over 4.6 feet) from Trench 3. The remaining 3 grab samples were taken in the vicinity of these trenches and returned 1.665, 2.60 and 15.55 g/t Au (0.049, 0.076 and 0.454 oz/t Au). An exploration program involving trenching, stripping and channel sampling is planned. Independent consulting geologist, Dean R. Cutting, P. Geo. is the Qualified Person for the project.

The Angel Hill Gold Zone

The AHGZ occurs within a large gabbro sill at the contact of ultramafic rocks forming the footwall with gabbro rocks of the hanging wall. Higher gold values (up to 81.33 g/t or 2.37 oz/t 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 2.1km (1.5miles) on the property to encompasses gold-in-soil anomalies and a gold occurrence along its strike extension. The zone remains open to depth and along strike to the south.

The AHGZ remains the primary focus of the Company. Last year, Houston Lake conducted stripping and washing, systematic channel sampling, and detailed mapping over a 130m (426 foot) segment of the AHGZ. The AHGZ was directly tested by 77 of the systematic channel samples which ranged from trace to 71.30 g/t Au (2.080 oz/t) and had a weighted average of 4.04 g/t Au (0.118 oz/t). A 20 hole 1139m (3736ft.) diamond drilling program was completed in February, 2004. Twelve of the 18 holes drilled under the 130m (426ft.) stripped area have returned significant gold values and 5 of these holes intersected grades higher than 1 oz/t Au.

The Company is awaiting the results of Bench test samples before proceeding with the bulk sample on the AHGZ. The bulk sample aims to confirm geological structures controlling the gold mineralization as well as provide an indication of gold recoveries and general cost structures. Houston Lake has received strong interest in a non-brokered flow-through financing. The Company intends on initiating this financing in the next several weeks to carry out further definition drilling of the AHGZ.

Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on NW Ontario. The Company has a total of 16,832,195 common shares issued and outstanding. The common shares of Houston Lake Mining Inc. trade through the facilities of the TSX Venture Exchange under the symbol HLM. For further information, we invite you to visit us at www.houstonlakemining.com.

For more information, please contact:

E. Grayme Anthony   B.Sc., P. Geo., F.G.A.C., M. B. A

Tel:  (705) 897-7622
Fax: (705) 897-7618
email: houston@vianet.on.ca
Web Site: www.houstonlakemining.com

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.


Back to Index