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HOUSTON LAKE MINING INC. (HLM-CDNX)
PRESS RELEASE
100 Percent Earn In Completed on the Pakeagama Lake Tantalum Property Tib Lake Palladium Project Update
June 28, 2001: Sudbury, Ontario - Houston Lake Mining Inc. (CDNX:HLM, "Houston Lake") is pleased to announce that the Company has met all requirements under the Pakeagama Lake Property Agreement to earn a 100 percent interest in the property subject to a 2.5 percent N. S. R. Line-cutting and geophysical surveys have been completed as of last week. Phase 2 exploration has commenced and consists of detailed sampling and property-scale mapping. Results are expected by August, 2001. Houston Lake now has a 100 percent ownership of both the Pakeagama Lake Tantalum Property and the Tib Lake Palladium Property as well as an ownership interest in several gold properties in the Kenora Mining District of Ontario. Houston Lake has completed the total required payments of $150,000, issued 200,000 common shares, and expended in excess of $63,000 of exploration expenditures required under the Pakeagama Lake Property Option Agreement dated March 22, 1999. The Pakeagama Lake Property is located approximately 170 km. north of Red Lake, Ontario and is accessible by float plane and a winter road which passes within 6 km. of the property. The property covers all known surface exposures of the Pakeagama Rare Metals Pegmatite which is traceable at surface for 260 metres and is open along strike in both directions. The width of the pegmatite varies from 30 to 70 metres. The economic potential of the area was first identified by Dr. Denver Stone of the Ontario Geological Survey ("OGS") in a regional reconnaissance mapping program in the early 1990’s. However, the significance of the pegmatite in terms of size, classification type and its evolved mineralogy and chemistry was not realized until the 1998 field work of Dr. Fred Breaks of the OGS. The field work has now established that the Pakeagama Rare Metals Pegmatite is potentially a world-class pegmatite, which is extremely fractionated and displays strong internal zonation, suggesting the presence of a Tanco type system. In Summary of Field Work 1998, OGS MP 169, released by the OGS in January, 1999, it is stated that "Several economically important tantalum-rich minerals have been documented in 70 electron microprobe analyses undertaken to date at the Department of Earth Sciences at Open University" (United Kingdom). The Report also states: "This pegmatitic system also contains pollucite, as several recessively-weathered crystals up to 2 by 4 cm were identified by the OGS and verified by x-ray diffraction." Pollucite is the main ore mineral for cesium, and its presence indicates "a high exploration potential for zones rich in cesium." One of the conclusions reached in the Report is that: "In the Pakeagama Lake Pegmatite, the presence of tantalum-rich minerals such as manganotantalite, ferrotantalite, microlite and ferrotapiolite coupled with pollucite and rubidium concentrations that exceed 1 percent in potassium feldspar, indicate a high potential for zones rich in tantalum, cesium and rubidium-rich potassium feldspar." The Company has just completed 25.4 km. of line-cutting and geophysical (magnetic and VLF-EM) surveys on the property. This includes 6.2 km. of surveyed grid lines which will provide a high degree of control for follow up work as management expects the project to reach an advanced exploration stage. The recently completed work complements detailed mapping and sampling carried out previously by Houston Lake and two field seasons of work by the OGS. Channel sampling of the 13 metre wide Northern Wall Zone of the Pakeagama Lake pegmatite has returned 344 g/t tantalum oxide, 0.90 percent rubidium oxide, 1776 g/t cesium oxide, 68.9 g/t tin, 131.9 g/t niobium oxide, 1.34 percent lithium oxide, 25.9 g/t thallium, and 42.2 g/t gallium over a true width of 11 metres. Exploration is continuing with an intensive channel sampling program covering the Southern Wall Zone, the Core Zone, and Stacked Aplite Zones. Systematic lithogeochemical sampling of the 120 metre wide holmquistite granite (lithium-cesium) anomaly which flanks the pegmatite is also planned. Prospecting and geological mapping programs will seek to add to the known 260 metre (853 foot) strike length of the Pakeagama Lake pegmatite. Results are expected by August, 2001. Tib Lake Palladium Property Update Expressions of interest have been received from a number of companies concerning a possible partnership on Houston Lake’s 100 percent owned 4030 acre Tib Lake Palladium Property. Four companies visited the property as part of their due diligence this month alone. Houston Lake is currently reviewing its options on the project including raising more capital itself to fund the next phase of drilling. The property is located just 15 km. from North American Palladium Ltd.’s Lac Des Iles mine. Tib Lake is the second largest intrusion of the Lac Des Iles Suite after the Lac Des Iles Complex ("LDI") yet has a larger magnetic signature than the LDI. Last fall’s drilling program under the Kuhner Occurrence successfully extended surface mineralization to a depth of 65 metres. The Kuhner Zone is open to depth and along strike. Houston Lake engaged Dr. Walter Peredery last fall to carry out geological mapping to bring coherence to the large property and complex geology of the Tib Lake project. Dr. Peredery brings outstanding Ni-Cu-PGM credentials to the project including the discovery of 100 million tons of ore during his 30 year tenure with Inco Ltd. In a presentation on June 14, 2001, Dr. Peredery reiterated his recent conclusions: "Since the surface exposure of the TLG (Tib Lake Gabbro) is a relatively high section, it is surmised that deeper drilling will be closer to the source of the fluids, and by analogy to the Lac Des Iles complex, closer to the primitive rocks and higher PGE values. Utilization of concepts proposed here should improve the overall effectiveness of future exploration programs in the Tib Lake property. Further exploration work is highly recommended, as our indicators clearly demonstrate that there is an excellent potential of finding PGE mineralization. Persistent exploration work should lead to the discovery of a major PGE orebody in the Tib Lake property." Houston Lake is actively exploring for rare metals, platinum group metals and gold in northwestern Ontario. The common shares of Houston Lake Mining Inc. trade through the facilities of the Canadian Venture Exchange under the symbol HLM. Houston Lake Mining Inc. has a total of 14,703,695 common shares issued and outstanding. For further information on all of the Company's projects, we invite you to visit us at www.houstonlakemining.com. For
more information, please contact: The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein. |