HOUSTON LAKE MINING INC.
PRESS RELEASE
Houston Lake Signs 100% Option in Advanced Stage Gold Project
May 11, 2006: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V: HLM, the "Company") is pleased to announce that the Company has signed an agreement with Golden CAML Mines Limited (“Golden CAML”), a private company based in Timmins, Ontario, for the right to earn a 100% interest in the 226.4 hectare (566 acre) Dogpaw Lake Gold Property. The property consists of 13 patented mining claims and one License of Occupation and is located about 15km (9 miles) southeast of Sioux Narrows, Ontario. The Dogpaw Lake Gold Property adjoins the Company’s 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project.
Under the Option Agreement, Houston Lake is required to issue 400,000 common shares and incur exploration expenditures of $250,000 within 14 months and a further $250,000 within 36 months. The 100% earn in interest is subject to a 2.5% net smelter royalty (“NSR”). Houston Lake may purchase back up to 1.5% of the NSR for $500,000 per 0.5%. The Option Agreement is subject to regulatory approval.
The Dogpaw Lake Gold Property 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) remains after the removal of a 27,215 metric tonne (30,000 short ton) bulk sample grading 8.23 g/mt Au (0.24 oz/st Au).
Houston Lake had previously optioned the Dogpaw Lake Gold Property in 1996-7 and conducted an IP geophysical survey in 1997. Three subparallel northeasterly trending IP zones gave strong to very strong responses over a total strike length of 3.5km (2.17 miles). A 41 hole, 4,323m (14,180ft) diamond drill program was also completed in 1997. Of the 41 drill holes, 24 intersected gold values in excess of 1 g/mt Au. Selected highlights of the drill program include:
Drill Hole Number |
Gold (g/mt Au) |
Intercept (m) |
Gold (oz/st Au) |
Intercept (ft) |
DP-97-01 |
12.66 |
3.69 |
0.369 |
12.10 |
DP-97-03 |
36.44 |
8.00 |
1.063 |
26.24 |
DP-97-05 |
30.98 |
1.45 |
0.904 |
4.76 |
DP-97-16 |
11.66 |
1.70 |
0.340 |
5.58 |
DP-97-22 |
8.45 |
1.75 |
0.246 |
5.74 |
DP-97-34 |
6.34 |
2.13 |
0.185 |
6.99 |
DP-97-38 |
6.17 |
4.90 |
0.180 |
16.07 |
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.
President and CEO, E. Grayme Anthony stated: “We are excited to reacquire the rights to the Dogpaw Lake Gold Property where much of the initial exploration success of the Company took place. Not only does the new acquisition contain an historic gold resource and numerous gold occurrences but the property also covers the northerly extensions of both the Angel Hill and McLennan Gold Zones. Both of these gold zones appear to correspond to the more westerly two of the three Dogpaw Lake IP anomalies.”
About Houston Lake Mining Inc.
Houston Lake Mining Inc. is an exploration company listed on The TSX Venture Exchange under the symbol HLM. Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on northwestern Ontario. The Company has a total of 19,986,675 common shares issued and outstanding exclusive of the financing announced on April 25, 2006. For additional information, we invite you to visit us at www.houstonlakemining.comCompany
Contacts:
A.
Schwab & Associates
MBA
Investor Relations
1-800-537-4099 (toll-free)
aschwab@silk.net
E.
Grayme Anthony
B.Sc., P. Geo.,
FGAC.,
President & CEO
Tel: (705) 897-7622 Fax:
(705) 897-7618
gathony@houstonlakemining.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.