HOUSTON LAKE MINING INC.

(HLM-CDNX)

 

PRESS RELEASE

 

Update on the Pakeagama Lake Project


October 31, 2001: Sudbury, Ontario - Houston Lake Mining Inc. (CDNX:HLM, "Houston Lake") is pleased to further report on the results of the Company’s evaluation of the high tech metals (lithium, rubidium, cesium, beryllium, tantalum, gallium, germanium, thallium, niobium, tin) mineralization on the Company’s 100 percent owned, 512 hectare (1267 acre) Pakeagama Lake rare metals property. Houston Lake’s ownership interest is subject to a 2.5 percent NSR. A $300,000 program involving mechanized stripping and 1000 metres of diamond drilling is independently recommended to expand and further define the high tech metals mineralization identified in the recent exploration.

The Company issued a press release dated September 13, 2001 in which management stated its belief that higher than expected assay results of beryllium, gallium and thallium, all metals which command higher commodity prices, more than offset the lower than expected tantalum assay results in the Northern Wall Zone. This statement in conjunction with the current metal price information contained in the same release may have erroneously led readers to infer that the presence of these metals would add potential recoverable value in the order of grade times price. At the request of The Canadian Venture Exchange, the Company provides the following clarification. It was not foreseeable that readers may infer a calculated value to the property from such a statement, and any suggestion of such was not intended. Houston Lake further wishes to clarify that, similar to most preliminary exploration projects, the Company has not done any testing to determine if such commodities may be recoverable. Even if recoverable, these metals are frequently difficult to extract and may require specialized processing and may yield low recoveries.

A lithium cesium anomaly had been identified in previous work by The Ontario Geological Survey ("OGS") at Pakeagama Lake. An area striking over 150 metres to the northwest with a width of 80 metres as exposed in outcrop extends to the south of the Pakeagama Lake pegmatite. This anomalous zone is defined by the presence of the lithium-bearing mineral holmquistite in the granitic rocks hosting the pegmatite. Dr. Breaks of the OGS and, subsequently, the Company’s independent consulting geologist, Dr. Ken Germundsen have interpreted a blind (buried) rare metals pegmatite body as the source for this anomaly.

A 25 metre by 25 metre grid was established during the summer program to further evaluate the holmquistite anomaly. Eighteen 2.5 kg. samples were cut with a rock saw and analyzed by neutron activation for cesium at Activation Laboratories of Ancaster, Ontario. Since lithium is broadly dispersive (spreads outwards relatively easily) into the surrounding rocks, the distribution of cesium (being weakly dispersive) was evaluated in the holmquistite granite to further define the source of the anomaly. Assay values for cesium ranged from 11 ppm to 1078 ppm (published background values for granite are 5 ppm cesium). Assay values in excess of 125 ppm cesium define an area striking for over 150 metres open to the northwest and 50 metres wide open to the south. Pollucite (a cesium mineral) occurs near the southern extremity of the newly defined cesium zone and is only the fourth pollucite occurrence noted in Ontario.

A report is currently being compiled of all previous work which has included magnetic and VLF-EM geophysics, litho-geochemistry, detailed and property-scale geological mapping, stripping, and channel sampling. An exploration budget of $300,000 is recommended for the Pakeagama Lake project. The next phase of exploration would involve mechanized stripping to further expose the pegmatite to the southeast with the aim of extending the known limits of the Core and Wall Zones and further define the cesium anomaly. A diamond drilling program of 1000 metres would also test the Wall Zones, and the Core Zone at depth and evaluate the newly defined cesium anomaly for additional rare metal mineralization.

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 14,798,695 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.

On Behalf of The Board of Directors of Houston Lake Mining Inc.

E. Grayme Anthony B.Sc., P. Geo., F.G.A.C., M. B. A.
Tel: (705) 897-7622
Fax: (705) 897-7618
e-mail: houston@vianet.on.ca
Web Site: www.houstonlakemining.com

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



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