Houston has earned a 100% interest in the 4030 acre Tib Lake Palladium (Pd) Property which is located in the Thunder Bay Mining District of Ontario.  The Tib Lake Project consists of 20 claims, totalling 154 claim units and is located approximately 100km north of the City Thunder Bay as can be seen in figure I below.

Figure I: HLM's Exploration Project Locations

Drilling has previously encountered a significant palladium intersection (1.68 g/t PGE’s over 18.46m. or 0.05 oz/t over 60.6 ft.) at shallow depths (30m or 100ft.). Exploration has focused on a heterogeneous gabbro/gabbro breccia rock unit which is host to the majority of palladium occurrences on the property and is similar to that reported at the nearby Lac Des Iles mine. The Lac Des Iles mine is owned and operated by North American Palladium Ltd. Mining there began in 1993 with the Roby Zone Open Pit.  In 2010, it reported indicated and measured reserves  of 36,038,000 tonnes grading 3.18 g/t palladium,  0.26 g/t platinum, 0.22 g/t gold, 0.07% copper and 0.09% nickel. This mineralized rock unit is traceable over 2.5km (1.5 miles) from the Kuhner palladium occurrence to the Jewelweed palladium occurrence and is coincident with a moderate IP chargeability anomaly and a relatively low magnetic signature (sulphide response). Geological similarities between portions of the Lower Zone of the Tib Lake intrusion and the Roby deposit at the nearby Lac des Iles palladium mine of North America Palladium Ltd. have been noted by government and independent geologists.

Figure II: Basic Geology of the Tib Lake and Lac Des Isle Intrusions

The exploration potential of the Tib Lake PGM Project evolves from a synthesis formed from the generalized PGM ore deposit model, comparative observations of the geology of the Lac Des Iles mine vicinity and the Tib Lake gabbro, and previous exploration conducted on Houston’s Tib Lake PGM project. Most recently a theory proposed by geologist Walter V. Peredery, Ph.D. suggests that “...the gossanous pegmatoid norite (GPN) layer is analogous to the Merensky Reef (MR) in the Bushveld complex in South Africa”.  (Tib Lake Property Examination, May 2003).

In March 2002, Houston formally optioned out the Tib Lake Project to Agnico-Eagle. Under the Tib Lake Option Agreement Agnico-Eagle has the right to earn a 50 percent interest by making cash payments of $650,000 and expending $3.6 million over four years. Agnico-Eagle would have the right to earn an additional 10 percent upon delivering a positive bankable feasibility study and will be the operator.

In February 2003 Houston announced that Agnico-Eagle Mines Limited (TSE:AGE,AEM-NYSE, "Agnico-Eagle") will not continue on its second year of a four year option to earn a 50 percent interest in the 1632 hectare (4030 acre) Tib Lake property which is located in the Thunder Bay Mining District of Northwestern Ontario.

In May 2006 Houston reached agreement with Magma Metals Limited (“Magma”) of Perth, Western Australia for the option of Tib Lake.  Under the Option agreement Houston Lake had received an initial cash payment of $25,000 with a second payment of $25,000 due by June 30, 2006. Magma was required to make exploration expenditures of $CDN2.6 million and a total of $CDN 400,000 in cash payments over a five year period. Houston Lake would have a 30% Free Carried Interest to the completion of a bankable feasibility study.

In January 2008 Houston received formal notice from Magma Metals Limited (ASX:MMB) of Perth, Western Australia that it had terminated its option on the property. Magma Metals was in the second year of the five-year option, having made $100,000 in cash payments and expended in excess of $250,000 in exploration.  Under the agreement, Magma was required to make a $50,000 option payment that spring and complete $1.3 million in exploration expenditures by the end of the third year.

Houston anticipates a buoyant palladium market and with the assemblage of an extensive land position that targets the Border and Lower Zones of the Tib Lake layered intrusion, the project is poised for an option and possible joint venture. Processes of magma mixing, deuteric fluidization, and sulphide precipitation are critical steps in the formation of PGE deposits found elsewhere in the world and are in evidence on Houston Lake’s Tib Lake Palladium Property. Geologically sound parallels have been drawn between the producing Roby deposit at the nearby Lac des Iles palladium mine and portions of the Lower Zone of the Tib Lake intrusion. A drill hole from a previous program has intercepted significant palladium mineralization in a heterogeneous gabbro/gabbro breccia rock unit which is traceable for over 2.5km (1.5 miles).