Houston Lake Reports Third Quarter Results
Makes Significant Progress on Dubenski and Dogpaw Lake Gold Zones
SUDBURY, ON, Feb 27, 2009 (MARKET WIRE via COMTEX News Network) -- Houston Lake Mining Inc. (TSX-V: HLM) (PINKSHEETS: HLKMF), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, today released its report for the third quarter ended December 31, 2008. Third Quarter Highlights Dubenski Gold Zone * Initiates and completes 2,232 metre Phase II drill program to extend Dubenski Shaft zone. * Reports program successfully extended the Shaft Zone from 60 metres to over 165 metres along strike. * Published 3D models illustrating an improving geophysical response with depth below the Shaft Zone. Dogpaw Gold Zone * Reported drill results from 8 holes completed on the Dogpaw No. 1 and No. 2 Veins. Of the 47 hole program, 36 holes intersected gold grades of 3 g/mt or higher. * Mechanized stripping and channel sampling of the No. 4 Vein extended the gold system at Dogpaw for a total strike length of 310 metres. Financings * Raised $755,200 in a flow through financing in December. Investor Relations * Retained the California-based firm of Incorporated Communications Services ("ICS") to conduct media awareness and investor relations programs on behalf of the Company in the United States. "Drilling on our properties continues into the current quarter and we are building on the success of our past quarter drilling on both the Dubenski and Dogpaw properties," said Grayme Anthony, President & CEO. He continued, "In the near-term, we expect to have a steady stream of drill results to report. We recently published an NI 43-101 resource calculation on the Dubenski Shaft Zone. The initial phase II drilling results strongly indicate that we are adding to that resource." Exploration expenses, salaries and other outlays were funded from treasury. During the nine months ended December 31, 2008 Houston Lake invested $1,820,547 in the mining properties. Of the total: * $781,051 was incurred in acquisition and exploration costs for the Dubenski property; * $884,368 was devoted to exploration on the Dogpaw Lake property; * $82,589 was expended on the West Cedartree property; * $72,539 was spent on the Pakeagama Lake and Tib Lake properties Expenses during the nine months ended December 31, 2008 increased to $436,980 in 2008 from $360,660 in 2007. The nine month increase reflected higher shareholder and investor relations costs, and transfer and filing fees connected with financings. Net loss per share as at December 31, 2008 was $436,438 ($0.015/share) compared to a net loss of $360,097 ($0.013/share) in 2007. Houston Lake issued 2,517,332 Flow-Through Units priced at $0.30 per unit for gross proceeds of $755,200 through a non-brokered private placement with the MineralFields Group and NovaDX Ventures Inc. At December 31, 2008, working capital totaled $964,533, compared to $421,516 as at March 31, 2007. The Company's current rate of cash consumption, excluding expenditures on work programs, is about $25,000 per month. E. Grayme Anthony, P. Geo., President of the Company, is the Qualified Person under the guidelines of NI 43-101 for the technical aspects of this news release. Outlook "Looking into the fourth quarter we will continue to focus on the exploration and development of those areas where we can effectively add to the overall resources at the West Cedartree project. As always we strive to minimize exploration risk while maximizing the impact of our dollars spent," commented Mr. Anthony. Houston Lake has made considerable progress on its development timeline, which can be viewed at www.houstonlakemining.com. About Houston Lake Mining Inc. Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective in the short term is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 33,716,213 common shares issued. For additional information, we invite you to visit us at www.houstonlakemining.com. Forward-looking Statements The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com. www.houstonlakemining.com Distributed by Filing Services Canada and retransmitted by Marketwire Company Contacts Houston Lake Mining E. Grayme Anthony P.Geo., MBA President and CEO Tel: 705-897-7622 Fax: 705-897-7618 Email Contact In Canada: Linx Partners Ltd. Wanda Cutler Tel: 416-303-6460 In United States: ICS George Duggan Tel: 818-542-6880 SOURCE: Houston Lake Mining Inc. https://www2.marketwire.com/mw/emailprcntct?id=419BE6392E00E9FD Copyright 2009 Market Wire, All rights reserved. |