Houston Lake Reports Third Quarter Results
Sudbury, Ontario CANADA, Mar 01, 2010 (Filing Services Canada via COMTEX News Network) --
Houston Lake Mining Inc. (HLM - TSX Venture)(HLKMF - OTCBB_Pink_Sheets), 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, 2009.
Third Quarter Highlights
Dubenski Gold Zone
* Updated NI 43-101 mineral resource estimate was received. Gold ounces in the Indicated Category increased by 84%. A 10,730m drill program was recommended.
* Commences a 4,000 m diamond drilling program on the Dubenski property. The goal of the drill program is to add resources between the Shaft and Central Zones and to the west of the Shaft Zone
Dogpaw Gold Zone
* A total of 70 channel samples from the Dogpaw Vein No. 6 were analyzed by fire assay. Sample results ranged from trace to 22.19 g/t Au (0.647 oz/t Au). The best intercept was on Line 6 which assayed 5.81 g/t Au over a width of 4.15 metres (0.170 oz/t Au over 13.61 ft.) and included 21.80 g/t Au over a width of 0.40 metres (0.636 oz/t Au over 1.31 ft.).
* A total of 91 channel samples from the Dogpaw Vein No. 5 were analysed by fire assay. Sample results ranged from trace to 105.100 g/t Au (3.069 oz/t Au). The best channel intercept was on Line 9 which assayed 39.348 g/t Au over a width of 1.35 m (1.149 oz/t Au over 4.43 ft.) which included 105.100 g/t Au over a width of 0.50 m (3.069 oz/t Au over 1.64 ft.).
* Results from the Vein No. 6 sampling may extend the Veins No 1, 2 and 4 systems to a strike length of over 500 metres.
Angel Hill Gold Zone
* Commenced mechanized stripping of the Robinson Occurrence, a historic gold showing approximately 1.4 km to the south of the Angel Hill gold resource.
Financings
* Raised $325,000 in a hard dollar financing through issuance of 1,300,000 common shares.
* Raised $1,000,000 through the sale of 4,000,000 Flow-Through Units.
* Raised $500,000 through the sale of 2,000,000 Flow-Through Units.
Subsequent to the Quarter
Dubenski Gold Zone
* Announces the drill results from the first 6 holes of the 4,000 m diamond drill program on the Dubenski property. The best intercept was 17.25 m at 2.93 g/t Au, including 2.50 m at 10.05 g/t Au.
Dogpaw Gold Zone
* Results from 18 channel samples are announced, assays encounter gold grades of up to 105.1 g/t over 0 .50m from Dogpaw Vein No. 5.
Financings
* Raised $135,000 through the sale of 540,000 Flow-Through Units.
Management and Board Changes
* Grayme Anthony resigns from his position of President and CEO. Trevor R. Walker appointed to role of Interim President.
* Incumbent Board of Directors is elected at the Company's AGM
"During the third quarter we financed our 4,000 m drilling program on Dubenski,' said Trevor R. Walker, Interim President. "We are continuing to focus on that property as we believe it has the most near term potential to help us build gold ounces. The first six drill holes from our Dubenski drill program have been reported and intersected gold mineralization over significant widths. We are eagerly awaiting the remaining assay results as these will both add further resources between the Shaft and Central Zones and to the west of the Shaft Zone, thereby extending the limits and future exploration direction of these zones."
The current program on the West Cedartree property is aimed at outlining three open pit working areas (Angel Hill, Dogpaw Lake No. 1 Vein, and Dubenski Shaft Zone) in order to advance the company towards its production objective. To date all drilling on the property has been near surface and all resources remain open.
Exploration outlays, salaries and other outlays were funded from treasury. During the nine months ended December 31, 2009 Houston Lake invested $659,945 in the mining properties. Of the total:
* $448,161 was incurred in acquisition and exploration costs for the Dubenski property;
* $108,798 was devoted to exploration on the Dogpaw Lake property;
* $99,285 was expended on the West Cedartree property; and
* $3,701 was spent on the Pakeagama Lake and Tib Lake properties.
Expenses for the nine months ended December 31, 2009 were $451,921 compared to $436,980 for the same period of the previous year.
For the nine months ended December 31, 2009, Houston Lake incurred a net loss of $446,239 (
.013/share) as compared to a net loss of $436,438 (
.015/share) in the same period of 2008.
At December 31, 2009, working capital totaled $1,217,916 compared to $278,342 as at March 31, 2009. The Company's current rate of cash consumption, excluding expenditures on work programs, is approximately $25,000 per month.
Outlook
Looking forward the Company will continue to focus on the exploration and development of the West Cedartree Gold Project, specifically on implementing the recommendations of the NI 43-101 report for Dubenski.
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 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 42 497 638 common shares issued and outstanding.
Company Contacts
Houston Lake Mining In Canada: Linx Partners Ltd.
Trevor Walker, MBA Wanda Cutler Tel: 416-603-4646
Interim President
Tel: 705-897-7622 In United States: ICS
Fax: 705-897-7618 George Duggan Tel: 818-542-6880
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
Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) https://www.houstonlakemining.com
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