Highlights:
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Measured and Indicated mineral resource of 7.89 million tonnes grading at 1.73% Li2O equivalent (eq)., including 6.87 million tonnes grading 1.96% Li2O eq. in high quality technical grade lithium zones with a low inherent iron spodumene;
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Inferred mineral resource of 295,600 tonnes grading at 1.35% Li2O (eq.), including 228,700 tonnes grading 1.69% Li2O eq. in technical grade lithium zones with a low inherent iron spodumene;
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A 206% change increase in measured and indicated Li20 eq. contained tonnes from the 2015 Resource Estimate;
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The Pakeagama Lake pegmatite has a 500m strike length with an estimated true width varying from 10 to 125m with a sub-vertical orientation of the pegmatite, and;
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Resource remains open to depth and along strike to the northwest and southeast.
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Based on exploration costs, the PAK deposit exhibits a low Measured and Indicated lithium acquisition cost at $21.66/contained Li2O eq. tonne for exploration.
“We are extremely pleased with the results of our upgraded resource estimate since there are definitely analogous features to the high grade, multi-element, and large tonnage of the prolific Tanco pegmatite in southeastern Manitoba(1),” commented Trevor R. Walker, President of HLM. “With the deposit exposed at surface, this report also confirms with confidence that the Pakeagama Lake pegmatite’s lithium mineralization is wide, high grade, continuous and consistent, persisting at depth, and with tantalum and possibly rubidium and cesium byproducts. Furthermore, we are happy to report that development work, including metallurgical and environmental baseline studies have been underway for the preparation of pre-feasibility to be conducted in 2016.”
Table I: Indicated and Inferred Mineral Resource Estimate – PAK Rare Metals Project (Pakeagama Lake pegmatite deposit)(6)
(1) The original size of the Tanco pegmatite was 57,427,342 tonnes with a maximum thickness of 100m (Stilling, A., Cerny., P., and Vanstone, P.; [2006], The Tanco Pegmatite at Bernic Lake, Manitoba. , XVI. Zonal and Bulk Compositions and Their Petrogenetic Significance. The Canadian Mineralogist; Vol. 44 pp. 599-623). The UIZ, CIZ and LIZ units at the Pakeagama Lake Pegmatite have striking similarities in mineralogy and chemical composition to those at the Tanco deposit. The bulk chemical composition for Li2O and Ta2O5 was 0.74% and 366ppm, respectively at Tanco. The Tanco Mine is located in southeastern Manitoba and was a lithium mineral concentrate producer from 1986 until operations were suspended in 2009. Tanco was also a tantalum mineral concentrate producer until March 2013 when operation of this circuit ceased.
(2) Li2O equivalent was determined based on lithium and tantalum grades, prices ($400 per tonne of 6% spodumene concentrate and $150 per kg of 30% tantalite concentrate) and their respective recovery ratio (78.5% recovery for lithium and a 50% recovery for tantalum from bulk pegmatite). No credit was included for rubidium, cesium or any of the other elements contained for the purpose of this report.
(3) Li2O content in the CIZ is predominantly associated with lithian micas and without metallurgical testing not deemed recoverable, therefore, not included in the Li2O contained and subsequently the Li2O equivalent calculation for the purpose of this report.
(4) The UIZ and LIZ are technical/ceramic-grade lithium zones (high-grade lithium with low inherent iron (<0.1% Fe2O3 from whole rock analysis). The iron content of spodumene contained within the LIZ increases as the contact with iron-rich metasedimentary country rocks are approached, but it has been noted that a concentration below 0.1% wt.% Fe2O3 is maintained to within about 10 meters of the pegmatite-metasediment contact.
(5) Without further metallurgical testing it is unknown if the Rb2O is recoverable from the Lithium zones (UIZ, LIZ). For the purpose of this report, Rb2O credit has not been considered in any of the zones.
(6A) Calculation is based on 4,693m of drilling in 24 holes to an average depth of 150m vertical in the deposit, 294m of production drilling for 68 blast holes for the 300 tonne UIZ bulk sample in 2015, and 22 channels covering 191m at surface.
(6B) Mineral Resources are not Mineral Reserves having no demonstrated economic viability. Results are presented undiluted and in situ.
(6C) Indicated and Inferred Resources were evaluated from drill hole and channel sample results using a block model approach (inverse distance squared interpolation) with Geovia/Surpac software.
(6D) Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are rounded to 100,000 except Ta2O5 contained that are rounded to the nearest tonne. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.
Due Diligence
The Mineral Resources for PAK Rare Metals Project disclosed in this news release have been estimated by Mr. Todd McCracken, P.Geo., an employee of WSP and independent of HLM. By virtue of his education and relevant experience, Mr. McCracken is "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resource has been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, (November 2010). Mr. McCracken, P.Geo., has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.
Mr. Peter J. Vanstone, P.Geo., is an independent "Qualified Person" to HLM defined under NI 43-101 and has reviewed and approved the technical information contained in this news release.
HLM is also reporting that it has received a positive response from one creditor concerning a “Shares for Debt Financing”. HLM proposes to issue up to 154,942 common shares at a price of $0.155. The financing is subject to regulatory approval and would have a hold period of four months.
$24,016 of debt is owed to a company owned by one “non-arm’s length” individual. The non-arm’s length portion of the proposed financing is therefore 154,942 common shares at a price of $0.155 per share.
About the PAK Lithium Project
The PAK Lithium Project lies close to the boundary between two geological sub-provinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium- cesium- tantalum) type pegmatite. These types of pegmatites have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there are comparatively few commercially-viable deposits.
HLM is actively exploring its 100% owned and optioned project which contains the Pakeagama Lake pegmatite. The deposit is one of the highest grade lithium deposits in North America which has a current Measured and Indicated Resource of 7.89 million tonnes of 1.73% Li2O Eq. and Inferred Resource of 295,600 tonnes of 1.35% Li2O Eq. which has a technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). The deposit has adjacent zones that are enriched in rubidium and tantalum. HLM is also evaluating the phased co-production of rubidium and tantalum concentrates once lithium mineral production has been commercialized.
The deposit now has a known 500m strike length with an estimated true width varying from 10m to 125m with a sub-vertical orientation. The resource remains open to depth and along strike to the northwest and southeast.
About Houston Lake Mining Inc.
HLM’s goal is to become a fully integrated lithium, rubidium and tantalum producer with development of the PAK Lithium Project in Ontario, Canada. Based on the PAK deposit’s high-purity, technical-grade spodumene, a relatively lower capital requirement to enter in to the lithium supply market is possible by firstly becoming a lithium, technical-grade concentrate supplier. HLM is focused on a staged approach to indirectly participate in the burgeoning lithium battery industry by taking advantage of the disruptive change to market fundamentals by targeting the ceramic-glass industry (industrial users). Currently, the glass/ceramics segment is the second largest in total lithium demand whereby supply pressure is taking place due to the threat of lithium battery growth.
HLM has a total of 114,862,069 common shares issued and outstanding, excluding the proposed shares to be issued as a result of this press release. For additional information on HLM, please visit www.houstonlakemining.com.
Company Contact Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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 http://www.sedar.com
Source: Houston Lake Mining Inc. (TSX Venture:HLM) http://www.houstonlakemining.com/
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