Houston Lake Mining Announces Acquisition of Rare Metals Properties, Increasing the Size of the Company′s Pakeagama Rare Metals Project in North Western Ontario
Houston Lake Mining Inc. (TSX VENTURE: HLM), is an advanced
exploration company which has prospected and strategically acquired
contiguous gold, rare metals and platinum group elements projects with
the objective of transitioning into production. HLM is pleased to
announce the execution of an option of prospective and adjacent rare
metal properties in order to substantiate the Company′s controlled land
position and size of the Pakeagama Rare Metals Project located in the
Red Lake Mining District of northwestern Ontario, Canada. Houston Lake
now holds a 100 percent interest in 1,024 hectares (2,530 acres) of
mining claims at its Pakeagama Rare Metals Project. This land position
covers all known exposures of the Pakeagama rare metals pegmatite. All
four properties are subject to a 2.5 percent Net Smelter Royalty ('NSR').
Subject to regulatory approval Houston Lake will issue 600,000 common
shares and pay $135,000 over the course of 5 years without exploration
expenditure guarantees to earn a 100 percent interest from two private
individuals. The 3 properties optioned cover the strong potential of a
south to east extension of the Pakeagama rare metal pegmatite.
'Strong market interest in rare metals has made our Pakeagama Rare
Metals Project the chief focus of a staking rush north of Red Lake,?
said Trevor R. Walker, President. 'We believe that we hold the key
ground identified by the Ontario Geological Survey (OGS) in their
1998-1999 rare metals evaluation of the region and are happy to have
optioned grounds that strongly suggest the extension of the known
mineralized pegmatite. High grade cesium, tantalum, rubidium and lithium
oxide values have been reported in the Core Zone of the exposed
pegmatite which is open in all directions on our project.? Pakeagama
Rare Metals Project′s rare metals and their applications can be viewed
at www.houstonlakemining.com/index.php?option=com_content&task=view&id=60&Itemid=62.
While our primary goal has recently remained fixed on advancing our West
Cedartree Gold Project, the market interest in rare metals affords the
company an opportunity to illustrate the outstanding value thought to be
contained in the Pakeagama Rare Metal Project. Independent geologists
have indicated that this is a highly prospective target containing rare
metal signatures similar to the Tanco Mine, located in neighbouring
southeastern Manitoba. Cesium is produced primarily from the Tanco mine
owned by Cabot Corporation which in the mid-1990′s, accounted for
approximately 82% of the reported world reserves. Current world-wide
demand is difficult to estimate, but internal best estimation predicts
that 500,000 ? 3,000,000 pounds per year is produced whereas the
chemical and oil industries consume the majority of the supply. Prices
have remained stable for the past several years at $US1000/tonne for a
minimum 24% cesium oxide concentrate.
The exposed Pakeagama Lake pegmatite is host to the known rare metals
mineralization on the project. Initial work on the pegmatite by the OGS
and The Open University of the United Kingdom consisted of two field
seasons of study, 1648 electron microprobe analyses, 50 bulk chemical
analyses, 21 analyses of potassium feldspar and X-ray diffraction work
conducted upon 30 samples. Initial channel sampling of the Core Zone
yielded 13.9 metres grading 4.62% lithium oxide. The results of these
studies have been published by the OGS (Open File Report 6000, Summary
of Field Work and Other Activities, November, 1999, pp. 26-1 to 26-12).
The Summary Report concludes: 'The detailed documentation of a variety
of tantalum-rich minerals coupled with the presence of pollucite renders
the Pakeagama Lake pegmatite and adjoining area one of the best targets
for tantalum and cesium exploration in northwestern Ontario.?
Exploration work by Houston Lake to date on the project has consisted of
25.4 km of line-cutting, magnetic and VLF-EM surveys, detailed and
property scale geological mapping, stripping and channel sampling. This
work has exposed the pegmatite for over 280 metres along strike and in
the absence of targeted exploration, it is unknown whether a 700 g/t
tantalum oxide showing on the shore of Pakeagama Lake is part of the
main Pakeagama Lake pegmatite thereby extending the strike length up to
580 metres or the possibility of an additional pegmatite on the
property. Further stripping work has expanded the width to over 125
metres. An adjacent lithium-cesium anomaly may indicate a potential
width of 160 metres. These dimensions make the Pakeagama Lake pegmatite
one of the largest rare metal petalite pegmatites in Ontario. The
pegmatite remains open along strike in all three directions. Channel
sampling of an 11.0m section of the Northern Wall Zone averaged 1.21%
lithium oxide, 0.53% rubidium oxide, 958 g/t cesium oxide, 222 g/t
tantalum oxide, 1259 g/t beryllium oxide, 107.0 g/t niobium oxide, 56
g/t gallium, 8.1 g/t germanium, 35.8 g/t thallium, and 120 g/t tin. A
$600,000 diamond drill exploration program is recommended by an
independent geological consultant to advance the project.
Due Diligence
All sample values reported were analyzed by Activation Laboratories of
Ancaster, Ontario using neutron activation for cesium, rubidium, and
tantalum, multiacid digestion ICP for lithium, XRF pressed pellet for
niobium and tin, lithium metaborate/tetraborate fusion for thallium,
gallium, beryllium and germanium. Check assays were analyzed by SGS XRAL
Laboratories of Toronto, Ontario.
Peter Vanstone, P. Geo., is the Qualified Person under the guidelines of
NI 43-101 for the technical aspects of this news release.
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 49,432,637 common shares issued and outstanding. For additional
information, please visit us at www.houstonlakemining.com.
Forward-looking Statements
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 www.sedar.com.
Houston Lake Mining Inc.
Trevor R. Walker, MBA
President
Tel:
705.897.7622
Fax: 705.897.7618