Nov. 26, 2009 (Filing Services Canada) -- 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 second quarter ended September 30, 2009.
Second Quarter Highlights
Dubenski Gold Zone
* Commissioned independent consultants to update the NI 43-101 report for the Dubenski Shaft Zone extension.
Dogpaw Gold Zone
* Channel sampling expanded width of gold mineralization. Channel sampling yielded 4.31 g/t gold over 5.50 m at Dogpaw Vein No. 4.
* Initial channel sampling of Veins No. 5 and 6 returned assays up to 13.88 g/t gold.
* Appointed Robert Callander, CFA, MBA as new member of the Board of Directors.
Subsequent to Second Quarter
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.
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.).
* Additional samples were sent for fire assays from the Dogpaw Vein No. 5, results are pending.
* 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.
* Raised $325,000 in a hard dollar financing through issuance of 1,300,000 common shares.
"While we continue to advance our Dogpaw and Angel Hill properties, the majority of our exploration dollars moving into the second half of the year will be focused on advancing the Dubenski property," said Grayme Anthony, President & CEO. "We believe that we are looking at a large scale gold system at Dubenski. This property has the most near term potential to add tonnage and to aid us in meeting our overall production goal at West Cedartree."
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 potentially support a proposed mill facility. To date all drilling on the property has been near surface and all resources remain open.
"In addition to our West Cedartree program we also announced our intention to advance our Pakeagama Lake Lithium-Rare Metals property," Mr. Anthony continued. "Interest in lithium and rare metals has swelled over the past six months and we believe we hold the rights to the best property in Ontario for these metals. Our goal is to get a better understanding of the potential of property and attract a partner to take the project forward."
Exploration outlays, salaries and other outlays were funded from treasury. During the six months ended September 30, 2009 Houston Lake invested $430,526 in the mining properties. Of the total:
* $280,813 was incurred in acquisition and exploration costs for the Dubenski property;
* $83,741 was devoted to exploration on the Dogpaw Lake property;
* $62,217 was expended on the West Cedartree property; and
* $3,701 was spent on the Pakeagama Lake and Tib Lake properties.
Expenses for the six months ended September 30, 2009 were $287,680 compared to $281,181 for the same period of the previous year.
For the six months ended September 30, 2009, Houston Lake incurred a net loss of $293,954 ($0.009/share) as compared to a net loss of $290,181 ($0.010/share) in the same period of 2008.
At September 30, 2009, working capital totaled $25,119 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. Subsequent to the quarter Houston Lake completed a $325,000 private placement that yielded sufficient funds to meet all of its current contractual obligations in the near term.
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.
Looking into the second part of the year we will continue to focus on exploration and development of the West Cedartree Gold Project.
"We are focused on building ounces in the West Cedartree project by maximizing our dollars spent in the ground and taking a prudent approach to drilling the property. We are concentrating on Dubenski where we feel there is the greatest likelihood in adding tonnage," 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 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 35,957,638 common shares issued and outstanding.
Houston Lake Mining In Canada: Linx Partners Ltd.
E. Grayme Anthony P.Geo., MBA Wanda Cutler Tel: 416-303-6460
President and CEO
Tel: 705-897-7622 In United States: ICS
Fax: 705-897-7618 George Duggan Tel: 818-542-6880
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.
Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) http://www.houstonlakemining.com
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