Magma Metals Makes Second Year Option Payment, Commences Drilling on Houston Lake Mining's PGM Project
Magma Metals Makes Second Year Option Payment, Commences Drilling on Houston Lake Mining's PGM Project
Jun. 26, 2007 04:47 PM
SUDBURY, ON -- (MARKET WIRE) -- 06/26/07 -- Houston Lake Mining Inc. (PINKSHEETS: HLKMF)
(TSX-V: HLM) ("Houston Lake") is pleased to report that a 750m drill
program is commencing this week on Houston Lake's 100 percent-owned, 2,496
hectare (6,167 acre) Tib Lake PGM Project located in Ontario, Canada.
Magma Metals Limited ("Magma") (ASX: MMB) of Perth, Western Australia is
the operator on the project. The drill program targets several
high-resolution helicopter-borne aeromagnetic anomalies which may reflect
zones of potentially mineralized vari-textured gabbro ("VTG") the host rock
to the mineralisation at nearby North American Palladium's Lac des Iles
mine. The setting of the mineralisation at Tib Lake is believed to be
analogous to that at the mine. Magma has made the required cash payment of
$50,000 to initiate Option Year 2.
Historic drilling at Tib Lake has returned intersections of 19.5m at
1.68g/t Pt+Pd+Au from 48.5m and 22m at 1.26g/t Pt+Pd+Au from 64m. Magma has
the right to earn a 70% interest by incurring exploration expenditures of
$2.6 million and making total cash payments of $400,000 over a 5-year
period. Houston Lake's ownership interest is subject to a 2.5% NSR.
About Houston Lake Mining Inc.
Houston Lake's objective in the short term is to become a gold producer by
surface mining our West Cedartree gold project. The Company has a total of
24,654,989 common shares issued and outstanding. For additional
information, we invite you to visit us at www.houstonlakemining.com.
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.
Distributed by Filing Services Canada and retransmitted by Marketwire
Company Contacts:
E. Grayme Anthony B.Sc., P. Geo., FGAC, MBA
President & CEO
Tel: (705) 897-7622
Fax: (705) 897-7618 Email Contact
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