Houston Lake Mining (HLM-V, HLKMF-O) has taken another step towards realizing its ambition of developing a gold mine near Kenora, in northwestern Ontario.
The company has announced its first National Instrument (NI) 43- 101-compliant resource estimate at Dubenski — an area that lies within its West Cedartree project, 40 km southeast of Kenora.
The resource estimate focused on just one of Dubenski’s known zones, the Shaft zone. The other two zones are known as the Central and East zones.
“The historic resource encompassed three gold zones, yet our initial drill program targeting just one of these three gold zones has already found 87 per cent of the ounces contained in the historic resource,” Grayme Anthony, Houston Lake’s president and chief executive said in a statement.
Indicated resources are pegged at 177,400 tonnes grading 5.97 grams gold per tonne for 34,050 oz., and inferred resources came in at 118,700 tonnes grading 5.02 grams gold for 19,150 oz.
Those numbers were calculated with gold capped at 50 grams per tonne. Without a cap, the average grade of the indicated resource rises to 7.32 grams gold for 41,750 oz. and the grade of the inferred resource moves up to 5.63 grams gold for 21,500 oz.
Dubenski’s historic resource stood at 355,286 tonnes grading 6.32 grams gold and covered the Shaft, Central and East zones down to 150 metres.
Houston Lake describes the resource as high grade and near surface. A 1-gram-gold-per-tonne cutoff grade was used in the calculation.
Drilling of the shaft zone defined the deposit over a strike length of 60 metres and to a vertical depth of 90 metres.
The company says mineralization remains open at depth and partially open along strike.
The report — prepared by Watts, Griffis and McOuat — says gold potential remains “underexplored, especially at depths below 100 metres from surface.”
The resource estimate was based on an 18-hole diamond-drilling program that saw roughly 1,800 metres completed in January and February of last year.
Houston Lake has drilled a second phase since then with the aim of expanding the Shaft zone resource. Results from some 200 assays are expected within the next two months.
Dubenski is one of eight contiguous properties that make up Houston Lake’s wholly-owned West Cedartree project.
With the completion of the resource at Dubenski, Houston Lake now has NI 43-101 compliant resources on two areas within West Cedartree — Dubenski and Angel Hill. A third area, Dogpaw Lake, has a historic resource calculation.
And while Houston Lake plans to develop Angel Hill and Dogpaw into open-pit mines, it cannot do so with Dubenski because of the environmental issues that would be raised by the deposit’s proximity to a lake.
At presstime, the company’s shares closed at 42¢ in a 52-week range of 21-74¢. Houston Lake has 32.7 million shares outstanding.
Be the first to comment on "Houston Lake Grows West Cedartree"