HLM Announces 6.89 Million Tonnes Grading 1.86% Li2O equivalent with an Initial Resource Estimate for the PAK Rare Metals Project in Ontario, Canada
Sudbury, Ontario – December 4, 2013 – Houston Lake Mining Inc. (TSX.V: HLM), is pleased to report a Canadian National Instrument (N.I.) 43-101 maiden mineral resource estimate for the PAK Rare Metals Project, located in northwestern, Ontario. The resource estimation has been prepared by GENIVAR (TSX: GNV), a Montreal-based firm. GENIVAR is one of the largest engineering firms in Canada and has a mining division maintaining independent consulting geologists and engineers.
- 6.89 million tonnes grading at 1.86% Li2O equivalent(eq.) in the inferred category;
- 1.17million tonnes grading 3.44% Li2O in technical/ceramic grade lithium zone (UIZ) with a low inherent iron spodumene,
- The Pakeagama Lake pegmatite has a 265m strike length with an estimated width varying from 45 to 125m with a sub-vertical orientation of the pegmatite, and;
- Resource remains open to depth and along strike to the norhtwest and southeast.
“Although at an early stage, we are extremely pleased with the results of our 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. “The report confirms that the Pakeagama Lake pegmatite’s lithium mineralization is wide, high grade, continuous, consistent and with tantalum and possibly rubidium and cesium byproducts.”
Table I: Inferred Mineral Resource Estimate – PAK Rare Metals Project (Pakeagama Lake pegmatite deposit)(7)
(1) The original size of the Tanco pegmatite was 57,427,342 tonnes with a maximum thickness of 100m (Stilling, A., Cerney., P., and Vanstone, P.; 2006, The Tanco Pegmatite at Bernic Lake, Manitoba, 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 Pakeagama Lake pegmatite has a current inferred size of 6,886,000 tonnes with a maximum apparent thickness of 125m and open in all directions with a chemical composition of 1.58% Li2O, and 105 ppm Ta2O5. 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 ($307.67 per tonne of 6% spodumene concentrate and $215.13 per kg of 30% tantalite concentrate) and their respective recovery ratio (50% recovery for tantalum and at 78.5% recovery for lithium 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 is a technical/ceramic-grade lithium zone (high-grade lithium with low inherent iron (0.1% Fe2O3 from whole rock analysis).
(5) For the purpose of this report, tantalum credit is received only if entire pegmatite including UIZ, LIZ and CIZ is extracted thereby only evaluated with Li2O equivalent calculation for the bulk pegmatite in Table 1.
(6) 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.
(7A) Calculation is based on 953m of drilling in 6 holes to an average depth of 150m in the deposit, and 18 channels covering 130m at surface.
(7B) Mineral Resources are not Mineral Reserves having no demonstrated economic viability. Results are presented undiluted and in situ.
(7C) Inferred Resources were evaluated from drill hole and channel sample results using a block model approach (inverse distance squared interpolation) with 12m blocks with 3m sub-blocks within Geovia/Surpac software.
(7D) 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.
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 GENIVAR 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.