HLM Identifies High Grade Lithium up to 4.74 Li20 over 15 meters on the Pakeagama Rare Metals Project in Northwestern Ontario
Sudbury, Ontario – January 10, 2013 – Houston Lake Mining Inc. (TSX.V: HLM), is a mining exploration company which is actively exploring for the rare metals lithium, cesium, tantalum, and rubidium by currently focusing on its 100% owned and optioned Pakeagama Rare Metals Project in northwestern Ontario, Canada. HLM is pleased to announce some of the results from its 2012 Channel Sample Program on the Pakeagama Lake pegmatite, located at the 1,792 hectare (4,424 acre) Pakeagama Rare Metals Project property. In September 2012, Peter J. Vanstone, P.Geo. the qualified person for the project, conducted a 91 sample channel sampling on the Pakeagama Lake pegmatite in order to confirm historical results and to add additional channel samples while further sampling by distinct geologic zones. The results of the program have so far identified high grade lithium oxide in three distinct pegmatite zones as discussed below:
- $100,000 in cash, on execution of the binding Heads of Agreement (completed);
- $400,000 in cash, on execution of a Definitive Sale and Purchase Agreement (the “Agreement”),
- 1.935 million Coventry shares, representing 2.8% of the outstanding shares of Coventry, (on execution of the Agreement) with a current value of approximately $716,000. Coventry shares closed on the TSX.V at CAD$.37 on January 11, 2013); and,
- A 2.5% net smelter return (“NSR”) royalty on the West Cedartree Claim Block, representing 20% of the West Cedartree Gold Project’s total area, including the newly discovered Robertson Prospect. The NSR will not have a buy-back clause, however should HLM seek to sell the royalty, Coventry will maintain the first right of refusal.
1) Upper Intermediate Zone (UIZ)
The UIZ represents the lithium zone within the pegmatite and is dominated by “SQUI”, a term used to describe an oriented spodumene + quartz intergrowth after primary petalite, with lesser grey K-feldspar and primary white spodumene in quartz. Phosphate minerals and lithian mica are the common accessory minerals. Channels 3A, 3B and 4 with a composite grade of 4.74% Li2O represent a 15 metre section across the UIZ in the southeastern part of the exposed pegmatite. Channel 18 is located approximately 55 metres northwest along strike from Channels 3A/3B/4.
2) Lower Intermediate Zone (LIZ)
The LIZ comprises a good portion of the exposed pegmatite and is considered an intermediate stage zone historically carrying significant lithium, tantalum and rubidium. The zone is comprised of predominantly K-feldspar, Na-feldspar, quartz, SQUI and lithian muscovite. The zone has undergone both plastic and brittle deformation. Taken together the three channels represent a 23 meter cross-section of the LIZ with a composite grade of 2.27% Li2O. When considering the LIZ and the high grade UIZ as outlined in Table 1, the total distance between the two sets of channels is approximately 190m where the pegmatite zones remain open to both the southeast and northwest.
3) Central Intermediate Zone (CIZ)
This zone is located in the upper portions of the pegmatite and consists of predominantly grey K-feldspar. Towards the southeast part of the pegmatite, the K-feldspar displays increasing alteration to a muscovite+quartz assemblage which locally is lepidolitic.
The Pakeagama Lake pegmatite does not currently have a resource, however the mineralogy of the 3 zones (UIZ, LIZ and CIZ) and the presence of SQUI as the dominant lithium mineral assemblage is similar to the mineralogical zonation of the Tanco pegmatite. The Tanco pegmatite is located southwest of Pakeagama Lake in southeastern Manitoba and was a lithium mineral concentrate producer from 1986 until operations were suspended in 2009. According to Giancola (2002), in 1992, Tanco’s lithium reserve grade was 2.71% Li20. “The lithium grades encountered from the program place the Pakeagama Lake pegmatite as a leading exploration target for rare metals. Furthermore, HLM anxiously anticipates the pending final results of analysis from the other elements that our pegmatite contains, such as Tantalum and Rubidium. With the data we have collected, the Company has identified targets whereby a Phase I, 1,000m diamond drilling program has been independently recommended“, said Trevor R. Walker, President of HLM.
All scientific and technical information in this release has been reviewed and approved by Peter J. Vanstone, P.Geo. who is the qualified person under the definitions established by National Instrument 43-101. Under HLM’s QA/QC procedures, channels are cut with a motorized circular diamond saw, and are 4 cm wide and 10 cm deep. The channels are oriented perpendicular to the strike of the pegmatite internal mineralogical zones and are cut continuously across the zones. The samples are removed using a hammer and chisel. The length of a channel is determined by the width of the pegmatite zone. Offset channels are cut where deemed appropriate. Sample lengths typically are 1 metre but can be less depending on zone mineralogy and boundaries. Samples are described, placed into a poly sample bag with a numbered sample tag and then shipped to the assay lab for quantitative analysis for select elements. All HLM samples are currently being assayed by Activation Laboratories Ltd. with all samples being delivered to their Thunder Bay facility. Sample blanks along with tantalum, lithium, rubidium and cesium standard samples are routinely inserted into the sample stream in accordance with industry best practices. At the completion of each program, approximately 10% of the channel sample pulps are submitted to a secondary ISO certified laboratory for assay verification.