Houston Lake explores potential for open-pit mine.

Houston Lake Mining Inc. is continuing extensive prospecting projects as they enter into the pre-advanced stages of exploration on their West Cedartree Gold Project.

"It's our principal focus at the moment," Grayme Anthony, president of Houston Lake, says.

West Cedartree is approximately 65 kilometres southeast of Kenora.

Last fall, the Greater Sudbury-based junior mining company completed a multitude of exploration projects on the Angel Hill zone on the West Cedartree property.

The exploration work produced some interesting gold values, he adds. This past winter a drilling program was conducted to test the gold zone below surface. Approximately 20 drill holes were put in, of which five holes intersected ounce-plus material.

"It has a chance of being economically significant," he says, referring to the five holes. "We are extremely encouraged by the development and, to put (the studies) into perspective, we have perhaps tested only one per cent of the zone. There is great potential for finding more along a two-kilometre stretch of the gold zone."

The company is currently extracting hundreds of tonnes in a bulk sample. The project has a capacity of taking out up to 1,000 tonnes before it is considered an advanced project.

"We are taking a less onerous approach at this particular step, and probably plan on taking it to an advanced project stage after the bulk sample (is finished)."

The bulk sample provides a 3-D image of the gold mineralization. The results will help Anthony to appraise and understand the targeted gold areas. The grade is unknown, although parts of the area show several ounces, Anthony explains. The other benefit of bulk sampling is to test for metallurgic recoveries.

"The metallurgic testing will tell us how much gold we can recover out of there."

Through the exploration process, Anthony says the company has utilized the services of local businesses and has hired at least five workers from the local communities. As the project expands, there will be a greater requirement for more workers.

WJ Bowman Ltd., located in Dryden, has completed control surveying for Houston Lake. The completed studies targeted the areas of activity in relationship to the mining claims boundaries.

In addition, plans and elevation profiles indicate where the drill programs are located. Jim Bowman, owner of W.J. Bowman, has also carried out mining claim boundary surveys, control surveys and grids for Nuinsco's Cameron Lake Gold Deposit.

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"Exploration activity appears to be spilling over from the Red Lake district to some of the other old mining camps," Bowman says.

"We have been busier (this year) than we have in the last three or four years. We also have some work in Red Lake too, with several companies, although activity is starting to level off now."

Larger equipment being used on the Angel Hill property has come from the Nuinsco's Cameron Lake Gold Deposit, which is less than 10 kilometres away. This is unusual, since most exploration companies working side by side tend to "cut each others throats," Anthony adds.

Companies should be helping one another out because it adds value to the surrounding properties, Anthony says. If more gold were found in the region, it might warrant putting in a mill, which would lower costs for all prospecting companies in the area.

To date, an estimated half a million dollars has been spent on the property, including acquisition costs. Houston Lake is the 100 per cent owner of the property, subject to a two-and-a quarter per cent net smelter royalty to the original prospectors.

www.houstonlakemining.com

BY KELLY LOUISEIZE

Northern Ontario Business