Houston eyes Tib Lake palladium

Junior Houston Lake Mining (HLM-V) is performing an induced-polarization survey at its Tib Lake property, near Thunder Bay, Ont., in hopes of discovering new palladium zones.

Tib Lake comprises 1,632 ha of a gabbroic intrusion, which is part of the Lac des les intrusive suite. The suite is best known for hosting the Roby zone, currently being mined by North American Palladium (pdl-t). The Roby zone hosts open-pit reserves of 74.2 million tonnes grading 1.64 grams palladium, 0.18 gram platinum and 0.14 gram gold per tonne, plus 0.07% copper and 0.065 nickel.

Two geophysical surveys are tracing 2 km of a sulphide-bearing breccia considered to be geologically similar to the Roby zone. The breccia extends eastward from the Kuhner prospect, where one hole drilled in 1995 intersected 18.47 metres grading 1.68 grams combined platinum-palladium-gold, including higher-grade sub-intervals. Two showings are also known.

Houston has already spent $220,000 and, to acquire the property outright, must spend another $80,000, as well as issue 50,000 shares. The vendor retains a 2.5% net smelter return royalty (NSR).

Meanwhile, Houston Lake has raised $100,000 in a private placement that saw 400,000 shares issued at 25 each. The funds are earmarked for Tib Lake.

Houston Lake is also exploring the Pakeagama Lake rare metals property, 170 km north of Red Lake, Ont. To earn a 100% interest in that project, the company must issue 200,000 shares and, over three years, pay $150,000 in cash and spend $63,000 on exploration. The vendor retains a 2.5% NSR.