Houston Lake extends gold zone at Dogpaw Lake — Junior company options formerly producing Arrow and Vimy mines

Drilling on the Dogpaw Lake property in northwestern Ontario has enabled Houston Lake Mining (HLM-A) to more than double the known strike length of gold mineralization.

Houston Lake holds an option to acquire a 70% interest in the property from Canadian Arrow Mines (CAML-C).

Holes 3 and 4 intercepted high-grade gold within the

pyrite-quartz-feldspar-Carbonate breccia of the No. 3 zone, including several sections of finely disseminated visible gold.

Hole 3 encountered one mineralized zone grading 36.44 grams gold per tonne over 8 metres (including a section grading 59.82 grams over 4.8 metres) and another, which carried abundant visible gold, grading 396.4 grams over 0.6 metre. The breccia in hole 3 measures 10.2 metres wide, with low-grade material at the top of the unit; it is well-Mineralized for 8 metres. The zone appears to be directly associated with an induced-polarization (IP) anomaly, which has a strike length of 600 metres.

Hole 4 hit 2.35 metres of 14.01 grams gold; hole 5 cut 1.45 metres of 30.98 grams at 20 metres below hole 3; and hole 18 cut 77.23 grams over 0.4 metre and 11.66 grams over 1.7 metres at 30 and 40 metres, respectively, below the mineralization in hole 5.

Farther to the west, hole 9 (125 metres west of hole 3) intersected 1.6 metres of 6.05 grams gold.

Over to the east, hole 24 hit 6 metres grading 1.64 grams gold and hole 22 hit 1.75 metres of 8.45 grams, thus extending the No. 3 zone 200 metres eastward. The zone remains open along strike and at depth.

Hole 23, drilled on an IP anomaly and within zone 2, cut a 6.15-Metre section of quartz-feldspar-Carbonate breccia (identical to that of zone 3) grading 0.97 gram gold. This new zone dips to the south, whereas zone 3 dips to the north, indicating that the two zones may be joined at depth in a wider, richer zone. To determine this, more infill drilling is required.

Another 15 to 20 holes have yet to be drilled in the first phase of drilling at Dogpaw Lake.

Joint venture planned

Meanwhile, Houston Lake has acquired a half interest in Arrow Mines’ past-producing Arrow and Vimy gold mines in northeastern Ontario’s Hislop Twp.

Both mines are situated on the Vimy mine property, which comprises 720 ha.

Houston must spend $4 million on exploration and development and issue to Arrow up to 400,000 units consisting of one share and a half-share purchase warrant. A joint venture between Houston and Arrow will be formed after Houston earns in.

Between 1981 and 1982, the Arrow open pit produced 250,381 tonnes grading 1.85 grams gold down to the 52-Metre level, or 14,904 oz.

Undiluted reserves are estimated at 795,421 tonnes grading 2.26 grams gold.

The deposit is hosted in an altered intrusive body measuring about 1.6 km in diameter. A northeast-striking fault cuts the intrusive body; it also appears to cut the Vimy mine, 1.6 km to the northeast.

In 1935, a 23-Metre shaft was sunk and a 45-Tonne-per-day mill was in operation at Vimy. Other development work was carried out by past owners in 1945, 1946, 1975, 1980 and 1981.