Houston Lake Mining Inc. announced 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. 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% Li(2) O 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. 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% Li(2) O. When considering the LIZ and the high grade UIZ, the total distance between the two sets of channels is approximately 190m where the pegmatite zones remain open to both the southeast and northwest. 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% Li(2) 0.