Drilling returns gold values at Damoti Lake property

Assay results from the Damoti Lake property north of Yellowknife, N.W.T., continue to show high-grade gold values.

Operator Consolidated Ramrod Gold (TSE) has released results from 11 holes of a recently completed 24-hole program. The most impressive of these is 47.9 ft. of 2 oz. gold per ton from hole D94-124.

Ramrod launched the program in order to test the continuity of high-grade gold mineralization zones within a structure of folded iron formation. Holes D94-114 through D94-120, as well as D94-124, were stepped out northward along the Horseshoe-Pyrite structure and drilled to a greater depth. Selected assays are as follows:

hole interval width grade

(ft.) (ft.) (oz./t)

D94-114 327.34-329.97 2.62 0.44

D94-115 205.00-218.45 13.45 1.26

238.13-242.06 3.94 1.06

D94-116 40.67-54.12 13.45 0.16

79.05-86.92 7.89 0.26

D94-118 170.56-173.84 3.28 0.15

D94-119 162.69-164.33 1.64 0.12

D94-120 177.45-193.85 16.40 0.11

384.74-389.35 4.59 0.19

Hole D94-117, which was drilled to test the structure at depth, intersected six mineralized intervals to a depth of 687 ft., including 9.2 ft. of 1.61 oz. and 5.6 ft. of 0.66 oz.

Hole D94-124, which intersected the aforementioned 47.9 ft. of 2 oz. at a depth of 131.9 to to 179.7 ft., included an interval of 2.74 oz. over 31.5 ft. Three holes drilled in the nearby Red Mountain zone returned the following values: 4.9 ft. of 0.25 oz. for hole D94-121; 2.9 ft. of 0.08 oz. for D94-122; and 1.6 ft. of 0.11 oz. for D94-123.

Ramrod is earning a 51% interest from Athabaska Gold Resources (TSE), while Gitennes Exploration (ASE) holds a working interest of 25%. Ramrod has spent upwards of $2.2 million of a required $2.7 million.

The company has re-assayed several holes for metallic gold content in cases where coarse gold was observed in the core, and noted a general improvement of the grade.

Ramrod believes the structure extends both north and south of the Horseshoe-Pyrite area and that it contains three folded iron formations. Winter drilling is planned.