Anaconda Gold drills Damoti Lake

Vancouver — Anaconda Gold (ANX-V) has intersected high-grade gold mineralization at the Damoti Lake project, 200 km north of Yellowknife, N.W.T.

The latest round of drilling is focused on upgrading the Horseshoe zone resource. Hole 329 returned 10.95 metres grading 74.54 grams gold per tonne at a depth of 58 metres. The intersection included some higher-grade intervals, such as 1 metre averaging 366 grams gold.

The full intersection was sampled and assayed in half-metre sections, and all returned high-grade gold, thus mitigating any potential “nugget effect.” True width of the intersection is estimated at 6.05 metres.

Anaconda is earning a 55% stake in Damoti Lake from Doublestar Resources (dsr-v) by spending $2.5 million over four years.

The latest drill program consisted of 20 core holes totalling 1,421 metres. Results from 15 holes are pending.

A review of the drill program and previous work leads Anaconda to hypothesize that the high-grade lenses are sub-parallel to the dip of the iron formation, thus increasing their downdip and plunge potential. Hole 330 intersected 1.8 metres of 14.25 grams gold about 20 metres below hole 329’s intersection, which would seem to support the hypothesis.

The targeted Horseshoe zone is typified by high-grade gold mineralization associated with a folded, banded iron formation hosting sulphides and quartz veining.

A previous operator carried out more than 40,000 metres of drilling from 1992 to 1997. Limited underground development on the Horseshoe zone in 1996 consisted of a decline ramp to the 40-metre level and delineated a high-grade lens of gold mineralization. A resource of 455,685 tonnes grading 15.94 grams gold was defined.

Anaconda has 21.1 million shares issued and outstanding.

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