Anaconda hits gold at Damoti (June 06, 2005)

Structural extensions to the Horseshoe zone at the Damoti Lake gold deposit in the Northwest Territories are proving to be mineralized in drill-testing by Anaconda Gold (ANX-V).

A short stepout from the Horseshoe zone, hole 375, cut a 3.6-metre intersection grading 33.9 grams gold per tonne. The hole extended a known zone a further 6 metres to the south.

An exploration hole drilled on the Horseshoe structure, 100 metres north of known mineralization, intersected a 2.5-metre core length that averaged 11.7 grams gold per tonne. Anaconda says it’s not yet clear from the structure what the true widths of the Horseshoe intersections are.

Two other holes tested an iron formation 100 metres west of the Horseshoe zone, with one cutting 1.2 metres running 7.7 grams gold per tonne and another cutting 1.7 metres running 4.4 grams per tonne.

Anaconda is earning a 55% interest in Damoti Lake from Doublestar Resources (DSR-T). Its spending commitment is $2.5 million over four years.

Earlier work on Damoti Lake outlined a resource of 456,000 tonnes grading 16 grams gold per tonne, though this is a historical resource not in compliance with current regulations.