Anaconda strikes gold (June 16, 2004)

Anaconda Gold (ANX-V) has intersected impressive gold grades at its 46-sq.-km Damoti Lake project, 200 km north of Yellowknife, Northwest Territories.

Drilling is focused on the Horseshoe zone deposit. Results from nine holes, are highlighted by hole D04-343, which intersected 13.9 metres grading 32.6 grams gold per tonne, including a 5.7-metre intercept grading 50.6 grams gold. The entire 13.9-metre intersection comprised 29 samples with core lengths ranging from 16 cm to 94 cm; just five of the samples (totalling 2.04 metres in length) assayed less than 10 grams gold.

Apart from the above, two of the holes hit high intercepts of 4.45 metres grading 20.3 grams gold and 5 metres grading 25.1 grams gold.

Four exploration holes designed to intersect structures in other areas of the iron formation failed to cut significant gold.

The Horseshoe zone mineralization is associated with quartz veining and sulphidation at the nose of a fold in amphibolite iron formation. In 1996, a ramp was developed to the 40-metre level to allow for delineation of one of the zone’s high-grade lenses. It is one of 13 targets already identified along the 13-km strike-length of the iron formation.

The drill results have led to a new interpretation of the mineralization. High-grade lenses appear to be sub-parallel to the dip of the iron formation (T.N.M., May31/04). Previously the zone was thought to be shallow, however the company is finishing up level plans and longitudinal sections, with slices every 25 metres and the zone appears vertical.

Anaconda can earn a 55% interest in the project from Doublestar Resources (DSR-V) by spending $2.5 million over a four-year period.

In mid-June Anaconda announced that it has raised $2.56 million by selling 6.6 million flow-through units at 32 apiece, and 1.5 million non-flow through units at 30 each. The proceeds will be used to finance exploration, as well as for general working capital.