Damoti Lake drilling yields more gold (January 03, 2005)

After cutting high-grade gold in drill holes, Anaconda Gold (ANX-V) is updating the gold resource at its Damoti Lake project, 200 km north of Yellowknife, N.W.T.

The latest drilling (1,300 metres in 19 holes) is highlighted by one hole that cut 9 metres (true width) grading 59.5 grams gold per tonne at a down-hole depth of 65 metres. The same shoot was intersected 10 metres (horizontally) away, where a 6-metre (true width) intercept graded 23.5 grams gold.

Other high-grade intersections include 2.2 metres grading 32 grams gold per tonne (within this interval are 60 cm grading 100 grams gold), 1.9 metres grading 35.8 grams gold, and 2.35 metres of 19.7 grams (the true width of these intervals has not been determined).

One hole contained a 0.67-metre intersection that assayed 95 grams gold per tonne. A re-assay of the same sample (using the metallic screen method) resulted in a grade of 504 grams per tonne.

Nine of the holes cut 3.6-30.8 grams gold over widths of 0.35-3.3 metres. Four holes failed to intersect significant mineralization.

Gold is associated with sulphides and quartz veining within folded iron formation.

Most of these holes tested the Horseshoe zone, which in 1997 was estimated to host a resource of 455,685 tonnes grading 16 grams gold per tonne (prior to National Instrument 43-101).

A couple of holes cut significant gold (in the range of 13-15 grams gold) 80 metres north of the Horseshoe zone. The company hopes the latest drill results, in conjunction with earlier work, will indicate a gold resource near, yet apart from, the Horseshoe zone.

An updated resource estimate of the Horseshoe zone will be calculated in the next few months.

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