Mixed results from Damoti assays

Further assay results from drilling on the Damoti Lake gold prospect are mixed.

The property, 150 km north of Yellowknife, N.W.T., is a joint venture among Athabaska Gold (TSE), Consolidated Ramrod Gold (TSE) and Gitennes Exploration (CDN).

Holes D-9 and D-10 encountered anomalous gold values over significant widths but missed the main zone of high-grade gold mineralization encountered in Holes D-2 through D-8.

The joint venture is testing a gold-mineralized iron formation discovered earlier this year by Hole D-2 which intersected 9.5 metres grading 11.5 grams gold per tonne. Holes D-2 through D-10 were all drilled from BIF Island at Damoti Lake (T.N.M., Oct. 11/93).

Hole D-9, drilled under Holes D-6 (2.8 metres grading 2 grams) and D-7 (2.6 metres grading 23.3 grams), included two 1-metre intersections grading 1.3 and 6.6 grams gold respectively.

Hole D-10, drilled 24 metres north of D-9 and 91 metres north of D-2, included one intersection grading 0.5 grams gold over 4.1 metres. Athabaska, the operator, is awaiting assays on Hole D-12 which tested the zone below Hole D-8 (2.03 metres grading 6.6 grams gold). The hole is reported to have encountered 4.9 metres of sulphide iron formation. The company also completed a hole on North Island, 500 metres north of BIF Island. Hole D-11 tested the west band of iron formation but did not intersect any significant gold mineralization.

Previous reports indicated D-11 intersected both the west and the east iron formation, but Athabasca President James Kermeen believes the east zone is too steep to have been intersected in the hole.

Three additional drill holes have been completed on North Island, to test the east iron formation where surface sampling returned gold values of 21.1 grams gold and 26.3 grams gold.

Hole D-13, the initial hole on the east iron formation, encountered 16.6 metres of iron formation containing sulphide-rich sections. Visual results for the other two holes have not been released.

Surface and airborne work has traced the iron formation to both north and south of Damoti Lake, along the trend from North and BIF Islands. Surface sampling on a peninsula 3-3.3 km south of BIF Island returned gold values of 0.6-5.1 grams. The iron formation is 100 metres wide in the area and several potential, gold-bearing, sulphide-rich bands have been identified. Athabaska expects to begin drilling on the target shortly, with a minimum of two holes.

Although recent drill results are not as good as previous holes, Kermeen points out that the joint venture is not drilling on the primary target, which is the strike extent immediately south of Discovery Hole D-2. Kermeen explains that the company simply ran out of land-based setups for the drill on BIF Island and must now wait for the lake to freeze in order to drill on the ice.

Consolidated Ramrod is earning a 51% interest in the property. On vesting of its interest, Athabaska will own 24% and Gitennes 25%.