Partners Consolidated Ramrod Gold (TSE) and Canadian American Resource plan to go underground this summer at the Damoti Lake project north of Yellowknife, N.W.T.
Canadian American is funding the planned US$3.6-million program under a previously announced deal to acquire a half interest in the property.
Ramrod will receive an aggregate of US$12 million for the interest, including US$7.5 million which must be spent on the property.
This summer’s exploration and development program will include 1,600 ft. of decline and underground work, as well as 3,300 ft. of underground diamond drilling.
The underground work will allow the joint venture to test the correlation between mined grades and grades indicated by surface drilling on high-grade zones.
Recent drilling returned a mix of values ranging from 0.059 oz. gold per ton over 6.6 ft. on the Reef Island zone up to 0.45 oz. gold over 9.2 ft. on the California zone.
Ramrod is reviewing the results and may conduct additional drilling from the ice before spring break-up.
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