To do so, Anaconda must spend $2.5 million on exploration and development over four years, as well as provide $170,000 in option payments and issue 100,000 shares to Doublestar.
Drilling by a previous operator in the mid-1990s outlined a resource of 455,685 tonnes grading 15.97 grams gold per tonne in the Horseshoe zone. Although the reserve figure is not in line with Canadian standards under National Instrument 43-101, Anaconda says the results are reliable.
Based on more than 40,800 metres of drilling and 430 metres of underground development, Damoti Lake has a geological resource estimate of 1.9 million tonnes running 10.2 grams gold.
In 1996, limited underground work via a ramp to the 40-metre level delineated a high-grade gold lens. The lens yielded a stockpile of about 4,000 tonnes running 0.45 oz. gold per tonne.
Anaconda will conduct infill drilling on the Horseshoe zone, which is characterized by high-grade gold mineralization hosted by the fold closure of a banded iron formation.
The favourable banded iron formations strike for more than 12 km across the property. At least 13 areas on the 47-sq.-km property will be explored.
In early 2003, after spending more than $14 million,
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