Damoti drilling extends BIF zone

Drilling at the Damoti Lake property north of Yellowknife, N.W.T., is returning encouraging results.

Hole D-50 returned a 43-ft. intersection grading 0.094 oz. gold per ton, including a 12.1-ft. section grading 0.20 oz. and a 5.3-ft. section grading 0.14 oz.

The hole was drilled to intersect the BIF Island zone 150 ft. downdip from Hole D-31, which returned a 39.4-ft. intersection grading 0.54 oz. Hole D-51, drilled to test the zone 160 ft. north of D-50, intersected wide zones of sulphide mineralization, and assays are pending.

Consolidated Ramrod Gold (TSE) holds a 40% interest in the Damoti Lake property and is earning an additional 11% interest from Athabaska Gold Resources by spending a further $1 million.

Gitennes Exploration (ASE) holds a 25% working interest in the property. Meanwhile, on Athabaska’s nearby, wholly owned Nicholas Lake project, a decline has advanced more than 650 ft. from the portal. The purpose of the decline is to gain access to and bulk-sample two primary veins at the Main Showing, which contains a drill-indicated resource of 614,000 tons grading 0.36 oz.

Athabaska is considering constructing a 350-ton-per-day mine and mill at the Main Showing.

Prefeasibility work projects yearly output at 40,000 oz., with a cash cost of US$228 per oz. in the early years, rising to US$254 in later years.