Infill drilling planned on BIF Island at northern Damoti Lake project

With spring breakup fast approaching at Damoti Lake in the Northwest Territories, a second drill rig is being engaged, in order to carry out infill drilling of the original discovery on BIF Island.

The current phase of widely spaced, exploratory drilling, which is testing for iron formation-hosted gold mineralization in the South Peninsula, is winding down.

Project operator Consolidated Ramrod Gold (TSE) is earning a 51% interest from Athabaska Gold Resources (TSE). Upon Ramrod’s vesting its interest, Athabaska will be reduced to a 24% share. Gitennes Exploration (ASE) holds the remaining 25%.

The Damoti Lake project is 120 miles northwest of Yellowknife, N.W.T., where iron formation structures are traced over a strike length of more than 6.5 miles.

The Horseshoe zone covers a strike length of 1,000 ft. and, while only three holes have tested the northern half, stepout fan drilling in the southern half continues to encounter high-grade intercepts. Assay results are as follows:

HoleIntervalWidthGold

(ft.)(ft.)(oz./t)

95-162B154.86-174.5419.680.76

365.16-379.9214.760.23

424.54-433.018.530.21

578.74-581.692.950.20

95-16692.52-94.822.300.20

123.36-126.973.610.21

236.55-247.0510.500.18

318.57-327.108.530.21

361.88-372.0510.170.46

536.09-544.298.200.28

95-16739.04-41.992.950.17

71.85-83.3311.480.83

95-16357.09-59.382.300.19

269.30-281.8012.500.20

95-164Missed the iron formation

95-16586.94-91.544.600.12

Hole 95-162B stepped out 66 ft. to the north of previously reported hole 94-124 (47.9 ft. grading 2 oz. gold per ton); holes 95-166 and 95-167 were drilled 132 ft. north of 94-124; and holes 95-163 through 95-165 were stepped out 247 ft. to the north.

New areas of gold mineralization, identified from recent exploratory drilling, include the Quartz and Causeway zones, which lie east of the Horseshoe zone. Confirmed by a single hole, the Quartz zone is an iron formation band 600 ft. in length. Hole 95-156 intersected 5.25 ft. grading 0.27 oz.

The Causeway zone was tested by four holes and represents a band of iron formation more than 650 ft. in length. Significant intersections include 1.97 ft. of 0.14 oz., plus 1.64 ft. of 0.35 oz., for hole 95-151; 6.57 ft. of 0.18 oz. for 95-152; and 7.22 ft. of 0.14 oz. for 95-153. Hole 95-150 is reported to have intersected an intrusive diorite dyke.

A re-interpretation of the mineralized structure at the original Damoti discovery on BIF Island has led to a new phase of drilling. Past drilling indicated the presence of widespread, but erratic, gold mineralization.

The high-grade oreshoots are controlled by fracture and shear mineralization. A large number of east-dipping shear zones are believed to be perpendicular to bedding. Gitennes President Jerry Blackwell says this new theory could have dramatic implications in so far as the deposit could be more representative of banded iron formations found in Manitoba and Ontario.

He indicates that current drill results are worth noting. Hole 95-176, the latest hole, returned 16.07 ft. grading 1.04 oz.

Meanwhile, Gitennes has completed the first phase of exploration drilling on the adjacent 50%-held TQY property and its wholly owned Fishhook property.

A total of 25 holes were drilled on the TQY, testing the complexly folded Red Badger zone and geophysical targets which include the Bivisible North, Irresistible East and Parma Belle. From the last 10 holes completed, no significant intersections were reported, although all intersected iron formation.

With the completion of this present round of drilling, Gitennes has completed its earn-in requirements for the property, reducing Tanqueray Resources (ASE) to a 50% stake. The next phase of exploration work, to begin in late spring, will consist of prospecting, trenching and a maximum 4,000 ft. of diamond drilling.

Seventeen shallow holes tested the Fishhook property, which adjoins both TQY and Damoti Lake. Recent drilling on the 650-ft.-long Irresistible West target returned the following selected values: 2.1 ft. of 0.1 oz. for hole RB95-38; 2.5 ft. of 0.19 oz., plus 3.3 ft. of 0.22 oz., for RB95-39; 1.9 ft. of 0.33 oz. for RB95-40; and 2.3 ft. of 0.2 oz. for RB95-43.

Narrow bands of weakly mineralized iron formation were encountered in two drill holes which tested the Royal Champion target and in two stepout holes on the Bivisible North target.