Anaconda Gold Corp.

Anaconda Gold Corp.

March 01, 2005 09:00 ET

Anaconda Gold Begins Third Phase Drill Program at Damoti Lake Gold Project




MARCH 1, 2005 - 09:00 ET

Anaconda Gold Begins Third Phase Drill Program at
Damoti Lake Gold Project

TORONTO, ONTARIO--(CCNMatthews - March 1, 2005) -

Mine Site Permitting Program Initiated

Anaconda Gold Corp. (TSX VENTURE:ANX) and Doublestar Resources Ltd. (TSX
VENTURE:DSR) are pleased to report that a third phase drill program has
started at their Damoti Lake gold project, located 200 km north of
Yellowknife, N.W.T.

Anaconda has the right to earn a 55% interest in the 4,660-hectare
project from Doublestar by spending $2.5 million over a four-year period.

The 1,200-m drill program is designed to provide additional data from
the Horseshoe deposit required to complete a new resource study - a key
component of a feasibility study scheduled for completion this year.

The program is also designed to test new targets in the favourable
banded iron formation unit approximately 200 m north of the Horseshoe
zone. Three holes will be drilled from the west limb of the folded
synclinal iron formation through to the east limb in order to test the
area of the little explored Lookout zone in the west limb and for
mineralization in the east limb at a depth of 200 m. The Horseshoe zone
deposit is located in the east limb of the iron formation.

Last year, Anaconda Gold completed 2,721 m of drilling in two programs
designed to confirm and better define resources in the Horseshoe
deposit. This work was successful in generating numerous high grading
intersections which confirmed the high grade nature of gold
mineralization at Damoti Lake. (See Anaconda Gold press releases dated
June 16, 2004, May 17, 2004 and December 21, 2004)

From 1992 to 1997, more than 40,000 m of drilling was completed by Quest
International Resources and other previous operators on a property-wide
exploration program which tested numerous gold showings and targets.

This historic work, completed in 1997, led to the estimate of resources
in the Horseshoe zone totaling 455,685 tonnes grading 15.97 grams gold
per tonne, according to Quest International Resources, the previous

Although these historical resource estimates were not completed in
accordance with National Instrument 43-101 standards, management of
Anaconda believe these historical results to be relevant.

The favourable iron formation unit strikes across the Damoti Lake claims
for more than 12 km and has been duplicated by folding several times
thereby increasing the potential of the property. At least 13
exploration targets outside of the Horseshoe zone have been identified
warranting additional exploration work.

In 1996, limited underground development via a decline ramp to the 40-m
level was successful in delineating one of the high grade lenses of gold
mineralization in the Horseshoe zone. The decline ramp remains in good
condition and provides convenient access to the mineralized zones for
future underground exploration.

Anaconda Gold and Doublestar Resource have also engaged Gartner Lee
Limited to provide general design work for a water settling treatment
plan and permit application assistance required for dewatering the
decline ramp this summer.

The statements made in this press release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
expectations and projections. The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this

The historical resource estimates referred to above were prepared prior
to NI 43-101 by or on behalf of previous operators. The relevance,
reliability and comparability of these previous estimates to current
standards have not yet been determined. In some cases, the primary data
no longer exists or is incomplete and some holes may require
re-drilling. Anaconda Gold Corp. has not done the work necessary to
verify the resource categories and is not treating them as current
resources under NI 43-101.


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