Anaconda Gold Corp.

Anaconda Gold Corp.

March 29, 2006 16:05 ET

Anaconda Gold Completes Preliminary Assessment For Damoti Lake Gold Project

TORONTO, ONTARIO--(CCNMatthews - March 29, 2006) - Anaconda Gold Corp. (TSX VENTURE:ANX)(FRANKFURT:GJ2) and Doublestar Resources Ltd. (TSX VENTURE:DSR) are pleased to announce the completion of a Preliminary Assessment for the Damoti Lake gold deposit located about 200 kilometers north of Yellowknife, Northwest Territories.

Prepared by Dan Mackie and Associates, an engineering consulting firm based in Burlington, Ontario, the report concludes that the project warrants being advanced and recommends additional work be conducted towards underground development and bulk sampling.

A summary of the base case analysis is as follows:

Process rate (tpd): 100
Operating (days): 330
Gold Price: US$400
Capital Cost(1): $5.75 million
Gold Production: 32,114 oz.
Operating cost/ton: $128.29
Operating Cash Flow: $9.65 million
Cash Cost/oz: US$131
Base Case NPV(5%): $2.72 million

(1) In Canadian dollars unless otherwise indicated.

The Preliminary Assessment should be read in conjunction with a NI43-101 and 43-101F1 compliant Technical Report and Resources Estimate, which was completed by P&E Mining Consultants Inc., on behalf of Anaconda Gold Corp. (See press release dated November 17, 2005 at or visit for a copy of the NI 43-101 technical report).

Damoti Lake hosts the following resources on which the Preliminary Assessment is based:

The resource estimate below (2) is calculated at a cut-off grade of
8.0 g/t gold.
Classification Tonnes Au(g/t) Au (Ounces)
Measured 20,300 28.88 18,900
Indicated 20,300 23.46 15,300
Measured & Indicated 40,600 26.17 34,200
Inferred 17,800 16.38 9,400
(2) Mineral resources which are not mineral reserves do not
have demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, sociopolitical, marketing, or other relevant

The mineral resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and as adopted by CIM Council on December 11, 2005.

The resource estimate was completed by independent mining consultants and Qualified Persons, Eugene Puritch, P.Eng. and Dr. Wayne Ewert, P.Geo. of P&E Mining Consultants Inc. of Brampton, Ontario. Dan Mackie, P.Eng., the author of the Preliminary Assessment, is also a Qualified Person as defined by NI43-101.

Mackie & Associates also completed an economic assessment including inferred resources, in addition to measured and indicted resources. Highlights of this assessment are as follows:

%Change from Base Case
Gold Price: US$500 +25
Gold Production: 40,958 oz. +27.5
Capital Cost: $5.75 million
Operating Cash Flow: $16.2 million +67.8
Cash Cost/oz: US$148 -13
Base Case NPV(5%): $8.5 million +212.5

As a result of the inclusion of inferred resources and the preliminary nature of the analysis, the potential quantities of gold in the inferred resources cannot be referred to as "ore" or as "mineral reserves". Due to the uncertainty which may attach to inferred resources, there is no assurance that inferred resources will be upgraded to measured and indicated resources or proven and probable reserves, as a result of continued drilling. The economic analysis contained herein is an assessment which is preliminary in nature and is based partly upon inferred resources that are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves.

Based on the results of the Preliminary Assessment, and with new water and land use permits received (See Anaconda press release dated March 14, 2006 available at or at www.sedar,com), Anaconda is preparing a budget for the upcoming summer field season which will include dewatering of the decline ramp, construction of a settling pond and on-going environmental base line studies.

"The Mackie study suggests Damoti Lake has the potential to be economically viable and will allow us to justify advancing the project to the bulk sampling stage," Nick Tintor, President and CEO of Anaconda said.

Anaconda Gold Corp., which is earning a 55% interest in the 3,258 hectare Damoti Lake project from Doublestar Resources (TSXV: DSR) by spending $2.5 million over a four-year period, has completed more than 4,191 m of drilling.

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 release.

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