Anaconda Gold Corp.

Anaconda Gold Corp.

July 20, 2005 13:19 ET

Drilling Starts on Anaconda Gold's Horse Mountain Project on the Carlin Trend, Nevada

TORONTO, ONTARIO--(CCNMatthews - July 20, 2005) - Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to report that its partner, Keegan Resources Inc. (TSXV:KGN) has started drilling on Anaconda's Horse Mountain project.

Located in Elko County, Nevada, approximately 40 km north of Barrick Gold's Meikle gold mine, the Horse Mountain project is found along the northwest extension of the Carlin Trend.

Keegan plans to complete two deep drill holes at Horse Mountain.

The first hole will test a stratigraphic, structural, alteration and mineralization model for a buried Meikle or Ren-like Carlin-type deposit in the northern portion of the property. The stratigraphic model (gleaned from recent mapping and core logging by Great Basin Gold Ltd. at the Ivanhoe Project and the USGS and Nevada Bureau of Mines) suggest lower plate carbonate rocks may be encountered 1,800-2,400 feet below the Horse Mountain surface.

The structural model, developed by structural studies commissioned by Great Basin Gold, suggests that the NE trending strongly altered and mineralized Rock Creek fault dips steeply to the NW. The alteration and mineralization model suggests that silicification and mineralization encountered on the Rock Creek Fault (up to 10,000 ppm arsenic and 1000 ppb gold), will increase in strength and size at the intersection of the Rock Creek Fault and the Lower Plate carbonate rocks.

This drill hole is designed to intercept the intersection of the Rock Creek fault and Lower Plate Carbonate rocks.

The second hole will test for an intermediate depth Carlin-type target in favourable Pennsylvanian-Permian Antler Sequence rocks. The Antler sequence rocks are the main host in the Fortitude-Phoenix gold deposit in the Battle Mountain trend. Previous mapping, rock and soil sampling within Antler Sequence rocks at Horse Mountain shows prospective carbonate horizons within the Antler sequence rocks with up to 3000 ppm arsenic and 20 ppb gold. Keegan's hole will test a projection of these rocks beneath pediment near the Rock Creek Fault, where the pediment is geochemically anomalous.

Anaconda Gold optioned the Horse Mountain project to Keegan, which has the right to earn a 51% interest in the Horse Mountain project by spending US$1.5 million on exploration and maintaining the claims in good standing. Keegan can earn an additional 19% interest by completing a feasibility study.

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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