Anaconda Mining Intersects 12.39 g/t Gold Over 3.2 Metres and 24.49 g/t Gold Over 1.0 Metres at Goldboro

TORONTO, July 5, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce assay results from five drill holes (1,725 metres), as part of 11,588 metres of diamond drilling completed since October 2017 (the "Drill Program") at the Goldboro Gold Project in Nova Scotia ("Goldboro"). The five drill holes (BR-18-30 to BR-18-34) targeted eight mineralized zones of the East Goldbrook Gold System ("EG Gold System") and eight mineralized zones of the Boston-Richardson Gold System ("BR Gold System") along section 9050E of the Goldboro Deposit (Exhibit A). The Drill Program also tested the continuity of mineralization previously intersected in section 9100E located 50 metres to the east where multiple, wide, high-grade zones associated with fault systems were intersected, including 11.27 grams per tonne ("g/t") gold over 13.5 metres and 10.55 g/t gold over 6.1 metres (see press release of April 19, 2018). 

Highlights of the composited assays from the Drill Program on section 9050E include:

  • 2.21 g/t gold over 25.5 metres (506.1 to 531.6 metres) in hole BR-18-30, including 12.39 g/t gold over 3.2 metres;
  • 24.49 g/t gold over 1.0 metres (177.0 to 178.0 metres) in hole BR-18-34;
  • 4.82 g/t gold over 3.6 metres (384.7 to 388.3 metres) in hole BR-18-33, including 9.90 g/t gold over 1.1 metres; and
  • 3.00 g/t gold over 7.5 metres (270.5 to 278.0 metres) in hole BR-18-34.

A full table of composited assays from recent drilling is presented below.

"The current drilling not only expanded mineralization, but also demonstrated the continuity of wide zones of mineralization between sections along the dominate plunging control on the Boston Richardson Gold System. In section 9050E, we found the continuation of the wide zones of mineralization and faults seen in sections 9100E and 9150E.  Since initiating our exploration programs, which so far have included nearly 12,000 metres of drilling, we have expanded the deposit and continue to refine and increase the confidence in our geological model. In particular, drilling in section 9050E has extended all mineralized zones of the EG Gold System, and further extended the BR Gold System down to 550 vertical metres, an increase of over 250 metres in this section. Over the next several months, we expect to continue to demonstrate the significant growth potential of Goldboro with a substantial exploration program funded by the recent flow through financing."

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

The Drill Program was successful in hitting the eight mineralized zones targeted in the EG Gold System and discovered two mineralized zones that were not previously known (Exhibit B). Within the BR Gold System, all eight mineralized zones were intersected, extending the BR Gold System vertically an additional 250 metres to a depth of 550 metres in section 9050E (Exhibit B). Mineralization encountered in section 9050E also extended both the EG and BR Gold Systems westward by an additional 50 metres up plunge.  Nineteen separate occurrences of visible gold were observed.

Continuity of Wide Mineralized Zones

On section 9050E, Anaconda tested the continuation of wide zones of mineralization ranging from 4.5 metres to 13.5 metres that were encountered in sections 9100E and 9150E. As anticipated, the Company intersected two zones of mineralization in section 9050E (7.5 metres wide and 9.9 metres wide) within the same corridors of mineralization as sections 9100E and 9150E (Exhibit C). The correlation across three geological sections indicates mineralization is continuous for at least 100 metres (Exhibit C). The faults encountered on section 9100E were also intersected on section 9050E, though it is not clear if the faults are necessarily correlated to gold mineralization.

Recent results from the Drill Program have confirmed historical results which indicated the potential for expansion. Select highlights of composited assays from historic drilling on sections 9050E include:

  • 9.89 g/t gold over 3.7 metres (258.3 to 262.0 metres) in hole BR-87-42;
  • 4.11 g/t gold over 9.9 metres (200.7 to 210.6 metres) including 22.63 g/t gold over 1.1 metres in hole BR-87-32;
  • 3.66 g/t gold over 10.6 metres (239.7 to 250.3 metres) in hole BR-87-37 including10.63 g/t gold over 1.4 metres.
  • 9.26 g/t gold over 1.2 metres (216.7 to 217.9 metres) in hole BR-87-37; and
  • 30.17 g/t gold over 0.9 metres (198.4 to 199.3 metres) in hole BR-87-32.

A table of selected composited assays from drill holes reported in this press release:

Hole ID

From (m)

To (m)

Interval (m)

Gold (g/t)

Gold System

Visible Gold


BR-18-30

34.9

35.9

1.0

3.64

EG


Current

and

122.6

123.7

1.1

2.12

EG


and

271.0

272.5

1.5

1.72

EG


and

314.0

315.0

1.0

0.67

BR


and

421.8

422.3

0.5

29.59

BR

vg

and

449.6

451.5

1.9

1.72

BR


including

451.0

451.5

0.5

5.62

BR


and

459.8

463.0

3.2

2.71

BR

vg

including

461.5

462.0

0.5

5.33

BR


and

471.4

471.9

0.5

6.52

BR

vg

and

506.1

531.6

25.5

2.21

BR

vg

including

512.1

515.3

3.2

12.39

BR

vg

and

512.7

513.3

0.5

67.16

BR


and

519.5

520.2

0.7

8.05

BR

vg

and

541.2

543.5

2.3

1.23

BR

vg

and

573.7

575.2

1.5

4.47

BR


and

579.5

580.5

1.0

0.51

BR


and

591.5

594.5

3.0

0.82

BR

vg

BR-18-31

16.0

16.5

0.5

2.38

EG

vg

and

51.6

56.0

4.4

0.90

EG


and

57.9

58.9

1.0

0.69

EG


BR-18-32

16.7

17.7

1.0

1.36

EG


and

33.0

33.7

0.7

3.69

EG


and

36.5

37.5

1.0

1.07

EG


and

49.0

50.8

1.8

4.79

EG

vg

and

65.5

68.4

2.9

1.67

EG


and

88.3

89.3

1.0

8.38

EG


BR-18-33

13.0

13.5

0.5

16.43

EG

vg

and

157.7

158.6

0.9

4.44

EG


and

273.0

274.0

1.0

1.26

BR


and

284.2

286.0

1.8

2.40

BR


and

294.5

296.5

2.0

3.57

BR


including

296.0

296.5

0.5

10.20

BR

vg

and

310.0

311.0

1.0

0.63

BR


and

319.5

321.5

2.0

1.22

BR


and

334.0

337.0

3.0

1.71

BR


and

342.0

346.6

4.6

1.59

BR

vg

and

360.9

363.0

2.1

1.28

BR


and

372.2

372.8

0.6

3.57

BR

vg

and

384.7

388.3

3.6

4.82

BR


including

385.7

386.8

1.1

9.90

BR


and

387.8

388.3

0.5

8.28

BR


and

402.0

403.0

1.0

7.10

BR


and

429.0

430.0

1.0

1.31

BR


and

465.0

467.0

2.0

0.72

BR


and

476.4

477.5

1.1

1.03

BR

vg

and

486.3

489.9

3.6

1.75

BR


BR-18-34

177.0

178.0

1.0

24.49

EG

vg

and

219.0

220.0

1.0

1.24

BR


and

237.5

240.0

2.5

2.03

BR


including

237.5

238.1

0.6

6.74

BR

vg

and

254.0

255.0

1.0

2.57

BR


and

261.8

264.0

2.2

3.04

BR


including

261.8

262.5

0.7

6.12

BR


and

270.5

278.0

7.5

3.00

BR


including

270.5

271.0

0.5

16.17

BR

vg

and

272.0

273.0

1.0

6.10

BR


and

299.8

301.5

1.7

2.83

BR

vg

and

349.0

351.0

2.0

1.12

BR


and

352.5

354.2

1.7

0.64

BR


and

402.0

403.0

1.0

1.70

BR


BR87-32

19.5

21.3

1.8

5.75

EG


Historic

and

52.4

54.3

1.8

2.12

EG


and

177.4

183.8

6.4

1.18

BR


and

192.6

195.2

2.6

1.94

BR


and

198.4

199.4

0.9

30.17

BR


and

200.7

210.6

9.9

4.11

BR


including

200.7

201.8

1.1

22.63

BR

vg

and

234.7

236.8

2.1

3.33

BR


and

269.8

291.9

22.1

1.64

BR

vg

including

270.7

271.6

0.9

7.54

BR


BR88-42

19.2

19.9

0.7

3.05

EG


and

229.2

230.6

1.4

0.99

BR


and

258.3

262.0

3.7

9.89

BR

vg

and

266.6

273.3

6.7

1.86

BR


including

271.9

273.3

1.4

5.50

BR

vg

and

294.5

296.0

1.5

0.98

BR


and

311.5

314.6

3.1

0.99

BR


and

319.1

322.2

3.1

0.69

BR


BR87-37

75.4

75.7

0.4

12.34

EG

vg

and

170.1

171.3

1.2

2.40

BR


and

187.0

191.2

4.2

1.19

BR


and

201.8

204.5

2.7

2.68

BR


and

216.7

220.1

3.4

3.94

BR


including

216.7

217.9

1.2

9.26

BR


and

231.2

233.0

1.8

0.82

BR


and

239.7

250.3

10.5

3.66

BR


including

242.8

244.2

1.4

10.63

BR

vg

and

247.8

249.0

1.2

7.89

BR


and

249.0

250.3

1.2

7.20

BR


and

268.5

283.5

14.9

2.23

BR


including

273.3

274.8

1.5

5.49

BR


and

309.7

310.9

1.2

1.95

BR


This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

All samples and the resultant composites referred to in this release are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd.("Eastern") in Springdale, NL, for Au by fire assay (30 g) with an AA finish.

Samples analyzing greater than 0.5 g/t Au via 30 g fire assay were re-analyzed at Eastern via total pulp metallic. For the total pulp metallic analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade.  Anaconda considers total pulp metallic analysis to be more representative than 30 g fire assay in coarse gold systems such as the Goldboro Deposit.

Reported mineralized intervals are measured from core lengths. Intervals are estimated to be approximately 80-100% of true widths of the mineralized zones, except for drill intersections below 400 metres depth where the drill trace crosses to the northern limb of the host fold structure near the bottom of the hole.  In these areas reported intervals may be less than 50% of true width.

A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA MINING INC.

Anaconda is a TSX-listed gold mining, development, and exploration company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, comprised of the Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and tailings facility, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company's Point Rousse Project.

The Company also has a pipeline of organic growth opportunities, including the Great Northern Project on the Northern Peninsula of Newfoundland and the Tilt Cove Property on the Baie Verte Peninsula, also in Newfoundland.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, the Company's future exploration, development and operational plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the seven-month period ended December 31, 2017, available on www.sedar.com.  Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Exhibit A. A map showing the location of section 9050E, 9100E and 9150E as well as associated drill collars and select assay highlights from recent drilling. (CNW Group/Anaconda Mining Inc.)

Exhibit B. A geological cross section 9050E through the BR Gold System showing the location of drill holes and drill intersections of mineralized zones. (CNW Group/Anaconda Mining Inc.)

Exhibit C. A view of three consecutive geological cross section 9050E, 9100E and 9150E through the BR Gold System showing the location of wide zones of mineralization that are interpreted to create a wide mineralized corridor across these three sections and locally contain significant grades such as 11.27 g/t gold over 13.5 metres and 10.55 g/t gold over 6.1 metres in section 9100E. (CNW Group/Anaconda Mining Inc.)

SOURCE Anaconda Mining Inc.

For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, dangelo@anacondamining.com, www.AnacondaMining.com; Anaconda Mining Inc., Lynn Hammond, VP Public Relations, (709) 330-1260, Lhammond@anacondamining.com; Reseau ProMarket Inc., Dany Cenac Robert, Investor Relations, (514) 722-2276 x456, Dany.Cenac-Robert@ReseauProMarket.com

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