Anaconda Mining initiates 10,000-metre drill program at Goldboro, following highly successful initial drill program

TORONTO, July 31, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce the commencement of a 10,000-metre diamond drill program (the "Drill Program") at the Goldboro Gold Project in Nova Scotia ("Goldboro"). The Drill Program follows a highly successful campaign that included 12,231 metres of diamond drilling in 42 holes since May of 2017 when the Company acquired Goldboro (the "Initial Drill Program") (Exhibit A). The Initial Drill Program focused on infilling areas of inferred resources as outlined in the 2018 Preliminary Economic Assessment ("PEA") filed on March 2, 2018, and expanding the Goldboro Deposit along strike and down plunge and at depth along the host fold structure.

Exhibit A. A map showing the Goldboro Deposit, associated drill holes completed by the Company to date and the expansion of the deposit to the east by 100 metres. (CNW Group/Anaconda Mining Inc.)

The Initial Drill Program had many highlights including the following:

  • Selected diamond drill intersections including:
    • 779.97 grams per tonne ("g/t") gold over 0.5 metres within 151.42 g/t gold over 2.6 metres (33.1 to 35.7 metres) in hole BR-17-04;
    • 21.05 g/t gold over 11.5 metres (77.5 to 89.0 metres) in hole BR-18-37;
    • 4.13 g/t gold over 20.5 metres (324.5 to 345.0 metres) in hole BR-18-23 including 9.93 g/t gold over 7.5 metres and 79.34 g/t gold over 0.5 metres;
    • 17.41 g/t gold over 7.5 metres (93.5 to 101.0 metres) in hole BR-18-39; and
    • 10.55 g/t gold over 6.1 metres (223.0 to 229.1 metres) in hole BR-18-22 including 18.78 g/t gold over 3.1 metres.

  • Evidence of high-grade tenor of Goldboro including:
    • 186 samples assaying greater than 5 g/t;
    • 114 samples assaying greater than 10 g/t;
    • 57 samples assaying greater than 20 g/t;
    • 24 samples assaying greater than 50 g/t;
    • 12 samples assaying greater than 100 g/t; and
    • 130 new occurrences of visible gold.

  • Expansion of the Goldboro Deposit:
    • Expanded the Goldboro deposit along strike by 100 metres (to 1.8 km) and vertically by 200 metres (from 350 to 550 metres) within the Boston Richardson Gold System ("BR Gold System"); and
    • Identified three new zones of mineralization along strike to the east within the East Goldbrook Gold System ("EG Gold System").

  • Correlated wide zones of mineralization from 4.3 metres to 13.5 metres over at least 100 metres of strike including intercepts such as:
    • 11.27 g/t gold over 13.5 metres in hole BR-18-22 including 15.63 g/t gold over 1.4 metres and 44.33 g/t gold over 2.5 metres on section 9100E;
    • 4.11 g/t gold over 9.9 metres in hole BR-87-32 of section 9050E; and
    • 9.14 g/t gold over 4.3 metres in hole BR-87-28 of section 9150E.

  • Performed infill drilling in the areas that represent approximately 70% of the PEA inferred resources outlined for development.

"Drilling more than 12,000 metres to date has demonstrated the continuity of mineralization and growth potential we expected to see from Goldboro to take the deposit well beyond the current 525,400 ounces of M+I resource and 374,300 ounces of inferred resources*. We have been able to refine and expand the deposit through strategic drilling and leveraging historical work as we advance the project towards feasibility status. The successful completion of the $4.5 million non-brokered private placement will initially fund an additional 10,000 metres of diamond drilling over the next five months to complete the infill drilling in areas identified in the Goldboro PEA as well as test key areas where we believe we can continue to grow the resource. In addition to infill and expansion drilling, we will test specific geological concepts such as the potential for broad zones of high-grade mineralization like features found in similar style deposits in the Victorian Goldfields of Australia. In just over a year of ownership, we have created a tremendous amount of value and we feel we have only scratched the surface. As we grow the resource and move further along in development, we are simultaneously increasing value and decreasing the risk of the project."

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

10,000-Metre Drill Program

The Drill Program will have two key goals: (1) infilling and upgrading of Inferred Resources in areas of the West Goldbrook Gold System ("WG Gold System") identified within the mine plan of the PEA; (2) expanding the WG, EG and BR Gold Systems at depth and down plunge.  The 10,000-metre drill program is anticipated to take approximately five months and will form the basis of another drill program to be planned for early 2019 and is being funded by a flow-through financing completed in June 2018.

Goldboro Resource Table*

Resource

Type

Au Cut-off

(g/t)

Category

Tonnes

(Rounded)

Au

(g/t)

Troy Ounces

(Rounded)

Open Pit

0.50

Measured

397,000

2.88

36,800

Indicated

662,000

3.09

65,800

Measured and Indicated

1,059,000

3.01

102,500

Inferred

45,000

2.54

3,700

Underground

2.00

Measured

22,000

4.7

3,300

Indicated

2,564,000

5.09

419,600

Measured and Indicated

2,586,000

5.09

422,900

Inferred

2,497,000

4.28

343,600

Combined

Open Pit and

Underground

0.50/2.00

Measured

419,000

2.98

40,100

Indicated

3,226,000

4.68

485,400

Measured and Indicated

3,645,000

4.48

525,400

Inferred

2,542,000

4.25

347,300

 

Mineral Resource Estimate Notes


1.

Mineral resources were prepared in accordance with NI 43-101 and the CIM Definition Standards (2014). Mineral resources that are not mineral reserves do not have demonstrated economic viability;.

2.

Open pit mineral resources are reported at a cut-off grade of 0.5 g/t gold that is based on a gold price of CA$1,550/oz and a gold processing recovery factor of 95%. These include PEA base case open pit resources that have an estimated life of mine strip ratio of 7.3:1 (waste: PEA tonne).

3.

Appropriate mining costs, processing costs, metal recoveries and inter ramp pit slope angles were used by WSP to generate the pit design.

4.

Rounding may result in apparent summation differences between tonnes, grade and contained metal content.

5.

Tonnage and grade measurements are in metric units. Contained gold ounces are in troy ounces.

6.

Contributing assay composites were capped at 80/g/t Au

7.

A density factor of 2.7g/cm3 was applied to all blocks.


*Mineral Resources are not Mineral Reserves and do not imply the economic viability of the resource.


* NI 43-101 report titled "Goldboro Project Preliminary Economic Assessment". Effective date: January 17, 2018.


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.


Reported mineralized intervals are measured from core lengths. Intervals are estimated to be approximately 75-100% of true widths of the mineralized zones though may be as much as 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, deep water port, 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 INFORMATION

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. 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 the annual information form for the fiscal year 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.

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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