Anaconda Mining Intersects 25.70 g/t Gold Over 1.5 Metres and 8.00 g/t Gold Over 3.2 Metres at Goldboro; Initiates a 5,000-Metre Drill Program

TORONTO, Feb. 28, 2019 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce the final results from the 10,000-metre drill program that began in July 2018 at the Goldboro Gold Project in Nova Scotia ("Goldboro"). Anaconda drilled four holes (BR-18-64 to 67), totaling 1,456 metres (the "EG Drill Program") to extend the existing Goldboro Deposit towards the east along strike. The EG Drill Program successfully intersected the host fold structure, alteration and mineralization 100 metres east of the current Mineral Resource within the East Goldbrook Gold System ("EG Gold System"). Anaconda also encountered five occurrences of visible gold (Exhibit A, B).

The EG Drill Program intersected a high-grade mineralized zone which included 25.70 grams per tonne ("g/t") gold over 1.5 metres and 8.00 g/t gold over 3.2 metres up plunge from very high-grade historic assays including 215.74 g/t gold over 3.7 metres (the "High-Grade Zone") (See photo in Exhibit C). The High-Grade Zone plunges moderately to the east and is located on the south dipping limb of the host fold structure. It extends for at least 150 metres and is open down plunge. High-grade plunging chutes are common at Goldboro, having been intersected elsewhere in the deposit. Furthermore, numerous other mineralized zones were intersected along the south limb of the EG Gold System outside of the High-Grade Zone, with further drilling planned to confirm the geological model for these zones.

A table of selected intersections from both recent and historical drilling are shown in the table below.

"These drill results continue to demonstrate the expansion potential of the Goldboro Deposit as well as the ability to locate pockets of very high-grade continuous mineralized zones. The results from the EG Drill Program, taken together with historical drilling in the East Goldbrook area, indicate that there is a very high-grade zone of at least 150 metres in plunge length, which remains open for expansion down plunge. In our upcoming 5,000-metre drill program, we will take a closer look at this high-grade area to see if we can define it better. With all results received from the 10,000-metre drill program, we are incorporating them into an updated Mineral Resource estimate currently underway by WSP Canada Inc. We expect to publish a new estimate by the third quarter."

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

Initiation of a 5,000-metre drill program at Goldboro

The Company will initiate a 5,000-metre drill program at Goldboro beginning in March. The drill program will focus on expansion drilling in the EG Gold System with the goal of growing resources and better defining the extents of the high-grade plunging chutes intersected in the recent EG Drill Program. The drill program will also focus on infill drilling portions of the Boston Richardson Gold System with the goal of converting high-grade Inferred Resources to Indicated Resources. The 5,000-metre diamond drill program will be funded using the proceeds of a flow-through financing completed in July of 2018.

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

Hole ID

From
(m)

To
(m)

Interval
(m)

Au
(g/t)

Gold
System

Visible
Gold

Section

 

BR-18-64

147.8

148.6

0.8

1.17

EG

 

9750E

Current

and

255.3

256.0

0.7

1.45

EG

 

and

267.2

267.7

0.5

0.54

EG

VG

and

387.5

388.0

0.5

1.33

EG

 

and

451.5

452.0

0.5

2.05

EG

 

BR-18-65

133.6

134.1

0.5

5.69

EG

 

and

190.0

191.0

1.0

3.37

EG

 

and

317.7

318.3

0.6

6.41

EG

 

and

321.5

322.1

0.6

2.53

EG

VG

BR-18-66

61.0

62.5

1.5

25.70

EG

 

including

61.0

61.6

0.6

63.33

EG

VG

and

90.0

92.0

2.0

6.37

EG

 

including

90.0

91.0

1.0

12.08

EG

 

and

183.6

185.0

1.4

1.22

EG

 

and

229.0

230.0

1.0

1.36

EG

 

BR-18-67

51.2

52.2

1.0

2.42

EG

 

9850E

and

53.8

54.4

0.6

5.94

EG

 

and

75.0

77.5

2.5

1.57

EG

 

and

116.6

118.0

1.4

1.48

EG

 

and

125.5

128.0

2.5

2.24

EG

 

and

136.6

139.2

2.6

4.86

EG

 

including

137.6

138.2

0.6

16.89

EG

 

and

142.6

145.8

3.2

8.00

EG

 

including

145.0

145.8

0.8

30.66

EG

VG

and

189.8

190.4

0.6

12.33

EG

VG

BR-18-16

23.5

24.0

0.5

0.73

EG

 

9650E

Previous

and

189.1

189.7

0.6

11.59

EG

VG

and

315.6

318.5

2.9

2.23

EG

 

including

315.6

316.1

0.5

8.88

EG

 

OSK11-01

36.0

37.0

1.0

1.82

EG

 

9650E

Historic

and

43.9

46.0

2.2

0.96

EG

 

and

61.0

62.0

1.0

0.76

EG

 

and

86.0

88.0

2.0

1.81

EG

 

and

128.0

130.0

2.0

0.58

EG

 

OSK11-02

117.0

118.5

1.5

137.77

EG

VG

including

117.0

117.5

0.5

412.00

EG

VG

and

127.0

128.5

1.5

0.65

EG

 

and

174.0

175.0

1.0

1.28

EG

 

and

179.5

183.0

3.5

1.76

EG

VG

including

182.0

183.0

1.0

4.55

EG

 

and

199.5

200.5

1.0

0.77

EG

 

and

235.5

236.5

1.0

2.28

EG

 

OSK11-03

17.0

18.0

1.0

0.54

EG

 

9900E

and

38.0

39.0

1.0

1.28

EG

 

and

46.0

47.0

1.0

2.87

EG

 

and

49.0

50.5

1.5

2.02

EG

 

and

143.0

143.7

0.7

4.28

EG

 

OSK11-04

42.0

43.0

1.0

0.69

EG

 

and

140.0

140.5

0.5

35.10

EG

VG

and

193.9

197.5

3.7

215.74

EG

VG

including

193.9

194.4

0.5

1570.00

EG

VG

and

205.0

206.0

1.1

2.00

EG

 

and

213.0

224.5

11.5

1.24

EG

VG

including

223.0

224.5

1.5

6.23

EG

 

and

230.3

231.5

1.2

0.58

EG

 

 

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. 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.

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

Anaconda Mining is a TSX and OTCQX-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 10,150 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade Mineral Resource, subject to a 2018 a preliminary economic assessment which demonstrates a strong project economics. The Company also has a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick.

FORWARD-LOOKING STATEMENTS

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.

Exhibit A. A map showing the location of recent drilling and highlights from the EG Gold System at Goldboro. Four holes, drilled for metallurgical testing, pending assays are also shown (holes BR-18-68 to -71). (CNW Group/Anaconda Mining Inc.)

Exhibit B. A long section through the EG Gold System showing the location of high-grade drill intersections along a 150-metre plunge and other interpreted zones of mineralization. Further drilling is required to create a geological model of these mineralized zones. All zones remain open for expansion down plunge. (CNW Group/Anaconda Mining Inc.)

Exhibit C. A photograph of NQ core from diamond drill hole OSK-11-04 from the High-Grade Zone showing visible gold associated with a composited assay of 215.7 g/t over 3.7 metres. Canadian two-dollar coin for scale. (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; Rahim Kassim-Lakha, VP Corporate Development, (416) 414-9954, rlakha@anacondamining.com; Reseau ProMarket Inc., Dany Cenac Robert, Investor Relations, (514) 722-2276 x456, Dany.Cenac-Robert@ReseauProMarket.com

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