The Argyle Deposit

The Argyle Gold Deposit is a development stage project that forms a significant part of the Company’s strategy for continued and expanded gold production at it’s Point Rousse Project.  The Argyle Deposit is located 4.5 kilometres from the Pine Cove Mine and Mill Complex near the community of Ming’s Bight, Newfoundland and Labrador.

Work completed at the Argyle Deposit since the fall of 2012 has outlined a zone of gold mineralization over strike length of 600 metres and to down-dip extent of 225 metres. 

Mercator Geological Services Ltd., Michael Cullen, P.Geo. and Independent Qualified Person, completed an initial NI43-101 Mineral Resource Estimate for the Argyle Deposit (see news release dated January 8, 2018).  The Argyle Deposit contains a resource of 543,000 tonnes of Indicated Mineral Resources at 2.19 g/t gold for 38,300 ounces and 517,000 tonnes of Inferred Mineral Resources at 1.82 g/t gold for 30,300 ounces at a cut-off grade of 0.5 g/t gold.  The mineral resource is calculated using a capped grade of 12 g/t Au on 1 m assay composites.  To assess the impact of grade capping on the Deposit model, an uncapped model was estimated for comparison capped current resource statement. Results of the uncapped model do not constitute part of the current resource statement. Uncapped the Argyle Deposit contains 543,000 tonnes of Indicated Mineral Resources at 2.46 g/t gold for 43,000 ounces and 517,000 tonnes of Inferred Mineral Resources at 2.63 g/t gold for 43,800 ounces at a cut-off grade of 0.5 g/t gold.

*Argyle Mineral Resource Estimate – Effective Date: December 31, 2017

Resource Category

Resource Cut-off Gold Grade

(g/t)

Tonnes

(Rounded)

Gold Grade (g/t)

(12g/t Capping Factor)

Gold Ounces

(Rounded)

Indicated

0.5

543,000

2.19

38,300

Inferred

0.5

517,000

1.82

30,300

*See resource estimate notes presented below  

Block Model Grade and Tonnage Sensitivity Report - Capped @ 12 g/t Au

Block Cut-off Grade (Au g/t)

Category

Reported Tonnes

Rounded Tonnes

Au g/t

Rounded Ounces

0.25

Indicated

554,530

555,000

2.15

38,300

Inferred

528,895

529,000

1.79

30,400

0.50*

Indicated

543,363

543,000

2.19

38,300

Inferred

517,295

517,000

1.82

30,300

0.75

Indicated

519,340

519,000

2.26

37,700

Inferred

482,876

483,000

1.91

29,700

1.00

Indicated

477,573

478,000

2.38

36,500

Inferred

418,692

419,000

2.06

27,700

*Resource statement cutoff value is 0.50 g/t Au; resource estimate values are highlighted

The deposit was discovered via soil sampling over an area not previously covered by exploration work.  Follow-up trenching of soil anomalies in 2014 and 2015 exposed strongly-altered, quartz-veined and pyritized gabbro associated with gold mineralization.

Highlights of the trenching include:

  • 3.75 g/t Au over 16.0 m (including 8.27 g/t Au over 4.0 m) and 1.49 g/t Au over 3.5 m in trench A8
  • 1.31 g/t Au over 11.0 m in trench A12
  • 6.58 g/t Au over 2.0 m and 3.08 g/t Au over 1.0 m in trench A14
  • 1.50 g/t Au over 1.0 m in trench A7
  • 1.47 g/t Au over 14.0 m in trench A18

Diamond drilling at the Argyle Prospect since summer 2016 (61 holes; 5,964.2 metres) has defined a zone of mineralization similar in character to the nearby Stog’er Tight Deposit with highlight drill grades as follows:

  • 5.52 g/t gold over 15.0 metres (34.0 to 49.0 metres) including 14.01 g/t gold over 4.0 metres in hole AE-17-40 (previously reported);
  • 3.63 g/t gold over 12.0 metres (58.0 to 70.0 metres) including 14.37 gold over 2.0 metres in hole AE-17-46 (previously reported).
  • 9.31 g/t gold over 6.0 metres (86.8 to 92.8 metres) in hole AE-16-39;
  • 2.95 g/t gold over 15.0 metres (94.0 to 109.0 metres) in hole AE-16-43;
  • 2.91 g/t gold over 12.1 metres (68.3 to 80.4 metres) in hole AE-16-33;
  • 12.47 g/t gold over 5.0 metres (54.4 to 59.5 metres) in hole AE-17-58;
  • 4.75 g/t gold over 8.0 metres (66.7 to 74.7 metres) including 10.91 g/t gold over 3.0 metres in hole AE-18-64; and
  • 4.85 g/t gold over 8.5 metres (59.0 to 67.5 metres) including 12.50 g/t gold over 2.0 metres and 12.00 g/t gold over 1.0 metre in hole AE-18-65.

Argyle – Drill Assay Highlights

Hole ID

From

To

Interval

Au g/t

AE-16-03

4.5

16.5

12.0

1.32

including

5.5

15.5

10.0

1.52

and

5.5

7.5

2.0

4.71

AE-16-04

3.1

6.0

2.9

1.02

AE-16-05

4.0

5.0

1.0

1.59

AE-16-06

3.7

10.0

6.3

4.35

including

4.2

9.0

4.8

5.58

AE-16-08

4.4

5.0

0.6

1.09

AE-16-09

23.4

28.0

4.6

1.42

including

25.0

28.0

3.0

1.95

AE-16-10

25.5

29.6

4.1

0.34

AE-16-11

35.0

43.9

8.9

6.09

including

37.0

43.9

6.9

7.67

AE-16-12

22.8

27.0

4.2

1.15

including

24.0

27.0

3.0

1.46

and

25.0

27.0

2.0

2.06

and

42.0

43.0

1.0

1.45

AE-16-13

22.8

23.4

0.6

0.57

AE-16-14

24.0

25.6

1.6

3.20

AE-16-15

34.0

37.0

3.0

0.74

AE-16-16

13.0

16.0

3.0

1.41

AE-16-17

43.0

45.1

2.1

1.25

AE-16-19

19.0

21.6

2.6

1.68

AE-16-20

18.0

32.0

14.0

2.05

including

28.0

32.0

4.0

4.86

AE-16-21

35.0

35.9

0.9

1.51

AE-16-23

25.5

27.7

2.2

1.10

and

44.6

45.8

1.2

0.56

AE-16-24

28.0

29.0

1.0

0.88

and

33.0

34.0

1.0

0.55

and

34.6

36.0

1.4

1.08

AE-16-26

58.3

61.9

3.6

1.59

AE-16-27

73.2

74.0

0.8

0.52

AE-16-28

69.5

69.7

0.2

0.50

AE-16-29

32.6

33.4

0.8

0.54

and

109.0

109.9

0.9

4.13

AE-16-30

48.0

51.0

3.0

1.36

and

53.5

55.0

1.5

0.80

and

56.0

57.0

1.0

0.74

and

62.0

63.0

1.0

0.81

AE-16-31

25.0

26.0

1.0

1.52

AE-16-32

50.0

52.0

2.0

1.27

AE-16-33

68.3

80.4

12.1

2.91

including

72.0

75.0

3.0

8.55

AE-16-34

32.0

34.0

2.0

3.63

AE-16-35

15.9

26.0

10.1

0.74

including

22.0

26.0

4.0

1.31

AE-16-37

33.4

36.0

2.6

0.95

AE-16-38

74.0

77.7

3.7

0.59

AE-16-39

86.8

92.8

6.0

9.31

including

89.8

90.8

1.0

46.60

AE-16-39

95.8

97.8

2.0

0.64

AE-16-39

100.8

101.8

1.0

1.07

AE-16-40

34.0

49.0

15.0

5.52

including

39.0

43.0

4.0

14.01

and

39.0

40.0

1.0

34.50

AE-16-41

49.0

50.0

1.0

0.50

AE-16-41

56.0

58.0

2.0

0.69

AE-16-42

76.0

78.0

2.0

3.05

AE-16-43

94.0

109.0

15.0

2.95

including

94.0

108.0

14.0

3.14

including

103.0

106.0

3.0

6.94

AE-16-44

59.0

60.0

1.0

0.50

AE-16-44

87.0

87.9

0.9

2.44

and

99.0

100.0

1.0

1.90

AE-17-45

45.0

49.0

4.0

3.22

AE-17-46

58.0

70.0

12.0

3.63

including

67.0

69.0

2.0

14.37

AE-17-47

77.0

80.0

3.0

1.56

and

94.0

95.0

1.0

1.11

AE-17-48

86.0

90.0

4.0

1.22

AE-17-49

104.0

106.0

2.0

1.71

and

110.0

118.0

8.0

1.45

including

111.0

116.0

5.0

2.11

AE-17-51

87.0

93.0

6.0

1.11

AE-17-58

54.5

59.5

5.0

12.47

including

55.0

58.5

3.5

17.66

and

102.0

103.0

1.0

0.83

AE-17-60

100.0

101.0

1.0

0.90

and

115.3

116.0

0.7

1.68

AE-18-64

55.35

56.35

1.00

1.08

and

66.70

74.70

8.00

4.75

including

66.70

69.70

3.00

10.91

AE-18-65

59.00

67.50

8.50

4.85

including

59.00

61.00

2.00

12.50

and

66.50

67.50

1.00

12.00

and

71.00

72.00

1.00

0.80

and

77.50

80.50

3.00

0.69

AE-18-66

74.40

80.40

6.00

1.87

AE-18-67

93.15

96.30

3.15

2.09

and

105.50

106.50

1.00

0.48

 

Metallurgical testing of a 25-kilogram sample of blended core samples with an average grade of 2.69 g/t gold from the Argyle Deposit, achieved a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9%.   The program was conducted to determine the metallurgical characteristics of Argyle mineralization and verify its compatibility with the existing circuit at the Pine Cove Mill located 4.5 km from Argyle. The results demonstrate that Argyle mineralization can be effectively processed at the Pine Cove Mill without mill modifications.

The Argyle Gold Deposit is defined over a strike length of 685 metres and to a down-dip depth of 225 metres and is open for expansion in all directions.  Anaconda is currently completing a combination of step-out and infill drilling at Argyle. The step-out drilling is along strike to the east as well as down dip from the known mineralized area.  The step-out drilling is focused on the mapped and projected continuation of the Argyle gabbro, the host rock to mineralization, and is coincident with geophysical anomalies (magnetic and chargeability) like those associated with the Argyle deposit.

Anaconda is also focused on determining the trend of high-grade zones discovered through previous drilling. The easternmost high-grade zone to date is outlined by drill holes AE-16-33, AE-16-40 and AE-16-43 and averages 14 metres thick with composited assays between 2.91 g/t and 5.52 g/t gold. Recent drilling by Anaconda in early 2018 has confirmed the presence of these high-grade trends with the results from holes AE-18-64, 65 and 66.  The northernmost high-grade zone, outlined by drill hole AE-16-39, is 6.0 metres thick with a composited grade of 9.31 g/t gold and is open along strike and down-dip.

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