Anaconda Mining Intersects Multiple Zones Grading up to 3.17 g/t Gold Over 8.5 Meters in Down-Dip Drilling at Pine Cove Mine

Figure 1. Diamond-drill plan down-dip area, Pine Cove mine. Also shown are the locations of the drill sections (A, B, C) illustrated in Figures 2 to 4. (CNW Group/Anaconda Mining Inc.)

Figure 2. Diamond-drill Section A, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)

Figure 3. Diamond-drill Section B, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)

Figure 4. Diamond-drill Section C, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)

TORONTO, June 18, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") – (TSX: ANX) is pleased to report additional diamond-drilling results from the down-dip area, Pine Cove mine, Baie Verte Peninsula, Newfoundland. Prior to the commencement of drilling at the Deer Cove Project, Anaconda drilled a single, strategically placed hole on the northern edge of the Pine Cove mine's ultimate pit limit. Hole PC-14-234 returned multiple zones of gold mineralization including 2.46 grams per tonne ("g/t") gold over 8.5 meters ("m") and 3.17 g/t gold over 8.5 m. The following assay results highlight the key zones of mineralization that were intersected in hole PC-14-234.

  • 1.54 g/t Au over 6.0 m beginning at a depth of 117.5 m;
  • 1.70 g/t Au over 15.5 m beginning at a depth of 173.5 m;
  • 2.46 g/t Au over 8.5 m beginning at a depth of 180.5 m; and
  • 3.17 g/t Au over 8.5 m beginning at a depth of 212.0 m.

President and CEO, Dustin Angelo, stated, "We are encouraged by the additional drilling we've done on the northern side of the Pine Cove pit and a picture of a potential down-dip gold zone or zones is emerging. We expect to complete additional drilling in the down-dip area after we finish our summer drill campaigns at Deer Cove and Stog'er Tight. The focus will be on further delineating the potential of the down-dip to host economically significant gold mineralization."

Down-Dip Area:

Historic drilling in the down-dip area, principally around hole PC-07-179, had indicated that Pine Cove mineralization continued to the north of the mine. Anaconda has been testing the area immediately north of its Pine Cove mine since completing diamond-drill hole PC-11-181 (Figure 1) in June 2011, which intersected 2.50 g/t Au over 40.8 m. The Company has since drilled nine holes including PC-14-234. This 300 m, vertical hole targeted an area midway between gold mineralization intersected in both PC-11-181 and the historic hole, PC-07-179. Hole PC-14-234 intersected multiple zones of quartz veining/brecciation, iron carbonate, sericite and disseminated pyrite that are analogous to Pine Cove-style mineralization (Figures 2 to 4). Assay highlights from PC-14-234 are presented in Table 1.

Table 1. Assay highlights for PC-14-234

 

Hole-ID

From (m)

To (m)

Length (m)

Au g/t

PC-14-234

117.5

124.0

6.00

1.54

PC-14-234

173.5

189.0

15.50

1.70

Including

180.5

188.0

8.50

2.46

including

182.0

182.5

0.50

10.40

including

187.0

188.0

1.00

6.44

PC-14-234

212.0

220.5

8.50

3.17

Including

212.0

214.0

2.00

5.29

including

215.5

218.0

2.50

4.82

including

213.0

213.5

0.50

14.80

including

216.0

216.5

0.50

6.31

including

217.5

218.0

0.50

12.70

PC-14-34

234.5

245.0

10.50

1.26

including

242.0

243.0

1.00

3.50

PC-14-234

257.0

261.5

4.50

2.50

including

258.0

259.0

1.00

3.36

including

261.0

261.5

0.50

5.78


Anaconda's drilling has intersected multiple zones of mineralization in the down-dip area. The mineralization appears to flatten northwards and it has been traced approximately 160 m north of the ultimate open pit boundary, to a vertical depth greater than 200 m. It remains open to the north. The mineralization appears to occur within a gently north-plunging synformal fold with the thickest mineralization, as intersected by PC-11-181 and PC-14-234, occupying the core. Additional drilling is warranted to further define the limits of this mineralization and to test potential continuity between zones. A summary of composite diamond-drill assay results from the down-dip area is presented in Table 2.

Table 2. Assay composites for diamond-drill intersections, down-dip area, Pine Cove

 

Hole-ID

From (m)

To (m)

Length (m)

Au g/t

PC-00-113

102.20

107.50

5.30

1.81

PC-00-113

110.50

144.10

4.00

1.94

PC-00-113

187.00

200.40

3.80

2.01

PC-07-176

82.90

84.90

2.00

11.7

PC-07-176

107.40

109.60

2.20

1.35

PC-07-177

88.60

92.00

3.40

11.59

PC-07-177

101.00

104.00

3.00

1.88

PC-07-178

162.70

164.70

2.00

1.50

PC-07-178

210.60

212.60

2.00

2.40

PC-07-179

102.00

105.90

3.90

1.20

PC-07-179

113.90

115.80

1.90

1.84

PC-07-179

122.00

127.00

5.00

2.58

PC-07-179

181.50

197.60

16.10

2.97

Including

181.50

190.40

9.20

4.05

PC-11-180

85.00

86.00

1.00

3.35

PC-11-180

126.30

129.70

3.40

2.86

PC-11-180

222.00

226.00

4.00

1.14

PC-11-180

284.30

284.80

0.50

12.59

PC-11-181

175.70

176.00

0.30

26.23

PC-11-181

178.00

180.70

2.70

2.19

PC-11-181

206.60

207.20

0.60

15.11

PC-11-181

221.40

262.20

40.80

2.50

including

221.40

232.00

10.60

3.00

Including

221.40

224.00

2.60

8.66

Including

241.20

245.00

3.80

12.79

PC-12-188

192.75

193.75

1.00

3.56

PC-12-188

234.05

238.60

2.90

1.59

PC-12-189

194.05

198.00

3.95

1.12

PC-12-189

214.00

216.00

2.00

1.77

PC-12-189

261.00

265.00

4.00

3.39

Including

263.05

265.00

1.95

6.42

PC-12-189

274.00

275.00

1.00

3.09

PC-13-195

82.92

84.00

1.08

2.70

PC-13-195

168.66

176.58

7.92

4.67

PC-13-198

171.04

177.98

6.94

1.74

PC-13-198

193.86

197.07

3.21

1.26

 

Table 2 (Continued). Assay composites for diamond-drill intersections, down-dip area, Pine Cove

 

Hole-ID

From (m)

To (m)

Length (m)

Au g/t

PC-13-199

91.00

92.00

1.00

3.39

PC-13-199

144.15

150.26

6.11

3.48

Including

147.20

150.26

3.06

6.14

PC-13-199

192.03

196.05

4.02

1.20

PC-13-199

237.95

240.00

2.05

1.68

PC-13-200

141.68

144.50

2.82

2.98

PC-14-224

207.37

212.91

5.54

3.06

PC-14-224

243.23

245.20

1.97

2.23

Note: All assay intervals refer to core length and at present true thicknesses of mineralized zones are not known. The diamond drilling was carried out by New Valley Drilling of Springdale, Newfoundland and was supervised by Silvertip Exploration Consultants Inc. The NQ core was logged and sampled at the Pine Cove mine site. Samples selected for analyses were sawn and half the sample was tagged and placed in a sealed plastic bag. Samples generally comprised one meter core intervals. Samples were transported by Silvertip personnel to the Eastern Analytical Laboratory in Springdale, Newfoundland for fire assay. As part of the QA-QC protocol, standards and blanks were randomly inserted during the sampling process. The remaining core is stored at the Pine Cove mine.

This news release has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a "Qualified Person" under National Instrument 43-101.

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.

FORWARD LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

Company website: www.anacondamining.com

SOURCE Anaconda Mining Inc.

Image with caption: "Figure 1. Diamond-drill plan down-dip area, Pine Cove mine. Also shown are the locations of the drill sections (A, B, C) illustrated in Figures 2 to 4. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140618_C1794_PHOTO_EN_3722.jpg

Image with caption: "Figure 2. Diamond-drill Section A, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140618_C1794_PHOTO_EN_3723.jpg

Image with caption: "Figure 3. Diamond-drill Section B, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140618_C1794_PHOTO_EN_3724.jpg

Image with caption: "Figure 4. Diamond-drill Section C, down-dip area, Pine Cove mine. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140618_C1794_PHOTO_EN_3725.jpg




For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: dangelo@anacondamining.com; ProConsul Capital Ltd., Andreas Curkovic, Investor Relations, (416) 577-9927, Email:acurkovic@proconsulcapital.com