Anaconda Intersects More Near-Surface Mineralization at Northwestern Extension of the Pine Cove Deposit; Prepares for a Resource Calculation

TORONTO, Aug. 13, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) recently conducted an exploration program within the Northwestern Extension area of the Pine Cove deposit. It is a zone of near-surface gold mineralization at the northwestern edge of the current Pine Cove pit design that extends for at least 125 metres along strike (Exhibit A).  The purpose of the program was to increase resources within the Northwestern Extension area and potentially expand the mine life of the Pine Cove pit. 

Anaconda conducted 462 metres of diamond drilling in 4 holes and 263 metres of percussion drilling in 12 holes (Exhibit B). The Company also re-logged and performed infill sampling of 14 pre-2015 diamond drill holes within the area of the Northwestern Extension to complete sampling along the holes to depths of approximately 100 metres. The results of the drilling, re-logging and additional sampling will be combined with the geological interpretation and incorporated into deposit modeling, a planned resource calculation and an internal economic analysis.  If the results of the economic analysis are positive, the Northwestern Extension area may be incorporated into the Pine Cove mine plan. 

Three of the diamond drill holes intersected mineralization at around 100 metres or less. Highlights from two of these holes include:

  • 5.38 grams per tonne ("g/t") gold over 3.1 metres from 68 to 71.1 metres and 1.12 g/t gold over 8 metres from 86 to 94 metres in hole PC15-246;
  • 1.30 g/t gold over 4 metres from 98.0 to 102.0 metres in hole PC15-248.

Four of 14 diamond drill holes chosen for infill sampling extended known mineralization within the Northwestern Extension.  The resampling resulted in the discovery of new zones as well as widening previously known zones of mineralization. Highlights of this sampling include the following updated and new drill intersections:

  • 1.41 g/t gold over 19 metres from 49 to 68 metres in hole PC13-196;
  • 1.47 g/t gold over 5.4 metres from 22.6 to 28 metres in hole PC00-113;
  • 5.03 g/t gold over 8.5 metres from 84 to 97 metres in hole PC07-177.

 

Percussion drilling resulted in the discovery of a previously unknown area of surface mineralization.  Hole PCp15-50 intersected 1.45 g/t over 7 metres from 0 to 7 metres.

"We have completed our data acquisition at the Northwestern Extension area and will evaluate its potential as part of a resource calculation on the greater Pine Cove deposit," states President and CEO, Dustin Angelo. "We are committed to extending the life of the Point Rousse Project and see the potential right around the Pine Cove deposit as well as Stog'er Tight. A new resource calculation at both deposits will be the next step in demonstrating the long-term value of the project." 

Table 1.  Composited gold intercepts from the recent drill program at Pine Cove deposit – Northwestern Extension.

Hole ID

From

To

Width (m)

Grade (g/t)

PC15-245

86.0

87.0

1.0

1.74

PC15-246

14.0

16.1

2.1

1.73

and

20.1

21.3

1.2

21.12

and

68.0

71.1

3.1

5.38

and

86.0

94.0

8.0

1.12

PC15-248

92.7

94.1

1.4

2.19

and

98.0

102.0

4.0

1.30

Hole PC15-247 did not contain significant intercepts of gold.

Table 2.  Composited gold intercepts from Pine Cove deposit - Northwestern Extension including infill sampling.

Hole ID

From

To

Width (m)

Grade (g/t)

PC00-113

22.6

28.0

5.4

1.47

and

71.0

74.9

3.9

0.77

PC07-177

84.0

97.0

8.5

5.03

PC13-196

49.0

68.0

19.0

1.41

PC13-203

7.8

13.0

5.2

0.73

 

This news release has been reviewed and considered accurate 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.  The drilling program was supervised by Silvertip Exploration Consultants Inc., of Bishops Falls NL. 

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

All results are reported as drill thickness, whereas, true thickness are interpreted to be between 60-100% of drill thickness.

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ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing project, called the Point Rousse Project, and approximately 6,346 hectares of exploration property on the Ming's Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by nine-fold. It is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include four deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove mill.  The Company's plan is to discover and develop more resources within the project area and double annual production from its current rate of approximately 15,000 ounces to 30,000 ounces.

FORWARD LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding growth and is based on current expectations and assumptions of management that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to: the expectations of the Company in expanding mineral resources and project mine life and the timing thereof, current and future market trends and growth opportunities and whether the Company will be able to capitalize upon them. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements are based on current expectations and are subject to significant risks and uncertainties, including the risks factors outlined in the Company's latest annual information form and other continuous disclosure documents filed at www.sedar.com, 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 the Company assumes no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

SOURCE Anaconda Mining Inc.

Image with caption: "Exhibit A: A 3D view of the current Pine Cove pit viewed from approximately 45 degrees above the horizon towards the North-Northwest showing the location of drill holes described within this release, the surface trace of the Northwestern Extension and the approximate location of gold bearing zones within the Pine Cove pit. Only drill collars relevant to this press release are illustrated. The pit is approximately 340 metres wide in the orientation shown. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150813_C5718_PHOTO_EN_477149.jpg

Image with caption: "Exhibit B: A map of the Northwestern Extension area showing diamond drill hole collars (stars) and percussion drill hole collars (large circles) related to this press release. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150813_C5718_PHOTO_EN_477151.jpg

For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: dangelo@anacondamining.com; Kingston Advisors, (212) 796-5290, Email: info@kingstonadvisors.com; Company website: www.anacondamining.com

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