Anaconda Mining intersects 2.09 g/t gold over 14 metres at Argyle

TORONTO, Oct. 12, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to announce it has received the remaining assay results from a recently completed 22-hole, 1,638-metre diamond drilling program (the "Phase 1 Drilling Program") at the Argyle Prospect ("Argyle") within the Point Rousse Project (See Exhibit A). Anaconda intersected gold mineralization and related alteration within 17 of the 22 holes drilled (See Exhibit B). Highlights from the Phase 1 Drilling Program were as follows (including previously reported assay results).

  • 2.09 grams per tonne ("g/t") over 14.0 metres (18.0 to 32.0 metres) in hole AE-16-20;

  • 6.09 g/t over 8.9 metres (35.0 to 43.9 metres) in hole AE-16-11;

  • 4.50 g/t over 6.3 metres (3.7 to 10.0 metres) in hole AE-16-06; and

  • 1.32 g/t over 12.0 metres (4.5 to 16.5 metres) in hole AE-16-03.

A table summarizing the composited drill results of the Phase 1 Drilling Program is shown below. Assays for holes AE-16-01 to -06 and AE-16-08 to -11 were previously reported in a news release dated September 20, 2016.

President and CEO, Dustin Angelo, states; "The results of the Argyle Phase 1 Drilling Program indicate we are on the path to outlining new significant mineralization within the Point Rousse Project.  Thus far, they provide us with a view of the first order geometry of mineralization and, importantly, how to target mineralization at depth, along strike and within other potential zones adjacent to the current Argyle mineralization.  We are encouraged by these first set of results and look forward to building on them in the second phase of drilling at Argyle."

The gold mineralization system at Argyle extends 410 metres along strike and 100 metres down dip to the north and is present 42 metres vertically below surface. The mineralized zone is open along strike and down dip. The results of the drill program also indicate that the best mineralization is hosted along a consistent level of the Argyle stratigraphy known as the Argyle gabbro.  Further, the Company has learned that gold is positively correlated with sulfide minerals, sodium alteration and is associated with discrete magnetic lows within a broader highly magnetic gabbro. These characteristics allow for more enhanced targeting of mineralization through the use of detailed ground magnetic and IP (induced polarization) geophysical surveys. The Company has already begun geophysical surveys in a 65 hectare-area that includes the area of the Phase 1 Drilling Program. Results are expected by early November, at which time Anaconda will plan for the second phase of drilling at Argyle.  

Composited drill results of the Phase 1 Drilling Program:

Hole ID

From (m)

To (m)

Width (m)

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

Notes: Holes AE-16-01 and -02 were drilled entirely within the footwall of the mineralized zone and did not contain any significant assays.  Holes AE-16-07, -18 and -22 did not contain any significant assays. Assays for hole AE-16-01 to -06 and AE-16-08 to -11 were previously reported. 

 

About Argyle

Argyle is located near and northeast of Stog'er Tight and approximately 5.5 kilometres from the Pine Cove Mill. It was discovered through a soil sampling program, which was then followed up by trenching and channel sampling as reported on January 21, 2016 and January 8, 2015.  Trench results indicated that an alteration zone and associated mineralization existed over a strike of 300 metres.  Geological mapping and interpretation coupled with gold grades and alteration character indicate that Argyle is similar in style to those observed at the Stog'er Tight Deposit.

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 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 were analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30g) with an AA finish.

Mineralized intervals are reported as drill intersections and are apparent widths only.  Apparent widths reported in this press release are estimated to be approximately 80 – 100% of true widths.

ABOUT ANACONDA

Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project in Newfoundland.

The Point Rousse Project is approximately 6,300 hectares of 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 ten-fold on the peninsula and gold production to approximately 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove Mill.

Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The project contains the Thor Deposit and other gold prospects and showings. The Company's plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of approximately 16,000 ounces.

As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.

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.

SOURCE Anaconda Mining Inc.

Image with caption: "Exhibit A: Location map showing proximity of Argyle to Pine Cove Mill (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20161012_C8189_PHOTO_EN_793736.jpg

Image with caption: "Exhibit B: Argyle Phase 1 Drilling Program, drill hole location map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20161012_C8189_PHOTO_EN_793734.jpg

For further information: Anaconda Mining Inc.: Dustin Angelo, President and CEO, (647) 260-1248, dangelo@anacondamining.com, www.AnacondaMining.com; High Stakes Strategy & Communications: Lynn Hammond, Executive Consultant, (709) 330-1260, LH@LynnHammond.ca

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