Anaconda Mining Issues NI 43-101 Mineral Resource Estimate on the Thor Deposit, Viking Project

TORONTO, Aug. 29, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to provide a Mineral Resource Estimate and file a Technical Report for the Thor Deposit on the Viking Project. The Mineral Resource Estimate has an effective date of August 29, 2016 and conforms to National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101 Standards").

The Thor Deposit contains an Indicated Mineral Resource of 63,000 ounces of gold (937,000 tonnes at an average grade of 2.09 grams per tonne ("g/t") Au) and an Inferred Mineral Resource of 20,000 ounces of gold (350,000 tonnes at an average grade of 1.79 g/t Au) at a cut-off grade of 1.0 g/t. The following table summarizes the Indicated and Inferred Mineral Resources at certain cut-off grades.


Au Cut-off

(grams per tonne)


Tonnes> Cut-off

(tonnes)*


Grade > Cut-off

Au (grams per tonne)


Contained

Ounces Au


Indicated



0.50

1,817,000

1.42

83,000

1.00

937,000

2.09

63,000

2.00

357,000

3.19

36,600






Inferred



0.50

847,000

1.15

31,000

1.00

350,000

1.79

20,000

2.00

94,000

2.90

8,800

*Mineralized domains are spatially constrained and capped.

 

President and CEO, Dustin Angelo, states, "We are pleased to establish a Mineral Resource Estimate on the Thor Deposit under the Anaconda banner after acquiring the Viking Project in February. We are optimistic about developing the project beyond Thor and have begun a diamond-drilling program to test the potential to expand the deposit and find other deposits along a 5.6-kilometre strike length defined by continuously anomalous soil and rock samples. We believe this is just the beginning of a larger project with the goal of near term production while leveraging our existing infrastructure at the Pine Cove Mill."

The Viking Project is located near the communities of Pollards Point and Sop's Arm in White Bay, Newfoundland and Labrador, approximately 180 kilometres by road (100 kilometres by barge) from the Company's Pine Cove Mill, and is accessible via a 2.5-kilometre forest road from provincially maintained paved road networks. Anaconda is currently conducting exploration drilling at the Viking Project, including possible extensions north and south of the Thor Deposit as part of a larger 17,000-metre drilling program at the Viking and Point Rousse Projects.

Notes on Mineral Resource Estimation Methodology:

1 -        The Mineral Resource Estimate conforms to the 2014 CIM Mineral Resource definitions referred to in the NI 43-101 Standards. Gary Giroux, P.Eng., of Giroux Consultants Ltd. of Vancouver, British Columbia is a Qualified Person as described within the NI 43-101 Standards and is independent of the Company. Mr. Giroux has prepared and authorized the release of the Mineral Resource Estimate for the Thor Deposit presented within this press release.

2 -        The Mineral Resource Estimate is based on a database containing 109 holes drilled into the Thor Deposit totaling 15,574 metres of diamond drilling, and 74 lines of surface channel samples cut from trenches using a diamond saw. Independent Qualified Person David A. Copeland, P.Geo., has verified the data used for the resource calculation including sampling protocols and analytical methods and the laboratory conducting the analysis.

3 -        Mineralization was constrained within 3D geologic solids built using Gemcom software. Some isolated high gold assays sit outside the mineralized solids and have not been included in the Mineral Resource Estimate. The distributions of gold within and outside the mineralized solids were examined using lognormal cumulative distribution plots and six overlapping gold populations were identified. Gold assays within the mineralized solid were capped at 66 grams per tonne Au while those outside the solid were capped at 4.0 grams per tonne Au. There is insufficient drill data at present to accurately model the high-grade zones within the Thor Deposit so an indicator approach was used to model the high-grade.

4 -        Drillhole assay samples were composited into 2.5-metre intervals and a block model with 5 metre x 5 metre x 5 metre block size was created. Grades for gold were interpolated into all blocks, by a combination of Ordinary and Indicator Kriging. North-south cross sections showing the kriged block Au grades and drillhole composites were produced to validate the block model and in general the block grades match the composite grades well and there is no indication of bias present.

5 -        The cut-off grade is established based on Anaconda's mining experience at its Pine Cove operation near Baie Verte, Newfoundland and Labrador where gold is mined using a cut-off grade of 0.7 grams per tonne. The Company will investigate leveraging the mill and tailings infrastructure at the Pine Cove site in any potential development of the Thor Deposit. Based on this, a 1.0 gram per tonne cut-off is considered reasonable.

The Technical Report titled "NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland and Labrador, Canada" with an effective date of August 29, 2016 has been filed on SEDAR (www.sedar.com).

The Technical Report was authored by independent qualified persons David A. Copeland, M.Sc., P.Geo., (an independent consultant), Shane Ebert, Ph.D., P.Geo. (an independent consultant) and Gary Giroux, MASc, P.Eng. (Giroux Consultants Ltd.).

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.

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.

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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