TORONTO, Nov. 12, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") – (TSX: ANX) is pleased to announce the receipt of key permits and releases from the Government of Newfoundland and Labrador regarding the Stog'er Tight gold project, located approximately 3.5 kilometres east of the Pine Cove mill along the Pine Cove mine road (Please see Exhibit "A" for location map).
Anaconda is permitted to mine the Stog'er Tight deposit within the limits set out in the approved Development, Rehabilitation and Closure Plan submitted to the Government of Newfoundland and Labrador. The Stog'er Tight deposit contains 204,100 tonnes of Indicated Resources grading 3.59 grams per tonne ("g/t") and 252,000 tonnes of Inferred Resources grading 3.27 g/t (see press release dated October 22, 2015). Anaconda anticipates test-mining the Stog'er Tight deposit during the upcoming fiscal third quarter ending February 2016 to evaluate and optimize blasting and grade control techniques, determine mine/mill scheduling and assess ore processing at the Pine Cove mill. Upon the completion of the test mining program, Anaconda will pursue the second phase of its development plan, pending dump condemnation work.
President and CEO, Dustin Angelo, states, "As we grow the resource at Stog'er Tight through exploration, we are also conducting detailed studies to evaluate the feasibility of mining at a larger scale. The permits received from the Government of Newfoundland and Labrador allow Anaconda to begin test mining as part of the evaluation, which represents a significant milestone towards developing a larger scale project. Our goal is to ultimately build a mine with a minimum life of five years at our current production rate. Coupled with the existing Pine Cove pit and the extension potential there, we could extend the life of the Point Rousse Project to over 10 years."
The Government of Newfoundland and Labrador, Department of Environment and Conservation ("DOEC"), has released Anaconda from further environmental assessment. In correspondence received by Anaconda, the DOEC states that registration is not required under Section 47 of the Environmental Protection Act, SNL 2002, cE-14.2. This decision has been made because of the existence of sufficient data collected during a previous environmental assessment conducted on the Stog'er Tight project in 2010.
In addition, the Company completed other important test work on the Stog'er Tight deposit. Anaconda conducted acid rock drainage ("ARD") testing at the RPC Science & Engineering ("RPC") lab based in Fredericton, New Brunswick, which indicated that the ore and waste rock are non-acid generating. Consequently, the Company does not anticipate ARD issues related to waste rock storage and ore tailings can be stored in the existing Pine Cove tailings facility. Furthermore, flotation testing conducted at the RPC lab, simulating the Pine Cove mill conditions, returned recoveries between 96.6% and 97.2%, which exceed flotation recoveries achieved from Pine Cove deposit ore. This initial testing has concluded that the Stog'er Tight material could be blended with the current Pine Cove pit without having to make any significant modifications to the Pine Cove mill circuit.
This news release has been reviewed and approved by Gordana Slepcev, P. Eng., Manager Technical Services with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
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 6,300 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 ten-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: The Point Rousse Project Location Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20151112_C7873_PHOTO_EN_543248.jpg
For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: email@example.com; Kingston Advisors, (212) 796-5290, Email: firstname.lastname@example.org; Company website: www.anacondamining.com