Anaconda Mining Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Samples at the Stog'er Tight Project

TORONTO, July 29, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the results of its 2016 exploration program at Stog'er Tight in preparation for a 2,800-tonne bulk sample this fall. To date, the exploration program has included: stripping of the overburden to expose the historical mining surface, detailed geological mapping, channel sampling and near-surface drilling in the main pit area where Anaconda ultimately expects to begin mining of the Stog'er Tight Deposit (see Exhibit A for the location of the main pit area).

The purpose of these exploration activities was to lay the groundwork for mining and to acquire additional data for the NI 43-101 resource calculation anticipated in September.  More specifically, Anaconda drilled several holes on the western side of the main pit area to establish both the outer limits of the mineralization and the historical pit configuration in that direction. The Company stripped overburden to expose the historical mining surface which will assist in refining the block model. Lastly, the results from the exploration work will be used to determine the location of the 2,800-tonne sample.

The channel sampling program (Exhibit B) consisted of 58 channels and 323 metres sampled on the exposed central and eastern portions of the main pit area.  Channels were chosen to coincide with drill section lines with regularly-spaced infilling.  Channels were continuous, if possible, with some step-out due to ground conditions.  Highlights of the channel sampling include:

  • 12.83 g/t grams per tonne ("g/t") gold over 4.38 metres including 26.50 g/t over 1.42 metres and 14.80 g/t over 0.95 metres
  • 8.55 g/t over 4.97 metres including 30.40 g/t over 0.98 metres
  • 6.58 g/t over 6.02 metres including 18.5 g/t over 1.06 metres
  • 5.00 g/t over 5.69 metres
  • 5.16 g/t over 3.32 metres

A table of significant results are given below.

In conjunction with the channel sampling, the Company tested the margins of the western portion of the main pit area near surface via an 8-hole, 222-metre diamond drill program. Five holes (BN-15-220 to BN-15-224) were drilled to condemn the immediate footwall of the deposit, near the central and western portion of the main pit area. Hole BN-15-219 tested one northerly margin of a preliminary pit design and holes BN-15-218 and BN-15-217 tested the potential western extension of the Stog'er Tight Deposit.  Hole BN-15-217 located approximately 15 metres west of the previously known limits of the deposit intersected mineralization as summarized below.

  • 2.78 g/t over 9.34 metres from 12.56 metres to 21.90 metres; including 5.15 g/t over 3.65 metres, in hole BN-15-217

"The results from the exploration and development work at Stog'er Tight continue to be very good as the Company marches toward a resource calculation and, ultimately, production." states President and CEO, Dustin Angelo.  "The establishment of previous mining limits and geological relationships to mineralization are important in creating a robust resource calculation and building confidence in our mine plan in the main pit area.  The Company is optimistic that Stog'er Tight will be a key component in the extension of the life of the Point Rousse Project."

All approvals have been received from the Newfoundland and Labrador Department of Natural Resources related to extracting a 2,800-tonne bulk sample.  The Company has decided to wait for the results of a resource calculation, expected in September, prior to extracting this sample, previously planned for June.  The Company has also begun the process of permitting a 30,000-tonne bulk sample in the late fall as part of its fiscal 2016 mining budget.

Channel
ID

Interval
(m)

Grade g/t

CH03

3.32

5.16

CH04

1.06

0.86

CH07

1.11

5.88

CH08

2.83

3.63

CH09

4.97

8.55

including

0.98

30.40

and

0.99

3.07

CH10

1.9

2.04

and

3.08

6.00

CH13

6.36

2.11

CH14

2.95

1.14

CH16

0.89

3.88

CH17

1.03

2.02

CH21

1.05

1.26

CH22

0.99

1.01

CH24

2.76

1.08

CH25

2.23

3.19

CH27

0.75

1.91

CH28

5.69

5.00

CH33

0.98

2.06

CH39

0.91

1.36

CH40

3.01

0.85

CH43

0.94

0.87

CH44

5.33

3.42

CH48

4.38

12.83

including

0.95

14.80

including

1.42

26.50

CH49

1.96

2.44

CH50

0.85

2.99

CH51

3.03

2.80

and


6.58

including

1.06

18.50

including

0.92

9.48

CH52

0.85

10.50

CH53

0.96

11.60

CH54

0.69

0.97

 

A table of significant, composited gold grades in channel samples from the Stog'er Tight program. All missing channel numbers (e.g. CH01 and CH02) did not contain significant intersections of gold.

This news release has been reviewed 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

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 6,000 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: Stog'er Tight Location Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150729_C8078_PHOTO_EN_462276.jpg

Image with caption: "Exhibit B: Stog'er Tight Channel Samples Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150729_C8078_PHOTO_EN_462278.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

RELATED LINKS
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