Anaconda Mining reports 17.76 g/t gold over 11 metres and 4.38 g/t gold over 9 metres; confirms that Stog'er Tight mineralization continues along strike and near surface

TORONTO, Dec. 17, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the results of its fall exploration program on the Stog'er Tight project. The program was focused on continuing to expand mineral resources along strike and adjacent to the Stog'er Tight deposit (Exhibit A).  The program included the excavation of 6 trenches and the collection of 219 one-metre channel samples in the East, West and Gabbro zones following up on historical mapping and trenching that indicated the presence of mineralization.

The primary goal of the program was to test the hypothesis that the East and West zones are continuous with the Stog'er Tight deposit at surface and that the East Gabbro zone is a separate zone of mineralization.  The deposit has a known, near-surface strike length of approximately 300 metres.  The results of the trenching and channel sampling program indicate that the East zone mineralization is contiguous with the Stog'er Tight deposit over a distance of 100 metres (Exhibit B).  The West zone was confirmed to contain mineralization over a strike length of at least 80 metres, but appears to be offset by approximately 25-40 metres along a fault south of the main trend of the deposit (Exhibit C). Consequently, the strike length of mineralization exposed at surface at Stog'er Tight, including the deposit and the East and offset West zones, is now approximately 480 metres.  Trenches across the East Gabbro zone intersected alteration but did not produce appreciable gold grades.  Highlights of the channel sampling include:

  • 17.76 g/t grams per tonne ("g/t") Au over 11 metres in channel STtr15-05-C
  • 11.02 g/t Au over 12 metres in channel STtr15-05-D
  • 10.77 g/t Au over 8 metres in channel STtr15-05-B
  • 4.38 g/t Au over 9 metres in channel STtr15-10
  • 0.98 g/t Au over 12 metres in channel STtr15-09

President and CEO, Dustin Angelo, states, "The recognition of significant near-surface mineralization immediately along strike from the Stog'er Tight deposit is a positive sign that near-term growth of mineral resources is possible. The results of this program enable us to develop a focused diamond drill program that will target near-surface mineralization with the goal of expanding the mineral resource at Stog'er Tight, which is consistent with our primary exploration goal of demonstrating ten years of future production within the overall Point Rousse Project."

A table of all significant results are given below.

Channel ID

Interval (m)

Grade (g/t)*

STtr15-05-A

3

0.56

STtr15-05-B

8

10.77

STtr15-05-C

11

17.76

STtr15-05-D

12

11.02

STtr15-05-E

3

9.21

STtr15-05-F

4

6.86

STtr15-08

1

1.43

STtr15-09

12

0.98

STtr15-10

9

4.38

* grams per tonne


A table of significant, composited gold grades of channel samples from the fall 2015 Stog'er Tight trenching program. Trenches in this program included STtr15-05 to STtr15-10.  Channels STtr15-06 and STtr15-07 did not contain significant intersections of gold.  Composites are 80-95% of true thickness.

The Stog'er Tight deposit is located 3.5 kilometres from the Pine Cove mill along the existing mine road. The deposit contains a 43-101-compliant resource, including an Indicated Resource of 204,100 tonnes Au grading 3.59 g/t (23,540 oz Au) and an Inferred Resource of 252,000 tonnes grading 3.27 g/t (26,460 oz Au), using a cut off of 0.8 g/t Au (see press release dated October 22, 2015). The deposit is characterized by intense carbonate, albite, and pyritic alteration of gabbroic rocks with gold, strongly associated with pyrite, which is similar to characterization of the Pine Cove deposit.  The geological characteristics of Stog'er Tight are found in a much larger area around the deposit that is approximately 1.5 kilometres long by 0.5 kilometres wide. Besides the East, West and East Gabbro zones, several other zones of alteration and mineralization have been identified throughout the greater Stog'er Tight area indicating the potential for further discovery.

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

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 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 (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20151217_C7986_PHOTO_EN_566438.jpg

Image with caption: "EXHIBIT B (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20151217_C7986_PHOTO_EN_566434.jpg

Image with caption: "EXHIBIT C (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20151217_C7986_PHOTO_EN_566436.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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