TORONTO, June 10, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the initiation of its fiscal 2016 exploration program, including the extraction and milling of a bulk sample, at its Stog'er Tight gold project located approximately 3.5 kilometres east of the Pine Cove mill along the Pine Cove mine road (See location map provided).
The fiscal 2016 Stog'er Tight field exploration program includes stripping of historical mine workings to expose the deposit, detailed mapping and sampling of the deposit at surface, near-surface drilling and the extraction of a 2,800-tonne bulk sample. The goal of the exploration program, including the bulk sample, is to gain information at or very-near surface to determine the historical mining surface, to confirm mineralization at key locations and to develop grade control and mining techniques.
All approvals have been received from the Newfoundland and Labrador Department of Natural Resources, and it is anticipated that stripping and drilling activities will begin on the property within the week. The bulk sample is planned for extraction in late June and will be processed at the Pine Cove mill. The field component of the fiscal 2016 program, along with previous Anaconda and other historical drilling, will form the basis of a resource calculation anticipated for late summer.
The Company is also working on plans to mine a 30,000-tonne bulk sample in the late fall as part of its fiscal 2016 mining budget. This larger bulk sample is subject to acceptance of a Development, Rehabilitation and Closure Plan, in addition to an Environmental Assessment. Concurrent with the exploration program at Stog'er Tight, the Company will submit all appropriate documentation and expects to receive the requisite approvals during early fall of 2015 to commence mining later in the calendar year. The 30,000-tonne sample also represents the first steps towards bringing the formerly-producing mine into full scale production.
President and CEO, Dustin Angelo, states, "The development of the Stog'er Tight project demonstrates Anaconda's commitment to extending the life of the Point Rousse Project. The 2,800-tonne bulk sample, followed by a larger sample later in the fall, is an important first step in ultimately reaching our goal of bringing Stog'er Tight into production. If results from these samples prove positive, they will assist us with mine planning, processing and future exploration. Over the coming year, we will continue exploring to define the resource potential of Stog'er Tight and outline its potential mine life at a base load production rate of approximately 15,000 ounces per year. Our goal is to demonstrate that we can expand project life between the remaining mine life at Pine Cove and the new deposit at Stog'er Tight."
History of the Stog'er Tight Project:
The Company acquired a 100% undivided interest in the previously permitted Stog'er Tight project through a three-year option agreement with 1512513 Alberta Ltd. ("Alberta Ltd."), a subsidiary of Coordinates Capital, as part of Anaconda's decision to consolidate the Ming's Bight Peninsula.
The previous Development, Rehabilitation and Closure plan was prepared in conjunction with a 2010 mineral reserve estimate. This historical estimate was completed by P&E Mining Consultants Inc., and reported a historical mineral reserve of 65,200 tonnes grading 4.96 grams/tonne ("g/t") gold (approximately 10,400 ounces), an indicated resource of 96,000 tonnes grading 7.04 g/t gold (approximately 21,700 ounces) and an inferred resource of 53,000 tonnes grading 5.75 g/t gold (approximately 9,800 ounces) (This is a historical estimate as such term is defined in National Instrument 43-101*).
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.
* The Stog'er Tight historic resource estimated by P&E Mining Consultants Inc. should not be relied upon and is presented here only as a statement of historical significance. A qualified person has not done sufficient work to classify the historical resource estimate as a current resource estimate and the Company does not treat it as a current estimate. Additional work will be required to define a new resource estimate in compliance with the Canadian Institute of Mining and Metallurgy and Petroleum CIM Standards on Mineral Resources and Reserve Definitions as required by National Instrument 43-101 Standard for Disclosure of 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 6,000 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.
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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