TORONTO, Aug. 4, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to report that, effective July 25, 2015, the Company entered into an option agreement with Seaside Realty Ltd. ("Seaside") to acquire a 100% undivided interest in the Corkscrew gold property ("Corkscrew"), consisting of a 346.4-hectare mining lease contiguous to Anaconda's Point Rousse Project on the Ming's Bight Peninsula in the Baie Verte Mining District, Newfoundland and Labrador (See Exhibit A).
Corkscrew, which includes five gold occurrences, is located within the Goldenville Trend on the Ming's Bight Peninsula. Corkscrew is a 3.5-kilometre section of this trend immediately west of the portion of the Goldenville Trend already controlled by Anaconda. The Goldenville Trend contains a prospective ironstone formation, a type of rock known to host gold deposits in other parts of the Baie Verte Mining District.
"The agreement with Seaside nearly doubles Anaconda's land position within the Goldenville Trend for a total strike length of approximately eight kilometres and gives Anaconda full control of this highly prospective group of rocks. Further, Anaconda now effectively controls all areas of interest within the Point Rousse Project," states Anaconda President and CEO, Dustin Angelo. "Our business plan includes discovery and development of a source of high-grade gold which will be blended with the existing baseload feed at the Pine Cove Mill. The Goldenville Trend, now including Corkscrew, has the greatest potential to host high-grade deposits, as proven elsewhere within the Baie Verte Mining District."
To keep the options for Corkscrew in good standing, Anaconda is required to make aggregate payments to Seaside of $75,000 ($25,000 paid at closing) over a two-year period. Any future gold production from Corkscrew will be subject to a 2% net smelter royalty, capped at $2,000,000.
Anaconda is currently assessing and integrating all of Corkscrew's historical drilling and exploration data. The Company will perform field mapping of critical areas this summer and, based on the results of the assessment and mapping, will develop an exploration plan to build on historic results.
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.
This news release has been reviewed and considered accurate 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.
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 - Corkscrew Mining Lease Seaside Realty Option (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150804_C8586_PHOTO_EN_470198.jpg
For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: [email protected]; Kingston Advisors, (212) 796-5290, Email: [email protected]; Company website: www.anacondamining.com