TORONTO, Jan. 8, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the discovery of a new zone of gold mineralization, referred to as the Argyle zone, located approximately 5 kilometres from its Pine Cove mill in the Baie Verte Mining District in Newfoundland, Canada. In November 2014, the Company trenched and performed channel sampling in the Argyle zone, which is located northeast of the Stog'er Tight deposit and west of the town of Ming's Bight (see Exhibit A for location map). Anaconda was following up numerous gold-in-soil anomalies obtained during a 2012 soil sampling program in this area, which had never before been prospected. Alteration was noted over a broad area with significant gold mineralization observed in four trenches in two areas approximately 200 metres apart (See Exhibit B). The discovery of the Argyle zone extends the length of known mineralization within an approximately 7-kilometre long trend of highly prospective rocks, which hosts the Pine Cove and Stog'er Tight deposits as well as numerous other prospects and showings.
Highlights of channel samples from four trenches containing gold mineralization within the Argyle zone include:
- 3.75 grams per tonne ("g/t") gold over 16 metres (including 8.27 g/t gold over 4 metres) and 1.49 g/t gold over 3.5 metres in trench A8
- 1.31 g/t gold over 11 metres in trench A12
- 6.58 g/t gold over 2 metres and 3.08 g/t gold over 1 metre in trench A14
- 1.50 g/t gold over 1 metre in trench A7
Trenches A12 and A14 also contained several 2 to 3-metre sections of the trench known to be within or on the shoulder of mineralization, but could not be sampled because of heavy flooding.
"The Argyle zone is an exciting new discovery and the first of its kind on the Ming's Bight Peninsula since the mid 1980's," states President and CEO, Dustin Angelo. "The Argyle zone demonstrates the fact that more gold can be found within striking distance of our mill. The discovery not only can be added to our pipeline of projects to help grow Pine Cove, but it also gives us the confidence that there is more gold to be discovered close by. Our exploration pipeline is robust and we look forward to demonstrating that we can develop a sizable resource at the project."
The 2014 Argyle zone trenching program was halted due to weather and the onset of winter, but will be followed up with further sampling, trenching, geological mapping and ground geophysical surveys to better define the geological setting and controls on mineralization. Based on these results, the Company plans to develop drill targets and test the zone in calendar 2015.
Gold is hosted in gabbroic rocks, which contain a broad halo of leucoxene alteration with increasing iron carbonate and sericite near the mineralized zones. Silica and quartz veins with increasing pyrite are indicative of gold mineralization and are typical of deposits within the project area.
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. The trenching program was supervised by Silvertip Exploration Consultants Inc., of Bishops Falls, NL.
All samples are collected using QA/QC protocols including the regular insertion of duplicates, standards and blanks within the sample batch for analysis. All samples quoted in this release are analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30g) with an AA finish, as well as 34 element analysis using four acid dissolution with ICP-OES.
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing mine 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 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: current and future market trends and growth opportunities and whether the Company will be able to capitalize upon them. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. 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 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: Argyle Zone Location Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150108_C4232_PHOTO_EN_10042.jpg
Image with caption: "Exhibit B: Argyle Zone Trenching (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20150108_C4232_PHOTO_EN_10043.jpg
For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, Email: [email protected]; ProConsul Capital Ltd., Andreas Curkovic, Investor Relations, (416) 577-9927, Email:[email protected]; Company website: www.anacondamining.com