TORONTO, Nov. 8, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to report that it has made significant property acquisitions on the Great Northern Peninsula 20 kilometres north of its Viking Project. On the Northern Peninsula, Anaconda entered into an option agreement (the "Jackson's Arm Agreement") with Metals Creek Resources Corp. ("MEK ") to acquire a 100% undivided interest in 1,325 hectares (the "Jackson's Arm Property") and has staked 5,050 hectares of contiguous mineral lands totaling 6,375 hectares (collectively, the "Great Northern Project") (Exhibit A and B).
Anaconda has also entered into an option agreement (the "Tilt Cove Agreement") with MEK to acquire a 100% undivided interest in 350 hectares (the "Tilt Cove Property") located 60 kilometres east of the Company's Point Rousse Project within the Baie Verte Mining District (Exhibit A). Details of both agreements are given below.
Key exploration highlights
- Both projects are located along regional splays of the Long Range Fault system – a fertile gold bearing structure.
- A similar fault system, the Red Indian Line (and associated structures), was the focus of a recent staking rush for gold and, like the Long Range Fault, it is host to significant gold deposits.
- Both projects are located near Anaconda's existing operating infrastructure at the Point Rousse Project, accessible by road and water, and have significant potential for discovery and resource growth.
President and CEO, Dustin Angelo, states, "Anaconda continues to be a strategic acquirer of highly prospective gold bearing property on the Baie Verte and Northern Peninsulas, which are hosts to regional splays of the Long Range Fault system. Beginning with the Viking Project and now with the Great Northern Project and Tilt Cove, we have tripled the size of our land position to almost 20,000 hectares in a very tight, geographic area within striking distance of the Pine Cove Mill. Just like the fault structures where Marathon Gold has its Valentine Lake gold project, the Long Range Fault shares similar geologic characteristics that suggests there is great potential to find gold mineralization as evidenced by the existing deposits and gold occurrences on the Baie Verte and Northern Peninsulas. With growing experience of the regional geology through our current Point Rousse and Viking Projects and an active mining operation in the region, Anaconda is well positioned to expand resources and build a much larger, district production-play."
Great Northern Project Overview
The Great Northern Project is located near the community of Jackson's Arm, Newfoundland, and is centered along the Doucer's Valley Fault, a regional splay off the Long Range Fault (Exhibit A). The Doucer's Valley Fault is a significant geological control on and host to several gold deposits, including Anaconda's Thor Deposit (83,000 ounces Indicated and 31,000 ounces Inferred Resources)* and the Rattling Brook Deposit (495,000 ounces Inferred Resources).**
The Great Northern Project (Exhibit B) boasts several gold prospects and showings, including the Shrik, Stocker, Boot N' Hammer, 954 Prospects and the Incinerator Trail Zone. Surface grab samples assaying up to 20.2 gram-per-tonne ("g/t") gold and 1232.0 g/t silver at the Boot N' Hammer Prospect; up to 56.7 g/t gold and 2.75 ounces per tonne silver at the Stocker Prospect; up to 7.2 g/t gold at the Shrik prospect; and 13.6 g/t gold at the 954 Prospect. The Incinerator Trail Zone has been tested by four reconnaissance-style diamond drill holes in the 1980's and returned gold assays of 1.78 g/t over 4.00 metres (hole RB-35) and 2.30 g/t gold over 4.05 metres (hole RB-41).
Tilt Cove Property Overview
The Tilt Cove Property is located within the Baie Verte Mining District, near the community of La Scie, Newfoundland, approximately 60 kilometres by road from the Company's Pine Cove Mill. The Tilt Cove Property is characterized by the same geological environment as part of the Point Rousse Project, specifically the Nugget Pond horizon, an iron formation that hosted the historical high-grade-gold Nugget Pond Mine, which produced 166,000 ounces of gold with an average grade of approximately 11 g/t. The Tilt Cove Property has several occurrences with high-grade gold grab samples from prospecting including 69.38 g/t gold from the Scarp zone, 13.47 g/t gold from the Shaft zone and 6.02 g/t gold from the Road showing.
The area in which the Tilt Cove Property is located is also host to several historical (1864-1967) open pit and underground copper mines. Gold is typically associated with copper mineralization and several of the historic copper deposits require follow-up testing for gold potential. A stockpile of gold-bearing ore from historical mining, estimated at 30,000 tonnes, is located on the Tilt Cove Property.
Near-term exploration plans
Anaconda is planning a field program on the Great Northern Project that will begin this fall and include geological mapping of existing prospects and surrounding areas and the development of drill targets. Immediate work on the Tilt Cove Property will begin with a thorough review and compilation of all historical data and field investigations to determine the highest priority drill targets and metallurgical test work on the stockpile.
Terms of the option and royalty agreements
The Jackson's Arm Agreement: To earn a 100% interest in the Jackson's Arm Property, the Company is required to make aggregate payments to MEK of $200,000 in cash and 500,000 common shares of Anaconda over a three-year period. The Jackson's Arm Agreement provides for a two percent (2%) net smelter returns royalty ("NSR") to MEK on the sale of gold-bearing mineral products from the Jackson's Arm Property. The NSR is capped at $1,500,000, after which, the NSR will be reduced to one percent (1%). Anaconda is required to spend a total of $750,000 in qualified exploration expenditures on the Jackson's Arm Property during the option period.
The Tilt Cove Agreement: To earn a 100% interest in the Tilt Cove Property, the Company is required to make aggregate payments to MEK of $200,000 in cash and 500,000 common shares of Anaconda over a three-year period. The Tilt Cove Agreement provides for a one percent (1%) NSR to MEK on the sale of gold-bearing mineral products from the Tilt Cove Property. Anaconda is also assuming an existing two percent (2%) NSR (the "Existing NSR") on one of the two licenses that comprises the Tilt Cove Property. One percent (1%) of the Existing NSR is purchasable for $1,250,000. Anaconda is required to spend a total of $750,000 in qualified exploration expenditures on the Tilt Cove Property during the option period.
*Resource taken from the NI 43-101 report for the Viking project entitled "NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland and Labrador, Canada" with an effective date of August 29, 2016 " and using a cut off grade of 0.5 g/t.
**Resource taken from the NI 43-101 report for the Jackson's Arm Project entitled "TECHNICAL REPORT ON MINERAL RESOURCE ESTIMATE FOR JACKSON'S ARM GOLD PROJECT WHITE BAY AREA NEWFOUNDLAND AND LABRADOR, Latitude 49o 53' 2.65''North, Longitude 56 o 50' 7.09'' West", with an effective date of April 20th, 2009. Prepared For: Kermode Resources Ltd. by Mercator Geological Services Limited.
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 MINING
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and two exploration/development projects called the Viking and Great Northern Projects in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of 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 ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove mill. A second property called the Tilt Cove Property, consisting of 350 hectares, is located approximately 60 kilometres by road from the Pine Cove Mill but is also within the Baie Verte Mining District and underlain by similar geology to the Point Rousse Project.
Anaconda also controls the Viking and Great Northern Projects, which have approximately 6,225 and 6,375 hectares respectively of property in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The Viking Project contains the Thor Deposit and other gold prospects and showings and the Great Northern Project includes numerous prospects and showings within a similar geological setting as the Viking Project. The Company's plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of nearly 16,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, 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, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements 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 we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
Exhibit A. A map showing the location of projects controlled by Anaconda including the Point Rousse, Viking and Great Northern Project as well as the Tilt Cove Property, all associated with splays of the Long Range Fault system (red lines). The projects are all within striking distance of the Pine Cove Mill and related infrastructure on the west side of the Point Rousse Project located on tide water with a dock facility.
Exhibit B. A map showing the location of the Great Northern Project (left in black outline) in relation to gold deposits, related occurrences adjacent to the Doucer's Valley Fault. A portion of the Jackson's Arm Property is shown on the right, care of MEK.
SOURCE Anaconda Mining Inc.
Image with caption: "Exhibit A: Location map of projects controlled by Anaconda Mining. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20161108_C7034_PHOTO_EN_813599.jpg
Image with caption: "Exhibit B: Great Northern Project in relation to gold deposits and related occurrences adjacent to the Doucer’s Valley Fault. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20161108_C7034_PHOTO_EN_813597.jpg
For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, [email protected], www.AnacondaMining.com; High Stakes Strategy & Communications, Lynn Hammond, Executive Consultant, (709) 330-1260, [email protected]