TORONTO, Jan. 14, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the commencement of a 2,500 metre diamond drill program on the Stog'er Tight project.
The primary goal of the current program is to determine if surface mineralization, exposed during a recent trenching and channel sampling program conducted in the fall of 2015 (announced on December 17, 2015), continues down-dip. Specifically, the previous program indicated that the East zone (Exhibit A) surface mineralization is contiguous with the Stog'er Tight deposit over a distance of 100 metres and the West zone (Exhibit A) surface mineralization was confirmed over a strike length of at least 80 metres, though offset by approximately 25-40 metres along a fault south of the main trend of the Stog'er Tight deposit. If mineralization is intersected down-dip of that found at surface in the East and West zones, it may be possible to demonstrate geological continuity, and ultimately the extension of the Stog'er Tight deposit. A secondary goal of the program is to test the hypothesis that a third zone of mineralization, the Gabbro zone (Exhibit A), is geologically contiguous with the West zone. If true, then the results will indicate that the Gabbro zone, the West zone and, potentially, the Stog'er Tight deposit are all part of a continuous mineralized system. All drill holes are planned with the ultimate goal of increasing mineral resources at Stog'er Tight.
It is anticipated that the drill program will be complete in March with analytical results and interpretation available in April.
The Stog'er Tight deposit is located 3.5 km 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 grade 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 km long by 0.5 km wide. Besides the East, West and 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.
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: A geological map of the Stog'er Tight area showing the location of surface mineralization (red), recent channel samples collected in the fall of 2015 (labeled as per previous press release) and the areas of drilling planned for the current program. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160114_C4254_PHOTO_EN_598272.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