TORONTO, Dec. 13, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to announce it has initiated a second phase of diamond drilling (the "Phase 2 Exploration Program") at the Argyle Prospect ("Argyle") of the Point Rousse Project. The purpose of the Phase 2 Exploration Program is to follow up on significant mineralization encountered during the Phase 1 exploration program at Argyle (see press release dated October 12, 2016). The known gold mineralization system at Argyle extends 410 metres along strike and 100 metres down-dip to the north, and is present 42 metres vertically below surface. The mineralized zone is open along strike and down-dip.
The Phase 2 Exploration Program will consist of approximately 2,000 metres of diamond drilling to determine if there are farther strike and dip extensions to mineralization within the consistent level of mineralized stratigraphy referred to as the Argyle gabbro (Exhibit A), and to determine the broad shape of the thicker and higher-grade portions of mineralization. Furthermore, the results of a recent detailed ground magnetic and induced-polarization ("IP") geophysical surveys conducted in the area over and surrounding Argyle, in concert with other key geological characteristics, have identified several other target areas which appear to be hosted within Argyle gabbro. Specific targets within these broader areas of interest will be tested during the Phase 2 Exploration Program.
President and CEO, Dustin Angelo, states, "We believe that Argyle has the potential to form a new deposit at the Point Rousse Project and to play a significant role in extending and increasing gold production. At the current exploration stage, our goals are to outline the geometry of the mineralization and to determine if there are other similar zones adjacent to Argyle to contribute to resource growth within Point Rousse."
The Phase 2 Exploration Program at Argyle is expected to be complete by January of 2017 with final results and interpretation expected later in the winter.
The Company has also recently completed a second phase of drilling at its Viking Project to test several exploration targets including the Viking Trend, Thor South and the Whiskey Jack showing within the Asgard Trend (Exhibit B). The program consisted of 1,151 metres of diamond drilling in 6 drill holes. Samples from this program have been submitted for assay and the results are expected in January.
Goldenville Exploration Program
The Company would also like to provide an update on the recent diamond drilling campaign at the Goldenville Horizon, an exploration target at the Point Rousse Project approximately five to seven kilometres from the Pine Cove Mill. The Goldenville Horizon consists of an ironstone formation and is known to be the same geological unit as the Nugget Pond Horizon, which is approximately 60 kilometres east of the Point Rousse Project and host to the former, high-grade Nugget Pond gold mine. The drill program was designed to test specific areas of the ironstone in search of Nugget Pond-style mineralization. The Company completed 1,686 metres of diamond drilling at Goldenville in 14 drill holes. While intersecting several areas with characteristics like Nugget Pond, the program did not result in intersections of significant gold mineralization.
President and CEO, Dustin Angelo, states, "The gold deposit type we are searching for, typified by the historic Nugget Pond deposit, is expected to have a relatively small footprint. During the recent program, we tested approximately ten percent of the prospective length of the Goldenville Horizon and observed that, locally, the processes involved in forming deposits are active within the area. Building on knowledge gained through this program we have refined our exploration model for this type of mineralization. Future work along the Goldenville Horizon will make use of this knowledge and focus on other areas of interest associated with the Goldenville Horizon. We still believe there is the potential to find a high-grade deposit like Nugget Pond."
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.
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 were analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30g) with an AA finish.
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 of property (respectively) 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.
SOURCE Anaconda Mining Inc.
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]