TORONTO, Jan. 12, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to report that it has completed a preliminary work program at the 100% held Jackson's Arm Property ("Jackson's Arm"), part of the Great Northern Project, located approximately 20 kilometres north of Anaconda's Viking Project (Exhibit A). The work program was successful in defining areas of prospectivity within the property by determining key geological controls associated with known surface mineralization.
Key exploration highlights
- Completed 15 line kilometres of geological mapping, including detailed mapping of 10 trenches;
- Outlined a continuous zone of gold mineralization and alteration that is 1.7 kilometres long by 40 to 400 metres wide;
- Defined 4 kilometres of exploration potential to the north (1 kilometre) and east (3 kilometres);
- Rock samples assayed 24.5 grams per tonne ("g/t") gold and 0.03 g/t gold (Boot N' Hammer Prospect), 11.7 g/t gold (Stocker Prospect) and 3.35 g/t gold (Trench JT1);
- Determined that gold mineralization and alteration are associated with a series of fault zones that are splays off the Doucer's Valley Fault; a similar setting to the Pine Cove Deposit at the Point Rousse Project.
President and CEO, Dustin Angelo, states, "Our recent work has shown that the main gold occurrences at Jackson's Arm are hosted along a series of secondary fault zones linked to the regional scale Doucer's Valley Fault system. This relationship further highlights the potential to host gold along and adjacent to multiple property scale faults that cross the area. We are pleased with the size and continuity of the alteration zone and now feel that we have the pertinent geological information upon which to build more advanced exploration. The continuation and repetition of the host structures to the immediate north and east demonstrates the potential for future discovery on this property. Having another potentially gold-bearing project similar in setting to the Pine Cove pit, near water and relatively close to the Pine Cove Mill, is a great asset for the Anaconda exploration portfolio."
During the late fall of 2016, Anaconda completed a total of 15 line kilometres of grid, geological mapping and mapped 10 trenches in detail. Mapping outlined a 1.7-kilometre long by 40 to 400-metre wide continuous alteration zone that is host to the main gold prospects at Jackson's Arm (Exhibit A) on the west side of the property. The alteration is controlled by a fault zone that is interpreted to extend immediately to the north along strike beyond the current, known zone of alteration. The Company has also discovered similar repeating faults to the east (Exhibit A). Consequently, Anaconda believes the potential strike of the alteration system could extend an additional four kilometres, both north and east.
Overview of Geology
Alteration and gold mineralization is hosted within the Ordovician-aged granites of the Coney Head Complex. The alteration zone and host granites are in thrust faulted contact with younger Silurian volcanic and sedimentary rocks along its southwestern margin. This steeply ENE-dipping and NNW-striking fault zone and associated splays are interpreted to represent significant control on the localization of hydrothermal alteration and gold mineralization on the property, where the host granite forms a favourable mechanical host to gold mineralization. The fault zone is interpreted as a secondary splay off the Doucer's Valley Fault system. The host environment to gold mineralization at Jackson's Arm has been observed by Anaconda geologists at the nearby Thor and Rattling Brook Deposits, and also at the Pine Cove Mine where gold mineralization is hosted adjacent to secondary thrust fault systems.
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. 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 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 24.5 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 gold over 4.00 metres (hole RB-35) and 2.30 g/t gold over 4.05 metres (hole RB-41).
*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.
**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 56o 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 three exploration/development projects called the Viking and Great Northern Projects and the Tilt Cove Property 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 project 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]