TORONTO, Jan. 25, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the results of a recent drill program on the Pine Cove deposit consisting of 1,156 metres of diamond drilling within 14 shallow holes (Exhibit A). The program was focused on the southern margins of the Pine Cove deposit at a maximum depth of 75 metres in an area known as Pine Cove Pond, which is currently not part of the mine plan. The Pine Cove Pond Indicated Resource is estimated at 328,000 tonnes at 1.83 grams per tonne ("g/t") Au, which was included in the resource estimate published in a 43-101 compliant technical report* published on SEDAR on December 8, 2015 (Exhibit B). Geological and geophysical evidence suggest that the Pine Cove Pond area may contain the easterly and westerly continuation of the southern portion of the Pine Cove deposit. The goal of the drill program was to understand the limits of known mineralization and establish Mineral Reserves in the Pine Cove Pond area to extend the mine life of the Pine Cove deposit.
Highlights of the drilling include:
- 2.11 g/t Au over 10.5 metres from 9.5 – 20.0 metres and 1.4 g/t Au over 9.0 metres from 24.0 – 33.0 metres in hole PC-15-256
- 2.68 g/t Au over 15.9 metres from 6.1 – 21.0 metres in hole PC15-257
- 3.16 g/t Au over 5.5 metres from 3.5 – 9.0 metres in hole PC15-252
- 1.14 g/t Au over 4.0 metres from 41.0 – 45.0 metres in hole PC15-259
- 1.47 g/t Au over 2.8 metres from 38.0 - 41.8 metres in hole PC15-253
President and CEO, Dustin Angelo, states, "The Pine Cove deposit and adjacent areas remain one of our highest priorities in our goal of outlining future production and growth within the Point Rousse Project. Discovering near-surface mineralization at these grades, that is open for expansion at the southern margins of the mine, is a positive sign that this part of the Pine Cove deposit could be expanded and potentially included in our mine plan. Over the past several months, we have been encouraged by the exploration results that have come from both Pine Cove and Stog'er Tight that we will be successful in extending the life of the Point Rousse Project."
The drill program was successful in extending known mineralization at the Pine Cove deposit 25 metres to the south, east and west of the current compliant resource. The results indicate that the southern portion of the deposit is open for expansion to the west, near surface, in the area of the hole PC15-257 intersection, and open for expansion east and west of the hole PC15-252 intersection. The Company plans follow up drilling to better outline resources in these areas and test the limits of the deposit. The Company will incorporate this information to determine if current and other potential resources can be included in the Pine Cove deposit mine plan.
Several other zones of anomalous gold grades and alteration were observed in holes PC15-251, PC15-257 and PC15-259, though not at reportable grades. These intersections are significant, however, in that they indicate continuity of other mineralized zones intersected within the Pine Cove Pond area. All remaining holes did not contain significant intersections.
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. The drilling 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.
All results are reported as drill thickness, whereas, true thickness are estimated at 75-100% of drill thickness.
*The technical report was filed on SEDAR and is titled "NI43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Pine Cove Mine and Mineral Resource Estimate on the Stog'er Tight Deposit, Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada". The Technical Report was authored by independent qualified persons David Copeland, P. Geo. (an independent consultant) and Catherine Pitman, P.Geo. (AMC Mining Consultants (Canada) Ltd.), and qualified persons David Evans, P.Geo. (Silvertip Exploration Consultants Inc.), Paul McNeill, P. Geo. (Anaconda) and Gordana Slepcev, P. Eng. (Anaconda).
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 ten-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.
A map of the Pine Cove mine highlighting the Pine Cove Pond area and the diamond drill collars and traces reported in this release. Red circles highlight the approximate location of new mineralization discovered during this drill program.
A 3D geological model of Pine Cove Pond mineralization (0.7 g/t cut-off) in red in relation to the current ultimate pit design; a) viewed toward the west illustrating the shallow nature and northerly dip extents of mineralization; b) viewed towards the northeast illustrating the strike extent of the mineralization and the location of the areas of the geological model affected by the reported drill results.
SOURCE Anaconda Mining Inc.
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