TORONTO, Nov. 29, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) is pleased to announce that it has initiated a 5,000-metre, diamond drill program at its Point Rousse Project in Newfoundland (the "Point Rousse Program"). The Point Rousse Program will be conducted over the next four months, is estimated to cost approximately $800,000 and will be funded by the recently announced flow-through financing (see press release dated October 31, 2017). The Company plans to drill along and adjacent to the Scrape Trend, a 6-kilometre strike length of fertile geology that includes the Pine Cove mine, Stog'er Tight deposit, the recent Argyle discovery ("Argyle") and several other gold prospects. Anaconda is focused on four main targets – Argyle, the Connector Zone, Anoroc and Corkscrew Road, all of which are within 5 kilometres of the Pine Cove Mill (Exhibit A).
"The Scrape Trend has produced approximately 100,000 ounces of gold and generated over $40 million dollars in EBITDA over the past seven years. It has a pipeline of deposits, discoveries and future prospects that could sustain production for the coming years. Through the current diamond drill program, we intend to demonstrate the potential to expand gold resources within the Scrape Trend. With ease of access to drill targets and the Pine Cove Mill already running, exploration is very cost effective and the duration from discovery to production is compressed because of our existing infrastructure and management team. By investing capital from our recent financing, we believe we can accelerate resource growth at Point Rousse."
~ Dustin Angelo, President and CEO
Overview of Drill Targets
Anaconda plans to do a combination of step-out and infill drilling at Argyle. The step-out drilling will be along strike to the east, as well as down dip from the known mineralized area. The step out drilling will be focused on the mapped and projected continuation of the Argyle gabbro, the host rock to mineralization, and is coincident with geophysical anomalies (magnetic and chargeability) similar to those associated with the Argyle discovery.
Also, within the mineralized area at Argyle, Anaconda is focused on determining the trend of high-grade zones discovered through previous drilling. The easternmost high-grade zone to date is outlined by drill holes AE-16-33, AE-16-40 and AE-16-43 and averages 14 metres thick with composited assays between 2.91 grams per tonne ("g/t") and 5.52 g/t gold. The northernmost high-grade zone, outlined by drill hole AE-16-39, is 6.0 metres thick with a composited grade of 9.31 g/t gold and is open along strike and down-dip (see previous releases of July 13, September 27, and November 22, 2017)
The Connector Zone refers to the area between Argyle and the Stog'er Tight deposit characterized by local gold-in-soil geochemical anomalies as well as coincident magnetic and chargeability geophysical anomalies common to these deposit types at Point Rousse and specifically to the Argyle discovery. Recent geological mapping indicates that the Connector Zone is host to the same prospective geology associated with both the Argyle discovery and the Stog'er Tight deposit.
The Anoroc target refers to the prospective Pine Cove geology over a southwest strike of 650 metres from the Pine Cove deposit and mine (Exhibit A). Similar alteration and mineralization has been observed in surface trenches with channel sample results of 3.2 g/t gold over 3 metres and 7.8 g/t gold over 2.0 metres in two trenches. One historic diamond drill hole (AN-90-01) of six, in the area, returned 9.9 g/t gold over 2 metres. Prospecting during the summer of 2017 returned assays up to 6.39 g/t gold from surface outcrop.
The fourth drill target, Corkscrew Road, is hosted within an ironstone that sits within the same geologic setting as the Nugget Pond Horizon and mine, approximately 50 kilometres to the east of the Point Rousse Project. The Nugget Pond mine produced approximately 166,000 ounces of gold at approximately 11 g/t gold. The Corkscrew Road target is associated with a gold-in-soil anomaly located immediately north of the target over a broad area, which is a characteristic common to the Pine Cove and Stog'er Tight deposits and a guide used in their respective discoveries. The target is similarly associated with a chargeability geophysical anomaly. Historic rock samples from this area assay up to 14.0 g/t.
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 and the resultant composites referred to in this release are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. 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.
A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.
ABOUT ANACONDA MINING INC.
Anaconda is a TSX-listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog'er Tight deposit, a new discovery called Argyle, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company's Point Rousse Project.
The Company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.
This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, use of proceeds and TSX final acceptance of the Offering. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the year ended May 31, 2017, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.
For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, [email protected], www.AnacondaMining.com; Anaconda Mining Inc., Lynn Hammond, VP Public Relations, (709) 330-1260, [email protected]; Reseau ProMarket Inc., Dany Cenac Robert, Investor Relations, (514) 722-2276 x456, Dany.Cenac-Ro[email protected]