TORONTO, Sept. 15, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to announce the initiation of drilling on its Stog'er Tight gold project, located approximately three kilometers east of the Pine Cove mill along the Pine Cove mine road (see Exhibit A: Deer Cove and Stog'er Tight Option map).
The 2014 Stog'er Tight program consists of 2,000 meters of diamond drilling designed to infill portions of the deposit and expand the deposit size. In addition, the Company will build on the historic data and better understand the geological setting and distribution of gold within the deposit. The Company's short term goal is to outline a deposit that has at least a five-year mine life at the current Pine Cove mill throughput rate of approximately 1,000 tonnes per day. If Stog'er Tight has a five-year mine life, then the Company would nearly double the life of the Pine Cove Project to almost 10 years. Drilling will be supplemented by detailed geochemical analysis and structural mapping of the deposit to determine geological controls on mineralization and to develop grade-control techniques for use in mining. The Company expects to do more drilling beyond this initial 2,000 meters along with other analytical and scoping related work to develop the ultimate pit and mine plan.
President and CEO, Dustin Angelo, states, "The Company is implementing a strategy to grow the Pine Cove Project by developing Pine Cove style resources like Stog'er Tight to extend the life of the Pine Cove Project and continue feeding the base-load production of the mill. Through other, potentially higher grade, deposits on the Ming's Bight Peninsula close to our mill, the Company would supplement the base-load feed to increase the overall head grade into the mill at a potentially lower incremental cost. Our immediate focus is on extending the life of the project and we view the Stog'er Tight deposit as a significant component in demonstrating our ability to do so."
History of Stog'er Tight Project:
The Company acquired a 100% undivided interest in the Stog'er Tight project through a three-year option agreement with 1512513 Alberta Ltd. ("Alberta Ltd."), a subsidiary of Coordinates Capital, as part of Anaconda's decision to consolidate the Pine Cove gold mining district.
In 2010, P&E Mining Consultants Inc., reported an estimated mineral reserve of 65,200 tonnes grading 4.96 grams/tonne ("g/t") gold (approximately 10,400 ounces), an indicated resource of 96,000 tonnes grading 7.04 g/t gold (approximately 21,700 ounces) and an inferred resource of 53,000 tonnes grading 5.75 g/t gold (approximately 9,800 ounces) (This is a non-NI 43-101 compliant resource estimate*).
For more information on this transaction and the history of the Stog'er Tight project please refer to the Company's November 20, 2013 news release (available at www.SEDAR.com).
Deer Cove Project Update:
The previously announced drilling program on the Deer Cove project (see June 11, 2014 news release available at www.SEDAR.com) was completed in early September and final analytical results of the program are pending. The results of this program will be communicated once the final assays are completed and the Company has assessed the significance of the data and determined the next steps required in the Deer Cove project.
This news release has been reviewed 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.
*While the Company has no reason to doubt the accuracy of the Stog'er Tight historic resource estimate by P&E Mining Consultants Inc., it should not be relied upon and is presented here only as a statement of historical significance. If the Company considers it prudent, a new resource estimate will be produced in compliance with National Instrument 43-101 Standard for Disclosure of Mineral Projects.
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
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: current and future market trends and growth opportunities and whether the Company will be able to capitalize upon them. 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 are based on current expectations and 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 the Company assumes no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
Image with caption: "Exhibit A: Deer Cove and Stog'er Tight Option Map. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140915_C9070_PHOTO_EN_42774.jpg
SOURCE: Anaconda Mining Inc.
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