TORONTO, Jan. 21, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the results of a recent trenching and channel sampling program at the Argyle prospect located just northeast of Stog'er Tight and approximately 5.5 kilometres from the Pine Cove mill. The program consisted of the excavation of overburden along four trenches over 181 metres and channel sampling of 68 metres of the exposed bedrock. The goal of the program was to determine if two previously exposed zones of mineralization are contiguous and demonstrate geological continuity along the Argyle prospect. Three of the four trenches tested the eastern portion of the prospect where it was previously constrained by a single trench. A fourth trench tested the western limits of the prospect.
In the eastern area, trench AEtr15-18 (Exhibit A) returned 1.89 g/t Au over 10 metres. It is located 40 metres west of trench AEtr14-12, which contained 1.31 g/t Au over 11 metres, and 160 metres east of trench AEtr14-08, which contained 3.75 g/t Au over 16 metres (the latter two results were previously reported on January 8, 2015 and referred to as trenches A8 and A12). Trench AEtr15-19 intersected anomalous mineralization and a broad alteration zone consistent with alteration throughout the prospect area, but was not sampled across the entire trench due to poor ground conditions. Trench AEtr15-17 did not intersect alteration or mineralization. Trench AEtr15-20 exposed anomalous gold mineralization and the continuation of the alteration zone at the most westerly end of the Argyle prospect.
Geological mapping and interpretation of the analytical results indicate that the two previously exposed zones of mineralization are contiguous and that there is geological continuity throughout the Argyle prospect over a strike length of 300 metres. Gold grades and alteration character are similar in style and tenor to those observed at the Stog'er Tight deposit.
President and CEO, Dustin Angelo, states; "We are just beginning to piece together the Argyle prospect, our newest gold discovery. We are encouraged by the geological similarities to the Pine Cove and Stog'er Tight deposits as well as the initial 300-metre strike length of alteration and mineralization. Argyle fits nicely into our pipeline as an early stage project to complement those that are more advanced. It also serves as an example of the great potential for more gold discoveries within the Point Rousse Project area."
The Company plans to perform a ground IP and magnetic survey to cover the Argyle project area, which is anticipated to begin in the spring of 2016. The goal of the ground geophysical survey is to acquire more data to better identify drill targets within and outside of the currently known exposures of the Argyle prospect.
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.
Channel sample intersections are apparent widths and are estimated to be approximately 75 - 100% of true widths.
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 nine-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.
SOURCE Anaconda Mining Inc.
Image with caption: "Exhibit A: The Argyle prospect showing the location of the four trenches (AEtr15-17 to AEtr15-20) and samples highlighted in this press release as well as previously excavated trenches. Alteration and mineralization have been observed over 300 metres of strike length. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160121_C2921_PHOTO_EN_603065.jpg
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