Metallurgical test work demonstrates Pine Cove mill processing potential for the Thor Deposit

TORONTO, May 12, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to report that results of preliminary metallurgical test work indicates that ore from the Thor Deposit of the Viking Project ("Thor Deposit") could be processed at the Pine Cove mill using current flotation and leach circuit configuration.  The results of the study are based on a homogenized sample collected from two diamond drill holes.  Bench scale test work, conducted by NB Research and Productivity Council ("RPC"), primarily focused on flotation, cyanide leaching and grinding to evaluate the response of the Thor Deposit material to the current plant flow sheet for the Pine Cove mill. 

In a flotation test, using a grind of (80% passing) 150 µm, currently used for Pine Cove ore, the Thor Deposit sample attained 96.0% Au recovery in 4.4% of the mass at a grade of 35.12 grams per tonne ("g/t") Au in the rougher stage.  In a bottle roll cyanidation test the current Pine Cove mill regrind size of (80% passing) 20 µm obtained 94.1% Au extraction without requiring accelerating reagents and consumed 1.1 kg/t NaCN  compared to 3.6 kg/t for Pine Cove ore.  A Bond Ball mill grindability test was performed utilizing a limiting screen size of 150 µm and indicated that the sample has a Bond Ball Work Index ("BWI") value of 18.5 kWh/t.

President and CEO, Dustin Angelo, stated, "Our primary thesis in expanding Anaconda's reach to new deposits is that the Pine Cove mill and related infrastructure can be leveraged to expedite development of satellite deposits that would otherwise not be mined, given their size.  The preliminary metallurgical results on flotation and leaching from the Thor Deposit supports our thesis and allows the company to move forward with plans to expand the historical resource base at the Viking Project with the initial goal of doubling the size of the resource while optimizing a path to development."

The Company will conduct follow up metallurgical testing and/or bulk sampling for processing at the Pine Cove mill when it is appropriate for feasibility studies.

The Metallurgical Sample and Analysis

The sample for the metallurgical test work on the Thor Deposit was collected by Anaconda staff from diamond drill holes VK09-20 and VK10-46 located at the northern portion of the deposit and sent to RPC in Fredericton, New Brunswick.  The 59.8 kg sample was homogenized and analyzed by ICP-OES, whole rock analysis and Au fire assay and was found to have a head grade of 1.86 g/t Au, 1.4 g/t Ag, 0.003% Cu and 2.1% Fe, and found to contain 67.26% SiO₂.

The Thor Deposit

Anaconda acquired the Thor Deposit as part of an option agreement announced on February 10, 2016 (see Press Release, available on SEDAR and the Company's website).  The Thor Deposit hosts a Historical Mineral Resource Estimate as defined by the National Instrument 43-101 Standards for Disclosure for Mineral Projects and is not considered by the Company to be a Current Mineral Resource, since Anaconda Qualified Persons have not independently completed work to classify it as a Current Mineral Resource. The Historical Resource includes an Indicated Resource of 63,000 ounces at a grade of 2.09 g/t Au and an Inferred Resource of 20,000 ounces at a grade of 1.79 g/t Au, using a 1.00 g/t cut off, as documented in a Technical Report filed on SEDAR, titled "MINERAL RESOURCE ESTIMATE UPDATE FOR THE THOR TREND GOLD DEPOSIT, NORTHERN ABITIBI MINING CORP., White Bay Area, Newfoundland and Labrador, Canada, Latitude 49^o 42' N Longitude 57^o 00' W." prepared for Northern Abitibi Mining Corp. by Dr. Shane Ebert, P. Geo. and Gary Giroux, P. Eng. MASc., December 30, 2011.

RPC is an accredited metallurgical testing facility located in New Brunswick, Canada, that has been in the industry for over 50 years and serves both local and global clients in all areas of extractive metallurgy.  Metallurgical work on the Thor Deposit outlined in this release was conducted by Neri Botha P. Eng. and Leo Cheung P. Eng. of RPC, both Qualified Persons under the National Instrument 43-101 Standard for Disclosure for Mineral Projects

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 an exploration/development project called the Viking Project 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.

Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 km by water (180 km via road) from the Pine Cove mill.  The project contains the Thor Deposit and other gold prospects and showings.  The company's plan is to discover and develop more resources within these project areas and double annual production at the Pine Cove mill from its current rate of nearly 16,000 ounces to 30,000 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.

FORWARD-LOOKING STATEMENTS

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.

Anaconda Mining Inc., Dustin Angelo, President and CEO, [phone], [email protected], www.AnacondaMining.com; Kingston Advisors, Investor Relations, [phone], [email protected], www.KingstonAdvisors.com