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
49o 42' N Longitude 57o 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.