TORONTO, June 2, 2016 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce
the results of a 751-metre, 16-hole, diamond drill program (Exhibit
A – Plan Map) conducted at the Stog'er Tight project. The drill
program focused on shallow areas, no more than 40 metres from
surface, west and southwest of the Stog'er Tight Deposit ("Stog'er
Tight" or the "Deposit"). The goals of the program were to test the
hypothesis that the Gabbro and West zones joined together below
surface and to determine if surface mineralization at the West zone
continued down-dip and is an extension of the Deposit.
Highlights of the drill program include:
- Hole BN-16-235 returned 6.70 grams per tonne ("g/t") Au over 4
m from 16 metres to 20 metres, including 8.85 g/t Au over 3
metres;
- Hole BN-16-227 returned 1.81 g/t Au over 6 metres from 22
metres to 28 metres;
- Hole BN-16-236 returned 3.72 g/t Au over 4 metres from 6 metres
to 10 metres and 2.27 g/t Au over 3 metres from 18 metres to 21
metres.
The West and Gabbro zones were determined to be two separate
zones of mineralization and both zones continue at depth (Exhibit
B). The Gabbro zone dips shallowly to the north beneath the West
zone and is within 20 metres of surface. Both the West and Gabbro
zones are the folded extensions of Stog'er Tight, which extended
the strike length 100 metres for a total of 500 metres. Equally
important, the Company's interpretation of these drill results
indicate that numerous other showings throughout the Stog'er Tight
project area may represent fold repetition of the Stog'er Tight
Deposit.
Dustin Angelo, CEO of Anaconda,
states, "The drill program around the Gabbro and West zones was
successful in that it extended the Stog'er Tight Deposit 100 metres
westward, to a total strike length of 500 metres, and identified
multiple zones of shallow mineralization. We also learned about the
repetitious folding that is occurring around Stog'er Tight, which
is a very good predictive tool as we step out farther from the main
deposit area. It has given us more confidence in the potential to
expand the resources around Stog'er Tight."
A table of significant gold intersections is presented
below.
Drill
hole
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
BN-16-225
|
21.8
|
24
|
2.2
|
1.76
|
BN-16-226
|
6
|
7
|
1
|
1.99
|
and
|
14
|
19
|
5
|
1.42
|
BN-16-227
|
17
|
19
|
2
|
1.08
|
and
|
22
|
28
|
6
|
1.81
|
including
|
23
|
26
|
3
|
3.04
|
BN-16-228
|
9
|
13
|
4
|
2.28
|
BN-16-229
|
18.5
|
22
|
3.5
|
0.63
|
BN-16-230
|
35.5
|
38.5
|
3
|
2.46
|
BN-16-231
|
14
|
15
|
1
|
0.69
|
BN-16-232
|
14
|
15
|
1
|
0.67
|
BN-16-233
|
20
|
21
|
1
|
1.10
|
BN-16-234
|
26
|
30
|
4
|
2.04
|
BN-16-235
|
16
|
20
|
4
|
6.70
|
including
|
16
|
19
|
3
|
8.85
|
BN-16-236
|
6
|
10
|
4
|
3.72
|
and
|
18
|
21
|
3
|
2.27
|
BN-16-238
|
43
|
44
|
1
|
0.54
|
BN-16-242
|
38
|
39
|
1
|
1.17
|
A summary of significant composited assays (core length) from
the Western and Gabbro zones at Stog'er Tight. True widths are
estimated to be between 70% and 95% of the core length.
The Company has geologically-modelled the results of the drill
program and will use the information to determine the best approach
to test the further continuity of the Stog'er Tight Deposit.
The Stog'er Tight Deposit
The Stog'er Tight Deposit is located 3.5 km from the Pine Cove
mill along the existing mine road. The Deposit contains a
43-101-compliant resource, including an Indicated Resource of
204,100 tonnes with a grade of 3.59 g/t Au (23,540 oz Au) and an
Inferred Resource of 252,000 tonnes with a grade of 3.27 g/t Au
(26,460 oz Au) using a cut-off grade of 0.8 g/t Au (see Company's
news release dated October 22, 2015).
The Deposit is characterized by intense carbonate, albite, and
pyrite alteration of gabbroic rocks with gold, strongly associated
with pyrite, which is similar to the Pine Cove Deposit. The
geological characteristics of Stog'er Tight are found in a much
larger area around the Deposit that is approximately 1.5 km long by
0.5 km wide. Besides the East, West and Gabbro zones, several other
zones of alteration and mineralization have been identified
throughout the greater Stog'er Tight area, indicating the potential
for further discovery.
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
are analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30g)
with an AA finish.
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.