TORONTO, May 9, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce that it has significantly expanded the footprint of its
Tilt Cove Project, located within the Baie Verte Mining District,
near the community of La Scie,
Newfoundland, approximately 45 kilometres by road from the
Company's Pine Cove Mill. Anaconda has consolidated a
significant property package covering a 20 kilometre strike extent
of the Betts Cove Complex, a highly prospective geological terrane
with a record of past gold and copper production. The Tilt
Cove Project now comprises a total of 5,700 hectares (228 claims in
20 licenses and 1 mining lease) of prospective mineral lands
acquired via a combination of staking by the Company and the
execution of option agreements.
Highlights of the Tilt Cove Project include:
- Large land position that has been consolidated for gold
exploration for the first time in 20 years with 20 kilometres of
prospective strike;
- Includes the Nugget Pond Horizon, which hosts the
past-producing high-grade Nugget Pond Mine that produced 168,748
ounces and an average grade of 9.85 g/t gold;
- Nugget Pond mineralization is similar to other
Banded-Iron-Formation hosted lode gold deposits, such as
Meadowbank, Lupin, Meliadine and Homestake;
- Includes the Venams Bight Formation, which hosts the Pine Cove
Mine at the Point Rousse Project;
- Significant high-grade historical drill intercepts and the
identification of 12 high-priority gold exploration targets
including:
-
- 6.77 g/t gold over 5.0 metres in hole BC-89-02;
- 11.20 g/t gold over 1.1 metres in hole BC-89-01;
- 8.82 g/t gold over 1.0 metre in hole NBC-96-01; and
- Past-producing copper mines including the Tilt Cove and
Betts Cove Mines.
"We saw the rare opportunity to assemble a large land package
immediately along strike from the past producing, high-grade,
Nugget Pond mine, which had an average mine grade of 9.85 g/t
gold. With some previous high-grade gold drill intercepts
ready for follow up drilling and the identification of twelve
exploration targets, the Tilt Cove Project provides an immediate
opportunity to discover other high-grade gold deposits. The
Project is also underlain by the same geology that hosts the Pine
Cove and Stog'er Tight Mines as well as the Argyle Deposit, further
increasing its prospectivity. With the history of discovery within
these horizons and the access to the Company's operational Pine
Cove Mill and long-term tailings facility, we believe this is an
excellent opportunity to make the next high-grade gold discovery in
the prolific Baie Verte Mining District."
~ Kevin Bullock, Chief
Executive Officer, Anaconda Mining Inc.
Field work at the Tilt Cove Project will commence in June and
will include site investigations of all exploration sites, review
of historic core, geological mapping, soil geochemistry,
prospecting as well as an airborne EM and magnetic survey over the
Project area. This work will be followed by drill testing of
the priority exploration targets.
Exploration Targets on the Tilt Cove Project
The Tilt Cove Project has several exploration targets in three
main areas: the Nugget Pond, Long
Pond, and Betts Cove Target areas.
Nugget Pond Target Area
The Nugget Pond Target is a 7.5 kilometre zone along the Nugget
Pond Horizon extending northeast from the Nugget Pond Mine to the
Tilt Cove Mine. There are four key exploration targets that are
prospective for Nugget Pond-style mineralization on the Property as
follows:
East Pond Prospect – The East Pond Zone comprises a
minimum 800-metre long segment of the Nugget Pond Horizon beneath
East Pond. Diamond drilling in 1997 and 1998 from the north
side of East Pond intersected gold mineralization in the footwall
of the Nugget Pond Horizon similar to footwall style mineralization
at the Nugget Pond Mine. This suggests that the Nugget Pond
Horizon above these holes may be mineralized and that these holes
intersected northwest oriented mineralized structures like those at
the Nugget Pond Mine.
West Pond Prospect – The West Pond Zone comprises a
minimum 1.3-kilometre long target beneath West Pond that is marked
by the continuation of the Nugget Pond Horizon northeast of the
Nugget Pond Mine. The horizon outcrops on the east and west
shores of the pond where gold mineralization has been
sampled. Continuation of the horizon under the pond is
inferred from combined magnetic and IP conductivity data.
There is a strong combined till and soil anomaly that extends down
ice (SW) from the Nugget Pond Horizon for at least 600
metres. The Nugget Pond Horizon in this area is associated
with a break in the magnetic trend indicative of alteration and
magnetic destruction associated with a cross-cutting northwest
oriented fault, similar to that present at the Nugget Pond
Mine. The combined soil geochemical and geophysical features
make this an attractive target for follow up drilling testing.
Red Cliff Pond Zone – The Red Cliff Pond Zone
comprises a minimum 1.2-kilometre long target beneath and adjacent
to Red Cliff Pond that is marked by the continuation of the Nugget
Pond Horizon northeast of the Nugget Pond Mine. The horizon
outcrops on the east shore of the pond where gold mineralization,
assaying up to 5.56 g/t gold, has been sampled at the Low Water
Prospect. Several anomalous gold bearing soils are clustered around
and to the southeast of the projection of the Nugget Pond
Horizon. Drill testing of the Low Water Prospect returned
gold assays of 1.92 g/t gold over 4.3 metres.
Long Pond South
Trend – A 4.0-kilometre long section of the Nugget
Pond Horizon to the east of Red Cliff Pond that has some existing
soil anomalies but is generally lacking full soil coverage.
Follow-up prospecting and soil sampling is warranted in this
area.
Betts Cove Target Area
Betts Cove Mine – At the Betts Cove Mine
disseminated to massive pyrite and chalcopyrite +/- gold
mineralization is hosted at the contact between gabbroic sills and
pillow basalts, particularly within a chlorite schist unit that may
represent a sheared alteration zone; a similar setting to the Tilt
Cove Mine 20 kilometres to the northeast along strike.
A zone of gold mineralization has been intersected by drilling
in 1989 and 1996 at the Betts Cove Mine area. Four of the
drill holes testing the deposit returned significant gold
intercepts including:
- 4.48 g/t gold over 4.0 metres (from 52.0 to 56.0 metres),
including 11.20 g/t gold over 1.1 metres in hole BC-89-01;
- 6.77 g/t gold over 5.0 metres (from 63.1 to 68.1 metres) in
hole BC-89-02;
- 1.87 g/t gold over 13.0 metres (from 63.5 to 76.5 metres)
including 7.50 g/t gold over 0.5 metres and 8.82 g/t gold over 1.0
metre in hole NBC-96-01; and
- 4.59 g/t gold over 1.5 metres (from 63.5 to 65.0 metres) in
hole NBC-96-02.
The gold zone intersected in these drill holes is spatially
displaced from the copper zone historically mined at Betts
Cove. The zone is seemingly flat lying and intersected over
an approximately 200 by 50 metre area that is open to the
southwest. Potential exists to expand this zone of
mineralization along strike.
Mount Misery Prospect – The Mount Misery prospect is
located 1.2 kilometres northeast of the Betts Cove Mine and 2.7
kilometres southwest of the Nugget Pond Mine. The prospect
has similar geology to the nearby Betts Cove Mine where
disseminated to semi-massive pyrite and chalcopyrite +/- gold
mineralization is hosted at the contact between gabbroic sills and
pillow basalts. Grab samples from the Mount Misery prospect
assay up to 2.96 g/t gold. Drilling completed in 1997
intersected disseminated and stringer sulphides that assayed 2.30
g/t gold over 1.5 metres (from 57.0 to 58.5 metres) and 2.24 g/t
gold over 1.0 metre (from 113.0 to 114.0 metres).
Long Pond Target Area
The Long Pond Target is a 4.0-kilometre long zone that is
located at the contact between ultramafic rocks of the Betts Cove
Complex and younger Silurian felsic volcanic rocks of the Silurian
Cape St. John Group. The Long Pond Zone includes six gold (+/-
copper) prospects over its strike length that include:
Long Pond Prospect - A zone of strongly
silicified, hematized, carbonatized, brecciated ultramafic rock
that is host to quartz stringers, veinlets and stockworks up with
veins up to two metres wide. The mineralized zone is exposed
over a 125 metre strike extent and is up to 35 metres wide.
Grab samples from the prospect have returned assays up to 75.90 g/t
gold with abundant visible gold. Historic drilling has returned
assays of up to 21.5 g/t gold over 1.19 metres.
Long Pond West Prospect - This prospect
comprises a 15 centimetre wide quartz vein. Grab samples assay up
to 9.90 g/t gold and channel sampling returned assays of 1.52 g/t
gold over 15 centimetres. A single drill hole testing the
occurrence intersected a 2 centimetres wide vein assaying 2.69 g/t
gold over 1.12 metres. The prospect was discovered via follow-up of
a till sample that assayed 83.90 g/t gold.
Tom Prospect - This prospect comprises a 30
centimetre shallow southerly dipping quartz vein with grab samples
assaying up to 4.26 g/t gold and channel samples assaying 3.70 g/t
gold over 30 centimetres. Fuchsitic zones and quartz veining in
schistose rocks of the shear zone also returned anomalous values up
to 2.93 g/t Au.
Boneyard Prospect - This prospect comprises
several narrow (up to 5 centimetres), shallow south dipping quartz
+ pyrite veins. Grab samples from the prospect assay up to 3.01 g/t
gold with pyritic wallrock assaying up to 0.31 g/t gold. Drilling
returned an assay of 6.87 g/t gold over 2.01 metres although is
interpreted to have intersected the zone obliquely.
George Prospect – This prospect comprises a
quartz-specularite vein that can be traced over 70 metres and
varies in width from 5 to 20 centimetres. Coarse platy specularite
lenses within the vein contain visible gold. Grab samples
have returned values as high as 351.1 g/t gold. This occurrence has
not been drilled.
Nudulama Prospect - The Nudulama prospect
consists of a Cu-Zn-Au, pyrite-chalcopyrite massive sulphide body
within pillowed mafic volcanics, similar to that of the Tilt Cove
Deposit located three kilometres along strike to the east. Historic
workings of uncertain age found at the showing include an
exploration shaft that was sunk on the main showing, in addition to
two shafts, two adits and a trench, which were excavated in three
areas along a northwest trend from the showing. Grab samples have
returned values up to 4.58 g/t gold and up to 8.7% copper.
Geology and History of Past Production
The Tilt Cove Project is host to orogenic gold and volcanogenic
massive sulphide mineralization within the Betts Cove Complex, a
Cambrian to Early Ordovician ophiolite complex and volcanic
sequence, comprised of the Betts Cove Ophiolite and its volcanic
and sedimentary cover sequence, the Snooks Arm Group. The sequence
is in thrust contact with Silurian felsic volcanic rocks of the
Cape St. John Group to the north and intruded on the northwest side
by the Silurian Cape Brule Porphyry and Ordovician Burlington
Granodiorite. The Betts Cove Complex is geologically
equivalent to rocks underlying Anaconda's Point Rousse
Project. The Tilt Cove Project is host to three past
producing mines that include the Nugget Pond Gold Mine and the Tilt
Cove and Betts Cove Copper Mines, as
follows:
Nugget Pond Mine - The Nugget Pond Mine produced 168,748
ounces of gold with an average grade of approximately 9.85 g/t
between 1997 and 2001. The deposit is hosted along the Nugget
Pond Horizon, an iron formation with nearly 20 kilometres of strike
and has similarities with other Canadian Banded-Iron-Formation
hosted lode gold deposits such as Lupin, Meadowbank, Meliadine and
Committee Bay.
Tilt Cove Mine - The Tilt Cove Mine was discovered in 1857
and produced a total of 8,160,000 tonnes of ore grading between
1.25% to 12% copper and 42,425 ounces of gold between 1864 and 1917
and again between 1957 and 1967. Gold is typically associated with
copper mineralization and several of the historic copper deposits
require follow-up testing for gold potential.
Betts Cove Mine – The Betts Cove Mine was first discovered
in the early 1860s. Between 1875 and 1886, approximately 130,000
tons of handpicked ore grading about 10% copper and 2,450 tons of
pyrite were mined. Sampling of surface stockpiles from previous
mining have retuned high gold values and base metals values up to
9.99 g/t gold, 18.3% copper and 1.7% zinc. No gold was
recovered from the ore body.
Staking and Option Agreements
Anaconda acquired a total of 102 claims (2,550 hectares) that
form part of the Tilt Cove Project in 2018 from map staking.
The Company can acquire a further 100%-undivided interest in a
total of 126 claims (3,150 hectares) through five separate option
agreements. Under the option agreements, the Company is required to
make aggregate payments of $490,000
in cash ($157,000 paid), $157,000 in common shares ($7,500 paid), and deliver 125,000 common shares
(75,000 delivered) from November 2016
to March of 2023. The Company has also agreed to expend an
aggregate of $750,000 over the term
option agreements. Following the acquisition of 100% interest,
the Company has agreed to a Net Smelter Return Royalties (NSR) of
2.0% on four optioned properties and 3.0% on one optioned
property. Two NSRs have 1.0% purchasable for $1.0M and $1.25M,
with a right of first refusal on the remaining NSR. Three
other NSRs are capped between $1.0M
and $1.5M.
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 quoted drill core and grab sample intervals and grades
and production statistics have been compiled from historic
assessment work reports obtained from the Government of
Newfoundland and Labrador.
Anaconda notes that sufficient work has not been completed by a
Qualified Person to verify and validate the results of historical
work. Widths from drill core intervals reported in this press
release are presented as core lengths only.
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining,
development, and exploration company, focused in the prospective
Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point
Rousse Project located in the Baie Verte Mining District in
Newfoundland, comprised of the
Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral
Resource, the fully-permitted Pine Cove Mill and tailings facility,
deep water port, and approximately 11,000 hectares of prospective
gold-bearing property. Anaconda is also developing the Goldboro
Gold Project in Nova Scotia, a
high-grade Mineral Resource, subject to a 2018 preliminary economic
assessment which demonstrates strong project economics. The Company
also has a wholly owned exploration company that is solely focused
on early stage exploration in Newfoundland and New
Brunswick.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian and United States securities legislation.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects", or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates
of management at the date the information is made, and is based on
a number of assumptions and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Anaconda to be
materially different from those expressed or implied by such
forward-looking information, including risks associated with the
exploration, development and mining such as economic factors as
they effect exploration, future commodity prices, changes in
foreign exchange and interest rates, actual results of current
production, development and exploration activities, government
regulation, political or economic developments, environmental
risks, permitting timelines, capital expenditures, operating or
technical difficulties in connection with development activities,
employee relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of resources, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Anaconda's annual information form
for the year ended December 31, 2018,
available on www.sedar.com. Although Anaconda has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. Anaconda does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.
