Anaconda Expands the Argyle Discovery and Provides Project Update

 

TORONTO, Nov. 22, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to provide the remaining assay results related to an expansion diamond drilling program (the "Expansion Drill Program") and a percussion drilling campaign (the "Percussion Drill Program") at its Argyle discovery ("Argyle"), located approximately 4.5 kilometres from the Company's fully-operational Pine Cove Mill and tailings facility at the Point Rousse Project, Newfoundland. The Expansion Drill Program, which consisted of 8 diamond drill holes totaling 1,002 metres, was successful in extending Argyle's known mineralization down dip and demonstrating continuity of a higher-grade zone further to the north than previously known. In addition, Anaconda conducted a Percussion Drill Program to confirm continuity of shallow mineralization along the southern portion of the known mineralized area. The Company also plans to announce an NI 43-101 compliant resource on Argyle by the end of 2017.  

"We have made great progress on the Argyle discovery and are getting ready to announce an initial resource estimate by the end of the year. The NI 43-101 report will add mineral resources to the Point Rousse Project and provide more confidence in Anaconda's ability to sustain gold mining activities within close proximity to the Pine Cove Mill. In addition, we will continue with expansion drilling around Argyle with the goal of further resource growth at the Point Rousse Project."

~ Dustin Angelo – President and CEO of Anaconda Mining

Expansion Drill Program

On July 13, 2017, Anaconda reported the assays from the first four holes of the Expansion Drill Program. From these holes, the Company had successfully expanded Argyle up to 100 metres down-dip in the northeast and demonstrated continuity of a higher-grade zone over a further 50 metres down-dip to the north than previously known. Assay highlights from these holes included:

• 3.63 grams per tonne ("g/t") gold over 12.0 metres (58.0 to 70.0 metres) in hole AE-17-46;
  
  
• 3.22 g/t gold over 4.0 metres (45.0 to 49.0 metres) in hole AE-17-45;
  
  
• 1.56 g/t gold over 3.0 metres (77.0 to 80.0 metres) in hole AE-17-47; and
  
  
• 1.22 g/t gold over 4.0 metres (86.0 to 90.0 metres) in hole AE-17-48.

The second set of four holes was drilled in the northeastern margins of Argyle beyond holes AE-17-45 to AE-17-48 and intersected typical alteration associated with mineralization.  Two holes AE-17-49 and AE-17-50 intersected 1.60 g/t gold over 7 metres and 1.13 g/t over 5 metres respectively. Hole AE-17-49 is consistent with previous thicknesses of mineralization in this area and is located approximately 50 metres north of hole AE-17-48 extending the Argyle dip extent by 55 metres from the hole AE-17-48 and 155 metres down dip to 220 metres within the 2017 Expansion Drilling Program (Exhibit A).  Argyle remains open for expansion in all directions.

Percussion Drill Program

The Percussion Drill Program, conducted in September (see press release dated September 27, 2017), consisted of 491 metres of percussion drilling in 25 shallow holes, of which 20 intersected mineralization (Exhibit A).  Because of the nature of the percussion drilling technique, the primary goal of the program was to verify that mineralization exists in the areas between the diamond drills, not necessarily to identify specific in-situ grade. The Percussion Drill Program confirmed that mineralization is continuous between previously drilled, broader spaced, diamond drill holes along a 400-metre strike length on the southern portion of the near surface, mineralized area. Highlights of the percussion drill program emphasizing mineralization over significant thickness include:

• 8.23 metres at 1.35 g/t gold (4.57 metres to 12.80 metres) in hole AEP17-09
  
  
• 7.32 metres at 1.35 g/t gold (4.57 metres to 11.89 metres) in hole AEP-17-25
  
  
• 4.57 metres at 1.18 g/t gold (9.14 metres to 13.72 metres) in hole AEP-17-23

Exploration Plans at Argyle

Based on diamond drilling to date at Argyle, Anaconda has outlined a mineralized structure that is 600 metres in strike and extends to a maximum down dip length of 225 metres, and containing high-grade zones within it.  In the near term, the Company plans to perform diamond drilling to determine the orientation of the high-grade zones within Argyle and to expand the mineralized area both along strike and down dip.  This work will begin in the winter of 2018. 

Anaconda plans to calculate an NI 43-101 compliant resource estimate for Argyle. The mineral resource will be announced by the end of 2017 and the resultant NI 43-101 report will be published early in 2018. The report will also outline development and mining plans for the Point Rousse Project, which include development plans for Argyle and mining of the Stog'er Tight deposit.

Argyle Drilling Results To Date

Anaconda conducted 4,779 metres of diamond drilling over the past two years in 52 holes at Argyle, outlining a mineralized structure that is 600 metres in strike, dips moderately to the northeast to an average known dip extent of 130 metres and to a maximum of 225 metres from surface. The mineralized area remains open down dip and along strike.

Table 1. Composited assays from the Argyle percussion drilling.

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 and the resultant composites referred to in this release are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. 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.

Mineralized intervals are reported as drill intersections and are apparent widths only. Apparent widths reported in this press release are estimated to be approximately 80 – 100% of true widths.

Percussion drilling was conducted using a Sandvik percussion drill rig with a 4 inch bore.  Cuttings are collected over every meter of drilling using a scoop holding approximately 1kg sample.  Percussion cuttings include a variety of size fractions of rock and samples may not be homogenized and fully representative of the metre of drilling.  For this reason, percussion drill results are considered secondary to diamond drill samples in their confidence as representative of the in situ grade of mineralization. 

A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA MINING INC.

Anaconda is a TSX-listed gold mining, exploration and development 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 Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog'er Tight deposit, a new discovery called Argyle, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company's Point Rousse Project.

The Company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula. 

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, use of proceeds and TSX final acceptance of the Offering. 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 May 31, 2017, 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.

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