Anaconda Mining Announces Argyle Drill Results, Including 5.26 G/T Gold Over 4.0 Metres And 4.48 G/T Over 9.14 Metres

TORONTO, ON / ACCESSWIRE / June 18, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce the results of a 2,305-metre infill drill program at the Argyle Deposit ("Argyle Infill Program"), located approximately 4.5 kilometres from the Company's operating Pine Cove Mill and tailings facility at the Point Rousse Project in Newfoundland (Exhibit A). The purpose of the Argyle Infill Program, comprised of both percussion and diamond drilling, was to better define and upgrade all shallow portions of the deposit to the Indicated Resource category in anticipation of mine development in the second half of 2020. Twenty-four diamond drill holes (AE-20-134 to 157) were completed totaling 1,448.4 metres and 61 percussion holes (AEP-20-26 to 86) were completed totaling 856.3 metres (Exhibit B).

Highlights from the Argyle Infill Program include:

• 5.26 g/t gold over 4.0 metres (19.5 to 23.5 metres) in diamond drill hole AE-20-140;
• 4.56 g/t gold over 4.5 metres (37.0 to 41.5 metres); including 24.70 g/t gold over 0.5 metres in diamond drill hole AE-20-138;
• 2.16 g/t gold over 8.5 metres (15.0 to 23.5 metres) in diamond drill hole AE-20-143;
• 6.62 g/t gold over 4.57 metres (10.97 to 15.54 metres) in percussion hole AEP-20-50; and
• 4.48 g/t gold over 9.14 metres (7.32 to 16.46 metres); including 16.61 g/t gold over 0.91 metres in percussion hole AEP-20-78.

Selected intersections from the Argyle Infill Program are shown in Tables 1 and 2 below.

"With the final Argyle drill results in hand and with work progressing on Mineral Resources and development plans across Point Rousse, we anticipate a new Mineral Resource and Reserve statement for the Point Rousse Project in the next quarter. This will include over 17,000 metres of drilling completed since the last resource update at Point Rousse and will include an additional 7,940 metres of drilling at Argyle alone. As this work progresses, we are also actively drilling near the Pine Cove Mill to advance other areas for near-term development, all while we continue to generate significant cashflow from our Point Rousse operations. In the current gold-price environment, Anaconda is well positioned to leverage existing permitted infrastructure to quickly and efficiently move gold deposits through to development, taking advantage of our unique situation as a gold producer and developer working in world class mining jurisdictions."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

The drill results from the Argyle Infill Program are currently being incorporated into an updated Mineral Resource Estimate and are being used for planning of the development and mining of the Argyle Deposit. Mercator Geological Services Limited has been engaged to provide an NI 43-101 Mineral Resource Update and Dassault Systèmes Canada Inc. has been engaged to provide pit shell optimization and preliminary open pit designs for the Argyle Deposit.

Argyle is a near-term development project and Anaconda anticipates making a final production decision with respect to Argyle in the third quarter of 2020.

Table 1: Highlighted composited assays from diamond drill holes AE-20-134 to 157

Footnotes:

1 - Diamond drill holes AE-20-139, 145, 149, 152-155 have no significant assays.

2 - Interval expressed as core length only; true thickness estimated to be 90-100% of interval length.

Table 2: Highlighted composited assays from percussion drill holes AEP-20-26 to 86

Footnotes:

3 - Percussion drill holes AEP-20-27-30, 32-35, 39-41, 44, 55, 59, 62-66, 68, 72-75, and 77 have no significant assays.

4 - Interval expressed as core length only; true thickness estimated to be 90-100% of interval length.

About Argyle

The Argyle Deposit, located 4.5 kilometres east of the Pine Cove Mill adjacent to existing road networks, is defined over a strike length of 685 metres and to a down-dip extent of 225 metres and is open for expansion. The Argyle Deposit was subject to a detailed NI 43-101 Technical Report titled "NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada" with an effective date of December 31, 2017. Since the December 2017 Resource, a total of 7,940 metres in 152 drill holes have been completed at Argyle.

Argyle Mineral Resource Estimate - Effective Date: December 31, 2017

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.

Mineralized intervals referred to in this press release are reported as drill intersections and are apparent widths only. True widths are estimated to be approximately 90-100% of drill intervals.

All samples and the resultant assays and composites referred to in this release were collected using QA/QC protocols including the regular insertion of certified standards and blanks within each sample batch sent for analysis and completion of check assays of select samples. Diamond drill core and percussion samples were analyzed for Au at Eastern Analytical Ltd. in Springdale, NL ("Eastern"), using standard fire assay (30 g) pre-concentration and Atomic Absorption finish methods. Eastern is a fully accredited firm within the meaning of NI 43-101 for provision of this service.

Percussion drilling was conducted using a Sandvik percussion drill rig with a 4-inch bore. Dry cuttings returned from the drill were collected every 0.91 metres of drilling from a plastic pail using a scoop holding approximately 1-2 kg sample. Percussion cuttings include a variety of size fractions of pulverized rock. An analysis of 16 pairs of twinned diamond drill holes and percussion holes within 12 metres of each other showed a strong correlation between grade and width of the mineralized zone.

Diamond drilling at Argyle outlined within this press release, benefited from a JEA grant from the Department of Natural Resources, Government of Newfoundland and Labrador. Anaconda thanks the Government of Newfoundland and Labrador for this assistance.

ABOUT ANACONDA

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.

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, 2019, 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.

FOR ADDITIONAL INFORMATION CONTACT:

Anaconda Mining Inc.
Kevin Bullock
President and CEO
(647) 388-1842
kbullock@anacondamining.com

Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com

Anaconda Mining Inc.
Lynn Hammond
VP, Corporate Affairs
(709) 330-1260
lhammond@anacondamining.com

Exhibit A. A map showing the location of the Argyle Deposit along the eastern end of the Scrape Trend: a geological trend that is host to the Argyle Deposit, Stog'er Tight Mine, and Pine Cove Mine and Mill Complex, Point Rousse Project. For a higher resolution image, please click here.

Exhibit B. A map showing the location of diamond and percussion drill holes completed during the Argyle Infill Program referenced in the press release with highlight assays. For a higher resolution image, please click here.

SOURCE: Anaconda Mining Inc.