Anaconda Mining intersects 21.05 g/t over 11.5 metres and 17.41 g/t over 7.5 metres at the Goldboro Gold Project

 

TORONTO, June 18, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX; OTCQX: ANXGF) is pleased to announce assay results from six drill holes (695 metres), as part of 11,588 metres of diamond drilling completed since October 2017 (the "Drill Program") at the Company's Goldboro Gold Project in Nova Scotia ("Goldboro"). The six drill holes (BR-18-35 to BR-18-40) targeted two specific areas of the Boston-Richardson Gold System ("BR Gold System") as a potential site for a future underground bulk sample and to confirm the existing geological modelling in the area within, and adjacent to, an open pit outlined within a recent Preliminary Economic Assessment ("PEA") filed on March 2, 2018, and available on SEDAR at www.sedar.com and on the Company's website at www.anacondamining.com.

Highlights of the composited assays from the Drill Program on sections 8725E and 8775E include:

• 21.05 grams per tonne ("g/t") gold over 11.5 metres (77.5 to 89.0 metres) in hole BR-18-37;
• 17.41 g/t gold over 7.5 metres (93.5 to 101.0 metres) in hole BR-18-39;
• 2.73 g/t gold over 15.0 metres (106.0 to 121.0 metres) in hole BR-18-36 including 9.3 g/t gold over 1.0 metres;
• 23.74 g/t gold over 1.5 metres (104.0 to 105.5 metres) in hole BR-18-37;
• 3.69 g/t gold over 9.0 metres (38.0 to 47.0 metres) in hole BR-18-40 including 32.09 g/t gold over 0.5 metres; and
• 64.08 g/t gold over 2.6 metres (44.4 to 47.0 metres) in hole BR-17-03 (previously reported*).

The holes were drilled from surface to intersect several previously modelled zones of mineralization adjacent to existing underground exploration drifts ("Historical Workings"), and along cross sections 8725E and 8775E (Exhibits A, B and C). Previous exploration work and results from Historical Workings indicated the presence of high-grade mineralization in these areas, though the core was no longer available to observe the mineralization or to confirm its exact location relative to the Historical Workings.

The Drill Program was successful in confirming mineralization modelled from previous drilling as well as repeating observations of the geological setting as outlined in previous exploration efforts and in Historical Workings. The drilling also intersected several broad zones of moderate to high-grade mineralization, many of which are within or immediately adjacent to the current open pit design outlined in the recent PEA. Five occurrences of visible gold were also observed.

Select highlights of composited assays from historic drilling on sections 8725E and 8775E include:

• 14.86 g/t gold over 17.5 metres (169.0 to 186.5 metres) in hole BR-08-02;
• 16.02 g/t gold over 10.8 metres (39.9 to 50.6 metres) in hole 90-U-104;
• 7.44 g/t gold over 14.0 metres (3.7 to 17.7 metres) in hole 89-U-05;
• 9.51 g/t gold over 5.0 metres (65.0 to 70.0 metres) in hole BR-05-15; and
• 5.55 g/t gold over 7.5 metres (64.0 to 71.5 metres) in hole BR-08-01.

A full table of composited assays from recent drilling is presented below as well as intervals from select historic drill holes for sections 8725E and 8775E.

"We continue to get tremendous results from our drill program at Goldboro, demonstrating the significant upside potential of what is already an attractive, profitable development project. The results of the Drill Program validate the resource model in this area of the BR Gold System and demonstrate that the mineralization has significant, double-digit grade and thickness associated with the modelled zones. Of greater consequence is the fact that the multiple, thick zones of mineralization encountered in this Drill Program fall within or near a designed open-pit outlined within the Preliminary Economic Assessment published last winter. Furthermore, the drilling adjacent to the Historic Workings provides the direct observation and information required to complete engineering designs for a future bulk sample at Goldboro, as part of ongoing work towards feasibility."

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

Table of composited assays from section 8725E

 

Table of composited assays from section 8775E

 

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.("Eastern") in Springdale, NL, for Au by fire assay (30 g) with an AA finish.

Samples analyzing greater than 0.5 g/t Au via 30 g fire assay were re-analyzed at Eastern via total pulp metallic. For the total pulp metallic analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade.  Anaconda considers total pulp metallic analysis to be more representative than 30 g fire assay in coarse gold systems such as the Goldboro Deposit.

Reported mineralized intervals are measured from core lengths. Intervals are estimated to be approximately 80-100% of true widths of the mineralized zones, with the exception of some intervals reported from historical drill holes where the drill trace crosses to the northern limb of the host fold structure near the bottom of the hole.  In these areas reported intervals may be less than 50% of true width.

*Hole BR-17-03 was previously reported in a press release on July 27, 2017. The reported results were based on fire assay alone.  Since then the same sample pulps were reprocessed using total pulp metallic analysis and it is these values that are reported in this press release to be consistent with all other gold analysis conducted by the Company since October of 2017.

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, 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, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the 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 Great Northern Project on the Northern Peninsula of Newfoundland and the Tilt Cove Property on the Baie Verte Peninsula, also in Newfoundland.

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, the Company's future exploration, development and operational plans. 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 seven-month period ended December 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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