Anaconda Mining metallurgical test program recovers 91.9% gold from Argyle sample

TORONTO, Nov. 8, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX: ANX) is pleased to announce that metallurgical testing of a 25-kilogram sample of blended core samples with an average grade of 2.69 grams per tonne ("g/t") gold from the Argyle discovery ("Argyle"), achieved a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9%. The program was conducted to determine the metallurgical characteristics of Argyle mineralization and verify its compatibility with the existing circuit at the Pine Cove Mill located 4.5 km from Argyle. The results demonstrate that Argyle mineralization can be effectively processed at the Pine Cove Mill without mill modifications.

"Confirmation that Argyle can be processed without any material alterations to the Pine Cove Mill furthers our ability to leverage the infrastructure at the Point Rousse Project and develop other production sources at a low cost. We plan to announce an NI 43-101 compliant resource on Argyle by the end of the year and we already have begun work related to the permitting process. We look forward to demonstrating how Argyle could fit into the Point Rousse production profile."

~ Dustin Angelo, President & CEO

About the Metallurgical Processing and Sample

RPC Science and Engineering ("RPC") from Fredericton, New Brunswick conducted the metallurgical testing and used a flowsheet that replicates the flotation and leach circuits in the Pine Cove Mill. Using a typical reagent mix and grind size, the testwork achieved a flotation recovery of 97.3% resulting in a concentrate grade of 40.42 g/t gold. Leach testing was conducted on samples at a grind size of 80% passing 20 microns, attaining a recovery rate of 94.5% at relatively low levels of NaCN consumption, which compares well with existing ore feed leach recovery from the Pine Cove deposit. RPC has completed several studies of different feed sources for the Pine Cove Mill, which were subsequently supported by larger bulk samples confirming lab-scale to plant-scale confidence.

The 25-kilogram metallurgical test sample was obtained using 39 core samples (36 metres of quarter-split BQTK diameter core) from 4 diamond drill holes (AE-16-04, -20, -26 and -33) from the 2016 Argyle diamond drill program. The average assay grade from the core samples was 2.69 g/t Au.

About Argyle

Diamond drilling in 2016 resulted in the discovery of near surface mineralization with a currently established strike of 600 metres and a down dip extent of up to 225 metres. Highlights from the Argyle diamond drilling program include (See January 18, 2017 and October 12, 2016 press releases):

• 5.52 g/t gold over 15.0 metres (34.0 to 49.0 metres) in hole AE-16-40;
• 6.09 g/t over 8.9 metres (35.0 to 43.9 metres) in hole AE-16-11;
• 2.09 g/t over 14.0 metres (18.0 to 32.0 metres) in hole AE-16-20;
• 4.50 g/t over 6.3 metres (3.7 to 10.0 metres) in hole AE-16-06; and
• 1.32 g/t over 12.0 metres (4.5 to 16.5 metres) in hole AE-16-03.

Qualified Person Statement

Gordana Slepcev, Anaconda's Chief Operating Officer and Leo Cheung as well as Neri Botha from RPC as qualified persons pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this press release.

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.

SOURCEAnaconda Mining Inc.

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