TORONTO, Jan. 25, 2016 /CNW/ - Anaconda Mining
Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to
announce the results of a recent drill program on the Pine Cove
deposit consisting of 1,156 metres of diamond drilling within 14
shallow holes (Exhibit A). The program was focused on the
southern margins of the Pine Cove deposit at a maximum depth of 75
metres in an area known as Pine Cove Pond, which is currently not
part of the mine plan. The Pine Cove Pond Indicated Resource
is estimated at 328,000 tonnes at 1.83 grams per tonne ("g/t") Au,
which was included in the resource estimate published in a 43-101
compliant technical report* published on SEDAR on December 8, 2015 (Exhibit B). Geological and
geophysical evidence suggest that the Pine Cove Pond area may
contain the easterly and westerly continuation of the southern
portion of the Pine Cove deposit. The goal of the drill program was
to understand the limits of known mineralization and establish
Mineral Reserves in the Pine Cove Pond area to extend the mine life
of the Pine Cove deposit.
Highlights of the drilling include:
- 2.11 g/t Au over 10.5 metres from 9.5 – 20.0 metres and 1.4
g/t Au over 9.0 metres from 24.0 – 33.0 metres in hole
PC-15-256
- 2.68 g/t Au over 15.9 metres from 6.1 – 21.0 metres in hole
PC15-257
- 3.16 g/t Au over 5.5 metres from 3.5 – 9.0 metres in hole
PC15-252
- 1.14 g/t Au over 4.0 metres from 41.0 – 45.0 metres in hole
PC15-259
- 1.47 g/t Au over 2.8 metres from 38.0 - 41.8 metres in hole
PC15-253
President and CEO, Dustin Angelo,
states, "The Pine Cove deposit and adjacent areas remain one of our
highest priorities in our goal of outlining future production and
growth within the Point Rousse Project. Discovering
near-surface mineralization at these grades, that is open for
expansion at the southern margins of the mine, is a positive sign
that this part of the Pine Cove deposit could be expanded and
potentially included in our mine plan. Over the past several
months, we have been encouraged by the exploration results that
have come from both Pine Cove and Stog'er Tight that we will be
successful in extending the life of the Point Rousse Project."
The drill program was successful in extending known
mineralization at the Pine Cove deposit 25 metres to the south,
east and west of the current compliant resource. The results
indicate that the southern portion of the deposit is open for
expansion to the west, near surface, in the area of the hole
PC15-257 intersection, and open for expansion east and west of the
hole PC15-252 intersection. The Company plans follow up
drilling to better outline resources in these areas and test the
limits of the deposit. The Company will incorporate this
information to determine if current and other potential resources
can be included in the Pine Cove deposit mine plan.
Several other zones of anomalous gold grades and alteration were
observed in holes PC15-251, PC15-257 and PC15-259, though not at
reportable grades. These intersections are significant,
however, in that they indicate continuity of other mineralized
zones intersected within the Pine Cove Pond area. All
remaining holes did not contain significant intersections.
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. The drilling program was supervised by Silvertip
Exploration Consultants Inc., of Bishops Falls NL.
All samples are collected using QA/QC protocols including the
regular insertion of duplicates, standards and blanks within the
sample batch for analysis. All samples quoted in this release
are analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30g)
with an AA finish.
All results are reported as drill thickness, whereas, true
thickness are estimated at 75-100% of drill thickness.
*The technical report was filed on SEDAR and is titled
"NI43-101 Technical Report, Mineral Resource and Mineral Reserve
Update on the Pine Cove Mine and Mineral Resource Estimate on the
Stog'er Tight Deposit, Point Rousse Project, Baie Verte,
Newfoundland and Labrador, Canada". The Technical Report was
authored by independent qualified persons David Copeland, P.
Geo. (an independent consultant) and Catherine Pitman, P.Geo.
(AMC Mining Consultants (Canada)
Ltd.), and qualified persons David Evans, P.Geo.
(Silvertip Exploration Consultants Inc.), Paul McNeill, P.
Geo. (Anaconda) and Gordana Slepcev, P. Eng. (Anaconda).
ABOUT ANACONDA
Headquartered in Toronto,
Canada, Anaconda is a growth oriented gold mining and
exploration company with a producing project, called the Point
Rousse Project, and approximately 6,300 hectares of exploration
property on the Ming's Bight Peninsula located in the Baie Verte
Mining District in Newfoundland,
Canada. Since 2012, Anaconda has increased its property
control by ten-fold. It is currently exploring three primary
prospective gold trends which have approximately 20 kilometres of
cumulative strike length and include four deposits and numerous
prospects and showings, all within 8 kilometres of the Pine Cove
mill. The Company's plan is to discover and develop more resources
within the project area and double annual production from its
current rate of approximately 15,000 ounces to 30,000 ounces.
FORWARD LOOKING STATEMENTS
This document contains or refers to forward-looking
information. Such forward-looking information includes, among other
things, statements regarding growth and is based on current
expectations and assumptions of management that involve a number of
business risks and uncertainties. Factors that could cause actual
results to differ materially from any forward-looking statements
include, but are not limited to: the expectations of the Company in
expanding Mineral Resources and project mine life and the timing
thereof, current and future market trends and growth opportunities
and whether the Company will be able to capitalize upon them.
Forward-looking statements may include words such as "plans,"
"may," "estimates," "expects," "indicates," "targeting,"
"potential" and similar expressions. These forward-looking
statements are based on current expectations and are subject to
significant risks and uncertainties, including the risks factors
outlined in the Company's latest annual information form and other
continuous disclosure documents filed at www.sedar.com, and other
factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on
forward-looking statements. These forward-looking statements are
made as of the date hereof and the Company assumes no
responsibility to update them or revise them to reflect new events
or circumstances, except as required by law.
Exhibit A
http://www.anacondamining.com/20160125_ExhibitA_PineCoveMineMap
A map of the Pine Cove mine highlighting the Pine Cove Pond area
and the diamond drill collars and traces reported in this
release. Red circles highlight the approximate location of
new mineralization discovered during this drill program.
Exhibit B
http://www.anacondamining.com/20160125_ExhibitB_PineCovePond3DModel
A 3D geological model of Pine Cove Pond mineralization (0.7 g/t
cut-off) in red in relation to the current ultimate pit design; a)
viewed toward the west illustrating the shallow nature and
northerly dip extents of mineralization; b) viewed towards the
northeast illustrating the strike extent of the mineralization and
the location of the areas of the geological model affected by the
reported drill results.
SOURCE Anaconda Mining Inc.