TORONTO, June 20, 2018 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce plans for a resource expansion and exploration program
("Exploration Program") for the summer/fall of 2018 at the
Company's wholly owned Point Rousse Project ("Point Rousse")
in the Baie Verte Mining District of Newfoundland, which includes the
fully-operational Pine Cove Mill and tailings storage facility. The
Exploration Program consists of 5,000 metres of diamond drilling at
three priority targets at Point Rousse: expansion drilling at the
Argyle Deposit, and exploration drilling at the Anoroc and Deer
Cove Prospects. The Exploration Program will also include
30-line kilometres of ground magnetic and Induced Polarization
("IP") geophysical surveys.
"Since 2010, the Point Rousse Project has produced
118,028 ounces of gold and generated approximately $50 million in Project-level EBITDA*. In that
time, Anaconda has developed two mining operations and is in the
process of developing a third at Argyle. The Exploration Program
will focus on resource expansion at the Argyle Deposit as well as
drilling at the Anoroc and Deer Cove Prospects, where we believe
there is high potential for the discovery of more gold deposits.
Our goal is to continue to extend our production profile at Point
Rousse, which currently includes two years of mineral reserves from
Pine Cove and Stog'er Tight, with expected throughput to follow
from Argyle, which is currently in the permitting process. The
Exploration Program supports our growth strategy in Atlantic Canada, leveraging the Company's
extensive mine and mill infrastructure."
~Dustin Angelo, President and
CEO, Anaconda Mining Inc.
*Refer to Non-IFRS Measures section below
Significant exploration and development attributes of the Point
Rousse Project include:
- Ore production from two mining areas, three mineral
deposits, numerous prospects and showings;
- A 1,300 tonne per day mill, in-pit tailings facilities with
15 years of storage at current throughput rates, and a deep-water
port able of docking Panamax size vessels;
- Three mineralized trends with approximately 20 kilometres of
prospective geology including the Scrape, Goldenville and the Deer
Cove Trends;
- The Pine Cove, Stog'er Tight and Argyle Deposits are located
within the Scrape Trend and define a 5-kilometre strike of fertile
geology and cumulatively contain 119,570 ounces of Indicated
Resources (1,610,600 tonnes at 2.30 g/t) and 78,090 ounces of
Inferred Resources (1,245,300 tonnes at 1.95 g/t)**;
- Highly prospective for the discovery of gold through
expansion of existing deposits or the discovery of new deposits;
and
- Well understood geological and exploration model.
As outlined in Anaconda's recent NI 43-101 Technical Report,
dated February 26, 2018, the Company
has over two years of reserves from the Pine Cove and Stog'er Tight
mines at the Point Rousse Project. This includes 191,500 tonnes of
higher grade mineral reserves from the Stog'er Tight mine and the
addition of two pushbacks at the Pine Cove mine, scheduled for
2019. The Argyle Deposit is anticipated to be the next available
feed source to the Pine Cove Mill, with permitting underway. The
Argyle Deposit remains open for expansion with the potential to
increase in size over the next year, because of an improved
geological understanding of the mineralized areas leading to more
efficient drilling.
In addition to Argyle, two other key drill targets, the Anoroc
and Deer Cove prospects, have the potential to provide additional
resources for development, as they have similar geological
characteristics and setting to the Pine Cove, Stog'er Tight and
Argyle deposits.
The Exploration Program will begin in late June and is expected
to continue into the early fall of 2018. Drill results will be
released as they are available and interpreted.
Argyle
The Argyle Deposit contains a NI 43-101 resource including
38,300 ounces Indicated Resources (543,000 tonnes grading 2.19 g/t
gold) and 30,300 ounces of Inferred Resource (517,000 tonnes
grading 1.82 g/t gold) **. The deposit is hosted within the
Argyle Gabbro and trends easterly and remains open for expansion in
all directions (Exhibit B). The Exploration Program at Argyle will
include 3,000 metres of diamond drilling, 15 line kilometres of IP
and magnetic surveying as well as detailed soil geochemistry and
geological mapping. Drilling is designed to follow up on the
high-grade results from drilling in winter 2018 that intersected
12.47 g/t gold over 5.0 metres and 7.87 g/t gold over 7.0 metres in
drillholes AE-17-38 and AE-17-74 respectively.
Anoroc
The Anoroc Prospect is hosted within the same geological setting
and host rocks as the Pine Cove Deposit and includes approximately
500 metres of strike between Anoroc and the Pine Cove Mine.
Drilling at Anoroc will test for the westerly continuation of
mineralization between the west end of the Pine Cove Pit and the
Anoroc Prospect to the southwest where previous drilling has
outlined gold mineralization including 2.68 g/t gold over 15.9
metres in drillhole PC-15-257 (see news release dated January 25, 2016) and 9.9 g/t gold over 2.0
metres in historical drillhole AN-90-01. A 15 line kilometer ground
magnetic survey is also contemplated to be completed at Anoroc
(Exhibit C).
Deer Cove
The Deer Cove Prospect includes all showings associated with a
similar geological setting and host rocks as at the Pine Cove Mine
and includes a gold bearing quartz vein explored by Noranda with an
exploration adit in the 1980s (Exhibit D). The Exploration Program
at Deer Cove will comprise compilation of historic IP geophysical
surveys and drill testing of combined geochemical and geophysical
targets along the Deer Cove Trend. Historic drilling associated
with the quartz vein at Deer Cove includes the following select
drill results:
- 22.74 g/t gold over 5.0 metres in drillhole DC-86-001;
- 11.97 g/t gold over 4.1 metres and 26.12 g/t gold over 3.6
metres, and 5.80 g/t gold over 3.4 metres in drillhole
DC-87-073;
- 29.60 g/t gold over 1.7 metres in drillhole DC-88-100; and
- 24.39 g/t gold over 2.3 metres in drillhole DC-10-122.
A table of Point Rousse Probable Mineral Reserves:
Point Rousse
Probable Mineral Reserves(1)(2)
|
Deposit
|
Cut-off (g/t)
(3)
|
Probable
Tonnes(4)
|
Au
(g/t)
|
Ounces
|
Pine Cove
|
0.5
|
696,200
|
0.96
|
21,440
|
Stog'er
Tight
|
1.0
|
191,500
|
2.39
|
14,740
|
Total
|
|
887,700
|
|
36,180
|
(1) The mineral
reserve estimates for the Point Rousse Project have been calculated
as of December 31, 2017. There have been no material changes
to the mineral reserves since the filing of the Technical Report
prepared for Anaconda titled, "NI 43-101 Technical Report, Mineral
Resource and Mineral Reserve Update on the Point Rousse Project,
Baie Verte, Newfoundland and Labrador, Canada" with an effective
date of December 31, 2017 (the "Point Rousse Technical Report"),
other than from depletion due to mine operations.
|
(2) The Pine Cove
and Stog'er Tight Mineral Resource statement is inclusive of
Mineral Reserves
|
(3) Grams per
tonne
|
(4) Mineral
reserves have been rounded to 100 tonnes, ounces to 0.01 g/t Au and
10 ounces. Minor discrepancies in summation may occur due to
rounding.
|
This news release has been reviewed and approved by
Paul McNeill, P. Geo., VP
Exploration with Anaconda Mining Inc. and Gordana Slepcev, Chief
Operating Officer with Anaconda Mining, both "Qualified Persons",
under National Instrument 43-101 Standard for Disclosure for
Mineral Projects.
** Mineral Resources are not Mineral Reserves and do
not imply the economic viability of the resource. The Pine Cove
Resource statement includes the Pine Cove Reserves. Resources
reference "NI 43-101 Technical Report, Mineral Resource and Mineral
Reserve Update on the Point Rousse project Baie Verte, Newfoundland and Labrador, Canada" Effective Date: December 31, 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.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as
detailed below. In the gold mining industry, these are common
performance measures but may not be comparable to similar measures
presented by other issuers. The Company believes that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow. Accordingly, it is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
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.