TORONTO, July 31, 2018 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX:
ANXGF) is pleased to announce the commencement of a 10,000-metre
diamond drill program (the "Drill Program") at the Goldboro
Gold Project in Nova Scotia
("Goldboro"). The Drill
Program follows a highly successful campaign that included 12,231
metres of diamond drilling in 42 holes since May of 2017 when the
Company acquired Goldboro (the
"Initial Drill Program") (Exhibit A). The Initial Drill
Program focused on infilling areas of inferred resources as
outlined in the 2018 Preliminary Economic Assessment ("PEA")
filed on March 2, 2018, and expanding
the Goldboro Deposit along strike and down plunge and at depth
along the host fold structure.
The Initial Drill Program had many highlights including the
following:
- Selected diamond drill intersections including:
-
- 779.97 grams per tonne ("g/t") gold over 0.5 metres within
151.42 g/t gold over 2.6 metres (33.1 to 35.7 metres) in hole
BR-17-04;
- 21.05 g/t gold over 11.5 metres (77.5 to 89.0 metres) in hole
BR-18-37;
- 4.13 g/t gold over 20.5 metres (324.5 to 345.0 metres) in hole
BR-18-23 including 9.93 g/t gold over 7.5 metres and 79.34 g/t gold
over 0.5 metres;
- 17.41 g/t gold over 7.5 metres (93.5 to 101.0 metres) in hole
BR-18-39; and
- 10.55 g/t gold over 6.1 metres (223.0 to 229.1 metres) in hole
BR-18-22 including 18.78 g/t gold over 3.1 metres.
- Evidence of high-grade tenor of Goldboro including:
-
- 186 samples assaying greater than 5 g/t;
- 114 samples assaying greater than 10 g/t;
- 57 samples assaying greater than 20 g/t;
- 24 samples assaying greater than 50 g/t;
- 12 samples assaying greater than 100 g/t; and
- 130 new occurrences of visible gold.
- Expansion of the Goldboro Deposit:
-
- Expanded the Goldboro deposit
along strike by 100 metres (to 1.8 km) and vertically by 200 metres
(from 350 to 550 metres) within the Boston Richardson Gold System
("BR Gold System"); and
- Identified three new zones of mineralization along strike to
the east within the East Goldbrook Gold System ("EG Gold
System").
- Correlated wide zones of mineralization from 4.3 metres to
13.5 metres over at least 100 metres of strike including intercepts
such as:
-
- 11.27 g/t gold over 13.5 metres in hole BR-18-22 including
15.63 g/t gold over 1.4 metres and 44.33 g/t gold over 2.5 metres
on section 9100E;
- 4.11 g/t gold over 9.9 metres in hole BR-87-32 of section
9050E; and
- 9.14 g/t gold over 4.3 metres in hole BR-87-28 of section
9150E.
- Performed infill drilling in the areas that represent
approximately 70% of the PEA inferred resources outlined for
development.
"Drilling more than 12,000 metres to date has demonstrated
the continuity of mineralization and growth potential we expected
to see from Goldboro to take the
deposit well beyond the current 525,400 ounces of M+I resource and
374,300 ounces of inferred resources*. We have been able to refine
and expand the deposit through strategic drilling and leveraging
historical work as we advance the project towards feasibility
status. The successful completion of the $4.5 million non-brokered private placement will
initially fund an additional 10,000 metres of diamond drilling over
the next five months to complete the infill drilling in areas
identified in the Goldboro PEA as well as test key areas where we
believe we can continue to grow the resource. In addition to infill
and expansion drilling, we will test specific geological concepts
such as the potential for broad zones of high-grade mineralization
like features found in similar style deposits in the Victorian
Goldfields of Australia. In just
over a year of ownership, we have created a tremendous amount of
value and we feel we have only scratched the surface. As we grow
the resource and move further along in development, we are
simultaneously increasing value and decreasing the risk of the
project."
~Dustin Angelo, President and
CEO, Anaconda Mining Inc.
10,000-Metre Drill Program
The Drill Program will have two key goals: (1) infilling and
upgrading of Inferred Resources in areas of the West Goldbrook Gold
System ("WG Gold System") identified within the mine plan of
the PEA; (2) expanding the WG, EG and BR Gold Systems at depth and
down plunge. The 10,000-metre drill program is anticipated to
take approximately five months and will form the basis of another
drill program to be planned for early 2019 and is being funded by a
flow-through financing completed in June
2018.
Goldboro Resource Table*
Resource
Type
|
Au
Cut-off
(g/t)
|
Category
|
Tonnes
(Rounded)
|
Au
(g/t)
|
Troy
Ounces
(Rounded)
|
Open Pit
|
0.50
|
Measured
|
397,000
|
2.88
|
36,800
|
Indicated
|
662,000
|
3.09
|
65,800
|
Measured and
Indicated
|
1,059,000
|
3.01
|
102,500
|
Inferred
|
45,000
|
2.54
|
3,700
|
Underground
|
2.00
|
Measured
|
22,000
|
4.7
|
3,300
|
Indicated
|
2,564,000
|
5.09
|
419,600
|
Measured and
Indicated
|
2,586,000
|
5.09
|
422,900
|
Inferred
|
2,497,000
|
4.28
|
343,600
|
Combined
Open Pit
and
Underground
|
0.50/2.00
|
Measured
|
419,000
|
2.98
|
40,100
|
Indicated
|
3,226,000
|
4.68
|
485,400
|
Measured and
Indicated
|
3,645,000
|
4.48
|
525,400
|
Inferred
|
2,542,000
|
4.25
|
347,300
|
Mineral Resource
Estimate Notes
|
|
1.
|
Mineral resources
were prepared in accordance with NI 43-101 and the CIM Definition
Standards (2014). Mineral resources that are not mineral reserves
do not have demonstrated economic viability;.
|
2.
|
Open pit mineral
resources are reported at a cut-off grade of 0.5 g/t gold that is
based on a gold price of CA$1,550/oz and a gold processing recovery
factor of 95%. These include PEA base case open
pit resources that have an estimated life of mine
strip ratio of 7.3:1 (waste: PEA
tonne).
|
3.
|
Appropriate mining
costs, processing costs, metal recoveries and inter ramp pit slope
angles were used by WSP to generate the pit design.
|
4.
|
Rounding may
result in apparent summation differences between tonnes, grade and
contained metal content.
|
5.
|
Tonnage and grade
measurements are in metric units. Contained gold ounces are in troy
ounces.
|
6.
|
Contributing assay
composites were capped at 80/g/t Au
|
7.
|
A density factor
of 2.7g/cm3 was applied to all blocks.
|
|
*Mineral Resources
are not Mineral Reserves and do not imply the economic viability of
the resource.
|
|
* NI 43-101
report titled "Goldboro Project Preliminary Economic
Assessment". Effective date: January 17, 2018.
|
|
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.
|
|
Reported
mineralized intervals are measured from core lengths. Intervals are
estimated to be approximately 75-100% of true widths of the
mineralized zones though may be as much as 50% of true
width.
|
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,
deep water port, 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 INFORMATION
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 the annual information form for the
fiscal year 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.