TORONTO, Jan. 24, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce it has completed an updated Mineral Resource Estimate
for the Rattling Brook Deposit ("Rattling Brook") of the Great
Northern Project ("Great Northern") in Newfoundland and an initial Mineral Resource
Estimate for the Cape Spencer Gold Project ("Cape Spencer") in
New Brunswick. The Mineral
Resource Estimates are presented below in Tables 1 and 3.
The Great Northern and Cape Spencer Gold Projects are held in a
wholly-owned subsidiary of Anaconda ("ExploreCo"), with a mandate
to identify strategic options to unlock the value of these assets
for shareholders through a separate vehicle, allowing Anaconda to
focus on its core mining and development operations.
Mineral Resource Estimate Highlights:
Great Northern Project
- The Rattling Brook Deposit has an Inferred Mineral Resource
Estimate of 5,460,000 tonnes at an average grade of 1.45 grams per
tonne ("g/t") gold for 255,000 contained ounces at a cut-off grade
of 1.0 g/t gold;
-
- Represents a 25% increase in tonnes, a 13% increase in grade
and a 42% increase in contained ounces at the 1.0 g/t gold cut-off
value compared to the 2008 historic Mineral Resource Estimate that
is based on a 0.5 g/t gold cut-off (see Table 2 below for full
comparison);
- The nearby Thor Deposit has a current Indicated Mineral
Resource Estimate of 1,817,000 tonnes at an average grade of 1.42
g/t gold for 83,000 contained ounces and an Inferred Mineral
Resource Estimate of 847,000 tonnes at an average grade of 1.15 g/t
gold for 31,000 contained ounces at a cut-off grade of 0.5 g/t
gold.
Cape Spencer Project
- The Cape Spencer Deposit has an Inferred Mineral Resource
Estimate of 1,720,000 tonnes at an average grade of 2.72 g/t gold
for 151,000 contained ounces in the Northeast and Pit Zones;
-
- Inferred Mineral Resource of 740,000 tonnes at an average grade
of 4.07 g/t gold, for 96,000 contained ounces at a cut-off grade of
2.5 g/t gold in a conceptual underground development at the
Northeast Zone; and
- Inferred Mineral Resource of 990,000 tonnes at an average grade
of 1.71 g/t gold, for 54,000 contained ounces at a cut-off grade of
0.5 g/t gold in a conceptual open-pit at the Pit Zone.
"In 2018, Anaconda created a wholly-owned subsidiary to house
these highly-prospective, Atlantic Canadian exploration projects,
with the aim of developing strategic alternatives to realize value
from them. To that end, we proceeded to update the Rattling Brook
Mineral Resource Estimate and generate a maiden Mineral Resource
Estimate for Cape Spencer. As a result, ExploreCo currently has
83,000 ounces of Indicated Mineral Resources in the Thor Deposit,
151,000 ounces of Inferred Mineral Resources at the Cape Spencer
Project and 286,000 ounces of Inferred Mineral Resources in the
Thor and Rattling Brook Deposits. We have established these gold
resources in highly prospective areas with sizeable land packages
that provide the platform to build significant district-scale
mineral resources in Atlantic
Canada in the long term. We have continued to create value
at these projects with low expenditures and are well positioned to
pursue strategic options to realize that value for our
shareholders, while remaining focused on our core assets at
Goldboro and on the Baie Verte Peninsula."
~Dustin Angelo, President and
CEO, Anaconda Mining Inc.
ExploreCo Table of Mineral Resources*
Deposit
|
Cut-Off (Au
g/t)
|
Category
|
Rounded
Tonnes
|
Au
(g/t)
|
Rounded
Ounces
|
Thor
Deposit**
|
0.5
|
Indicated
|
1,817,000
|
1.42
|
83,000
|
0.5
|
Inferred
|
847,000
|
1.15
|
31,000
|
Rattling
Brook
|
1.0
|
Inferred
|
5,460,000
|
1.45
|
255,000
|
Cape Spencer Pit
Zone
|
0.5
|
Inferred
|
990,000
|
1.71
|
54,000
|
Cape Spencer
Northeast Zone
|
2.5
|
Inferred
|
740,000
|
4.07
|
96,000
|
Rattling Brook Deposit Mineral Resource Estimate – Great
Northern Project
The updated Mineral Resource Estimate for the Rattling Brook
Deposit is 5,460,000 tonnes at an average grade of 1.45 g/t gold
for 255,000 contained ounces at a cut-off grade of 1.0 g/t gold in
3 mineralized zones; the Road, Apsy and Beaver Dam zones with an effective date of
January 23, 2019 (Table 1). This
represents a 25% increase in tonnes, a 13% increase in grade and a
42% increase in contained ounces at the 1.0 g/t cut-off value
compared to the 2008 Historic Mineral Resource Estimate*** that is
based on a 0.5 g/t gold cut-off (see Table 2 below for full
comparison). This increase in Mineral Resources at the higher
cut-off value was obtained by refining the geological model for the
deposit, primarily through reducing the volume of marginal grade
mineralization that is incorporated in the model. A sensitivity
report for the Rattling Brook Deposit and comparison with the 2008
Historic Mineral Resource Estimate is presented in Table 2.
Table 1: Rattling Brook Deposit Mineral Resource Estimate –
Effective Date: January 23, 2018
Zone
|
Cut-Off (Au
g/t)
|
Category
|
Rounded
Tonnes
|
Au
(g/t)
|
Rounded
Ounces
|
Apsy
|
1.0
|
Inferred
|
2,850,000
|
1.52
|
139,000
|
Road
|
1.0
|
Inferred
|
2,120,000
|
1.28
|
87,000
|
Beaverdam
|
1.0
|
Inferred
|
480,000
|
1.81
|
28,000
|
Total
|
1.0
|
Inferred
|
5,460,000
|
1.45
|
255,000
|
1.
|
This Mineral
Resource Estimate was prepared in accordance with NI 43-101 and the
CIM Standards (2014)
|
2.
|
Mineral Resource
Estimate tonnages have been rounded to the nearest 10,000 and
ounces have been rounded to the nearest 1,000. Totals may not sum
due to rounding.
|
3.
|
A cut-off of 1.00
g/t gold was used to estimate Mineral Resources.
|
4.
|
Mineral Resources
were interpolated using Ordinary Kriging from 1.5 metre downhole
assay composites.
|
5.
|
An average bulk
density of 2.70 g/cm3 has been applied.
|
6.
|
Over 90% of
Mineral Resources occur above a depth of 150m below surface, the
current maximum depth of the Anaconda Mining operated Pine Cove
Mine. Mineral Resources were reported within an additional 50m of
the 150m bench mark, to a maximum depth of 200m, and are considered
to reflect reasonable prospects for economic extraction in the
foreseeable future using conventional open-pit mining methods at a
gold price of CAD $1,550 per ounce.
|
7.
|
Mineral Resources
do not have demonstrated economic viability.
|
8.
|
This estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal title, taxation, sociopolitical, marketing, or
other relevant issues.
|
Table 2: Rattling Brook Deposit Sensitivity Report and
Comparison with 2008 Historic Mineral Estimate
Zone
|
Cut-Off
(Au
g/t)
|
January 23, 2018
Inferred
Mineral Resource
Estimate
|
2008 Historic
Inferred Mineral
Resource
Estimate***
|
Percent
Change
|
Rounded
Tonnes
|
Au
g/t
|
Rounded
Ounces
|
Rounded
Tonnes
|
Au
g/t
|
Rounded
Ounces
|
Tonnes
|
Grade
(Au
g/t)
|
Ounces
|
Road Zone
|
0.5
|
8,960,000
|
0.86
|
248,000
|
9,880,000
|
0.76
|
241,000
|
-9%
|
13%
|
3%
|
1.0
|
2,120,000
|
1.28
|
87,000
|
1,400,000
|
1.22
|
55,000
|
51%
|
5%
|
58%
|
Apsy Zone
|
0.5
|
6,010,000
|
1.12
|
217,000
|
7,410,000
|
0.95
|
226000
|
-19%
|
18%
|
-4%
|
1.0
|
2,850,000
|
1.52
|
139,000
|
2,760,000
|
1.30
|
115,000
|
3%
|
17%
|
21%
|
Beaver Dam
|
0.5
|
1,220,000
|
1.16
|
45,000
|
1,020,000
|
0.85
|
28,000
|
20%
|
36%
|
61%
|
1.0
|
480,000
|
1.81
|
28,000
|
200,000
|
1.52
|
10,000
|
140%
|
19%
|
180%
|
Total
|
0.5
|
16,190,000
|
0.98
|
510,000
|
18,310,000
|
0.84
|
495,000
|
-12%
|
17%
|
3%
|
1.0
|
5,460,000
|
1.45
|
255,000
|
4,360,000
|
1.28
|
179,000
|
25%
|
13%
|
42%
|
Cape Spencer Project Mineral Resource Estimate
The Inferred Mineral Resource Estimate for the Cape Spencer
Deposit is 1,720,000 tonnes at an average grade of 2.72 g/t gold
for 151,000 contained ounces at cut-off grade of 0.5 g/t gold and
2.5 g/t gold in two mineralized zones; the Pit Zone and the
Northeast Zone with an effective date of January 23, 2019 (Table 3). The Northeast Zone
contains a conceptual underground inferred mineral resource
estimate of 740,000 tonnes at an average grade of 4.07 g/t gold for
96,000 contained ounces at a cut-off grade of 2.5 g/t gold and the
Pit Zone contains a conceptual open-pit inferred mineral resource
estimate of 990,000 tonnes at an average grade of 1.71 g/t gold for
54,000 contained ounces at a cut-off grade of 0.5 g/t gold. A
sensitivity report for the Cape Spencer Project Northeast Zone and
Pit Zone is presented in Table 4.
Table 3: Cape Spencer Project Mineral Resource Estimate –
Effective Date: January 23, 2018
Zone
|
Cut-Off (Au
g/t)
|
Category
|
Rounded
Tonnes
|
Au
(g/t)
|
Rounded
Ounces
|
Northeast
|
2.5
|
Inferred
|
740,000
|
4.07
|
96,000
|
Pit
|
0.5
|
Inferred
|
990,000
|
1.71
|
54,000
|
Total
|
0.5 and
2.5
|
Inferred
|
1,720,000
|
2.72
|
151,000
|
1.
|
This Mineral
Resources Estimate was prepared in accordance with NI 43-101 and
the CIM Standards (2014)
|
2.
|
Mineral Resource
tonnages have been rounded to the nearest 10,000 and ounces have
been rounded to the nearest 1,000. Total may not sum due to
rounding.
|
3.
|
A cut-off of 2.50
g/t gold was used to estimate Mineral Resources for the Northeast
Zone.
|
4.
|
A cut-off of 0.50
g/t gold was used to estimate Mineral Resources for the Pit
Zone.
|
5.
|
Mineral Resources
were interpolated using Ordinary Kriging from 1.5 metre assay
composites capped at 15 g/t gold.
|
6.
|
An average bulk
density of 2.74 g/cm3 has been applied.
|
7.
|
Northeast Zone
Mineral Resources extend to a maximum depth of 225m below surface
and are considered to reflect reasonable prospects for economic
extraction in the foreseeable future using conventional underground
mining methods at a gold price of CAD $1,550 per
ounce.
|
8.
|
Pit Zone Mineral
Resources extend to a maximum depth of 100m below surface and are
considered to reflect reasonable prospects for economic extraction
in the foreseeable future using conventional open-pit mining
methods at a gold price of CAD $1,550 per ounce.
|
9.
|
Mineral Resources
do not have demonstrated economic viability.
|
10.
|
This estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal title, taxation, sociopolitical, marketing, or
other relevant issues.
|
Table 4: Cape Spencer Project Sensitivity Report
Zone
|
Cut-Off (Au
g/t)
|
Category
|
Rounded
Tonnes
|
Au
(g/t)
|
Rounded
Ounces
|
Northeast
|
1.5
|
Inferred
|
1,480,000
|
2.98
|
142,000
|
2.5
|
Inferred
|
740,000
|
4.07
|
96,000
|
3.5
|
Inferred
|
400,000
|
5.04
|
64,000
|
Pit
|
0.5
|
Inferred
|
990,000
|
1.71
|
54,000
|
1.0
|
Inferred
|
830,000
|
1.88
|
50,000
|
Press Release Notes:
*Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. All Mineral Resource Estimates
were prepared in accordance with NI 43-101 and the CIM Standards
(2014).
** The Thor Deposit forms part of the project formerly
referred to as the Viking Project. The resources quoted in this
press release refer to the technical report: "NI 43-101 Technical
Report and Mineral Resource Estimate on the Thor Deposit, Viking
Project, White Bay Area, Newfoundland and Labrador, Canada" with an effective date of
August 29, 2016 and authored by
independent qualified persons David A.
Copeland, M.Sc., P.Geo., Shane
Ebert, Ph.D., P.Geo. (an independent consultant)
and Gary Giroux, MASc, P.Eng.
(Giroux Consultants Ltd.).
*** The Rattling Brook Deposit, including the Apsy, Road and
Beaver Dam zones, form part of the
project formerly referred to as the Jacksons Arm Gold Project. The
Historic Resources quoted in this press release refer to the
technical report: "Technical Report On Mineral Resource
Estimate, Jacksons Arm Gold Project, White Bay, Newfoundland And
Labrador, Latitude 49o 53' 2.65''North Longitude
56o 50'7.09'' West. With an effective date of
April 20th, 2009, and authored by
Michael P. Cullen, M.Sc., P.Geo.,
Chrystal Kennedy, B.Sc., P.Geo.,
Matthew Harrington, B.Sc. (Hons.),
and Andrew Hilchey, B.Sc. (Hons.) of
Mercator Geological Services.
This news release has been reviewed and approved
by David A. Copeland, P.Geo., Chief Geologist with Anaconda
Mining Inc., "Qualified Persons" and Matthew Harrington,
P.Geo. and Michael Cullen, P.Geo. of
Mercator Geological Services Ltd., "Independent
Qualified Persons" under NI 43-101. A Technical Report
prepared in accordance with NI43-101 for the Great Northern and
Cape Spencer Projects will be filed on SEDAR (www.sedar.com) within
45 days of this news release.
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 Mining is a TSX and OTCQX-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 9,150 hectares of prospective gold-bearing
property. Anaconda is also developing the Goldboro Gold Project in
Nova Scotia, a high-grade Mineral
Resource, subject to a 2018 a preliminary economic assessment which
demonstrates a strong project economics. The Company also has a
wholly owned exploration company that is solely focused on early
stage exploration in Newfoundland
and New Brunswick.
FORWARD-LOOKING STATEMENTS
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.