TORONTO, March 1, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") – (TSX: ANX) is pleased to provide an
update on the exploration and development activities at the Argyle
Deposit ("Argyle"), located approximately 4.5 kilometres from the
Company's operating Pine Cove Mill and tailings facility at the
Point Rousse Project in Newfoundland (See Exhibit A). Since announcing
the Argyle Mineral Resource Estimate on January 8, 2018, Anaconda has completed an
internal project evaluation and engineering that has led to
development of an optimized pit shell and a cash flow positive
mining plan. It has also initiated the permitting process,
conducted infill drilling and successfully identified high-grade,
wide intersections of mineralization immediately adjacent to the
known Mineral Resource. In addition, the Company has discovered
another area of very high-grade mineralization associated with
visible gold approximately 800 metres from the main Argyle Deposit.
Anaconda expects Argyle to contribute to the production profile at
Point Rousse in the third quarter 2019 and anticipates expanding
the known Mineral Resources in the area.
"We are progressing toward production at Argyle and expect
the deposit to be incorporated into our mine plans in Q3 of
2019. Preliminary permits have been received and we will
finalize mine planning following a resource update in May, which
will include the additional drilling completed since the last
Mineral Resource Estimate as well as our current infill drilling.
As we move Argyle into production this year we will also follow up
on the high-grade visible gold encountered in hole AE-18-83 which
is one of the best intersections of gold within the Point Rousse
Project to date."
~ Dustin
Angelo, President and CEO
In addition, to better align the long-term incentive plans of
directors, officers, and employees with Anaconda's shareholders,
the Company's Board of Directors has approved the adoption of a
Share Unit Plan, subject to approval of the shareholders of
the Company at the upcoming Annual General and Special
Meeting and made certain grants under the Plan as part of
year-end performance reviews and director compensation. Please see
below for further details.
Argyle Exploration Program
The Company has completed an exploration program consisting of
2,810 metres of diamond drilling in 22 holes approximately 250
metres to 1,250 metres northeast of the Argyle Deposit ("Argyle
Exploration Program"). The Argyle Exploration Program targeted an
area that exhibited anomalous ground IP and soil geochemical
characteristics as well as surface alteration and favourable
geology similar to the Argyle Deposit area. Drill hole AE-18-83
intersected two occurrences of visible gold coincident with
composited assays of 59.39 grams per tonne ("g/t") gold over 7.0
metres (32.0 to 39.0 metres) including 413.90 g/t over 1 metre
and 6.21 g/t gold over 2.0 metres (96.0 to 98.0 metres)
(Exhibit A). These intersections are associated with an alteration
system similar in character to the Argyle and Stog'er Tight
Deposits. The alteration system extends for 250 metres as
identified in core by eight drill holes completed during the Argyle
Exploration Program; however, Hole AE-18-83 was the only one to
return significant mineralization. To better understand the
controlling structures associated with the two high-grade gold
occurrences, Anaconda is planning a trenching program and further
drilling during the spring of 2019.
No significant gold mineralization was encountered in the
remainder of the alteration system northeast of Argyle. A portion
of the anomalies encountered were associated with an iron stone
formation as well as a certain stratigraphy that is typically not
mineralized.
Argyle Deposit Infill Drilling
The Company is conducting an infill drill program at Argyle
("Argyle Infill Program") to better define portions of the deposit
planned for development in 2019. The initial results from the
western portion of the Argyle Deposit comprise 12 holes totaling
525 metres of diamond drilling, which intersected mineralization as
outlined in the existing Mineral Resource. Mineralization
intersected in holes AE-18-98 to AE-19-109 is approximately the
same thickness of previous drilling in this area but with grades
approximately 25% greater than previous drilling in this area of
the deposit. Highlights from the western portion of the Argyle
Infill Program include:
- 6.17 g/t gold over 8 .0 metres (3.0 to 11.0 metres) in
hole AE-19-107;
- 2.32 g/t gold over 7.0 metres (8.0 to 15.0 metres)
in hole AE-18-98; and
- 1.15 g/t gold over 8.0 metres (3.0 to 11.0 metres)
in hole AE-18-100.
Anaconda is currently drilling additional infill holes on the
eastern portion of the Argyle Deposit. These results will be
released at a later date.
Upon completion of the Argyle Infill Program, the Company will
create an updated Mineral Resource Estimate for the Argyle Deposit
to confirm pit extents and begin mining. This resource will also
include drill holes reported on March 22,
2018 (the "2018 Holes") which intersected mineralization
outside of the current Mineral Resource and expanded the deposit.
Highlights from the 2018 Holes include:
- 7.87 g/t gold over 7.0 metres (44.0 – 51.0 metres) in
hole AE-18-74; and
- 12.47 g/t gold over 5.0 metres (54.5 – 59.5 metres)
in hole AE-17-58.
A table of selected intersections from both exploration and
infill drilling programs are shown in the table below.
Argyle Development
The Argyle project was released from environmental assessment in
November of 2018. The Company has submitted a Development Plan and
is finalizing a Rehabilitation and Closure plan to be submitted to
the Ministry of Natural Resources by the end of Q1 2019. Once
Anaconda receives approval of the Development, Rehabilitation and
Closure plans, it will be ready to begin mine development and site
construction, which is expected to be by the summer 2019 with ore
production commencing in the third quarter.
A Table of highlight composited assays from holes AE-18-98 to
AE-19-109 are shown below:
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Grade
(g/t)
|
AE-18-100
|
3.0
|
11.0
|
8.0
|
1.15
|
AE-18-101
|
22.0
|
25.0
|
3.0
|
5.86
|
AE-18-102
|
6.0
|
12.0
|
6.0
|
0.67
|
AE-18-98
|
8.0
|
15.0
|
7.0
|
2.32
|
AE-18-99
|
2.7
|
3.7
|
1.0
|
1.57
|
AE-19-105
|
24.0
|
27.0
|
3.0
|
0.84
|
AE-19-106
|
16.0
|
20.0
|
4.0
|
1.25
|
AE-19-107
|
3.0
|
11.0
|
8.0
|
6.17
|
AE-19-108
|
15.0
|
17.0
|
2.0
|
1.82
|
AE-19-109
|
13.0
|
14.0
|
1.0
|
0.53
|
About Argyle
The Argyle Deposit, located 4.5 kilometres east of the Pine Cove
Mill adjacent to existing road networks, is defined over a strike
length of 685 metres and to a down-dip depth of 225 metres and is
open for expansion in all directions. It currently contains an
Indicated Resource of 543,000 tonnes grading 2.19 g/t gold (38,300
ounces) and an Inferred Resource of 517,000 tonnes grading 1.82 g/t
(30,300 ounces) as outlined in the table below and is detailed with
a 43-101 technical report titled "43-101 Technical Report, Mineral
Resource and Mineral Reserve Update Point Rousse Project,
Baie Verte, Newfoundland and
Labrador, Canada" with an
effective date of December 31,
2017.
Argyle Mineral Resource Estimate – Effective Date:
December 31, 2017
Resource
Category
|
Resource Cut-off
Gold
Grade
(g/t)
|
Tonnes
(Rounded)
|
Gold Grade
(g/t)
(12g/t Capping
Factor)
|
Gold
Ounces
(Rounded)
|
Indicated
|
0.5
|
543,000
|
2.19
|
38,300
|
Inferred
|
0.5
|
517,000
|
1.82
|
30,300
|
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.
All samples and the resultant composites referred to in this
release were collected using QA/QC protocols including the regular
insertion of certified standards and blanks within each sample
batch sent for analysis and completion of check assays of select
samples. Drill core samples were routinely analyzed for Au at
Eastern Analytical Ltd. in Springdale,
NL ("Eastern"), using standard fire assay (30g)
pre-concentration and Atomic Absorption finish methods. Eastern is
a fully accredited firm within the meaning of NI 43-101 for
provision of this service. Mineralized intervals referred to in
this press release are reported as drill intersections and are
apparent widths only. Apparent widths reported in this press
release are estimated to be approximately 90-100% of true
widths.
Diamond drilling at Argyle outlined within this press
release, benefited from a JEA grant from the Department of Natural
Resources, Government of Newfoundland and Labrador. Anaconda thanks the Government of
Newfoundland and Labrador for this assistance.
Adoption of Share Unit Plan and Grants under the Share Unit
Plan
To better align the long-term incentive plans of directors,
officers, and employees with Anaconda's shareholders, the Board of
Directors has approved the adoption a Share Unit Plan,
subject to approval of the shareholders of the Company at the
upcoming Annual General and Special Meeting. Share Units
granted under the plan represent the right to receive one common
share, are settled by way of issuance of common shares from
treasury as soon as practicable following the maturity date in
accordance with the Share Unit Plan. The Share Unit Plan and the
existing Stock Option Plan, together, the Incentive Plans, are each
a "rolling evergreen" plan and provide that the number of common
shares of the Company available for issuance from treasury under
the Incentive Plans, in aggregate, shall not exceed 10% of the
issued and outstanding common shares of the Company at the time of
grant.
As part of the further alignment of Directors and Officers with
Anaconda shareholders, half of the compensation of the Board of
Directors will now be settled in Share Units, which will retain
cash in the Company. Accordingly, 85,500 Share Units were granted
to directors of the Company in Q1 2019.
In addition, the Company has granted 2,355,000 Share Units as
part of its annual performance review and long-term compensation
grants, with the grant date set for one clear trading day after the
release of this press release, consistent with the Company's
governance policies.
No Share Units granted under the Share Unit Plan shall be
eligible to vest until the Plan has been approved by shareholders
of the Company. Further details are available in the Company's
updated Annual Information Form filed on SEDAR (www.sedar.com) on
February 27, 2019.
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, 2018,
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.
![Exhibit A. A geological map of the Argyle area showing the deposit and the location of recent drilling during the Argyle Exploration Program and the Argyle Infill Program. Hole AE-18-83 which contained two intersections of high-grade visible gold is shown to the northeast of the Argyle Deposit. (CNW Group/Anaconda Mining Inc.) Exhibit A. A geological map of the Argyle area showing the deposit and the location of recent drilling during the Argyle Exploration Program and the Argyle Infill Program. Hole AE-18-83 which contained two intersections of high-grade visible gold is shown to the northeast of the Argyle Deposit. (CNW Group/Anaconda Mining Inc.)](https://mma.prnewswire.com/media/828962/Anaconda_Mining_Inc__Anaconda_Mining_Intersects_59_39_G_t_Gold_O.jpg)
![Exhibit B. A geological map of the Argyle Deposit showing the areas of infill drilling including holes AE-18-98 to AE-19-109. (CNW Group/Anaconda Mining Inc.) Exhibit B. A geological map of the Argyle Deposit showing the areas of infill drilling including holes AE-18-98 to AE-19-109. (CNW Group/Anaconda Mining Inc.)](https://mma.prnewswire.com/media/828963/Anaconda_Mining_Inc__Anaconda_Mining_Intersects_59_39_G_t_Gold_O.jpg)
SOURCE Anaconda Mining Inc.