TORONTO, Nov. 1, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) is pleased to announce that it has initiated a 6,000-metre diamond drill program at its Goldboro Project in Nova Scotia and completed the first drill hole. The drill program will focus on the Boston Richardson ("BR System") and East Goldbrook ("EG System") gold systems of the Goldboro deposit, with the aim of expanding the Mineral Resource along strike and down plunge, and to infill specific portions of the deposit to upgrade Inferred Resources to the Measured and Indicated categories. The cost of the drill program is estimated at $1.2 million and will be funded by the recently announced flow-through financing (see press release dated October 31, 2017).
The first diamond drill hole (BR-17-06) was designed to test the extension of the BR System, the most well-defined portion of the Goldboro deposit. The geological structure hosting the BR System was intersected between 400 to 475 vertical metres below the current resource model, extending the known structure by 75 vertical metres (See Exhibit A) and by 125 metres in the plunge direction (See Exhibit B). In addition, the drill hole extended the southern limbs of the EG and BR Systems approximately 50 metres down dip from previous drill intercepts (See Exhibit A).
Four occurrences of visible gold were observed in core - three associated with the extensions of the EG system and one associated with extensions of the BR System. Assays are pending.
"We are encouraged by the preliminary observations from the drill core, which, along with historic drill results, support our hypothesis that the Goldboro deposit continues at depth. In the first hole we drilled, we hit the geologic structure that controls the mineralization in the known resource area of the deposit down plunge from the Boston Richardson system and farther down the limbs of the East Goldbrook system. We have just begun our 6,000-metre drill program and look forward to demonstrating the ability to upgade and expand the Mineral Resources at Goldboro. "
~ Dustin Angelo, President and CEO
Historic drill results from the BR System near the base of the resource model, locally returned significant values both in grade and width and support the notion that the BR System extends at depth. Highlights of these historic intersections are shown below and on the long section in Exhibit B.
- 15.9 g/t gold over 5.9 metres (293.7 to 299.6 metres) in hole BR-87-35A.
- 11.9 g/t gold over 5.0 metres (276.3 to 281.3 metres) in hole BR-87-43.
- 8.2 g/t gold over 5.5 metres (360.3 to 365.8 metres) in hole BR-87-31.
- 10.0 g/t gold over 2.7 metres (345.3 to 348.0 metres) in hole BR-87-07.
The Boston Richardson Gold System
The BR System of the Goldboro Deposit is host to 15 tightly-stacked, high-grade, gold-bearing vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke. To date, the BR System has been modelled to a depth of 350 metres and plunges moderately eastward beneath the EG system (Exhibit B). The BR System contains a measured resource of 171,000 tonnes grading 5.39 g/t gold (29,600 ounces), an indicated resource of 1,507,000 tonnes grading 5.27 g/t gold (255,400 ounces) and an inferred resource of 1,083,000 tonnes grading 4.56 g/t gold (158,800 ounces) at a cut-off grade of 2.0 g/t Au (see press release dated March 3, 2017).
The East Goldbrook Gold System
The EG System is characterized by 7 tightly-stacked, high-grade, gold-bearing vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke. The EG System contains an indicated resource of 414,000 tonnes grading 6.91 g/t gold (92,000 ounces) and an inferred resource of 1,127,000 tonnes grading 4.11 g/t gold (148,900 ounces) at a cut-off grade of 2.0 g/t Au (see press release dated March 3, 2017).
The Goldboro Resource
A table showing the Goldboro Mineral Resources as reported on March 3, 2017 is shown below.
| Goldboro, Nova Scotia | | | | | | | | |
| | Boston Richardsona zone | West Goldbrooka zone | East Goldbrooka zone |
| Category | Tonnes | Grade (g/t) | Ounces | Tonnes | Grade (g/t) | Ounces | Tonnes | Grade (g/t) | Ounces |
| Measured | 171,000 | 5.39 | 29,600 | | | | | | |
| Indicated | 1,507,000 | 5.27 | 255,400 | 464,000 | 5.39 | 80,400 | 414,000 | 6.91 | 92,000 |
| Inferred | 1,083,000 | 4.56 | 158,800 | 459,000 | 4.42 | 65,200 | 1,127,000 | 4.11 | 148,900 |
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.
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, exploration and development 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 Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog'er Tight deposit, a new discovery called Argyle, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired 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 Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.
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, use of proceeds and TSX final acceptance of the Offering. 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 year ended May 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.
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SOURCE Anaconda Mining Inc.
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