Anaconda Mining Expands the Stog'er Tight Deposit TORONTO, ON / ACCESSWIRE / December 10, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce results from its 5,394 metre expansion drill program (the "Drill Program") along strike from the Stog'er Tight Mine and Deposit ("Stog'er Tight"), located approximately three (3) kilometres east of the Company's operating Pine Cove Mill and Tailings Facility in Newfoundland (Exhibit A). Results from the Drill Program to date include 4,663 metres in 42 diamond drill holes including the results of 2,936 metres in 20 diamond drill holes (BN-20-341 to -361) reported here. The Drill Program was initiated to follow up on the recent discovery of gold mineralization announced on July 7 and August 18, 2020. The most recent drill holes were specifically designed to test areas around the previously announced intercepts and to expand both the strike and down-dip extent of mineralization. The Drill Program has now successfully expanded mineralization by 690 metres of strike and 360 metres northwestward in the down-dip direction (Exhibit B).
Highlights of the Drill Program include:
- 5.16 grams per tonne ("g/t") gold over 5.0 metres (64.0 to 69.0 metres), including 15.60 g/t gold over 1.0 metres in diamond drill hole BN-20-351;
- 2.71 g/t gold over 6.7 metres (148.5 to 155.2 metres); including 12.10 g/t gold over 0.8 metres in diamond drill hole BN-20-349;
- 1.76 g/t gold over 5.0 metres (128.0 to 133.0 metres) in diamond drill hole BN-20-347;
- 9.31 g/t gold over 2.0 metres (89.0 to 91.0 metres) in diamond drill hole BN-20-359; and
- 0.94 g/t gold over 9.0 metres (112.0 to 121.0 metres) in diamond drill hole BN-20-341.
Selected intersections from the Drill Program at Stog'er Tight are shown in Table 1 below.
"Our recent drill program was designed to understand the extent of mineralization at Stog'er Tight and included a series of wide step out holes testing adjacent geological and geophysical targets within 750 metres of known mineralization. The program has successfully expanded mineralization both down-dip and along strike. We are now using this information to create an initial in-house resource estimate and have begun an infill drill program of 2,500 metres that will continue throughout the upcoming winter months. We believe the mineralization outlined west of the Stog'er Tight mine represents its strike extension and has strong potential to extend the life of mine of the Point Rousse operation, consequently we have initiated the required environmental studies and related data collection which will support the permitting process, and potential development and future mining at Point Rousse."
~ Kevin Bullock, President and CEO, Anaconda Mining Inc.
The results of the Drill Program indicate that a zone of gold mineralization extends at least 720 metres west of the Stog'er Tight Mine, and in fact represents the strike extension of the original Stog'er Tight Deposit. Mineralization now extends over a total strike length of approximately 1,250 metres. Gold mineralization is hosted within a shallowly northwest dipping gabbro sill and has been tested to a vertical depth of 100 metres. The Company will create a new in-house, non-National Instrument 43-101 ("NI43-101") compliant, resource estimate combining recent results with the previously announced NI43-101 compliant Mineral Resource Estimate for Stog'er Tight* announced on August 4th, 2020 and available on the Company's SEDAR profile.
The NI43-101 compliant Mineral Resource Estimate for Stog'er Tight* includes an open pit constrained Indicated Mineral Resource of 102,000 tonnes at a grade of 2.39 g/t gold and an Inferred Mineral Resource of 134,000 tonnes at a grade of 3.06 g/t gold (0.5 g/t gold cut off for Open Pit Constrained) as well as an out-of-pit Mineral Resource Estimate including an Indicated Mineral Resource of 14,000 tonnes at a grade of 4.27 g/t gold and an Inferred Mineral Resource of 210,000 tonnes at a grade of 3.62 g/t gold (2.0 g/t gold cut off for out-of-pit resource). Creation of an in-house resource estimate and associated preliminary open pit design will provide internal guidance on how much of the mineralization could be potentially mined within an open pit and will help guide on-going infill drilling.
To facilitate a potential development of the deposit west of the Stog'er Tight Mine, preliminary environmental studies have been initiated at Camp Pond, which is anticipated to be impacted by a potential development. Fox Pond, located east of Camp Pond, was similarly underlain by the Stog'er Tight Deposit which was successfully mined in 2018 and 2019 by partial dewatering of the pond under appropriate Provincial and Federal Government authorizations.
*The technical report, entitled " NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada" with a report date of September 18, 2020, was authored by Independent Qualified Persons Cath Pitman (P. Geo.) of Adiuvare Geology and Engineering Ltd., Michael Cullen (P. Geo) and Matthew Harrington (P. Geo) both of Mercator Geological Services Limited., and Qualified Persons Kevin Bullock (P. Eng), Jordan Cramm (P.Eng.), Chris Budgell (P.Eng.), Paul McNeill (P.Geo.) and David Copeland (P. Geo) of Anaconda Mining.
Anaconda Mining Inc--Anaconda Mining Intersects 63-88 g-t Over 1
Exhibit A. A map showing the location of section 9000E as well as associated drill collars and select assay highlights from recent drilling. (CNW Group/Anaconda Mining Inc.)
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Anaconda Mining Inc--Anaconda Mining Intersects 63-88 g-t Over 1
Exhibit B. A geological cross section 9000E through the EG and BR Gold Systems showing the location of drill holes and drill intersections of mineralized zones. (CNW Group/Anaconda Mining Inc.)
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Table 1: Highlighted composited assays from diamond drill holes BN-20-341 to BN-20-361
| Hole ID1 | From (m) | To (m) | Length2 (m) | Grade (g/t) |
| BN-20-341 | 112.0 | 121.0 | 9.0 | 0.94 |
| BN-20-342 | 113.0 | 125.7 | 12.5 | 0.65 |
| BN-20-344 | 120.8 | 122.3 | 1.5 | 15.26 |
| including | 120.8 | 121.3 | 0.5 | 22.30 |
| BN-20-345 | 71.0 | 72.0 | 1.0 | 2.06 |
| and | 134.0 | 135.0 | 1.0 | 1.08 |
| BN-20-346 | 103.6 | 104.6 | 1.0 | 4.35 |
| BN-20-347 | 128.0 | 133.0 | 5.0 | 1.76 |
| BN-20-348 | 121.5 | 127.5 | 6.0 | 0.91 |
| BN-20-349 | 148.5 | 155.2 | 6.7 | 2.71 |
| including | 152.0 | 152.8 | 0.8 | 12.10 |
| BN-20-351 | 64.0 | 69.0 | 5.0 | 5.16 |
| including | 64.0 | 65.0 | 1.0 | 15.60 |
| and | 96.0 | 97.0 | 1.0 | 1.24 |
| BN-20-358 | 67.0 | 68.0 | 1.0 | 1.56 |
| BN-20-359 | 81.0 | 83.0 | 2.0 | 3.86 |
| and | 89.0 | 91.0 | 2.0 | 9.31 |
| including | 90.0 | 91.0 | 1.0 | 13.20 |
| BN-20-361 | 112.4 | 114.3 | 1.9 | 1.30 |
| and | 126.0 | 126.5 | 0.5 | 1.40 |
| | | | | |
Footnotes:
1 - Diamond drill holes BN-20-343, -350, BN-20-352 to -357 and BN-20-360 have no significant assays.
2 - Interval expressed as core length only; true thickness is estimated to be 75-100% of interval length due to local drilling conditions that does not always allow for drilling orthogonally to the apparent dip of mineralization.