Results from the most recent drilling, comprised of 2,148.2 metres from fifteen diamond drill holes, all reflect near surface targets (>175 vertical metres) at both the West Goldbrook Gold System ("WG Gold System") and the Boston Richardson Gold System ("BR Gold System") (Exhibit A). The drilling was focused on shallow levels of the deposit to further evaluate the opportunity for an expanded open-pit mining scenario, as identified through the ongoing Feasibility Study. The results demonstrate continuity of mineralization within the infill drill areas at both the WG and BR gold systems in areas explored. A total of eight (8) visible gold occurrences were observed in these drill holes.

Selected composited highlights (core length) from the Drill Program include:

  • 1.86 grams per tonne ("g/t") gold over 14.5 metres (55.5 to 70.0 metres) and 2.78 g/t gold over 4.5 metres (44.0 to 48.5 metres) and 1.31 g/t gold over 5.5 metres (19.0 to 24.5 metres) in hole BR-20-221;
  • 1.37 g/t gold over 21.5 metres (72.0 to 93.5 metres) including 26.80 g/t gold over 0.5 metres in hole BR-20-219;
  • 2.08 g/t gold over 9.0 metres (130.0 to 139.0 metres) including 12.20 g/t gold over 1.0 metre in hole BR-20-216;
  • 8.56 g/t gold over 2.0 metres (39.0 to 41.0 metres) including 16.70 g/t gold over 1.0 metre in hole BR-20-224; and
  • 2.66 g/t gold over 5.6 metres (121.2to 126.8 metres) including 9.72 g/t gold over 0.8 metres in hole BR-20-210.

" Anaconda's extensive infill drill program at its Goldboro Gold Project was very successful in infilling areas of priority inferred mineralization at shallow levels of the deposit. Importantly this was achieved while maintaining strong safety protocols given the ongoing impact of the global pandemic. Based on the positive drill results from this program, we are confident as we progress towards the announcement of a mineral resource update in Q1 2021, which, together with advanced metallurgical work, will allow us to complete detailed pit design to support a potential expanded surface mining operation using conventional open-pit mining methods. In addition, as part of the ongoing mineral resource evaluation, we have recognized additional opportunity, within the central portions of the deposit, to convert further Inferred Mineral Resources to indicated and measured categories, potentially further expanding surface mining potential at Goldboro. We plan further drilling in the near-term to unlock the value recognized in these specific areas of the deposit once we have completed the full evaluation of the results from our recent program."

~Kevin Bullock, President and CEO, Anaconda Mining Inc.

To date, a total of 17,941.7 metres in 121 drill holes (BR-20-105 to BR-20-224) have been completed under the Drill Program, with assays from drill holes BR-20-105 to BR-20-215 previously reported in news releases dated September 3, 2020; October 5, 2020; November 11, 2020; November 19, 2020; and January 5, 2020. This release outlines the results for 2,148.2 metres in fifteen diamond drill holes, including BR-20-202, 207, 210-211, 213 and from BR-20-216 to BR-20-224 including BR-20-222a, which was abandoned at 46 metres and redrilled in BR-20-222. Drill holes BR-20-133, -157, -163, -167, -169 and -171, totaling 639 metres, were drilled for metallurgical purposes and any assay data for these holes will be reported in the future as results become available.

The Drill Program is funded using existing flow through funds but has also benefited from a grant received from the Government of Nova Scotia through a Mineral Resources Development Fund, shared funding exploration grant MRDF-2020-SF-035.

The Company has critically considered logistical matters given the ongoing COVID-19 pandemic, to ensure that this Drill Program and any other programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate.

Table 1. Selected Composite Highlights Within This News Release From The Drill Program.

Hole ID

From (m)

To (m)

Interval (m)*

Gold (g/t)

Visible Gold (VG)

BR-20-202

119

119.5

0.5

1.51

  

BR-20-207

159.5

160

0.5

1.43

  

and

200.7

203

2.3

2.96

  

including

200.7

201.2

0.5

11.8

  

and

230

231.5

1.5

1.53

  

and

235.8

236.3

0.5

14.5

VG

and

270

272.5

2.5

1.42

VG

including

270

270.5

0.5

4.55

VG

and

294

295

1.0

3.81

  

and

298

298.5

0.5

2.12

  

and

300.5

301.5

1.0

1.88

  

and

309

309.5

0.5

4.99

  

BR-20-210

52

52.7

0.7

0.51

  

and

74.4

74.9

0.5

20.3

  

and

107

110.2

3.2

0.67

  

and

121.2

126.8

5.6

2.66

  

including

125

125.8

0.8

9.72

  

and

126.3

126.8

0.5

6.66

  

and

216.4

217.2

0.8

3.54

  

BR-20-211

105.8

106.8

1.0

2.62

  

and

157

157.5

0.5

5.26

  

and

175

176

1.0

0.84

  

BR-20-213

137.5

138

0.5

1.19

  

and

173.5

174.5

1.0

0.68

  

and

184

185

1.0

0.54

  

and

224.7

225.2

0.5

0.64

  

and

238.8

239.8

1.0

1.13

  

and

244.7

245.5

0.8

2.66

  

and

247.5

248.5

1.0

0.83

  

and

259.5

260

0.5

1.93

  

and

263

263.7

0.7

0.66

  

and

272.9

273.5

0.6

1.57

  

BR-20-216

91

92

1.0

0.68

  

and

104

105

1.0

4.51

  

and

123

123.5

0.5

0.89

VG

and

130

139

9.0

2.08

VG

including

133.5

134.5

1.0

12.2

VG

and

144.5

145

0.5

3.91

  

BR-20-217

84

84.5

0.5

17.5

VG

and

98

99

1.0

1.61

  

and

110

111

1.0

2.03

  

and

119

122

3.0

0.9

  

and

126

127

1.0

0.63

  

and

132

133

1.0

0.69

  

BR-20-218

67

67.5

0.5

0.8

  

and

88.7

89.2

0.5

5.7

  

and

94

95

1.0

0.88

  

and

98.7

99.2

0.5

1.47

VG

and

108

111.5

3.5

1.66

  

and

126

128

2.0

1.19

  

BR-20-219

15.5

16.5

1.0

1.46

  

and

21

22

1.0

0.72

  

and

34

35.5

1.5

0.89

  

and

59.5

61.5

2.0

2.13

  

and

68.5

69.5

1.0

0.79

  

and

72

93.5

21.5

1.37

VG

including

87

87.5

0.5

26.8

VG

BR-20-220**

43

44

1.0

0.94

  

BR-20-221

19

24.5

5.5

1.31

  

including

20.5

21

0.5

9.16

  

and

44

48.5

4.5

2.78

  

and

51.5

52

0.5

1.62

  

and

55.5

70

14.5

1.86

  

including

61

61.5

0.5

6.08

  

and

91.5

93.5

2.0

0.63

  

and

97

100.5

3.5

1.78

  

and

120

121

1.0

1.65

  

BR-20-223**

13

17

4.0

2.68

  

and

24

29

5.0

1.01

  

and

38

41

3.0

1.22

  

and

45

55

10.0

2.74

  

including

51

52

1.0

14.7

  

and

63

66

3.0

1.1

  

BR-20-224**

21.6

25

3.4

1.01

  

and

33

34

1.0

1.23

  

and

39

41

2.0

8.56

  

including

40

41

1.0

16.7

  

and

59

59.5

0.5

1.18

  

and

71

73

2.0

0.59

  

*Intervals are reported as core length only. Please refer to notes below regarding true width.

** Eleven of the drill holes (BR-20-202, -207, -210, -213, and -219 to 224) were drilled off section resulting in broader drill core intercepts that over emphasize apparent mineralized width. The true widths of these drill intercepts range between 70 and 100% except for holes BR-20-220, -223 and -224 which have true widths estimated at 60%, 30% and 50% of core length, respectively. These holes were drilled off section due to issues with access due to location of wetlands.

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 are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30 g) with an AA finish.

All assays in this press release are reported as fire assays only. For samples analyzing greater than 0.5 g/t Au via 30 g fire assay, these samples will be re-analyzed at Eastern Analytical Ltd. via total pulp metallics. For the total pulp metallics analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150 mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Total pulp metallics assays for drillholes sited within this press release will be updated in a future 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.