The Infill Drill Program successfully intersected several new zones of near-surface gold mineralization on the northern side of the Goldboro Deposit between the two proposed open pits, over a strike length of 200 metres, as well as infilled deeper sections of the Goldboro Deposit (Exhibits A, B, C). The new near-surface mineralized zones were not included within the Mineral Resource Estimate announced on December 16, 2021, and present near-term potential to upgrade both near surface and underground Inferred Mineral Resources, further optimize the pit design outlined in the Feasibility Study, reduce the strip ratio, and positively impact the value of the Project. Successful intersection and infill drilling of deeper, underground Inferred Mineral Resource further highlights the potential for an underground mining phase for the Project. Only 5 of the 19 drill holes completed in this program were included in the recent Mineral Resource Estimate update with the remainder to contribute to future updates.

Selected composited highlights (core length) from the drill program include:

  • 26.10 grams per tonne ("g/t") over 0.5 metres within a broader zone consisting of 2.73 g/t gold over 6.5 metres (94.5 to 101.0 metres) in diamond drill hole BR-21-300;
  • 17.20 g/t gold over 0.5 metres within a broader zone consisting of 3.91 g/t gold over 2.5 metres (137.5 to 140.0 metres) in diamond drill hole BR-21-301;
  • 20.60 g/t gold over 0.5 metres within a broader zone consisting of 4.57 g/t gold over 3.0 metres (148.1 to 151.1 metres) in diamond drill hole BR-21-305;
  • 13.30 g/t gold over 0.6 metres within a broader zone consisting of 1.49 g/t gold over 7.0 metres (157.5 to 164.5 metres) in diamond drill hole BR-21-305;
  • 11.00 g/t gold over 0.5 metres (94.7 to 95.2 metres) in diamond drill hole BR-21-306;
  • 31.30 g/t gold over 0.5 metres (126.2 to 126.7 metres) in diamond drill hole BR-21-307;
  • 10.40 g/t gold over 1.0 metre (38.0 to 39.0 metres) in diamond drill hole BR-21-308;
  • 34.80 g/t gold over 0.5 metres (145.7 to 146.2 metres) in diamond drill hole BR-21-308; and
  • 24.50 g/t gold over 0.6 metres (235.6 to 236.2 metres) in diamond drill hole BR-21-308.

"This infill drill program and the related results highlight the tremendous potential that continues to exist for the Goldboro Gold Project. Since acquiring the Project in 2017, we have grown the deposit significantly, culminating in the recent Mineral Resource Estimate update which demonstrates a combined open pit and underground Measured and Indicated Mineral Resource of 2,581,000 ounces and a combined open pit and underground Inferred Mineral Resource of 484,000 ounces. In the fall 2021 we recognized an opportunity to target and potentially upgrade inferred near-surface and underground mineral resources in the area between the two open pits outlined in the Goldboro Feasibility Study. Several new zones of near surface mineralization were encountered within and between the two open pits over a strike length of 200 metres, demonstrating the potential to upgrade near-surface Inferred Resources and reduce the strip ratio. The assay results from the drill program also show continuity of high-grade gold within broader mineralized envelopes within the underground resource, indicating the potential to further upgrade underground Mineral Resources. Looking ahead to the new year, we are excited to commence further drill programs to both upgrade and expand the Goldboro Mineral Resource, which has the near-term potential to further increase value to what is already a robust, economically valuable Project."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc

Highlights of the Goldboro Project Feasibility Study*

  • Total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine with average gold production of 100,000 ounces per annum, at an average diluted grade of 2.26 g/t gold;
  • Pre-tax Net Present Value at a 5% discount rate ("NPV 5%") of $484 million and a pre-tax Internal Rate of Return ("IRR") of 31.2%, with a projected pre-tax payback of 2.7 years;
  • After-tax NPV 5% of $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years;
  • Maiden Probable Mineral Reserves of 1,150,200 ounces of gold (15.8 Mt at 2.26 g/t gold)
  • Combined open pit and underground Measured and Indicated Mineral Resources of 2,581,000 ounces (21.5 Mt at 3.72 g/t gold) and Inferred Mineral Resources of 484,000 ounces (3.19 Mt at 4.73 g/t gold);
  • Initial capital cost ("Capex") of $271 million, resulting in an after-tax NPV 5% to Capex ratio of 1.3, and LOM sustaining capital of $63.1 million;
  • Life-of-Mine Operating Cash Costs of $966 (US$772) per ounce sold1 and All-In Sustaining Costs ("AISC") of $1,062 (US$850) per ounce sold1;
  • Projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments;
  • Mill capacity of 4,000 tonnes per day ("tpd") based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; and
  • At a gold price of $2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.

* Please refer to Press Release dated December 16, 2021 at www.anacondamining.com

1 Refer to Non-IFRS Financial Measures below.

Goldboro Gold Project - Mineral Resource Estimate

The Mineral Resource Estimate presented was prepared by Independent Qualified Person Glen Kuntz, P. Geo., of Nordmin Engineering Ltd. The Mineral Resource Estimate is based on validated results of 681 surface and underground drill holes for a total of 121,540 metres of diamond drilling completed between 1984 and the effective date of November 15, 2021, including 55,803 metres conducted by Anaconda.

Mineral Resource Estimate for the Goldboro Gold Project - Effective Date November 15, 2021

 

Resource Type

Gold Cut-off (g/t gold)

Category

Tonnes

Grade

(g/t gold)

Gold Troy Ounces
Open Pit

0.45

Measured

7,680,000

2.76

681,000

Indicated

7,988,000

2.89

741,000

Measured + Indicated

15,668,000

2.82

1,422,000

Inferred

975,000

2.11

66,000
Underground

2.40

Measured

1,576,000

7.45

377,000

Indicated

4,350,000

5.59

782,000

Measured + Indicated

5,925,000

6.09

1,159,000

Inferred

2,206,000

5.89

418,000
Combined Open Pit and Underground*

0.45

and

2.40

Measured

9,255,000

3.56

1,058,000

Indicated

12,338,000

3.84

1,523,000

Measured + Indicated

21,593,000

3.72

2,581,000

Inferred

3,181,000

4.73

484,000
 

* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.45 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.40 g/t gold cut-off grade.

Mineral Resource Estimate Notes

  1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. Mineral Resources are inclusive of Mineral Reserves.
  3. Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083.
  4. Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%.
  5. Assays were variably capped on a wireframe-by-wireframe basis.
  6. Specific gravity was applied using weighted averages to each individual wireframe.
  7. Effective date of the Mineral Resource Estimate is November 15, 2021.
  8. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
  9. Excludes unclassified mineralization located within mined out areas.
  10. Reported from within a mineralization envelope accounting for mineral continuity.

Table of selected composites from the Goldboro Drill Program

 

Hole ID

From (m)

To (m)

Interval (m)

Gold (g/t)

Visible Gold

BR-21-300

20.2

21.2

1.0

1.91

  

and

65.6

66.6

1.0

1.21

  

and

94.5

101.0

6.5

2.73

VG

including

99.0

99.5

0.5

26.10

VG

and

150.4

158.5

8.1

1.26

  

including

151.4

152.4

1.0

5.87

  

and

170.4

175.5

5.1

0.86

  

and

248.8

249.8

1.0

24.90

  

BR-21-301

137.5

140.0

2.5

3.91

VG

including

138.5

139.0

0.5

17.20

VG

and

178.8

179.7

0.9

3.19

  

and

205.1

206.1

1.0

3.64

  

BR-21-302

101.4

104.3

2.9

0.86

  

and

110.8

111.3

0.5

3.09

VG

and

200.2

200.7

0.5

7.52

VG

BR-21-303

14.9

15.6

0.7

1.03

  

and

63.9

67.0

3.1

2.07

  

and

71.7

72.7

1.0

2.53

  

and

97.2

100.2

3.0

0.68

  

BR-21-304

94.3

97.2

2.9

1.55

  

and

114.0

116.7

2.7

2.92

  

including

114.0

114.7

0.7

9.45

  

and

128.0

128.5

0.5

32.30

VG

and

214.2

214.7

0.5

0.79

VG

and

259.4

261.6

2.2

1.10

  

BR-21-305

82.4

84.1

1.7

1.28

  

and

94.5

97.8

3.3

1.37

VG

and

148.1

151.1

3.0

4.57

VG

including

148.6

149.1

0.5

20.60

  

and

157.5

164.5

7.0

1.49

VG

including

162.9

163.5

0.6

13.30

VG

and

176.8

177.3

0.5

1.92

VG

BR-21-306

51.0

51.5

0.5

1.29

VG

and

94.7

95.2

0.5

11.00

VG

and

122.6

123.1

0.5

3.07

VG

BR-21-307

12.3

13.3

1.0

1.37

  

and

71.0

72.0

1.0

1.18

  

and

79.5

80.0

0.5

4.29

VG

and

126.2

126.7

0.5

31.30

VG

BR-21-308

31.2

31.7

0.5

5.66

VG

and

38.0

39.0

1.0

10.40

VG

including

38.5

39.0

0.5

17.80

VG

and

94.6

95.6

1.0

3.94

  

and

107.1

108.9

1.8

0.86

  

and

123.0

123.5

0.5

2.19

VG

and

130.0

130.5

0.5

1.42

VG

and

145.7

146.2

0.5

34.80

VG

and

183.2

183.7

0.5

2.69

  

and

235.6

236.2

0.6

24.50

  

and

259.4

261.4

2.0

1.86

VG
 
  • Intervals are reported as core length only. True widths are estimated to be between 70% and 90% of the core length.
  • All drill hole results are reported using fire assay only. See notes on QAQC procedures at the bottom of this press release.

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.

Qualified Person and Technical Report Notes

A Technical Report prepared in accordance with NI 43-101 for the Goldboro Gold Project Feasibility Study will be filed on SEDAR (www.sedar.com) before the end of January 2022. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource and Mineral Reserve and Feasibility Study. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

^ Composited assays shown in Exhibit A and B from the October 12, 2021 press release may vary from those presented in the original press release due to the inclusion of assays obtained using total pulp metallic analysis (see below) obtained since October 12, 2021.

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 +150mesh 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 may be updated in a future news release.

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-2021-SF-11.

Kevin Bullock, P.Eng., President and Chief Executive Officer of Anaconda, and Paul McNeill, P. Geo., VP Exploration of Anaconda, are "Qualified Person(s)" as such term is defined under NI 43-101 Standards for Disclosure for Mineral Projects and have each reviewed and approved the scientific and technical information and data included in this press 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.