TORONTO, May 12, 2016 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") – (TSX: ANX) is pleased to report that results of preliminary metallurgical test work indicates that
ore from the Thor Deposit of the Viking Project ("Thor Deposit") could be processed at the Pine Cove mill using current flotation
and leach circuit configuration. The results of the study are based on a homogenized sample collected from two diamond drill
holes. Bench scale test work, conducted by NB Research and Productivity Council ("RPC"), primarily focused on flotation,
cyanide leaching and grinding to evaluate the response of the Thor Deposit material to the current plant flow sheet for the Pine
Cove mill.
In a flotation test, using a grind of (80% passing) 150 µm, currently used for Pine Cove ore, the Thor Deposit sample attained
96.0% Au recovery in 4.4% of the mass at a grade of 35.12 grams per tonne ("g/t") Au in the rougher stage. In a bottle roll
cyanidation test the current Pine Cove mill regrind size of (80% passing) 20 µm obtained 94.1% Au extraction without requiring
accelerating reagents and consumed 1.1 kg/t NaCN compared to 3.6 kg/t for Pine Cove ore. A Bond Ball mill grindability
test was performed utilizing a limiting screen size of 150 µm and indicated that the sample has a Bond Ball Work Index ("BWI")
value of 18.5 kWh/t.
President and CEO, Dustin Angelo, stated, "Our primary thesis in expanding Anaconda's reach to
new deposits is that the Pine Cove mill and related infrastructure can be leveraged to expedite development of satellite deposits
that would otherwise not be mined, given their size. The preliminary metallurgical results on flotation and leaching from the
Thor Deposit supports our thesis and allows the company to move forward with plans to expand the historical resource base at the
Viking Project with the initial goal of doubling the size of the resource while optimizing a path to development."
The Company will conduct follow up metallurgical testing and/or bulk sampling for processing at the Pine Cove mill when it is
appropriate for feasibility studies.
The Metallurgical Sample and Analysis
The sample for the metallurgical test work on the Thor Deposit was collected by Anaconda staff from diamond drill holes VK09-20
and VK10-46 located at the northern portion of the deposit and sent to RPC in Fredericton, New
Brunswick. The 59.8 kg sample was homogenized and analyzed by ICP-OES, whole rock analysis and Au fire assay and was found to
have a head grade of 1.86 g/t Au, 1.4 g/t Ag, 0.003% Cu and 2.1% Fe, and found to contain 67.26% SiO2.
The Thor Deposit
Anaconda acquired the Thor Deposit as part of an option agreement announced on February 10, 2016
(see Press Release, available on SEDAR and the Company's website). The Thor Deposit hosts a Historical Mineral Resource
Estimate as defined by the National Instrument 43-101 Standards for Disclosure for Mineral Projects and is not considered by the
Company to be a Current Mineral Resource, since Anaconda Qualified Persons have not independently completed work to classify it as
a Current Mineral Resource. The Historical Resource includes an Indicated Resource of 63,000 ounces at a grade of 2.09 g/t Au and
an Inferred Resource of 20,000 ounces at a grade of 1.79 g/t Au, using a 1.00 g/t cut off, as documented in a Technical Report
filed on SEDAR, titled "MINERAL RESOURCE ESTIMATE UPDATE FOR THE THOR TREND GOLD DEPOSIT, NORTHERN ABITIBI MINING CORP., White Bay
Area, Newfoundland and Labrador, Canada, Latitude 49o
42' N Longitude 57o 00' W." prepared for Northern Abitibi Mining Corp. by Dr. Shane
Ebert, P. Geo. and Gary Giroux, P. Eng. MASc., December 30,
2011.
RPC is an accredited metallurgical testing facility located in New Brunswick, Canada, that
has been in the industry for over 50 years and serves both local and global clients in all areas of extractive metallurgy.
Metallurgical work on the Thor Deposit outlined in this release was conducted by Neri Botha P. Eng.
and Leo Cheung P. Eng. of RPC, both Qualified Persons under the National Instrument 43-101 Standard
for Disclosure for Mineral Projects
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.
ABOUT Anaconda MINING
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse
Project and an exploration/development project called the Viking Project in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of property on the Ming's Bight Peninsula located in the Baie Verte
Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property
control by ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is
currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include
five deposits and numerous prospects and showings, all within 8 km of the Pine Cove mill.
Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 km by water (180 km via road) from the Pine Cove mill. The project
contains the Thor Deposit and other gold prospects and showings. The company's plan is to discover and develop more resources
within these project areas and double annual production at the Pine Cove mill from its current rate of nearly 16,000 ounces to
30,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we
live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support
of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving
back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
FORWARD-LOOKING STATEMENTS
This document contains or refers to forward-looking information. Such forward-looking information includes, among other
things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit
costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on
current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the
Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying
significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of
the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or
revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other
factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events
and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects,"
"indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding
Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties.
Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to
differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect
new events or circumstances, except as required by law.
SOURCE Anaconda Mining Inc.