Anaconda Mining Continues to Expand The Stog’er Tight Deposit, Intersecting 4.37 G/T Gold Over 15.0 Metres and 3.32 G/T Gold Over 8.0 Metres; Further Expands Drill Program

TORONTO, ON / ACCESSWIRE / August 18, 2020 / Anaconda Mining Inc. (“Anaconda” or the “Company”) (TSX:ANX) (OTCQX:ANXGF) is pleased to announce results of an ongoing 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). The Drill Program to date consists of 1,727 metres in 22 diamond drill holes (BN-20-319 to -340) and was initiated to follow up on the recent drill discovery of mineralization announced on July 7, 2020, which included 5.54 grams per tonne (“g/t”) gold over 20.0 metres. To date the Drill Program has successfully expanded mineralization northwestward in the down-dip direction to 170 metres and has added 180 metres of strike (Exhibit B).

Highlights of the Drill Program include:

  • 4.37 g/t gold over 15.0 metres (98.0 to 113.0 metres), including 10.41 g/t gold over 5.0 metres in diamond drill hole BN-20-338;
  • 3.32 g/t gold over 8.0 metres (38.0 to 46.0 metres); including 11.80 g/t gold over 1.0 metre in diamond drill hole BN-20-326;
  • 2.40 g/t gold over 9.0 metres (27.0 to 36.0 metres); including 13.50 g/t gold over 1.0 metre in diamond drill hole BN-20-323;
  • 3.86 g/t gold over 5.0 metres (12.0 to 17.0 metres) in diamond drill hole BN-20-333; and
  • 2.15 g/t gold over 8.0 metres (81.0 to 89.0 metres), including 6.37 g/t gold over 1.0 metre in diamond drill hole BN-20-335.

Selected intersections from the Drill Program at Stog’er Tight are shown in Table 1 below.

“Our recent drilling has successfully expanded mineralization at Stog’er Tight down-dip to 170 metres and added 180 metres of strike. Importantly, this mineralization is less than 75 metres below surface and remains open for expansion with geological and geophysical evidence indicating more immediate drill targets. We have therefore expanded the drill program to 4,000 metres with the goal of further outlining this growing deposit. Located only a few kilometres from the Pine Cove Mill and Tailings Facility, the continuing growth of the Stog’er Tight Deposit represents excellent potential for future mining at Point Rousse.”

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

The results of the Drill Program indicate that a significant zone of gold mineralization extends at least 650 metres west of, and represents a strike extension of, the Stog’er Tight Mine sequence. Mineralization at Stog’er Tight now extends over a total strike length of 1,200 metres and is open along strike to the southwest and down-dip on its western half. Gold mineralization is hosted within a shallowly northwest dipping gabbro sill and has been tested to a vertical depth of 75 metres.

The highest grades and thicknesses intersected thus far are associated with a geophysical anomaly (an IP chargeability high associated with all gold deposits at Point Rousse) that extends 250 metres northward, parallel with a similar IP anomaly associated with the Stog’er Tight Deposit. A second IP chargeability anomaly, of similar extent and associated with surface gold mineralization, is located 250 metres further southwest along strike, highlighting additional potential for expansion (Exhibit C). Both geophysical anomalies trend beneath a shallow pond (generally less than a few metres) known as Camp Pond (Exhibit B and C). 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 permits.

Table 1: Highlighted composited assays from diamond drill holes BN-20-319 to BN-20-340

Drillhole

From (m)

To (m)

Length (m)

Gold (g/t)

BN-20-323

27.0

36.0

9.0

2.40

including

29.0

30.0

1.0

13.50

BN-20-324

33.0

36.0

3.0

1.01

BN-20-325

22.0

28.0

6.0

1.94

BN-20-326

38.0

46.0

8.0

3.32

including

43.0

44.0

1.0

11.80

BN-20-328

32.0

33.0

1.0

0.86

BN-20-329

56.0

57.0

1.0

2.45

and

64.0

74.0

10.0

0.61

BN-20-330

37.0

38.0

1.0

0.98

and

50.0

55.0

5.0

1.79

BN-20-331

17.0

18.0

1.0

1.08

and

67.0

68.0

1.0

0.89

BN-20-332

19.0

20.0

1.0

2.08

and

23.8

24.8

1.0

0.58

BN-20-333

12.0

17.0

5.0

3.86

and

46.0

47.0

1.0

2.75

BN-20-334

20.6

21.6

1.0

0.60

and

37.8

38.8

1.0

1.10

BN-20-335

81.0

89.0

8.0

2.15

Including

86.0

87.0

1.0

6.37

BN-20-336

81.0

82.0

1.0

4.42

BN-20-338

98.0

113.0

15.0

4.37

including

108.0

113.0

5.0

10.41

and

112.0

113.0

1.0

45.70

Footnotes:

1 – Diamond drill holes BN-19-319 to -322, -327 and BN-20-339 to – 340 have no significant assays.

2 – Interval expressed as core length only; true thickness is estimated to be 50-90% of interval length due to local drilling conditions that does not always allow for drilling orthogonally to the apparent dip of mineralization.

About Stog’er Tight

The Stog’er Tight Deposit, located three (3) kilometres east of the Pine Cove Mill adjacent to existing road networks, has been defined over a strike length of 650 metres to date. Anaconda produced a total of 17,102 ounces of gold from 349,942 tonnes of ore from the Stog’er Tight Mine between June 2018 and January 2020. Gold from Stog’er Tight was recovered through the Pine Cove Mill with an average head grade of 1.75 g/t gold at an overall recovery of approximately 87%. Anaconda is currently assessing the potential for expanding the Stog’er Tight Deposit and developing additional resources along strike.

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.

Mineralized intervals referred to in this press release are reported as drill intersections and are apparent widths only. True widths reported in this press release are estimated to be approximately 50-90% of drill intervals.

All samples and the resultant composites referred to in this release were collected using QA/QC protocols including the regular insertion of certified standards and blanks within each sample batch sent for analysis and completion of check assays of select samples. Diamond drill core and percussion samples were analyzed for Au at Eastern Analytical Ltd. in Springdale, NL (“Eastern”), using standard fire assay (30 g) pre-concentration and Atomic Absorption finish methods. Eastern is a fully accredited firm within the meaning of NI 43-101 for provision of this service.

ABOUT ANACONDA

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. 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 December 31, 2019, 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.

FOR ADDITIONAL INFORMATION CONTACT:

Anaconda Mining Inc.
Kevin Bullock
President and CEO
(647) 388-1842
kbullock@anacondamining.com

Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com

Anaconda Mining Inc.
Lynn Hammond
VP, Corporate Affairs
(709) 330-1260
lhammond@anacondamining.com

Exhibit A. A map showing the location of the Stog’er Tight Deposit in the central part of the Scrape Trend; a geological trend that is host to the Stog’er Tight Mine, Argyle Deposit and Pine Cove Mine and Mill Complex, Point Rousse Project.

Exhibit B. A map showing the location of diamond and percussion drill holes completed during the Drill Program referenced in the press release with highlight assays.

Exhibit C. A map showing the location of the Stog’er Tight Deposit, the area of the recent Drill Program and the IP geophysical anomalies and exploration targets. The location of Camp Pond and Fox Pond and associated IP anomalies are also shown.

SOURCE: Anaconda Mining Inc.

View source version on accesswire.com:
https://www.accesswire.com/602054/Anaconda-Mining-Continues-to-Expand-The-Stoger-Tight-Deposit-Intersecting-437-GT-Gold-Over-150-Metres-and-332-GT-Gold-Over-80-Metres-Further-Expands-Drill-Program

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