TORONTO, June 2, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased to announce the results of a 751-metre, 16-hole, diamond drill program (Exhibit A – Plan Map) conducted at the Stog'er Tight project. The drill program focused on shallow areas, no more than 40 metres from surface, west and southwest of the Stog'er Tight Deposit ("Stog'er Tight" or the "Deposit"). The goals of the program were to test the hypothesis that the Gabbro and West zones joined together below surface and to determine if surface mineralization at the West zone continued down-dip and is an extension of the Deposit. 

Highlights of the drill program include:

• Hole BN-16-235 returned 6.70 grams per tonne ("g/t") Au over 4 m from 16 metres to 20 metres, including 8.85 g/t Au over 3 metres;
• Hole BN-16-227 returned 1.81 g/t Au over 6 metres from 22 metres to 28 metres;
• Hole BN-16-236 returned 3.72 g/t Au over 4 metres from 6 metres to 10 metres and 2.27 g/t Au over 3 metres from 18 metres to 21 metres.

The West and Gabbro zones were determined to be two separate zones of mineralization and both zones continue at depth (Exhibit B). The Gabbro zone dips shallowly to the north beneath the West zone and is within 20 metres of surface. Both the West and Gabbro zones are the folded extensions of Stog'er Tight, which extended the strike length 100 metres for a total of 500 metres. Equally important, the Company's interpretation of these drill results indicate that numerous other showings throughout the Stog'er Tight project area may represent fold repetition of the Stog'er Tight Deposit. 

Dustin Angelo, CEO of Anaconda, states, "The drill program around the Gabbro and West zones was successful in that it extended the Stog'er Tight Deposit 100 metres westward, to a total strike length of 500 metres, and identified multiple zones of shallow mineralization. We also learned about the repetitious folding that is occurring around Stog'er Tight, which is a very good predictive tool as we step out farther from the main deposit area. It has given us more confidence in the potential to expand the resources around Stog'er Tight."

A table of significant gold intersections is presented below.

A summary of significant composited assays (core length) from the Western and Gabbro zones at Stog'er Tight. True widths are estimated to be between 70% and 95% of the core length.

The Company has geologically-modelled the results of the drill program and will use the information to determine the best approach to test the further continuity of the Stog'er Tight Deposit.

The Stog'er Tight Deposit

The Stog'er Tight Deposit is located 3.5 km from the Pine Cove mill along the existing mine road. The Deposit contains a 43-101-compliant resource, including an Indicated Resource of 204,100 tonnes with a grade of 3.59 g/t Au (23,540 oz Au) and an Inferred Resource of 252,000 tonnes with a grade of 3.27 g/t Au (26,460 oz Au) using a cut-off grade of 0.8 g/t Au (see Company's news release dated October 22, 2015). The Deposit is characterized by intense carbonate, albite, and pyrite alteration of gabbroic rocks with gold, strongly associated with pyrite, which is similar to the Pine Cove Deposit.  The geological characteristics of Stog'er Tight are found in a much larger area around the Deposit that is approximately 1.5 km long by 0.5 km wide. Besides the East, West and Gabbro zones, several other zones of alteration and mineralization have been identified throughout the greater Stog'er Tight area, indicating the potential for further discovery.

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

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.

Image with caption: "Exhibit A: A geological map of the Stog'er Tight area showing the location of surface mineralization (red) at the West Zone and the Gabbro zone, the location of drill holes reported in this release and the location of the cross section shown in Exhibit B. The Stog'er Tight deposit is shown in relation to the West and Gabbro zones. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160602_C1895_PHOTO_EN_704597.jpg

Image with caption: "Exhibit B: A geological cross section (1100E) of the West and Gabbro zone showing the shallow, northerly, dip of the Gabbro zone beneath the West zone. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160602_C1895_PHOTO_EN_704599.jpg