TORONTO, July 27, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) is pleased to announce it has received the results of its first drill program at the Company's Goldboro Project ("Goldboro") in the Province of Nova Scotia, which contains a  Measured and Indicated Mineral Resource of 457,400 gold ounces at a grade of 5.57 grams per tonne ("g/t") gold (2,556,000 tonnes) and an Inferred Mineral Resource of 372,900 gold ounces at a grade of 4.35 g/t gold (2,669,000 tonnes) (2.0 g/t gold cut-off, see press release of March 3, 2017).

The five-hole diamond drill program, totaling 649 metres, was conducted in the Boston Richardson and East Goldbrook gold systems of the Goldboro Deposit (Exhibit A). Multiple occurrences of visible gold and assays with high-grade tenor were observed in all five holes. Assay highlights from the program, including the highest grades yet recorded at Goldboro, are as follows:

• 2,513.20 g/t gold over 0.5 metres within 485.07 g/t gold over 2.6 metres (33.1 to 35.7 metres) and 33.26 g/t gold over 1.0 metre (110.0 to 111.0 metres) in hole BR-17-04;
• 7.85 g/t gold over 3.7 metres within 3.22 g/t gold over 11.4 metres (169.2 to 180.6 metres) in hole BR-17-02;
• 9.77 g/t gold over 2.3 metres within 2.33 g/t gold over 13.4 metres (17.4 to 30.8 metres) in hole BR-17-03;
• 16.96 g/t gold over 1 metre within 3.96 g/t gold over 5.5 metres (115.5 to 121 metres) in hole BR-17-05; and
• 5.56 g/t gold over 1.2 metres within 1.35 g/t gold over 10 metres (25.0 to 35.0 metres) and 13.00 g/t over 0.5 metres within 3.65 g/t gold over 2 metres (53.5 to 55.5 metres) in hole BR-17-01.

See Table 1 below for a summary of assay results from the drill program.

"The discovery of the highest-grade gold intercepts at Goldboro, amongst multiple other, high-grade intercepts, and the recognition of the growth potential down-plunge and along strike, make the Goldboro Project an exciting opportunity for Anaconda, its shareholders and other stakeholders. As with historical exploration work, we continue to see significantly high-grades and very good thickness in the drill core. We are encouraged by the predictable geological model, which gives us confidence in the mineral resource and our ability to expand the deposit. Over the coming months, we expect to plan and initiate additional drilling to demonstrate the mineral expansion potential of Goldboro."

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

The Boston Richardson gold system of the Goldboro Deposit is host to 15 tightly-stacked, high-grade, gold-bearing vein zones. Holes BR-17-01 to BR-17-03 are located within the core of the Boston Richardson system and intersected up to 7 of the 15 vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke as predicted by recent geological modelling.  The high-grade assays returned from these drill holes are of a tenor consistent with previous drill programs on the deposit as well as with recent geological and resource modelling, and confirms the validity of the geological and resource models.

The East Goldbrook gold system is characterized by 7 stacked vein zones and is generally drilled at a broader spacing (~100 metres) than Boston Richardson. Hole BR-17-05 intersected 5 of the 7 East Goldbrook vein zones including vein zones 3 and 4, which appear to extend 40 and 100 metres, respectively, farther to the west beyond what has been currently modelled. Hole BR-17-04 within East Goldbrook contains the highest-grade intercepts within the entire Goldboro Deposit as shown in the highlights above.   

Deposit Expansion Potential

To date, the Boston Richardson gold system has been modelled to a depth of 350 metres and plunges moderately eastward beneath East Goldbrook (Exhibit B). Sparse historic drilling from the 1980s, under East Goldbrook, intersected similar geological structures and gold bearing vein zones below depths of 425 vertical metres.  These vein zones represent the down-plunge extension of the Boston Richardson gold system. In addition, East Goldbrook has only been modelled to approximately 300 metres and West Goldbrook, which includes the faulted offset extension of Boston Richardson, has been modelled to just a depth of 225 metres. 

Based on all historic and current exploration information related to the Goldboro Deposit, Anaconda believes the deposit continues at depth. Historic drill results from some of the deepest and eastern most drilling at the margins of the Boston Richardson and East Goldbrook gold systems returned significant values both in grade and width, as demonstrated in the highlights of historic drill results below and the sample of visible gold shown in Exhibit C. Consequently, Anaconda believes that gold mineralization will continue at depth along the East Goldbrook, Boston Richardson and West Goldbrook gold systems and down-plunge of the current resource.

Assay highlights from selected historic drill core at depth at the Goldboro Deposit:

• 15.9 g/t gold over 5.9 metres (293.7 to 299.6 metres) in hole BR-87-35A.
• 11.9 g/t gold over 5.0 metres (276.3 to 281.3 metres) in hole BR-87-43.
• 8.2 g/t gold over 5.5 metres (360.3 to 365.8 metres) in hole BR-87-31.
• 10.0 g/t gold over 2.7 metres (345.3 to 348.0 metres) in hole BR-87-07.

In addition, the current known strike length of the Goldboro Deposit is approximately 1.6 kilometres and is associated with a geophysical anomaly (IP conductor)( Exhibit D). The anomaly is known to extend east and west beyond the limits of the current strike length of the known deposit (the "Potential Strike Extension") and includes the Dolliver Mountain prospect immediately west and along strike from the Goldboro Deposit. Gold mineralization of similar style and tenor as that found in the Goldboro Deposit has been intersected in drill core from historical holes in the area of the Potential Strike Extension. The following highlights summarize assay results from historic drill holes along the Potential Strike Extension area. Anaconda believes there is potential to expand the Goldboro Deposit east and west along strike.

Assay highlights from selected historic drill core in the Potential Strike Extension area:

• 1,570.0 g/t gold over 0.5 metres within 269.9 g/t gold over 2.7 metres (193.8 to 196.5 metres) in hole OSK-11-04;
• 412.0 g/t gold over 0.5 metres within 137.8 g/t gold over 1.5 metres (117.0 to 118.5 metres) in hole OSK-11-02;
• 10.3 g/t gold over 2.1 metres (116.4 to 118.5 metres) in hole BR-87-12; and
• 6.2 g/t gold over 1.5 metres (223.0 to 224.5) in hole OSK-11-04.

Table 1. A table of highlighted assays from the current Goldboro drill program

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 (30g) with an AA finish.

Mineralized intervals are reported as drill intersections and are apparent widths only. Apparent widths reported in holes BR-17-01, -04 and -05 are estimated to be approximately 90-95% of true widths.  Apparent widths reported in holes BR-17-02 and -03 are estimated to be approximately 60% of true widths.  All historic drill intercepts are reported as core length only.

A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA MINING INC.

Anaconda Mining is a TSX listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian provinces of Newfoundland and Nova Scotia.  The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, Canada, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, a new gold discovery referred to as Argyle, and approximately 6,300 hectares of prospective property.  Anaconda is also developing the Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company's Point Rousse Project.

The Company also has a pipeline of organic growth opportunities to leverage existing infrastructure, including the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.

FORWARD-LOOKING INFORMATION

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.

CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL REPORTING

The parties prepare their disclosure in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws.  Terms relating to mineral resources in this press release are defined in accordance with Canadian National Instrument 43-101 ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") —  CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended, which standards differ significantly from the disclosures permitted by the United States Securities and Exchange Commission requirements and terminology set forth in SEC Industry Guide 7.  Accordingly, information contained in this press release and the public filings of the parties containing descriptions of mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

SOURCE Anaconda Mining Inc.

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