TORONTO, Sept. 20, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to announce that recent diamond drilling at the Point Rousse Project's Argyle Prospect ("Argyle") intersected gold mineralization in eight of the first ten holes to be reported of the Company's Argyle exploration program, highlighted by 6.09 grams per tonne ("g/t") over 8.9 metres in hole AE-16-11 and 4.50 g/t over 6.3 metres in hole AE-16-06. The first phase of the Argyle diamond drilling program is complete and included a total of 1,638 metres of diamond drilling in 22 holes with drill holes testing mineralization from near surface to a depth of approximately 70 metres (the "Argyle Phase I Program") (See Exhibit A). 

During the Argyle Phase I Program, alteration was intersected in 20 holes and indicated that Argyle dips shallowly northward at least 100 metres and along strike for 410 metres and remains open at depth and along strike.  Assays from the first ten holes indicate that gold mineralization occurs within 33 metres of surface and in the drill section containing holes AE-16-09, -10 and -11, gold mineralization has a dip extent down to at least 80 metres (See Exhibit B).   The consistency of the alteration system from hole to hole and the presence of alteration and mineralization in eight of ten holes, though at variable thickness and grades, is significant in that it demonstrates continuity of mineralization along strike and at depth.

Reporting on the remainder of the Argyle Phase I Program is anticipated in October. The Company is awaiting assay results on holes AE-16-07 and holes AE-16-12 to AE-16-22. The table below summarizes composited results from the Argyle Phase I Program.

President and CEO, Dustin Angelo, states; "We are very pleased with the initial assay results from the Argyle Phase I Program. In eight of the first ten holes, we intersected alteration and mineralization similar in style and tenor to that exposed in surface trenching, which indicates a favorable trend. We are particularly encouraged by some of the high grades and lengths of the drill core intervals as they fit well with our plans of discovering and developing higher grade resources, compared to the Pine Cove Pit, to feed the Pine Cove Mill. We look forward to receiving the assay results from the remaining holes and building on these initial results of the Argyle Phase I Program."

About Argyle

Argyle is located near and northeast of Stog'er Tight and approximately 5.5 kilometres from the Pine Cove Mill. It was discovered through a soil sampling program, which was then followed up by trenching and channel sampling as reported on January 21, 2016 and January 8, 2015.  Trench results indicated that an alteration zone and associated mineralization existed over a strike of 300 metres.  Geological mapping and interpretation coupled with gold grades and alteration character indicate that Argyle is similar in style to those observed at the Stog'er Tight Deposit.

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 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 this press release are estimated to be approximately 80 – 100% of true widths.

ABOUT ANACONDA

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 approximately 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 kilometres 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 kilometres by water (180 kilometres 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 substantially increase annual production at the Pine Cove Mill from its current rate of approximately 16,000 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: Argyle Phase I Drill Holes (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160920_C6748_PHOTO_EN_777051.jpg

Image with caption: "Exhibit B: Argyle Drillholes and Mineralization (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160920_C6748_PHOTO_EN_777049.jpg