TORONTO, July 13, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to provide initial assay results for the recently announced drill program at the Argyle discovery ("Argyle"), located approximately 4.5 kilometres from the Company's fully-operational Pine Cove Mill and tailings facility at the Point Rousse Project, Newfoundland and Labrador.
Assays have been received for the first four drill holes of the eight-hole program, totaling approximately 1,000 metres. The Company has successfully expanded Argyle up to 100 metres down-dip in the northeast and demonstrated continuity of a higher-grade zone over a further 50 metres down-dip to the north than previously known (Exhibits A and B).
Assay highlights from the first four holes of the program include:
- 3.63 grams per tonne ("g/t") gold over 12.0 metres (58.0 to 70.0 metres) in hole AE-17-46;
- 3.22 g/t gold over 4.0 metres (45.0 to 49.0 metres) in hole AE-17-45;
- 1.56 g/t gold over 3.0 metres (77.0 to 80.0 metres) in hole AE-17-47; and
- 1.22 g/t gold over 4.0 metres (86.0 to 90.0 metres) in hole AE-17-48.
Drill hole AE-17-46 (3.63 g/t gold over 12.0 metres) is located 50 metres down-dip from previously reported hole AE-16-40 (5.52 g/t gold over 15.0 metres (34.0 to 49.0 metres)) and drill hole AE-17-45 is located 40 metres up-dip from previously reported hole AE-16-33 (2.91 g/t gold over 12.1 metres (68.3 to 80.4 metres)). Drill holes AE-17-47 and 48 are located 50 and 100 metres, respectively, down-dip of hole AE-16-33. Argyle remains open for expansion and the assay results for the remaining four holes in this 1,000-metre program are pending.
President and CEO, Dustin Angelo, states; "The Company continues to outline a strong gold-bearing system at Argyle that is open for further expansion. We expect additional drilling to further define the extent and distribution of higher-grade thick zones at Argyle. Based on our exploration work to date, and planned infill drilling, we expect to publish an NI 43-101 compliant resource and see the potential to bring Argyle into the production profile at Point Rousse in the medium term."
Exhibit A. A map showing the location of drill holes reported in this press release (red), drill holes with assays pending (blue) and previous drilling (black). The high-grade areas are outlined in red with all mineralization outlined in black.
Exhibit B. A cross section (4+25E) showing the location of hole AE17-46 relative to other Argyle mineralization including AE16-40, which together outline the thicker, high-grade zones within Argyle.
Objective of 1,000-Metre Drill Program
The 1,000-metre drill program is testing continuity of two higher-grade zones of mineralization with thicknesses ranging between 6.0 and 15.0 metres. These two zones are down-dip to the north and located in the northern and eastern parts of the drilling area (Exhibit A). The easternmost higher-grade zone to date is outlined by drill holes AE-16-33, AE-16-40 and AE-16-43 and averages 14 metres thick with composited assays between 2.91 g/t and 5.52 g/t gold. The northernmost higher-grade zone, outlined by drill hole AE-16-39, is 6.0 metres thick with a composited grade of 9.31 g/t gold and is open along strike and down-dip.
Overview of Previous Exploration Work at Argyle
Since initial trenching and two phases of diamond drilling at Argyle, Anaconda has discovered a shallow-dipping, near-surface (less than 100 vertical metres), mineralized gold system with a strike length of over 600 metres and a down-dip extension to at least 225 metres. Argyle remains open both along strike and down-dip. A complete list of previous drill results can be found in press releases dated January 18, 2017 and October 12, 2016.
Highlights from the previous drilling include:
- 5.52 grams per tonne ("g/t") gold over 15.0 metres (34.0 to 49.0 metres) in hole AE-16-40;
- 9.31 g/t gold over 6.0 metres (86.8 to 92.8 metres) in hole AE-16-39;
- 2.95 g/t gold over 15.0 metres (94.0 to 109.0 metres) in hole AE-16-43; and
- 2.91 g/t gold over 12.1 metres (68.3 to 80.4 metres) in hole AE-16-33.
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 this press release are estimated to be approximately 80 – 100% of true widths.
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 recently acquired 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.
