Anaconda Mining Intersects 12.47 g/t Gold over 5.0 Metres at Argyle; Expands Deposit Along Strike

TORONTO, Jan. 15, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX:ANX) is pleased to provide initial assay results for the recently announced diamond drill program (See Press Release dated November 29, 2017) near the Argyle deposit ("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 (See Exhibit A).

The highlight of the drilling near Argyle includes 12.47 grams per tonne ("g/t") gold over 5.0 metres in hole AE-17-58 located 85 metres east of the current Argyle resource.

"On the heels of announcing the Argyle resource, we have discovered that the deposit continues at least another 85 metres east, and approximately 40 metres from surface, demonstrating the strike of the deposit is at least 15 percent greater than previously known.  Furthermore, the significant grade of this new intercept could indicate we are within another high-grade shoot similar to what has been observed elsewhere in the deposit. We plan to test the high-grade shoot concept in our next round of drilling."

~ Dustin Angelo, President and CEO

Six diamond drill holes, totaling 816 metres, were drilled east of Argyle (See Exhibit A).  Two holes intersected mineralization and two intersected Argyle style alteration while the remainder did not because the strike of the geology ("Argyle Trend") changed to the east of the deposit.  It is interpreted that the Argyle Trend changes from generally an east-west trend to a Northeast-Southwest trend (See Exhibit A). To better target mineralization and track the trend farther east, the Company plans to conduct a ground magnetic and IP survey in the next few months.  These geophysical techniques were integral in identifying the initial Argyle deposit.

A table of composited assays from the Argyle drill program is shown below:

About Argyle

The Argyle Gold Deposit, located 4.5 kilometres east of the Pine Cove Mill adjacent to existing road networks, is defined over a strike length of 600 metres and to a down-dip depth of 225 metres and is open for expansion in all directions.  It currently contains an Indicated Resource of 543,000 tonnes grading 2.19 g/t gold (38,300 ounces) and an Inferred Resource of 517,000 tonnes grading 1.82 g/t (30,300 ounces) as outlined in the table below and as reported in a press release dated January 8, 2018 (Technical Report to be posted to SEDAR by February 22, 2018).  Metallurgical testing indicates that the Argyle mineralization could be processed at the Pine Cove Mill using the existing mill configuration achieving a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9% (See Press Release of November 8, 2017).

Argyle Mineral Resource Estimate – Effective Date: December 31, 2017

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 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. Drill core samples were routinely analyzed for Au at Eastern Analytical Ltd. in Springdale, NL ("Eastern"), using standard fire assay (30g) 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. Mineralized intervals referred to in this press release 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.

Diamond drilling at Argyle outlined within this press release, benefited from a JEA grant from the Department of Natural Resources, Government of Newfoundland and Labrador.  Anaconda thanks the Government of Newfoundland and Labrador for this assistance.

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

Exhibit A.  A geological map of the Argyle area showing the deposit outlined in red and the location of recent drilling.  Drilling indicates that the trend of mineralization changes towards the northeast-southwest from east-west at the deposit.  A geophysical survey will be conducted in this area to determine the location of the surface expression of the deposit east of existing drilling. (CNW Group/Anaconda Mining Inc.)" alt="Exhibit A.  A geological map of the Argyle area showing the deposit outlined in red and the location of recent drilling.  Drilling indicates that the trend of mineralization changes towards the northeast-southwest from east-west at the deposit.  A geophysical survey will be conducted in this area to determine the location of the surface expression of the deposit east of existing drilling.

ABOUT ANACONDA MINING INC.

Anaconda is a TSX-listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog'er Tight Mine and the Argyle deposit, as well as approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Project in Nova Scotia, a high-grade Mineral Resource.

The Company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.