Anaconda Mining Initiates Resource Expansion and Exploration Program at Point Rousse Project
TORONTO, June 20, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce plans for a resource expansion and exploration program ("Exploration Program") for the summer/fall of 2018 at the Company's wholly owned Point Rousse Project ("Point Rousse") in the Baie Verte Mining District of Newfoundland, which includes the fully-operational Pine Cove Mill and tailings storage facility. The Exploration Program consists of 5,000 metres of diamond drilling at three priority targets at Point Rousse: expansion drilling at the Argyle Deposit, and exploration drilling at the Anoroc and Deer Cove Prospects. The Exploration Program will also include 30-line kilometres of ground magnetic and Induced Polarization ("IP") geophysical surveys.
"Since 2010, the Point Rousse Project has produced 118,028 ounces of gold and generated approximately $50 million in Project-level EBITDA*. In that time, Anaconda has developed two mining operations and is in the process of developing a third at Argyle. The Exploration Program will focus on resource expansion at the Argyle Deposit as well as drilling at the Anoroc and Deer Cove Prospects, where we believe there is high potential for the discovery of more gold deposits. Our goal is to continue to extend our production profile at Point Rousse, which currently includes two years of mineral reserves from Pine Cove and Stog'er Tight, with expected throughput to follow from Argyle, which is currently in the permitting process. The Exploration Program supports our growth strategy in Atlantic Canada, leveraging the Company's extensive mine and mill infrastructure."
~Dustin Angelo, President and CEO, Anaconda Mining Inc.
*Refer to Non-IFRS Measures section below
Significant exploration and development attributes of the Point Rousse Project include:
- Ore production from two mining areas, three mineral deposits, numerous prospects and showings;
- A 1,300 tonne per day mill, in-pit tailings facilities with 15 years of storage at current throughput rates, and a deep-water port able of docking Panamax size vessels;
- Three mineralized trends with approximately 20 kilometres of prospective geology including the Scrape, Goldenville and the Deer Cove Trends;
- The Pine Cove, Stog'er Tight and Argyle Deposits are located within the Scrape Trend and define a 5-kilometre strike of fertile geology and cumulatively contain 119,570 ounces of Indicated Resources (1,610,600 tonnes at 2.30 g/t) and 78,090 ounces of Inferred Resources (1,245,300 tonnes at 1.95 g/t)**;
- Highly prospective for the discovery of gold through expansion of existing deposits or the discovery of new deposits; and
- Well understood geological and exploration model.
As outlined in Anaconda's recent NI 43-101 Technical Report, dated February 26, 2018, the Company has over two years of reserves from the Pine Cove and Stog'er Tight mines at the Point Rousse Project. This includes 191,500 tonnes of higher grade mineral reserves from the Stog'er Tight mine and the addition of two pushbacks at the Pine Cove mine, scheduled for 2019. The Argyle Deposit is anticipated to be the next available feed source to the Pine Cove Mill, with permitting underway. The Argyle Deposit remains open for expansion with the potential to increase in size over the next year, because of an improved geological understanding of the mineralized areas leading to more efficient drilling.
In addition to Argyle, two other key drill targets, the Anoroc and Deer Cove prospects, have the potential to provide additional resources for development, as they have similar geological characteristics and setting to the Pine Cove, Stog'er Tight and Argyle deposits.
The Exploration Program will begin in late June and is expected to continue into the early fall of 2018. Drill results will be released as they are available and interpreted.
Argyle
The Argyle Deposit contains a NI 43-101 resource including 38,300 ounces Indicated Resources (543,000 tonnes grading 2.19 g/t gold) and 30,300 ounces of Inferred Resource (517,000 tonnes grading 1.82 g/t gold) **. The deposit is hosted within the Argyle Gabbro and trends easterly and remains open for expansion in all directions (Exhibit B). The Exploration Program at Argyle will include 3,000 metres of diamond drilling, 15 line kilometres of IP and magnetic surveying as well as detailed soil geochemistry and geological mapping. Drilling is designed to follow up on the high-grade results from drilling in winter 2018 that intersected 12.47 g/t gold over 5.0 metres and 7.87 g/t gold over 7.0 metres in drillholes AE-17-38 and AE-17-74 respectively.
Anoroc
The Anoroc Prospect is hosted within the same geological setting and host rocks as the Pine Cove Deposit and includes approximately 500 metres of strike between Anoroc and the Pine Cove Mine. Drilling at Anoroc will test for the westerly continuation of mineralization between the west end of the Pine Cove Pit and the Anoroc Prospect to the southwest where previous drilling has outlined gold mineralization including 2.68 g/t gold over 15.9 metres in drillhole PC-15-257 (see news release dated January 25, 2016) and 9.9 g/t gold over 2.0 metres in historical drillhole AN-90-01. A 15 line kilometer ground magnetic survey is also contemplated to be completed at Anoroc (Exhibit C).
Deer Cove
The Deer Cove Prospect includes all showings associated with a similar geological setting and host rocks as at the Pine Cove Mine and includes a gold bearing quartz vein explored by Noranda with an exploration adit in the 1980s (Exhibit D). The Exploration Program at Deer Cove will comprise compilation of historic IP geophysical surveys and drill testing of combined geochemical and geophysical targets along the Deer Cove Trend. Historic drilling associated with the quartz vein at Deer Cove includes the following select drill results:
- 22.74 g/t gold over 5.0 metres in drillhole DC-86-001;
- 11.97 g/t gold over 4.1 metres and 26.12 g/t gold over 3.6 metres, and 5.80 g/t gold over 3.4 metres in drillhole DC-87-073;
- 29.60 g/t gold over 1.7 metres in drillhole DC-88-100; and
- 24.39 g/t gold over 2.3 metres in drillhole DC-10-122.
A table of Point Rousse Probable Mineral Reserves:
| Point Rousse Probable Mineral Reserves(1)(2) |
||||
| Deposit |
Cut-off (g/t) (3) |
Probable Tonnes(4) |
Au (g/t) |
Ounces |
| Pine Cove |
0.5 |
696,200 |
0.96 |
21,440 |
| Stog'er Tight |
1.0 |
191,500 |
2.39 |
14,740 |
| Total |
887,700 |
36,180 |
||
| (1) The mineral reserve estimates for the Point Rousse Project have been calculated as of December 31, 2017. There have been no material changes to the mineral reserves since the filing of the Technical Report prepared for Anaconda titled, "NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada" with an effective date of December 31, 2017 (the "Point Rousse Technical Report"), other than from depletion due to mine operations. |
| (2) The Pine Cove and Stog'er Tight Mineral Resource statement is inclusive of Mineral Reserves |
| (3) Grams per tonne |
| (4) Mineral reserves have been rounded to 100 tonnes, ounces to 0.01 g/t Au and 10 ounces. Minor discrepancies in summation may occur due to rounding. |
This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc. and Gordana Slepcev, Chief Operating Officer with Anaconda Mining, both "Qualified Persons", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
** Mineral Resources are not Mineral Reserves and do not imply the economic viability of the resource. The Pine Cove Resource statement includes the Pine Cove Reserves. Resources reference "NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse project Baie Verte, Newfoundland and Labrador, Canada" Effective Date: December 31, 2017.
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 is a TSX-listed gold mining, development, and exploration 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 Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and tailings facility, and approximately 5,800 hectares of prospective gold-bearing 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, including the Great Northern Project on the Northern Peninsula of Newfoundland and the Tilt Cove Property on the Baie Verte Peninsula, also in Newfoundland.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, the Company's future exploration, development and operational plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the seven-month period ended December 31, 2017, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.
Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, [email protected], www.AnacondaMining.com; Anaconda Mining Inc., Lynn Hammond, VP Public Relations, (709) 330-1260, [email protected]; Reseau ProMarket Inc., Dany Cenac Robert, Investor Relations, (514) 722-2276 x456, [email protected]
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