Anaconda Mining Provides Update on Gold Exploration Program at Pine Cove
TORONTO, Sept. 13, 2012 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to provide an update on its 2012 gold exploration program at its Pine Cove mine on the Baie Verte Peninsula, Newfoundland. Anaconda through a combination of staking and option agreements holds mineral exploration rights to approximately 4,335 hectares adjacent to Pine Cove. These rights cover highly prospective rocks of the Point Rousse ophiolite complex which is known to host "Mother-Lode-Style" gold mineralization. The 2012 exploration program has three objectives: 1) to re-evaluate the exploration potential immediately north of the Pine Cove deposit; 2) to identify drill targets regionally across the Pine Cove mining lease, the mining licenses acquired through recently announced option agreements and staked property; and 3) to obtain a bulk sample from the Romeo and Juliet prospect for metallurgical testing.
| 1. | Pine Cove Mine: In 2011, Anaconda tested the potential down-dip extension of the Pine Cove deposit north of the mine with a three hole diamond-drill program (see Anaconda Press Release July 27, 2011). Drill hole PC-11-181 assayed 2.5 grams per tonne gold over 40.8 metres. In March, 2012 Anaconda followed up this discovery with two drill holes (Figure 1). PC-12-189, which was drilled 25 metres north of PC-11-181 at an azimuth of 180 degrees and a dip of -75 degrees, intersected several zones of gold mineralization, the widest assaying 0.848 grams per tonne gold over 32 metres. Drill highlights are presented in Table 1. PC-12-188, which was collared 44 metres south of PC-11-181 at a dip of -75 degrees and an azimuth of 175 degrees, deviated significantly to the east and did not intersect the projected mineralized zone. Therefore, the mineralized zone intersected in PC-11-181 and PC-12-189 still remains open. |
Table 1: Assay results for drill hole PC-12-189 (All thicknesses reported below are core lengths. True thickness is not known at this time).
| Hole | From (m) | To (m) | Width (m) | Au g/t |
| PC-12-189 | 189 | 198 | 9 | 0.814 |
| incl | 194.05 | 195 | 0.95 | 1.308 |
| incl | 197 | 198 | 1 | 1.899 |
| PC-12-189 | 214 | 216 | 2 | 1.775 |
| PC-12-189 | 255 | 287 | 32 | 0.848 |
| incl | 263.05 | 264 | 0.95 | 4.264 |
| 264 | 265 | 1 | 8.475 | |
| incl | 274 | 275 | 1 | 3.093 |
| incl | 282.1 | 283 | 0.9 | 1.885 |
More recently, during the overburden stripping in preparation for the North phase of mining, favorable geology, similar to that which hosts the main zones in the deposit, was observed. This has prompted the Company to re-evaluate the near surface and down-dip exploration potential of this area.
| 2. | Regional Exploration: Past mineral exploration activities in the Ming's Bight area on the Baie Verte Peninsula, dating mainly from the period 1985-1990, resulted in an extensive collection of archived data that includes more than 30,000 gold-in-soil geochemical analyses. Much of this data has never been adequately followed up and many anomalies have not been explained. Compilation and digitizing of this historic geophysical and soil geochemical data was initiated by Tenacity Gold Mining Company Limited and completed by Anaconda. Beginning in June 2012, prospecting teams started following up the historic soil data. To better define exploration targets and to validate the historic data approximately 430 soil samples have been collected and sent for analyses (Figure 2) and sampling is continuing. Various trenching targets have been identified and work will commence pending receipt of the respective permits for each target area. The Company has received the permit for the initial trenching target, which is located approximately one kilometer northeast of the Pine Cove mine. | |||
| 3. | Romeo and Juliet Bulk Sample: The Romeo and Juliet prospect is a gold-bearing quartz vein system located 1.5 kilometers northwest of the Pine Cove mine. The veins were discovered in 1988 and have been trenched and tested by 18 shallow diamond-drill holes. The veins contain very fine, free gold making sampling a challenge ("nugget effect") as historic chip and channel samples returned quite variable assay values including 1.15 grams per tonne gold over 6 metres from the Romeo zone up to 23 grams per tonne over 1.0 metre from the Juliet zone. In 1993, a 10-tonne "mini" bulk sample was collected from the Juliet zone and 3,035 kilograms were processed returning a head grade of 36.68 grams per tonne gold (this data is historic in nature and has not been verified by Anaconda). In August 2012, 24 grab samples were collected from the Juliet zone and assay results ranged from a low of 10 parts-per-billion gold up to 130.7 grams per tonne gold. Anaconda plans to extract a 1,000-tonne bulk sample, pending permitting, which would help better define gold grade and provide samples for metallurgical testing. The Company applied for the permit at the end of August and expects to receive it within two months. |
President and CEO, Dustin Angelo, stated: "Anaconda's early stage prospecting program has successfully replicated many of the historic soil anomalies on our property and we have confidence to move forward on trenching targets. Romeo and Juliet is progressing well with the bulk sample being a key milestone to determining the ultimate potential of what appears to be a high grade quartz vein. The exploration potential around and adjacent to Pine Cove has never been better and we plan to drill the most prospective areas when they have been properly vetted."
All Anaconda samples were submitted by Anaconda personnel to Eastern Analytical Laboratory in Springdale, Newfoundland for assay.
This news release has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a "Qualified Person" under National Instrument 43-101.
ABOUT ANACONDA
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
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: "Figure 1 - Pine Cove Diamond Drill Hole Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20120913_C6175_PHOTO_EN_17796.jpg
Image with caption: "Figure 2 - 2012 Sample Location Map (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20120913_C6175_PHOTO_EN_17797.jpg
Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
Email: dangelo@anacondamining.com
ProConsul Capital Ltd.
Andreas Curkovic
Investor Relations
(416) 577-9927
Email:acurkovic@proconsulcapital.com
Company website: www.anacondamining.com
