Anaconda Mining Inc. Infills and Extends the Goldboro Gold Deposit

Intersecting 27.12 g/t Gold Over 2.5 Metres, 16.65 g/t Gold Over 2.0 Metres, 50.60 g/t Gold Over 1.0 Metre and 102.43 g/t Gold Over 0.7 Metres

TORONTO, Sept. 4, 2019 - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce results from 18 diamond drill holes (BR-19-72 to BR-19-76 and BR-19-86 to BR-19-97 and BR-19-99) drilled in the East Goldbrook Gold System ("EG Gold System") at the Goldboro Gold Project in Nova Scotia ("Goldboro"). The 4,391 metres of diamond drilling were part of a recently completed 5,734-metre diamond drill program announced on February 28, 2019 and were designed to infill portions of the EG Gold System (6 drill holes) to upgrade resource categorization (the "Infill Drill Program") and to extend the EG Gold System (12 drill holes) east of the 2018 resource model limits at Section 9550E (the "Extension Drill Program") (Exhibit A, B and C).

Selected composited highlights from the recent Infill Drill Program include:

• 50.60 g/t grams per tonne ("g/t") gold over 1.0 metre (246.0 to 247.0 metres) in hole BR-19-89;
• 12.23 g/t gold over 2.0 metres (214.3 to 216.3 metres) in hole BR-19-89;
• 6.03 g/t gold over 2.9 metres (200.7 to 203.6 metres) in hole BR-18-90;
• 72.40 g/t gold over 0.6 metres (21.0 to 21.6 metres) in hole BR-18-87; and
• 32.62 g/t gold over 0.9 metres (290.7 to 291.6 metres) in hole BR-18-87.

Selected composited highlights from the recent Extension Drill Program include:

• 27.12 g/t gold over 2.5 metres (51.3 to 53.8 metres) in hole BR-19-97 including 133.11 g/t gold over 0.5 metres;
• 102.43 g/t gold over 0.7 metres (142.0 to 142.7 metres) in hole BR-19-86;
• 16.65 g/t gold over 2.0 metres (167.5 to 169.5 metres) in hole BR-18-88 including 65.49 g/t gold over 0.5 metres;
• 5.36 g/t gold over 2.2 metres (321.1 to 323.3 metres) in hole BR-18-75; and
• 17.79 g/t gold over 0.5 metres (192.8 to 193.3 metres) in hole BR-18-74.

"The Infill Drill Program successfully infilled specific portions of the EG Gold System that were identified for development in the 2018 Preliminary Economic Assessment and intersected gold mineralization with grade and widths consistent with those encountered during earlier drill programs. It is anticipated that the density of drilling will upgrade these areas of the resource to the Indicated category and will be able to be included in the upcoming mineral resource update. In addition to these results, the Extension Drill Program successfully demonstrated that the Goldboro Deposit continues eastward at least 375 metres beyond the previous geological modelling. These drill results will likewise be used to model the deposit eastward and will be included in a resource update. Anaconda has completed 15,837 metres of diamond drilling since July of 2018 which will be included in the new resource update and published in a Feasibility Study expected to be completed in the fourth quarter of 2019. "

~Kevin Bullock, CEO, Anaconda Mining Inc. 

The Infill Drill Program intersected high-grade, mineralized gold zones as predicted by the geological model and is expected to upgrade resource categorization in this area of the EG Gold System (Exhibit A and B), which was part of the mining scenario outlined in the Company's 2018 Preliminary Economic Assessment. The Infill Drill Program also demonstrated the continuity of mineralization in the EG Gold System where it intersected 10 instances of visible gold.

The Extension Drill Program extended the strike of the Goldboro Deposit eastward by 375 metres from the 2018 resource model limit (Exhibit A and C), encountering typical high-grade mineralization. In addition to extending the deposit strike, the Extension Drill Program identified 15 new mineralized zones in total and encountered 14 instances of visible gold. The EG Gold System now contains 26 separate mineralized zones (15 more than the 2018 resource model), has been tested to a known depth of 400 metres, and remains open for expansion.

Anaconda also intersected strong concentrations of high-grade mineralization (e.g. 27.12 g/t gold over 2.5 metres in hole BR-19-97) contiguous with other high-grade gold intercepts previously reported on February 28, 2019, which included 25.07 g/t gold over 1.5 metres (Exhibit C). These intercepts are located approximately 150 metres up plunge from another high-grade result of 215.74 g/t gold over 3.65 metres as previously reported from historical drilling. These results indicate there may be high-grade chutes located along the south dipping limb of the host fold structure within the EG Gold System (Exhibit C), which are common in other areas of the Goldboro Deposit. Several of these intercepts are less than 75 metres from surface and will be evaluated for open-pit potential as part of the on-going feasibility study.

Selected composited highlights from historic and previously reported drill results in the immediate area of the Infill and Extension Drill Programs include:

• 215.74 g/t gold over 3.65 metres (193.85 to 197.50 metres) in hole OSK-11-04, including 1570.00 g/t gold over 0.5 metres
• 137.77 g/t gold over 1.50 metres (117.00 to 118.50 metres) in hole OSK-11-02, including 412.00 over 0.50 metres
• 252.76 g/t gold over 0.4 metres (76.6 to 77.0 metres) in hole BR-18-15;
• 23.24 g/t gold over 2.5 metres (21.5 to 24.0 metres) in hole BR-18-28;
• 7.12 g/t gold over 4.5 metres (193.5 to 198.0 metres) in hole BR18-29;
• 25.31 g/t gold over 1.0 metre (62.0 to 63.0 metres) in hole BR-18-18; and
• 12.87 g/t gold over 2.0 metres (130.6 to 132.6 metres) in hole BR-18-18.

A table of selected composited assays from the Infill Drill Program reported in this press release:

 

A table of selected composited assays from the Extension Drill Program reported in this press release:

 

No significant composites were noted from hole BR-19-72. 

Additional Drilling at Goldboro

As part of the drilling announced in February 28, 2019, Anaconda has completed an additional 740 metres of drilling in 6 diamond drill holes (BR-19-98 and BR-19-100 to BR-19-104) near the center of the Goldboro deposit. These holes were drilled to infill specific portions of the Goldboro Deposit that required more drilling as identified by the ongoing resource update. Results from these six drill holes will be released upon receipt of the final assays.

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 (30 g) with an AA finish.

Samples analyzing greater than 0.5 g/t Au via 30 g fire assay were re-analyzed at Eastern via total pulp metallic. For the total pulp metallic analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150-mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Anaconda considers total pulp metallic analysis to be more representative than 30 g fire assay in coarse gold systems such as the Goldboro Deposit.

Reported mineralized intervals are measured from core lengths. Intervals 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

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. 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 year ended December 31, 2018, 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.



Contact

Anaconda Mining Inc., Kevin Bullock, Chief Executive Officer, (647) 388-1842, kbullock@anacondamining.com; Reseau ProMarket Inc., Dany Cenac Robert, Investor Relations, (514) 722-2276 x456, Dany.Cenac-Robert@ReseauProMarket.com