TORONTO , Sept. 15, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the
Company") - (ANX.TO) is pleased to announce the initiation of
drilling on its Stog'er Tight gold project, located approximately three
kilometers east of the Pine Cove mill along the Pine Cove mine road
(see Exhibit A: Deer Cove and Stog'er Tight Option map).
The 2014 Stog'er Tight program consists of 2,000 meters of Diamond
drilling designed to infill portions of the deposit and expand the
deposit size. In addition, the Company will build on the historic data
and better understand the geological setting and distribution of gold
within the deposit. The Company's short term goal is to outline a
deposit that has at least a five-year mine life at the current Pine
Cove mill throughput rate of approximately 1,000 tonnes per day. If
Stog'er Tight has a five-year mine life, then the Company would nearly
double the life of the Pine Cove Project to almost 10 years. Drilling
will be supplemented by detailed geochemical analysis and structural
mapping of the deposit to determine geological controls on
mineralization and to develop grade-control techniques for use in
mining. The Company expects to do more drilling beyond this initial
2,000 meters along with other analytical and scoping related work to
develop the ultimate pit and mine plan.
President and CEO, Dustin Angelo , states, "The Company is implementing a
strategy to grow the Pine Cove Project by developing Pine Cove style
resources like Stog'er Tight to extend the life of the Pine Cove
Project and continue feeding the base-load production of the mill.
Through other, potentially higher grade, deposits on the Ming's Bight
Peninsula close to our mill, the Company would supplement the base-load
feed to increase the overall head grade into the mill at a potentially
lower incremental cost. Our immediate focus is on extending the life of
the project and we view the Stog'er Tight deposit as a significant
component in demonstrating our ability to do so."
History of Stog'er Tight Project:
The Company acquired a 100% undivided interest in the Stog'er Tight
project through a three-year option agreement with 1512513 Alberta Ltd.
("Alberta Ltd."), a subsidiary of Coordinates Capital, as part of
Anaconda's decision to consolidate the Pine Cove gold mining district.
In 2010, P&E Mining Consultants Inc., reported an estimated mineral
reserve of 65,200 tonnes grading 4.96 grams/tonne ("g/t") gold
(approximately 10,400 ounces), an indicated resource of 96,000 tonnes
grading 7.04 g/t gold (approximately 21,700 ounces) and an inferred
resource of 53,000 tonnes grading 5.75 g/t gold (approximately 9,800
ounces) (This is a non-NI 43-101 compliant resource estimate*).
For more information on this transaction and the history of the Stog'er
Tight project please refer to the Company's November 20, 2013 news
release (available at www.SEDAR.com).
Deer Cove Project Update:
The previously announced drilling program on the Deer Cove project (see
June 11, 2014 news release available at www.SEDAR.com) was completed in early September and final analytical results of the
program are pending. The results of this program will be communicated
once the final assays are completed and the Company has assessed the
significance of the data and determined the next steps required in the
Deer Cove project.
This news release has been reviewed 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.
*While the Company has no reason to doubt the accuracy of the Stog'er
Tight historic resource estimate by P&E Mining Consultants Inc., it
should not be relied upon and is presented here only as a statement of
historical significance. If the Company considers it prudent, a new
resource estimate will be produced in compliance with National
Instrument 43-101 Standard for Disclosure of Mineral Projects.
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 growth and is based on current expectations and assumptions
of management that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statements include, but are not
limited to: current and future market trends and growth opportunities
and whether the Company will be able to capitalize upon them.
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 are based on
current expectations and 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 the Company assumes 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: "Exhibit A: Deer Cove and Stog'er Tight Option Map. (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140915_C9070_PHOTO_EN_42774.jpg