TORONTO , May 7, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the
Company") - (ANX.TO) reports historic assay results from 20
previously drilled holes by predecessor property holders from 1986 to
1988 and 2010 on its recently optioned Deer Cove property, which is
located approximately 8 kilometers from the Pine Cove mill on the
Ming's Bight Peninsula (See Exhibit A for location map).
Highlights:
-
Hole DC86001intersected 5.0 meters of 22.74 grams per tonne ("g/t") gold
from 3.2 meters below surface;
-
Hole DC87073 had gold mineralization of 11.97 g/t over 4.1 meters from
89.8 meters to 93.9 meters; 26.12 g/t over 3.6 meters from 97.7 meters
to 101.3 meters; 5.80 g/t over 3.4 meters from 105.3 meters to 108.7
meters;
-
DC88100 intersected 29.60 g/t over 1.7 meters from 41.3 meters to 43.0
meters;
-
DC10122 intersected 24.39 g/t over 2.3 meters from 25.9 meters to 28.2
meters.
President and CEO, Dustin Angelo , stated, "The wealth of historic data
at Deer Cove helps expedite the development of the project. There has
already been 138 holes drilled, an access road put in place and 500
meters of underground development. We will begin a drill program at the
end of May to infill and confirm previous drill results, and test down
dip below the level of historic drilling. Historic assay results are
quite strong and we look forward to expanding the resource and
ultimately putting Deer Cove into production to supplement the current
ore feed from the Pine Cove pit."
2014 Deer Cove Exploration Program:
Anaconda has completed its compilation and review of the historic Deer
Cove exploration data and is progressing with its next phase of
exploration. A 2,000-meter diamond-drill program will begin in late May
upon receipt of its exploration permit and will focus on both infill
drilling and testing down-dip along the Deer Cove Thrust below the
level of historic drilling. The program is expected to take about six
weeks to complete. The drilling will be carried out by New Valley
Drilling of Springdale under the supervision of Silvertip Exploration
Consultants. The new data will be incorporated into the historic data
to produce a resources estimate for the Deer Cove deposit.
Deer Cove Project Background:
In 1986, Noranda Exploration Company Limited discovered the Deer Cove
gold deposit after follow up prospecting and trenching of extensive
gold-in-till anomalies near Deer Cove Pond. A Noranda-Galveston
Resources Limited joint venture (1987-1989) conducted a detailed
exploration program including 138 diamond-drill holes, construction of
a 7.2 km access road and 507 meters of underground exploration.
Highlights of the Noranda diamond-drill program are presented in Table
1.
Hole ID
|
From
meters
|
To
meters
|
Length
meters
|
Au
grams/tonne
|
DC86001
|
3.2
|
8.2
|
5
|
22.74
|
DC86002
|
5.2
|
9.91
|
4.71
|
10.24
|
DC86003
|
10.75
|
13.5
|
2.75
|
7.08
|
DC86007
|
15.4
|
17.75
|
2.35
|
6.57
|
DC86014
|
32.8
|
35.5
|
2.7
|
6.74
|
DC86052
|
42.5
|
45.4
|
2.9
|
7.33
|
DC87059
|
135.6
|
137.1
|
1.5
|
8.05
|
DC87067
|
42.5
|
45.9
|
3.4
|
11.13
|
DC87073
|
89.8
|
93.9
|
4.1
|
11.97
|
DC87073
|
97.7
|
101.3
|
3.6
|
26.12
|
DC87073
|
105.3
|
108.7
|
3.4
|
5.80
|
DC87077
|
88.5
|
92.1
|
3.6
|
5.26
|
DC87083
|
60
|
62.2
|
2.2
|
6.94
|
DC87091
|
99.7
|
105.8
|
6.1
|
7.22
|
DC87094
|
86
|
88
|
2
|
17.91
|
DC87095
|
88.8
|
90.5
|
1.7
|
4.89
|
DC88100
|
41.3
|
43
|
1.7
|
29.60
|
DC88101
|
105.3
|
106.8
|
1.5
|
5.86
|
DC10120
|
7.2
|
9.5
|
2.3
|
7.95
|
DC10122
|
25.9
|
28.2
|
2.3
|
24.39
|
DC10130
|
26.4
|
28.2
|
1.8
|
15.11
|
DC10131
|
37
|
39.1
|
2.1
|
7.83
|
Table 1. Selected historic diamond-drill assay results, Deer Cove. Results are
weighted averages. All historic assay intervals refer to core length
and at present true thicknesses of mineralized zones are not known by
Anaconda.
No further work was undertaken and the property reverted to Crown Land
on November 11, 1998 . The area surrounding the Main Zone and the nearby
Deer Cove talc resource was made Exempt Mineral Lands. In 1999, a call
for proposals to develop the property was issued by the Government of
Newfoundland and Labrador and in 1999 it was announced that the mineral
rights to the Exempt Mineral Land had been awarded to WMC International
Limited. Unfortunately, no further work was completed and the land once
again reverted to the Crown.
Between 2001-2002 and 2005-2006, South Coast Ventures Incorporated
staked significant portions of the Ming's Bight Peninsula, including
Deer Cove, and subsequently digitized much of the historic exploration
information including the underground data for Deer Cove. In 2010,
Tenacity Gold Mining Company Inc. ("Tenacity") contracted P&E Mining
Consultants Inc. ("P&E") to undertake a mining and economic analysis of
the Deer Cove project. P&E reported that the Deer Cove deposit, the
portion lying above 45 meters above sea level, contained an estimated
resource of 12,900 tonnes grading 10.45 grams/tonne ("g/t") gold at a
cutoff grade of 6.0 g/t. (This is an historical resource and has not
been verified by Anaconda.) The Deer Cove lease reverted to 1512513
Alberta Ltd. ("Alberta") and, in November 2013 , Anaconda optioned the
Deer Cove lease and other mining licenses around it from Alberta .
Geologic Overview of Deer Cove
The Deer Cove deposit is hosted by ophiolitic rocks of the Point Rousse
Complex. It is hosted by mafic volcanic rocks which are faulted against
talc-carbonate and serpentinized ultramafic rocks along the Deer Cove
Sole Thrust. This south-verging thrust trends roughly east-northeast
and dips 50° to 60° to the north-northwest. Gold mineralization is
hosted by discontinuous lenses of brecciated quartz developed within an
approximately north-south striking, 45°-55° west-dipping structure. The
breccia lenses average less than 1 meter in width but locally they may
reach up to 3 meters. Pyrite with lessor chalcopyrite and arsenopyrite
occur disseminated in the wallrock, breccia fragments and quartz veins.
The Main Zone has been traced by trenching and diamond drilling (87
holes drilled from surface) over a 500 m strike length, but is still
open along strike to the north and down-dip. Within the Main Zone, the
gold occurs both as free gold within the quartz veins and the altered
wallrock, and disseminated within the sulphide minerals. There is a
direct correlation between gold grades and pyrite concentrations. The
best historic gold grades were reported from the most deformed sections
of the zone, closest to the sole thrust where the zone abuts a
jasper-rich volcaniclastic unit. Noranda reported that the southernmost
32 meters of the zone contained abundant visible gold and averaged
14.25 g/t Au over a width of 2.9 meters. Here the ore zone is crumpled
into a series of sharp folds which plunge to the northwest.
While the Company has no reason to doubt the accuracy of the historic
results, the existing data should not be relied upon until the
Company's own exploration work confirms that the data meet National
Instrument 43-101 standards for disclosure. Historic results and the
work that generated them predate the enactment of National Instrument
43-101, and may not meet the requirements of that policy.
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 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 (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140507_C6922_PHOTO_EN_40055.jpg