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Anaconda Mining Inc (2)
Symbol ANX
Shares Issued 134,699,162
Close 2019-11-26 C$ 0.23
Recent Sedar Documents

Anaconda starts drilling, trenching at Tilt Cove

2019-11-27 07:14 ET - News Release

Mr. Kevin Bullock reports

ANACONDA MINING DISCOVERS NEW PROSPECTIVE AREAS AT ITS TILT COVE GOLD PROJECT AND INITIATES TRENCHING AND DRILLING PROGRAM

Anaconda Mining Inc. has initiated trenching and drilling at key exploration targets at the Tilt Cove gold project, located within the Baie Verte mining district in Newfoundland, approximately 45 kilometres by road from the company's Pine Cove mill. Tilt Cove is a significant, recently consolidated land package encompassing the same geological trend as the past-producing, high-grade Nugget Pond mine, which had an average recovered grade of 9.85 grams per tonne gold. Tilt Cove covers a 20-kilometre strike extent of the Betts Cove complex, a highly prospective geological terrane including the Nugget Pond horizon, the iron-rich sedimentary unit that hosts the past-producing Nugget Pond mine.

Since providing an update on Sept. 5, 2019, Anaconda has received final results from a lidar survey over the entire area, detailed drone magnetic survey (453 line kilometres) covering the Nugget Pond horizon and assays from all soil (2,335) samples and prospecting (1,045) samples. From these data sets the following advances have been made:

  • Discovered the new Growler showing with seven grab samples ranging in grade from 2.11 to 5.68 grams per tonne gold, with similarities to Nugget Pond-style gold mineralization;
  • Discovered a new prospective iron formation, the Red Cliff horizon, in the footwall of the Nugget Pond horizon with a six-kilometre strike, establishing two potential host rocks for Nugget Pond-style gold mineralization in this area;
  • Acquired new land adjacent to the Growler showing that hosts the Betts Big Pond showing with historic grab samples up to 60.66 g/t gold and chip samples of 8.19 g/t gold over 2.3 metres;
  • Developed three drill targets associated with coincident structures that cross the Nugget Pond and Red Cliff horizons, associated with low magnetic intensity and include gold-in-soil anomalies located along the southeast trend of historic glacial movement (down ice);
  • Identified a broad gold-in-soil anomaly down ice from the Red Cliff Pond target;
  • Found 154 samples with anomalous gold (82 samples greater than 0.50 g/t gold, 31 greater than 3.00 g/t gold and 14 high-grade samples ranging from 5.16 g/t gold to 216.10 g/t gold) and two visible gold occurrences;
  • Initiated a trenching program and a diamond drilling program of up to 4,000 metres, including initial trenching and 1,000 metres of drill testing at the Growler showing, West Pond and Red Cliff Pond targets.

"Based on data from our recent comprehensive exploration evaluation program, combined with historical data, we have identified exciting new opportunities for discovery at the Tilt Cove gold project and have initiated trenching programs and drill testing of these targets. The identification of the Red Cliff horizon parallel with the Nugget Pond horizon over a six-kilometre strike means there are now two potential host rocks for Nugget Pond-style gold mineralization in this area. We have also discovered the Growler showing, which bares similarities to Nugget Pond-style gold mineralization and is located in the immediate hangingwall of a large-scale fault system and acquired another property hosting the Betts Big Pond showing. The Growler showing is currently being tested through trenching and drilling, with drilling at the West Pond and Red Cliff Pond targets to follow. We expect to complete these initial trenching and drilling programs by the end of the year and anticipate commencing a second phase of drilling at Tilt Cove in the new year," said Kevin Bullock, president and chief executive officer, Anaconda Mining.

The Red Cliff horizon

The Red Cliff horizon is a previously unrecognized prospective horizon at Tilt Cove located between 50 and 200 metres northwest of, and within the footwall stratigraphy to, the steeply dipping Nugget Pond horizon and has a strike of approximately six kilometres. Like the Nugget Pond horizon, the Red Cliff horizon includes iron-rich, magnetic rocks known to be important hosts to gold deposits like the Nugget Pond deposit. Anaconda has identified three targets (the West Pond, East Pond and Red Cliff Pond targets) located along a six-kilometre strike of both the Nugget Pond horizon and the Red Cliff horizon where there is a confluence of crosscutting structures, breaks in magnetic intensity and down-ice gold-in-soil anomalies, all consistent with the setting of the Nugget Pond deposit.

The Growler showing

The Growler showing is located 1.2 kilometres west of the Nugget Pond mine and is hosted within sedimentary rocks similar to those hosting the Nugget Pond mine. The rocks hosting the Growler showing are highly altered and contain abundant (up to 10 per cent) coarse, cubic pyrite as part of the alteration system, a common feature at the Nugget Pond deposit. The Growler showing is in the hangingwall of a large-scale fault system as is common to many gold deposits in the Baie Verte mining district. Ten grab samples were all anomalous in gold including seven samples grading between 2.11 g/t and 5.68 g/t gold.

The Betts Big Pond showing

The Betts Big Pond showing is located 1.9 kilometres west of the Nugget Pond mine and 700 metres west of the Growler showing. The Betts Big Pond showing is hosted in a similar setting to the Nugget Pond mine but near a faulted contact with younger Silurian intrusive rocks of the Cape Brule porphyry. Alteration comprises disseminated pyrite and associated quartz veins. Historic grab sampling completed in 1987 includes assays up to 60.66 g/t gold and chip sampling in 2017 across the exposed zone assaying 8.18 g/t gold over 2.3 m (true width unknown). Due diligence resampling by Anaconda yielded grab samples assaying up to 3.36 g/t gold.

Highlights of the Tilt Cove gold project:

  • Large land position that has been consolidated for gold exploration for the first time in decades with 20 kilometres of prospective strike, encompassing the Nugget Pond horizon, which hosts the past-producing high-grade Nugget Pond;
  • Includes the newly identified Red Cliff horizon, which is an iron-rich magnetic rock prospective for gold deposits;
  • Nugget Pond mineralization is like other banded-iron-formation-hosted lode gold deposits, such as Meadowbank, Lupin, Meliadine and Homestake;
  • Includes the Venams Bight formation, which is the same formation that hosts the Pine Cove mine at the Point Rousse project;
  • Significant high-grade historical drill intercepts and the identification of 13 high-priority gold exploration targets including:
    • 6.77 g/t gold over 5.0 metres in hole BC-89-02;
    • 11.20 g/t gold over 1.1 metres in hole BC-89-01;
    • 8.82 g/t gold over 1.0 metre in hole NBC-96-01;
  • Land package also includes the past-producing Tilt Cove and Betts Cove copper mines.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda Mining, a qualified person, under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

All non-historic samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, Nfld., for Au by fire assay (30 g) with an AA (atomic absorption) finish.

Composited assays from historical drill core are compiled from historic reports and data filed with the Department of Natural Resources, Newfoundland and Labrador. Sufficient work has not been completed by Anaconda geologists and QPs to verify the validity of these composited assays.

About Anaconda Mining Inc.

Anaconda is a 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 deepwater port, as well as about 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 a continuing feasibility study.

We seek Safe Harbor.

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