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Anaconda Mining Inc (2)
Symbol ANX
Shares Issued 148,213,426
Close 2021-01-06 C$ 0.60
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Anaconda starts 1,000 m drill program at Lower Seal

2021-01-06 07:16 ET - News Release

Mr. Kevin Bullock reports

ANACONDA MINING INITIATES DRILL PROGRAM AT LOWER SEAL HARBOUR IN NOVA SCOTIA, LOCATED 1.6 KM FROM ITS GOLDBORO GOLD PROJECT

Anaconda Mining Inc. has initiated a 1,000-metre diamond drill program at the formerly producing Lower Seal Harbour property, located 1.6 kilometres southeast of the company's 100-per-cent-owned Goldboro gold project in Guysborough county, Nova Scotia. As previously announced in July, 2019, the company has entered into an option agreement to acquire a 100-per-cent interest in Lower Seal Harbour.

The drill program is focused on testing known gold mineralization hosted on the north limb of an anticlinal structure that is parallel to a similar anticline that hosts the Goldboro deposit, located approximately three kilometres to the north. The program will include the twinning of two historic drill holes to confirm high-grade intersections and to sample adjacent wall rock for low-grade mineralization, and testing whether the anticlinal structure immediately south of historical mining activity contains gold mineralization at shallow levels, particularly within the centre of the anticline. The company also plans to drill test two geophysical IP (induced polarization) chargeability anomalies that have not been previously tested.

Highlights of the Lower Seal Harbour property include:

  • Proximity to Anaconda's Goldboro gold project, within a similar geological setting and mineralization characteristics;
  • Significant high-grade, historical drill intercepts (1) reported by previous exploration work conducted in the 1980s consisting of 9,506.9 metres in 39 drill holes, including:
    • 18.91 grams per tonne gold over 1.69 metres including 87.54 g/t over 0.33 metre in hole LSH-88-021;
    • 7.49 g/t gold over 3.65 metres including 106.01 g/t over 0.25 metre in hole LSH-87-011;
    • 9.63 g/t gold over 1.46 metres in hole LSH-87-009;
    • 5.14 g/t gold over 2.18 metres in hole LSH-88-021;
  • History of intermittent past production (2) from 1904 to 1949 and reported 34,295 ounces of recovered gold (394,905 tonnes mined);
  • Historic mineralization remains open for expansion along strike and at depth.

"Our focus at Lower Seal Harbour is the discovery of further gold mineralization based on our experience at Goldboro, which is now the single-largest gold deposit in Nova Scotia. The current, early-stage work at Lower Seal Harbour is focused on determining the number of geological environments that host gold including previously untested wall rock adjacent to past workings; drill testing the hinge of the anticline, which, in the Goldboro deposit, represents one of the key mineralized environments; and drilling previously untested geophysical anomalies that have strong resemblances to anomalies at Goldboro. Should the Lower Seal Harbour property host another gold deposit, there is the potential to further expand the larger Goldboro gold project in the future," said Kevin Bullock, president and chief executive officer, Anaconda Mining.

Geology and history of past production

The Lower Seal Harbour mine produced 34,295 ounces of gold, after mining 394,905 tonnes intermittently between 1904 and 1949. Gold is hosted in both the quartz veins and anticlinal host greywacke and argillite of the Goldenville formation, with accessory arsenopyrite, pyrite and galena. Previously recognized mineralization is hosted solely on the limb of the fold with no past exploration undertaken in the hinge of the fold, which represents one of the key mineralized environments in the Goldboro deposit. Thirty-nine broad-spaced historical drill holes, totalling 9,506.9 metres, have tested the property to date.

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 Standards of Disclosure for Mineral Projects.

(1) All quoted drill core sample intervals, grades and production statistics have been compiled from historic assessment reports obtained from the government of Nova Scotia. Representative drill core from drilling in 1981, stored in Nova Scotia government facilities, has been inspected by Anaconda geologists for Lower Seal Harbour, though no mineralized core remained. The observed core was considered representative of the host rocks as described in terms of rock type and alteration. A 1988 assessment report related to drilling programs for Lower Seal Harbour was completed by Scotia Prime Resources Inc. with metallic screen fire assay analysis completed by Bondar-Clegg and Company Ltd. of Ottawa, Ont. No quality assurance/quality control procedures were noted in the Scotia Prime report.

(2) Historic production statistics for the Lower Seal Harbour are based on information compiled by the government of Canada, Geological Survey and taken directly from government reports, specifically Geological Survey of Canada open file 7150, environmental geochemistry of tailings, sediments and surface waters collected from 14 historical gold mining districts in Nova Scotia (2012) by M.B. Parsons, K.W.G. LeBlanc, G.E.M. Hall, A.L. Sangster, J.E. Vaive and P. Pelchat as well as Geological Association of Canada, Special Publication No. 5, mineral deposits of Canada, metallogenic summary of the Meguma gold deposits, Nova Scotia (2007).

Readers are cautioned that data quoted in this press release predate National Instrument 43-101 and it was not possible for Anaconda representatives to resample historic mineralized intervals. Sufficient work has not been completed by a qualified person to verify and validate the specific assay results of historical work.

Widths from drill core intervals reported in this press release are presented as core lengths only. True widths are unknown.

About Anaconda Mining Inc.

Anaconda is a Toronto Stock Exchange- 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 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.

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