Mr. Kevin Bullock reports
ANACONDA MINING FURTHER CONSOLIDATES AND EXPANDS THE TILT COVE GOLD PROJECT IN NEWFOUNDLAND AND PROVIDES EXPLORATION UPDATE
Anaconda Mining Inc. has expanded and further consolidated the Tilt Cove gold project located within the Baie Verte mining district in Newfoundland, approximately 45 kilometres by quality roads from the company's Pine Cove mill and long-term tailings facility. The expansion includes an additional 4,175 hectares of prospective mineral property, acquired via staking and an option agreement, that covers an additional 14 kilometres of favourable geology and structure in the region. The company now maintains a 100-per-cent interest over 35 kilometres of highly prospective strike length including the Nugget Pond horizon that hosted the Nugget Pond mine.
Highlights of the expanded area of the Tilt Cove project include:
- A highly prospective, road-accessible mineral property with 17 significant gold and copper occurrences;
- 190 of 1,416 historic rock grab and float samples grading between 0.5 and 152.6 grams per tonne gold, including 79 rock grab and float samples grading between 5.0 and 152.6 g/t gold;
- Underlain by the Betts Cove complex geology, which hosts the nearby, formerly producing, high-grade Nugget Pond mine, as well as the Tilt Cove and Betts Cove copper mines;
- Adjacent to the Green Bay fault, part of the Long-Range fault system, a first order structure proximal and genetically linked to numerous gold deposits including the high-grade Nugget Pond and Hammerdown mines.
"We are excited to have completed such a significant expansion of the Tilt Cove gold project, which provides the company with an additional 14 kilometres of continued strike length, in a highly prospective mineral property, 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. The Tilt Cove gold project now includes a 35-kilometre strike extent of this highly prospective geological terrane, in addition to being adjacent to the Green Bay fault, a crustal-scale structure proximal and genetically linked to both the Nugget Pond and Hammerdown mines. We continue to aggressively execute our exploration programs at Tilt Cove, including an initial ongoing 10,000-metre program, and we are well funded to advance exploration work on our expanded land package and follow-up on any potential discovery," said Kevin Bullock, president and chief executive officer, Anaconda Mining.
The continuing 10,000-metre drill program continues to focus on several high-priority targets with drilling expected to continue into the winter. The company is aggressively executing on its exploration and growth plans, having drilled 3,569 metres at the Scarp zone and West Pond targets, with plans to initiate drilling at the Betts Cove, Growler, West Pond and East Pond targets early in the first quarter of 2021. The results of drilling at the Scarp zone and West Pond will be communicated once all assays have been received.
Expansion of the Tilt Cove project
Anaconda has expanded the Tilt Cove project, acquiring an additional 14 kilometres of strike extent of the Betts Cove complex, host to the past-producing, high-grade, Nugget Pond gold mine as well as the Tilt Cove and Betts Cove copper mines. The expanded area is road accessible, underlain by the Betts Cove ophiolite, as found throughout Tilt Cove, and 17 significant gold and copper occurrences with 190 of 1,416 rock grab and float samples grading between 0.5 and 152.6 g/t gold, including 79 of 1,416 rock grab and float samples grading between 5.0 and 152.6 g/t gold. These occurrences have only been historically tested, primarily for base metals, by cursory diamond drilling comprising 1,701.1 metres in 16 drill holes between 1965 and 1997. None of the drilling completed in 1965 (seven holes, 1,023 metres) was tested for gold mineralization and many of the other subsequent holes stopped short of the targeted mineralization. Compilation and review of historic data will be completed during early 2021 in advance of a summer exploration program.
The expansion of the Tilt Cove project was primarily achieved by staking of 2,375 hectares of mineral lands in a single licence. The company also entered into an option agreement with local prospectors for the right to acquire a 100-per-cent undivided interest in a further 1,800 hectares in 13 licences. The option agreement provides for total cash payments of $145,000 and further share or cash payments (at the company's election) of $85,000, both over a four-year term, as well as a 2-per-cent net smelter return, capped at $5-million.
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.
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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