Anaconda Mining Inc.

Anaconda Mining Inc.

August 06, 2008 08:30 ET

Anaconda Announces Initial Drill Results from the Inca de Oro Sur Joint Venture

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX), is pleased to announce results for the first 18 diamond drill holes completed as part of the current exploration program on the Inca de Oro Sur Joint Venture ("Inca de Oro Sur" or the "Project") by Minera Penoles de Chile Ltda. ("Penoles"). Inca de Oro Sur is located within the historic Inca de Oro mining district in northern Chile, approximately 100 kilometers north of Copiapo.

The current exploration program tested three targets on the Project, namely the Carmen, Juana, and Lautaro targets. The majority of the drilling was focused on the Carmen porphyry copper-gold target, and highlights include:

- 257 metres ("m") grading 1.10 grams of gold per tonne ("g/t Au") and 0.45 percent copper ("% Cu"), including 66 m grading 1.87 g/t Au and 0.54% Cu in hole BDP-01, and

- 290 m grading 0.67 g/t Au and 0.37% Cu in hole BDP-02.

Penoles commenced an exploration program, which included 12,000 metres of drilling, in October 2007; results have now been received for 18 holes, totaling 8,757 metres (see Table 1 and attached map). Of the 18 holes drilled, 15 are from the Carmen target. Mineralization at Carmen consists of a central zone with quartz, bornite, chalcopyrite and magnetite in veinlets and disseminations; the grade varies from 0.3 to 1.0% Cu and 0.5 to 2.0 g/t Au. Surrounding the central zone is a zone of quartz, chalcopyrite and calcite, with lesser bornite and quartz veining stockwork, where the grade varies from 0.1 to 0.5% Cu and 0.1 to 0.5 g/t Au. Sulphides underlie a shallow oxidized zone hosted within andesite and tonalite porphyry. Alteration is characteristic of a porphyry Cu-Au system consisting of a central biotite and K-feldspar potassic assemblage with weak and local intermediate argillic alteration overprint and an external halo of chlorite-epidote-propyllitic alteration.

Results from holes BDP-01 and -02, in the central zone of the Carmen target have returned some of the highest grade intercepts encountered to date. In the south-central zone of the Carmen target, holes BDP-06 and -17 intersected mineralization up to 400 m below surface. This is a full 200 m deeper than recognized by previous drilling. Furthermore, hole BDP-17 ended in mineralization, indicating this zone remains open to the west. To the north, holes BDP-04 and BDP-10 cut several north-south trending silicified structures with low grade gold and copper.

Lewis Lawrick, President and CEO of Anaconda, comments: "We are very pleased with the progress and results of our Joint Venture partner in the current program at Inca de Oro Sur. We have seen some of the highest grade intercepts to date from the Project and have encountered mineralization to significantly greater depths than in previous drilling."

Table 1. Summary of drill results.
Drill Hole(1) From To Width(2) Type Gold Copper
(m) (m) (m) (g/t) (%)
BDP-01 15.00 32.00 17.00 oxide 0.24 0.28
95.00 352.00 257.00 sulphide 1.10 0.47
Incl. 194.00 260.00 66.00 sulphide 1.87 0.54
BDP-02 0.00 35.00 35.00 oxide 0.46 0.34
35.00 53.00 18.00 sulphide 0.51 0.36
84.00 374.00 290.00 sulphide 0.67 0.37
BDP-03 0.00 36.00 36.00 oxide 0.35 0.32
142.00 192.00 50.00 sulphide 0.42 0.26
235.00 269.00 34.00 sulphide 0.62 0.27
BDP-04 68.95 77.75 8.80 sulphide 0.19 0.32
BDP-05 197.17 231.70 34.53 sulphide 0.13 0.46
BDP-06 109.10 138.00 28.90 sulphide 0.14 0.27
152.00 164.00 12.00 sulphide 0.17 0.28
174.00 185.40 11.40 sulphide 0.17 0.30
193.00 228.00 35.00 sulphide 0.23 0.43
265.00 302.00 37.00 sulphide 0.12 0.37
BDP-10 574.00 579.60 5.60 sulphide 0.28 0.47
587.05 592.10 5.05 sulphide 0.34 0.36
BDP-14 591.17 610.00 18.83 sulphide 0.15 0.30
BDP-17 0.00 15.35 15.35 oxide 0.45 0.16
168.50 224.00 55.45 sulphide 0.46 0.25
256.00 268.00 12.00 sulphide 0.43 0.31
458.33 469.45 11.12 sulphide 0.33 0.44
BDP-18 33.25 50.00 16.75 oxide 0.32 0.23
50.00 102.45 52.45 sulphide 0.33 0.21
(1) holes without significant intercepts are not included in this table;
(2) intervals are drill indicated; additional drill information will be
required before true widths can be estimated;
(3) eoh equals end of hole.

One hole was drilled at the Juana target (BDP-12) and two holes were drilled at the Lautaro target (BDP-13 and -15), located 1.5 and 3.0 kilometres north of Carmen, respectively. Although all three holes cut minor zones of pyritization (up to 10%) and trace chalcopyrite, no significant gold or copper values were encountered.

Quality Assurance/Quality Control and Qualified Person

The drill holes reported in this release were collared using HQWL (2.5" sized core). Core is logged by Penoles staff and then split using a diamond saw; the average sample length is 1.6 m. Half the core is stored in a secure core shed and the other half is sampled, bagged, and secured, then transported by road to ALS Laboratory Group ("ALS") in La Serena, Chile for analysis. ALS is an ISO 9001:2000 accredited laboratory and is independent of both Anaconda and Penoles. Drill core was prepared and processed for ME-ICP-41 and gold fire assay (50 gram aliquots). All drilling, sampling and drill core logging within the current program was conducted by Penoles staff, under the supervision of Mr. Armando Zaragoza Exploration Manager for Minera Penoles de Chile Limitada.

Fiona Childe, Ph.D., P.Geo, Vice President of Corporate Development for Anaconda, who is a Qualified Person within the meaning of National Instrument 43-101 "NI 43-101" of the Canadian Securities Administrators, is responsible for reviewing the contents of this news release, including the drill results presented herein.

Past work by previous operators includes the drilling of 14,784.3 metres in 56 drill holes. Additional information with respect to Inca de Oro Sur is contained in a technical report dated March 28, 2006, filed on SEDAR and entitled "Carmen Copper-Gold Project, Region III, Chile". This report was prepared by Michael Easdon, a Consulting Geologist who is a Qualified Person within the meaning of NI 43-101 and independent of both Anaconda and Penoles.

Inca de Oro Sur Joint Venture

Under the terms of an agreement signed in September, 2007, Penoles has the right to earn a 65% interest in the Project from Anaconda and Inversiones EM-DOS Ltda. ("EM-DOS") by making exploration expenditures totaling US$10 million and cash payments to Anaconda and EM-DOS of US$12 million over four years. This includes an initial cash payment of US$2.05 million to Anaconda in 2007 and a first year minimum US$3 million exploration program. A total of US$ 2.96 million has been spent on exploration by Penoles to April 30, 2008.

About Anaconda

Anaconda is a Toronto, Canada-based mining company with a portfolio of advanced-stage exploration projects in Canada and South America. The diversified portfolio is supported by near-term cash flow from the Pine Cove gold mine.

The Company is rapidly advancing the San Gabriel Iron Project ("San Gabriel") in Chile, where it has identified several zones of magnetite-iron mineralization. San Gabriel is advantageously located close to road, rail, power and deep-sea port facilities. The Company plans to continue to aggressively explore San Gabriel to evaluate its potential to host economic concentrations of iron mineralization. The Company is actively pursuing new opportunities to complement this exciting project.

Certain statements contained herein constitute "forward-looking statements". These forward- looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, 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, including statements regarding the Company's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the property is gathered or if known and unknown risks or uncertainties affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Please note - A map is available on the Marketwire website at the following link:

Contact Information