Anaconda Mining Inc.

Anaconda Mining Inc.

November 20, 2013 07:00 ET

Anaconda Mining Consolidates Pine Cove Mining District; Acquires Deer Cove and Stog'er Tight Gold Projects

TORONTO, ONTARIO--(Marketwired - Nov. 20, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to report, that effective November 13, 2013, it entered into two three-year option agreements with 1512513 Alberta Ltd. ("Alberta Ltd."), a subsidiary of Coordinates Capital, to acquire a 100% undivided interest in the Deer Cove and Stog'er Tight gold projects. The three mining licenses, totaling 48 claims (approximately 1,235 hectares), and the two mining leases (approximately 47 hectares) are adjacent to Anaconda's property around the Pine Cove mine, Baie Verte Peninsula, Newfoundland (See Exhibit A).

President and CEO, Dustin Angelo, stated, "These option agreements effectively consolidate all of the prime prospective exploration land around our Pine Cove Mine on the Baie Verte Peninsula. Anaconda has dramatically expanded its operations from a single mine with modest exploration opportunities to a profitable gold producer with a district scale exploration program with approximately 6,000 hectares of property on some of the most prospective but under explored land in Canada. These acquisitions are further examples of our commitment to expand production at Pine Cove by creating a pipeline of projects. Deer Cove and Stog'er Tight are advanced gold projects and form an important part of Anaconda's expansion strategy. With the benefit of having a district scale perspective, the Company is optimistic that it can take the historical work done on these projects and transform them into the next mineable gold deposits on the Baie Verte Peninsula."

Anaconda considers Deer Cove and Stog'er Tight to be key components in its regional exploration program. The Company is planning an aggressive exploration program beginning with detailed compilation, structural interpretation and ground geophysical surveys at Stog'er Tight followed up with a winter diamond-drill campaign. Detailed compilation of all Deer Cove data will also be undertaken with follow-up diamond-drilling to commence in the spring of 2014.

To keep the options for Deer Cove and Stog'er Tight in good standing, Anaconda will have to make aggregate payments to Alberta Ltd. of $400,000 ($50,000 was paid at closing) over a three-year period. Anaconda has also committed to $1,000,000 in exploration expenditures, which is split equally between Deer Cove and Stog'er Tight and half of the commitment must be expended in the first year. Both projects are subject to a 3% net smelter royalty, 1.8% of which can be purchased by Anaconda for $1,000,000 each.

Project Background

Deer Cove:

Discovered by Noranda prospectors in 1986, the Deer Cove deposit contains visible gold associated with brecciated quartz veining. The mineralization is hosted by mafic volcanic rocks in thrust contact with strongly deformed talc-carbonate altered schists of the Point Rousse Complex. A Noranda/ Galveston Resources Ltd. joint venture (1987-1989) carried out detailed exploration including diamond drilling (119 holes on the Deer Cove grid), construction of a 7.2-kilometer access road and underground exploration via a 507-meter long adit. No significant exploration work was subsequently undertaken and in 1998 the property reverted to the Crown.

In 2000 and 2001, much of the Deer Cove area was staked by South Coast Ventures Inc. All historic data was compiled and digitized and additional drilling (14 holes) and sampling were completed. In 2010, Tenacity Gold Mining Company Inc. 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 a non-NI 43-101 compliant resource and has not been verified by Anaconda.) A combination open pit and underground mining method was proposed and Tenacity entered into a toll-processing arrangement with the Nugget Pond mill. Mining did not proceed and the property transferred to 1512513 Alberta Ltd.

Stog'er Tight:

The Stog'er Tight deposit was discovered in 1988 through an International Impala/Noranda joint venture. Trenching and diamond-drilling follow-up of extensive gold-in-soil geochemistry outlined three auriferous zones, referred to as the Stog'er Tight, Gabbro West and Gabbro East zones. Noranda carried out more than 8,000 meters of diamond drilling in 80 holes on the Stog'er Tight property with much of the effort focused on Stog'er Tight. The deposit was outlined over a 450-meter strike length with channel sample assays up to 23 g/t gold over 7 meters and diamond-drill assays averaging 5.5 g/t gold over 4.5 meters. The Stog'er Tight deposit was estimated to contain a probable geological reserve of 650,000 tonnes grading 6.7 g/t gold (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data.).

Ming Minerals Incorporated purchased the property and in 1996-1997 carried out diamond drilling and trenching. A revised resource estimate calculated that the deposit contained a resource of 229,200 tonnes grading 6.1 g/t gold (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data.). Ming Minerals extracted a 30,735-tonne bulk sample from the Stog'er Tight deposit, however, recoveries were less than anticipated and mining was stopped.

In 2006, the mining lease was cancelled, the property reverted to the Crown and a call for proposals to develop the property was issued with South Coast Ventures Inc. being the successful applicant. Detailed compilation and digitizing of all historic exploration data was undertaken and additional diamond drilling and sampling were completed and in 2007, a toll processing arrangement was completed with the Nugget Pond mill. In 2010, P&E reported that the Stog'er Tight deposit contained an estimated mineral reserve of 65,200 tonnes grading 4.96 g/t gold, an indicated resource of 96,000 tonnes grading 7.04 g/t gold and an inferred resource of 53,000 tonnes grading 5.75 g/t gold. (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data.) Mining was initiated but results were less than favourable and development ceased. The property transferred to 1512513 Alberta Ltd.

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.


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.


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.

Contact Information