Anaconda Mining Inc.

Anaconda Mining Inc.

March 25, 2013 07:00 ET

Anaconda Mining Intersects 20 Metres of 2.15 g/t Gold in New Western Extension Area at Pine Cove

TORONTO, ONTARIO--(Marketwire - March 25, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to report additional drill results from its phase one diamond drilling program at its Pine Cove mine on the Baie Verte Peninsula, Newfoundland. Holes PC-13-202 and PC-13-203 both successfully intersected gold mineralization in the western extension area, the newly discovered mineralized area adjacent to the current pit, as reported in the press release dated February 28, 2013. As a result of the recent drilling success, the Company initiated a second phase 1,000-metre diamond-drill program on March 18, 2013 to focus on further defining this mineralization.


Western Extension Area

  • Hole PC-13-202 intersected multiple intervals of gold mineralization including 20.0 metres of 2.15 grams per tonne ("g/t") gold from a depth of 73.1 metres and 12.7 metres of 1.28 g/t gold from a depth of 108.9 metres;
  • Hole PC-13-203 intersected 4.0 metres of 2.21 g/t gold from a depth of 108.0 metres;
  • New mineralization encountered within the ultimate pit limit boundary, but outside of the existing mine plan; and
  • 1,000-metre follow-up drill program is underway to expand this new zone and assess potential for open pit extension and mining cost reductions.

President and CEO, Dustin Angelo, stated, "The western extension area, a new mineralized zone on the fringe of our open pit, continues to show promise. The mineralized zone remains open to the northwest and we've initiated a second round of drilling to potentially expand the mineralization in this direction. This area has not been previously drill tested and the presence of unexplained coincident historic gold-in-soil geochemical and chargeability anomalies highlight the potential for additional discoveries."

Western Extension Area:

Drilling along the western margin of the Pine Cove deposit, within the ultimate pit limit boundary, but outside of the existing mine plan, in an area with no previous drilling until 2013, has intersected a zone of gold mineralization referred to as the western extension area. Previously reported drill intercepts (Anaconda Press Release, February 28, 2013) from the newly identified western extension zone included PC-13-196 which returned multiple zones of gold mineralization including 2.19 g/t gold over a core length of 11.4 metres from a vertical depth of 26.6 to 38.0 metres; and 1.28 g/t gold over a core length 5.25 metres from a vertical depth of 49.0 to 54.25 metres. Hole PC-13-202, which was collared approximately 35 metres southwest of PC-13-196 (Figure 1) also returned multiple zones of gold mineralization (Table 1) including 2.15 g/t gold over a core length of 20.0 metres and 1.28 g/t gold over a core length of 12.7 metres. Hole PC-13-203, which was collared approximately 37 metres north of PC-13-196, returned several narrower intersections including 7.31 g/t gold over a core length of 1.03 metres and 2.21 g/t gold over a core length of 4.0 metres (Table 1).

Assay results are pending for hole PC-13-204 and are expected to be reported with the assay results from the 1,000-metre second phase diamond-drill program, which is underway and is focusing on expanding the western extension area. Drilling will begin to test an area west and northwest of the open pit (Figure 1) in an area with no previous diamond drilling and an unexplained historic gold-in-soil geochemical anomaly with a coincident IP Chargeability anomaly. The anomalies lie approximately 100 metres northwest of the ultimate open pit boundary. The soil data is historic in nature and has not been verified by Anaconda. The IP anomaly was identified from a survey completed in 2012.

Table 1. Assay results from Pine Cove diamond-drill program.

Drill Hole Dip Depth From To Width Gold
Western Extension
PC-13-202 90 191 20.0 24.0 4.0 1.82
Including 21.0 22.0 1.0 4.47
59.0 61.05 2.05 1.76
67.15 68.07 0.92 1.42
73.1 1.02 26.87 1.81
Including 73.1 93.1 20.0 2.15
Including 73.1 79.03 5.93 2.05
Including 83.1 93.1 10.0 2.98
Including 97.1 99.97 2.87 1.44
108.9 121.6 12.7 1.28
Including 108.9 115 6.1 2.05
143.88 146.94 3.06 1.21
PC-13-203 90 208.9 7.83 8.82 0.99 3.1
93.4 94.43 1.03 7.31
108.0 112.0 4.0 2.21
177.6 178.59 0.99 1.13

Note: All assay intervals refer to core length and at present true thicknesses of mineralized zones are not known. The diamond drilling was carried out by New Valley Drilling of Springdale, Newfoundland and was supervised by Silvertip Exploration Consultants Inc. The NQ core was logged and sampled at the Pine Cove mine site. Samples selected for analyses were sawn and half the sample was tagged and placed in a sealed plastic bag. Samples generally comprised one metre core intervals. Samples were transported by Silvertip personnel to the Eastern Analytical Laboratory in Springdale, Newfoundland for fire assay. As part of the QA-QC protocol, standards and blanks were randomly inserted during the sampling process. The remaining core is stored at the Pine Cove mine.

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 targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs

varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. 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 Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements 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 we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

To view Figure 1. Diamond-drill plan showing 2013 drill hole locations, Pine Cove mine, please visit the following link:

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