TORONTO, ONTARIO--(Marketwired - Jul 8, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (ANX.TO) reported today the initiation of diamond drilling at the Romeo and Juliet prospect near its Pine Cove gold mine on the Baie Verte Peninsula, Newfoundland. The 2000-meter definition drill program is expected to take approximately 4 to 6 weeks to complete. Detailed metallurgical and mine evaluation work is also ongoing. Depending upon the outcome of the current drill program, the Company may carry out a preliminary economic assessment.
President and CEO, Dustin Angelo, stated, "We are very encouraged by the valuable work completed to date on the Romeo and Juliet prospect and feel that the results demand immediate action. Our guiding thesis is that the quartz vein may have the potential to substantially increase gold production at the Pine Cove mill at minimal incremental cost. We will continue to update the market as we reach new milestones in the development of the prospect."
The Romeo and Juliet prospect is a gold-bearing quartz vein system, discovered in 1987, that is exposed approximately 1.5 kilometers northwest of the Pine Cove mine (Figure 1). The prospect is comprised of three zones, referred to as Juliet, Connecting, and Romeo, with a combined strike length in excess of 300 meters. The veins trend about 30 degrees, dip approximately 60 degrees to the southeast and are up to 2 meters thick. Gold is present as fine disseminations within the quartz and as very fine clots and flakes along discrete vein margins. The prospect was previously explored with 18 shallow diamond drill holes which tested the prospect to a maximum vertical depth of 100 meters. In 2012, Anaconda extracted a 1,000-tonne bulk sample from the Juliet zone. Five representative samples of crushed quartz, averaging 12.6 kg, were processed at Accurassay Laboratories in Thunder Bay by cyanide extraction (bottle roll testing). The weighted average assay of the five samples was 5.71 g/t gold (Anaconda Press Release, April 4, 2013). Anaconda believes that this is representative of the near surface gold grades within the Juliet zone.
The Company is pleased to have the support of The Atlantic Canada Opportunity Agency (ACOA) through its Productivity and Business Skills Development Program in funding a portion of the research cost associated with this project.
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.
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. Historical data for the Romeo and Juliet prospect were obtained from assessment files archived by the Newfoundland and Labrador Department of Natural Resources.
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.
FORWARD LOOKING STATEMENTS
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 please click on the following link: http://media3.marketwire.com/docs/ANX0705.pdf
- Commodity Markets
- Company Earnings
- Romeo and Juliet