TORONTO, ONTARIO--(Marketwired - Sep 16, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (ANX.TO) reports today that diamond drilling at its Romeo and Juliet prospect has intersected a new gold-bearing zone dubbed the Balcony Zone, located between the Romeo and Connecting Zones. It appears to dip steeply to the north, trends roughly east-west and is spatially associated with a northeast-trending topographic linear. Mineralization has been traced for approximately 100 meters and is open to the east, west and down dip. Gold is associated with pyritic altered mafic volcanic rocks, which is different from the Romeo and Juliet massive quartz vein hosted-style of gold mineralization. A structural interpretation is therefore underway to help guide future drilling and to understand better these positive anomalies.
President and CEO, Dustin Angelo, stated, "The discovery of the Balcony Zone is a very positive event for the Romeo and Juliet exploration program. We are very encouraged by the new style of mineralization intersected by the recent drilling. Given the wide variation in historical and current assay results throughout Romeo and Juliet and the newly discovered Balcony Zone, the Company has initiated a structural study of the entire prospect. We look forward to the structural interpretation, which should take approximately 4 weeks, to help provide direction on future exploration work."
Anaconda drilled seven holes into the Balcony Zone. Hole RJ-13-26 intersected strongly altered mafic volcanic rock containing abundant disseminated pyrite and fine quartz-carbonate veinlets, which assayed 8.4 g/t Au over a core length of 12 meters (Table 1). The hole is interpreted to have cut the mineralization at a low angle. Hole RJ-13-33 was subsequently drilled to intersect the mineralization perpendicular to hole RJ-13-26. It also contained altered mafic volcanics with heavy disseminated pyrite and quartz-carbonate veining. Hole RJ-13-33 assayed 4.35 g/t Au over 8.44 meters including 6.22 g/t Au over 1.64 meters and 5.45 g/t Au over 4.85 meters. This intersection confirms the scale and significance of the mineralization, but further work is required to establish true widths. Holes RJ-13-34 to RJ-13-37 targeted the Balcony Zone with all, but RJ-13-34, returning anomalous gold intercepts, highlighted by RJ-13-35 returning 2.91 g/t Au over 11.1 meters. (Table 1; Figure 1 - link below). Fine visible gold was observed in quartz veins in holes RJ-13-26, 35, 36 and 37.
To date, Anaconda has drilled 19 holes totaling 2,004 meters at the Romeo and Juliet prospect (Figure 2 - link below). The original goal of the program was to target down-dip extensions of the Romeo and Juliet gold-bearing quartz veins. While Anaconda intersected the Romeo and Juliet quartz veins in 13 out of 19 holes, assays results from the down-dip extensions of the Juliet and Connecting Zones were generally lower than anticipated (Table 2). However, in the Romeo Zone, hole RJ-13-32 returned 10.4 g/t Au over 0.54 meters and hole RJ-13-29 returned 3.45 g/t Au over 1.23 meters, both at depths over 100 meters. PC-13-27 intersected both the Balcony and the Romeo Zones.
|Table 1: 2013 Drill results from Balcony Zone|
|RJ-13-34||180||47||100.3||No Significant Assays|
|Note: All measurements are in meters|
|Table 2: 2013 Drill results from Romeo, Connecting and Juliet Zones|
|Note: All measurements are in meters|
Romeo and Juliet Background
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. The prospect is comprised of three zones, referred to as Juliet, Connecting, and Romeo, and have 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 hole which tested the prospect to a maximum vertical depth of 100 meters. In the late fall of 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 feels that this is representative of the near surface gold grades within the Juliet Zone.
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 in altered rock and half meter intervals in quartz veins. 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.
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 Figures 1 and 2 please click on the following link: http://media3.marketwire.com/docs/ANX0916.pdf