TORONTO, Jan. 8, 2018 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (ANX: TSX) is pleased to announce an
initial Mineral Resource Estimate ("Resource") prepared in
accordance with National Instrument 43-101 ("NI 43-101") for the
Argyle Gold Deposit ("Argyle") at the Point Rousse Project,
Newfoundland and Labrador.
The Resource is presented below in Table 1 and has an effective
date of December 31, 2017. Highlights
of the Resource and related developments associated with the
deposit are as follows:
- Indicated resources of 38,300 ounces; Inferred resources of
30,300 ounces (capped grades);
- The deposit remains open in all directions and shows evidence
of contained higher grade shoot trends;
- Approximately 45% of currently defined mineral resources are
contained within an initial conceptual open pit shell prepared by
Anaconda staff;
- A 1,000-metre diamond drilling program was initiated in early
December to expand the deposit and is ongoing at present;
- Argyle is located 4.5 kilometres from the Pine Cove Mill and
the area is accessible by existing road networks;
- Environmental assessment application documents are expected to
be submitted to the Newfoundland
and Labrador Department of Environment by February 2018; All permits and approvals for
production are expected in the spring of 2019.
Table 1: *Argyle Mineral Resource Estimate – Effective Date:
December 31, 2017
Resource
Category
|
Resource
Cut-off
Gold Grade
(g/t)
|
Tonnes
(Rounded)
|
Gold Grade
(g/t) (12g/t Capping
Factor)
|
Gold
Ounces
(Rounded)
|
Indicated
|
0.5
|
543,000
|
2.19
|
38,300
|
Inferred
|
0.5
|
517,000
|
1.82
|
30,300
|
*See resource estimate notes presented below
A Technical Report prepared in accordance with NI43-101 for the
Point Rousse Project will be filed on SEDAR (www.sedar.com) within
45 days of this news release.
"It is a big milestone for Anaconda to have outlined another
deposit in close proximity to the Pine Cove Mill. At the Point
Rousse Project, we have built significant processing capability and
tailings capacity while generating over $42
million in project level EBITDA from our mining activities
in the last 6 years. To potentially add more local ore feed that
can utilize this infrastructure and continue to produce cash flow
for the Company is tremendous. Also, Argyle demonstrates our
ability to find more mineral resources nearby our mill, even though
we have been constrained financially for a number of years. With
more investment, we believe we can continue to add more ounces to
the Point Rousse Project. As we advance the Goldboro Project in
Nova Scotia in parallel with our
work at Point Rousse, we move closer to our goal of significantly
increasing production company-wide."
~ Dustin Angelo, President and
CEO
About the Argyle Deposit
The Argyle Gold Deposit, located 4.5 kilometres east of the Pine
Cove Mill, is defined over a strike length of 600 metres and to a
down-dip depth of 225 metres and is open for expansion in all
directions. Anaconda is currently completing a combination of
step-out and infill drilling at Argyle. The step-out drilling is
along strike to the east as well as down dip from the known
mineralized area. The step-out drilling is focused on the
mapped and projected continuation of the Argyle gabbro, the host
rock to mineralization, and is coincident with geophysical
anomalies (magnetic and chargeability) like those associated with
the Argyle Deposit.
Anaconda is also focused on determining the trend of high-grade
zones discovered through previous drilling. The easternmost
high-grade zone to date is outlined by drill holes AE-16-33,
AE-16-40 and AE-16-43 and averages 14 metres thick with composited
assays between 2.91 g/t and 5.52 g/t gold. The northernmost
high-grade zone, outlined by drill hole AE-16-39, is 6.0 metres
thick with a composited grade of 9.31 g/t and is open along strike
and down-dip (see previous releases of July
13, September 27, and
November 22, 2017).
About the Argyle Mineral Resource Estimate and
Methodology
The current Resource estimate is defined at the 0.50 g/t gold
grade and is based on 1 metre assay composites capped at 12 g/t
gold. The cutoff value reflects reasonable potential for economic
development in the foreseeable future, primarily by open pit mining
methods. This is based on processing at the nearby Pine Cove Mill
and the current, rounded three year trailing average gold price of
$1225 (US).
Table 2 below illustrates cutoff value sensitivity of the grade
capped resource estimate block model and Table 3 below illustrates
sensitivity of the corresponding uncapped block model. At the
resource statement cutoff value of 0.5 g/t gold, grade capping at
12 g/t has the effect of reducing Indicated category gold ounces by
10.9%, from 43,000 ounces in the uncapped model, and reducing
Inferred category gold ounces by 30.8%, from 43,800 ounces in the
uncapped model. Uncapped block model gold grades, tonnages
and ounces are presented for comparative purposes and do not
constitute resource statement values.
Table 2: Block Model Grade and Tonnage Sensitivity Report -
Capped @ 12 g/t Au
Block Cut-off
Grade (Au g/t)
|
Category
|
Reported
Tonnes
|
Rounded
Tonnes
|
Au
g/t
|
Rounded
Ounces
|
0.25
|
Indicated
|
554,530
|
555,000
|
2.15
|
38,300
|
Inferred
|
528,895
|
529,000
|
1.79
|
30,400
|
0.50*
|
Indicated
|
543,363
|
543,000
|
2.19
|
38,300
|
Inferred
|
517,295
|
517,000
|
1.82
|
30,300
|
0.75
|
Indicated
|
519,340
|
519,000
|
2.26
|
37,700
|
Inferred
|
482,876
|
483,000
|
1.91
|
29,700
|
1.00
|
Indicated
|
477,573
|
478,000
|
2.38
|
36,500
|
Inferred
|
418,692
|
419,000
|
2.06
|
27,700
|
*Resource statement cutoff value is 0.50 g/t Au; resource
estimate values are highlighted
Table 3: Block Model Grade and Tonnage Sensitivity Report –
Uncapped Model
Argyle Gold
Deposit - Sensitivity Report - Uncapped
|
Block Cut-off
Grade (Au g/t)
|
Category
|
Reported
Tonnes
|
Rounded
Tonnes
|
Au
g/t
|
Rounded
Ounces
|
0.25
|
Indicated
|
554,530
|
555,000
|
2.42
|
43,100
|
Inferred
|
528,895
|
529,000
|
2.58
|
43,900
|
0.50*
|
Indicated
|
543,363
|
543,000
|
2.46
|
43,000
|
Inferred
|
517,424
|
517,000
|
2.63
|
43,800
|
0.75
|
Indicated
|
519,340
|
519,000
|
2.55
|
42,600
|
Inferred
|
483,501
|
484,000
|
2.76
|
42,900
|
1.00
|
Indicated
|
477,623
|
478,000
|
2.69
|
41,300
|
Inferred
|
420,200
|
420,000
|
3.05
|
41,200
|
*Resource statement cutoff value is 0.50 g/t Au; uncapped
comparative values to resource statement are highlighted
Notes on Mineral Resource Estimate and
Methodology:
- This Mineral Resource Estimate has an effective date of
December 31, 2017 and was prepared in
accordance with Canadian Institute of Mining, Metallurgy and
Petroleum Standards on Mineral Resources and Reserves:
Definitions and Guidelines (the CIM Standards) as well as
disclosure requirements of NI 43-101.
- Michael Cullen, P. Geo., of
Mercator Geological Services Ltd. (Mercator) of Dartmouth, Nova Scotia supervised preparation
of the estimate and is the responsible Qualified Person in this
regard. Both Mr, Cullen and Mercator are independent of the Company
within the meaning of NI 43-101. Mr. Cullen has reviewed and
authorized the disclosure of the Mineral Resource Estimate
technical information for the Argyle Gold Deposit presented in this
press release.
- This Mineral Resource Estimate is based on a database
containing 52 holes drilled into the Argyle Gold Deposit totaling
4,820.2 metres of diamond drilling, and 426 surface channel samples
cut from trenches using a diamond saw. Independent Qualified Person
Michael Cullen, P. Geo., has verified the data used for the
resource calculation including sampling protocols and analytical
methods and the laboratory conducting the analysis.
- Mineralization was constrained within 3D geologic solids built
using Surpac software using a nominal 0.5 g/t gold assay cut-off.
Contributing 1.0 metre assay composite populations were capped at a
gold grade of 12 g/t.
- Gold grades were estimated using inverse distance squared
interpolation methodology with 2 interpolation passes.
Interpolation pass 1 utilizes ellipsoid ranges of 65 m, 39 m, and
25 m for the major, semi-major and
minor axes respectively. Interpolation pass 2 utilizes ellipsoid
ranges of 125 m, 75 m, and 25 m for
the major, semi-major, and minor axes respectively Interpolation
ellipsoids plunge between 15° and 20° towards an azimuth of 050°.
The interpolation model was checked using ordinary kriging
methodology.
- Indicated resources reflect resource blocks with interpolated
gold grades from the first interpolation pass and contributing
composites from 3 or more drill holes with an average distance of
50 m or less to the block centroid.
Inferred resources consist of all other valid blocks interpolated
in interpolation pass 1 or interpolation pass 2 that occur within
the deposit peripheral constraint solid model.
- A density factor of 2.7g/cm3 was applied to all
blocks and is based on averaging of 74 drill core density values
for samples within the mineralized zone solid.
- Reported block model tonnages have been rounded to the nearest
1,000 tonnes and associated calculated gold ounces have been
rounded to the nearest 100 ounces; calculated gold ounce totals may
vary slightly due to rounding.
- The mineral resources defined by this estimate are considered
to have reasonable potential for economic development in the
foreseeable future, primarily through open pit mining methods at
the current, rounded three year trailing average gold price of
$1225 (US) per ounce.
This news release has been reviewed and approved by
Paul McNeill, P. Geo., VP
Exploration and Gordana Slepcev. P.Eng., Chief Operating Officer
with Anaconda Mining Inc., "Qualified Persons" and Michael Cullen, P. Geo., of Mercator Geological
Services Ltd., an "Independent Qualified Person", under National
Instrument 43-101 Standard for Disclosure for Mineral
Projects.
All samples and the resultant composites referred to in this
release were collected using QA/QC protocols including the regular
insertion of certified standards and blanks within each sample
batch sent for analysis and completion of check assays of select
samples. Drill core samples were routinely analyzed for Au at
Eastern Analytical Ltd. in Springdale,
NL (Eastern), using standard fire assay (30g)
pre-concentration and Atomic Absorption finish methods. Eastern is
a fully accredited firm within the meaning of NI 43-101 for
provision of this service. Mineralized intervals referred to
in this press release are reported as drill intersections and are
apparent widths only. Apparent widths reported in this press
release are estimated to be approximately 80 – 100% of true
widths.
Diamond drilling at Argyle and the resource estimate outlined
within this press release, benefited from a JEA grant from the
Department of Natural Resources, Government of Newfoundland and Labrador. Anaconda would
like to thank the Government of Newfoundland and Labrador.
A version of this press release will be available in French on
Anaconda's website (www.anacondamining.com) in two to three
business days.
ABOUT ANACONDA MINING INC.
Anaconda is a TSX-listed gold mining, exploration and
development company, focused in the prospective Atlantic Canadian
jurisdictions of Newfoundland and
Nova Scotia. The Company operates
the Point Rousse Project located in the Baie Verte Mining District
in Newfoundland, comprised of the
Pine Cove open pit mine, the fully-permitted Pine Cove Mill and
tailings facility, the Stog'er Tight and Argyle deposits, and
approximately 5,800 hectares of prospective gold-bearing property.
Anaconda is also developing the recently acquired Goldboro Project
in Nova Scotia, a high-grade
Mineral Resource, with the potential to leverage existing
infrastructure at the Company's Point Rousse Project.
The Company also has a pipeline of organic growth opportunities,
including the Viking and Great Northern Projects on the Northern
Peninsula and the Tilt Cove Property on the Baie Verte
Peninsula.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian and United States securities legislation.
Forward-looking information includes, but is not limited to, use of
proceeds and TSX final acceptance of the Offering. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates
of management at the date the information is made, and is based on
a number of assumptions and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Anaconda to be
materially different from those expressed or implied by such
forward-looking information, including risks associated with the
exploration, development and mining such as economic factors as
they effect exploration, future commodity prices, changes in
foreign exchange and interest rates, actual results of current
production, development and exploration activities, government
regulation, political or economic developments, environmental
risks, permitting timelines, capital expenditures, operating or
technical difficulties in connection with development activities,
employee relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of resources, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Anaconda's annual information form
for the year ended May 31, 2017,
available on www.sedar.com. Although Anaconda
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. Anaconda does
not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.