TORONTO, Jan. 29, 2018 /CNW/ - Anaconda Mining Inc.
("Anaconda" or "Company") (ANX: TSX) is pleased to announce
it has acquired the Rattling Brook Deposit ("Rattling Brook" or the "Property"),
in northwest Newfoundland,
pursuant to an acquisition agreement between Anaconda and Kermode
Resources Ltd. ("Kermode") dated January 25, 2018 (the
"Agreement"). Under the Agreement, the Company has
acquired a mineral license that hosts the Rattling Brook Deposit
containing an Historic Resource Estimate^ with an Inferred Resource
of 495,000 ounces** within 425 hectares of property and is
contiguous with Anaconda's existing land holdings in the immediate
area.
The acquisition of Rattling
Brook and the surrounding property consolidates Anaconda's
prospective land position in the Northern Peninsula, which also
includes the Thor Deposit, located approximately 20 kilometres
south of Rattling Brook along
strike. The Thor Deposit* contains an Indicated Resource of 83,000
ounces and an Inferred Resource of 31,000 ounces. Anaconda has
amassed, on the Northern Peninsula, two deposits, a land position
of nearly 10,000 hectares, numerous prospects and associated
prospective geology, all collectively referred to as the Great
Northern Project ("Great Northern") (Exhibit A).
Highlights of the Great Northern Project
- Located adjacent to the Doucers Valley Fault, part of the Long
Range Fault system – a fertile gold bearing structure, similar to
that associated with Marathon Gold's Valentine Lake project in central Newfoundland, which has been the focus of
recent significant resource growth and discovery;
- Two gold resources with a combined Inferred Mineral Resource of
526,000 ounces and an Indicated Mineral Resource of 83,000
ounces;
- Includes 9,975 hectares coincident with approximately 20
kilometres of strike along highly prospective geology of the
Doucers Valley Fault;
- Potential to upgrade the size and grade of the existing
resource through resource evaluation;
- Excellent infrastructure with road access to the key areas of
interest.
"The acquisition of the Rattling Brook Deposit consolidates
Anaconda's land position within the region of our exploration
portfolio, and is the first step in a strategy to realize
shareholder value for the Great Northern Project. There is a
renewed interest in the gold exploration potential in Newfoundland, and we believe we are well
positioned to generate value from our now-expanded Great Northern
Project. As we focus on our development and production stage
assets, we are pursuing options to unlock value we believe lies
within the Great Northern Project for our shareholders."
~ Dustin Angelo, President and
CEO
Strategic Plans
The Great Northern Project is a sizeable exploration package of
highly prospective targets in an under-explored area, underpinned
by two existing gold deposits. Based on historic data and
Anaconda's own exploration work, the Company believes there is a
potential to expand the known Mineral Resources and discover more
throughout its project area.
With continued focus on the development of the high-grade
Goldboro Gold Project, in Nova
Scotia, and extending the mine life at the Point Rousse mine
operation in Newfoundland, the
Company is reviewing strategic options to maximize the value of its
highly prospective exploration stage Great Northern Project. With
the addition of Rattling Brook,
Anaconda has strengthened its Great Northern portfolio to drive
maximum value for the entire project area.
The Agreement
Pursuant to the Agreement, Anaconda paid
Kermode an initial cash payment of $25,000 and issued Kermode $500,000 of Anaconda common shares, equal to
1,113,218 common shares based on a twenty-day volume weighted
average trading price ending as of January
24, 2018. Anaconda will also pay Kermode an additional
cash payment of $25,000 on
February 26, 2018. The
Consideration Shares are subject to a hold period which will expire
on May 27, 2016 in accordance with
the rules and policies of the Toronto Stock Exchange and applicable
Canadian securities laws and are also subject to further transfer
restriction pursuant to the terms of the Agreement.
About Resources and Technical Reports
Summary of Mineral
Resources at the Great Northern Project
|
Deposits
|
Category
|
Tonnes
|
Grade
|
Ounces
Gold
|
*Thor (Current
Estimate)
|
Indicated
|
1,817,000
|
1.42
|
83,000
|
|
Inferred
|
847,000
|
1.15
|
31,000
|
**Rattling Brook
(Historic
Estimate)
|
Inferred
|
18,310,000
|
0.84
|
495,000
|
^The Rattling Brook Resource is an Historic Estimate as defined
by NI 43-101 Standards of Disclosure for Mineral Projects. The
Historic Estimate is relevant, considered reliable and uses
categories appropriate to 43-101 reporting requirements. No other
Resource Estimates are known to Anaconda. To verify and
upgrade the estimate as a Current Mineral Resource will require
further discussions with Qualified Persons whom created the
technical report. Qualified Persons working on behalf of Anaconda
have not done sufficient work to classify the Historic Estimate as
a Current Mineral Resource, as a result Anaconda is not treating
the historical estimate as a Current Mineral Resource.
* The Thor Deposit forms part of the project formerly referred
to as the Viking Project. The resources quoted in this press
release refer to the technical report: "NI 43-101 Technical Report
and Mineral Resource Estimate on the Thor Deposit, Viking Project,
White Bay Area, Newfoundland and
Labrador, Canada" with an
effective date of August 29, 2016 and
authored by independent qualified persons David A. Copeland, M.Sc., P.Geo., (an
independent consultant), Shane
Ebert, Ph.D., P.Geo. (an independent consultant) and
Gary Giroux, MASc, P.Eng. (Giroux
Consultants Ltd.).
**The Rattling Brook Deposit, including the Apsy, Road and
Beaver Dam zones, form part of the
project formerly referred to as the Jacksons Arm Gold
Project. The Historic Resources quoted in this press release
refer to the technical report: "TECHNICAL REPORT ON MINERAL
RESOURCE ESTIMATE JACKSONS ARM
GOLD PROJECT WHITE BAY NEWFOUNDLAND AND LABRADOR Latitude 49o 53'
2.65''North Longitude 56o 50'7.09'' West. With an
effective date of April 20th, 2009,
and authored by Michael P. Cullen,
M.Sc., P.Geo, Chrystal Kennedy, B.
Sc., P.Geo. Matthew Harrington, B.
Sc. (Hons.), Andrew Hilchey, B.Sc.
(Hons.) Mercator Geological Services.
This news release has been reviewed and approved by
Paul McNeill, P. Geo., VP
Exploration with Anaconda Mining Inc., a "Qualified Person", under
National Instrument 43-101 Standard for Disclosure for Mineral
Projects.
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 Great Northern Project 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
including, but not limited to, the Company's future plans with
respect to the Great Northern Project. 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.
![Exhibit A. A map showing the location of the License acquired from Kermode and deposits within the Great Northern Project. (CNW Group/Anaconda Mining Inc.) Exhibit A. A map showing the location of the License acquired from Kermode and deposits within the Great Northern Project. (CNW Group/Anaconda Mining Inc.)](https://mma.prnewswire.com/media/634276/Anaconda_Mining_Inc__Anaconda_Mining_Expands_its_Great_Northern.jpg)
SOURCE Anaconda Mining Inc.