Anaconda Mining confirms high-grade zones at Argyle; Intersects 4.85 g/t gold over 8.5 metres and 4.75 g/t gold over 8.0 metres

TORONTO, Feb. 28, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX:ANX) is pleased to provide initial assay results for the first three holes (AE-18-64 to 66; 328 metres) from a recently announced 12-hole, 1,122-metre infill and expansion diamond drill program (See Press Release dated November 29, 2017) from the Argyle Deposit ("Argyle"), located approximately 4.5 kilometres from the Company's fully-operational Pine Cove Mill and tailings facility at the Point Rousse Project, Newfoundland and Labrador (See Exhibit A). 

Geological modelling and resource estimation at Argyle demonstrates that the deposit is characterized by multiple high-grade zones or shoots, one of which is located near the center of the deposit and partly defined by holes AE-17-40 and -46 (See Exhibit B, C and press release dated July 13, 2017). Holes AE-18-64 to AE-18-66, drilled from the same set-up, recently tested the limits of this high-grade zone by drilling within Inferred Mineral Resources identified by previous drilling. Based on the current drill program and previous drilling, the following highlights define one of the high-grade zones at Argyle:

• 4.75 grams per tonne ("g/t") gold over 8.0 metres (66.7 to 74.7 metres) including 10.91 g/t gold over 3.0 metres in hole AE-18-64;
• 4.85 g/t gold over 8.5 metres (59.0 to 67.5 metres) including 12.50 g/t gold over 2.0 metres and 12.00 g/t gold over 1.0 metre in hole AE-18-65;
• 5.52 g/t gold over 15.0 metres (34.0 to 49.0 metres) including 14.01 g/t gold over 4.0 metres in hole AE-17-40 (previously reported); and
• 3.63 g/t gold over 12.0 metres (58.0 to 70.0 metres) including 14.37 gold over 2.0 metres in hole AE-17-46 (previously reported).

"One goal of the Argyle drill program was to test the concept that high-grade zones exist within the Argyle Deposit through infill drilling. Holes AE-18-64 to -66 tested one of these high-grade zones and confirmed it is present, increasing our confidence in the deposit model and continuity of grade within the Argyle system. These new drill intersections will also help guide our future drill plans and better define thickness, width, plunge and grade of these high-grade zones, which remain open for expansion."

~ Dustin Angelo, President and CEO

Anaconda drilled an additional 794 metres in 9 holes at Argyle to infill the deposit, expand the mineralized area and refine high-grade zones. In particular, the Company tested another potential high-grade zone to the east of the known deposit (Exhibit A, holes AE-18-74 and AE-18-75) where it recently intersected 12.47 g/t gold over 5.0 metres in hole AE-17-58 (See press release dated January 15, 2018). Assays for the remaining 9 holes are anticipated in March 2018.

Highlight assays from holes AE-18-64 to AE-18-66 are shown below:

About Argyle

The Argyle Gold Deposit, located 4.5 kilometres east of the Pine Cove Mill adjacent to existing road networks, is defined over a strike length of 685 metres and to a down-dip depth of 225 metres and is open for expansion in all directions. It currently contains an Indicated Resource of 543,000 tonnes grading 2.19 g/t gold (38,300 ounces) and an Inferred Resource of 517,000 tonnes grading 1.82 g/t (30,300 ounces) as outlined in the table below and is detailed with a 43-101 technical report titled "43-101 Technical Report, Mineral Resource and Mineral Reserve Update Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada" with an effective date of December 31, 2017.

Argyle Mineral Resource Estimate – Effective Date: December 31, 2017

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.

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 70 – 80% of true widths.

Diamond drilling at Argyle outlined within this press release, benefited from a JEA grant from the Department of Natural Resources, Government of Newfoundland and Labrador. Anaconda thanks the Government of Newfoundland and Labrador for this assistance.

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 Mine and the Argyle deposit, as well as approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Project in Nova Scotia, a high-grade Mineral Resource.

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. 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.