Anaconda Mining initiates further drilling at Goldboro to upgrade and expand mineralization following positive PEA

TORONTO, Feb. 14, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) has initiated the second stage of an expanded 7,000-metre diamond drill program at its Goldboro Project in Nova Scotia, as originally announced on November 1, 2017 ("Drill Program"). The 4,500-metre Drill Program will focus on the East Goldbrook ("EG System") and Boston Richardson ("BR System") gold systems of the Goldboro deposit (Exhibit A).  The aim of the Drill Program is to test the under-explored portions of the deposit, which have the potential to expand or upgrade Mineral Resources, particularly in the areas identified for development within the recently announced positive Preliminarily Economic Assessment ("PEA") (See announcement of January 17, 2018). The Drill Program is fully funded by a flow-through financing that closed on October 31, 2017. 

Key results from the diamond drill programs completed by Anaconda at the Goldboro Project since June 2017 include:

• Intersected the highest-grade assays recorded in the Goldboro deposit (2,513.20 grams per tonne ("g/t") gold over 0.5 metres within 485.07 g/t gold over 2.6 metres);
• Expanded the mineralized zones along the limbs of both the EG and BR Systems;
• Extended known mineralization down plunge by as much as 375 metres and demonstrated the structure, which hosts the deposit, may extend farther down plunge;
• Confirmed the geological model of the deposit through infill and expansion drilling.

"We're excited about the next stage of our Drill Program and building off the results from the first five holes. Expansion drilling continues to demonstrate that there is potential for further mineral resource growth.  In addition, our infill drilling will bring more confidence to the known deposit area where we have intersected more high-grade gold and identified new zones of mineralization not previously identified during wider-spaced historic drill campaigns. Since June 2017 when Anaconda began work at Goldboro, we have increased the value of the Project through our focused drill programs and the delineation of a positive PEA. We look forward to continued investment in Goldboro and demonstrating the value of the project to our stakeholders and investors."

~ Dustin Angelo, President and CEO

Overview of Second Stage of Drill Program

Anaconda will target several areas with the intention of infilling the EG and BR Systems, as well as expanding the known mineralization down-plunge and down-dip of the mineralized fold limbs (Exhibit A). The first target is Section 9100E, located in the core of the deposit, but contains Inferred Resources because of the relatively sparse density of drilling on that section. It is 50 metres west of Section 9150E where the Company recently announced assay results including 34.70 g/t gold over 3.5 metres in hole BR-17-09 and 24.34 g/t gold over 3.8 metres in hole BR-17-06 (See Press Release dated February 7, 2018). Farther to the east in the EG System, Anaconda will focus on several other areas that are also currently classified as Inferred Resources, with the intention of upgrading those Mineral Resources and expanding the BR System which plunges below the the EG System along strike.

The Goldboro Resource

The table below outlines the Goldboro Mineral Resources as reported on January 17, 2018.

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. 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 December 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.