Anaconda Mining intersects 752.54 g/t gold over 0.5 metres and 56.67 g/t gold over 1.0 metre; initiates further drilling to test high-grade mineralized zone

TORONTO, May 10, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX; OTCQX: ANXGF) is pleased to announce assay results from four drill holes (1,900 metres), as part of 9,753 metres of diamond drilling completed since October 2017 (the "Drill Program") at the Company's Goldboro Gold Project in Nova Scotia ("Goldboro"). The four drill holes (BR-17-12 to -13 and BR-18-24 to -25) targeted cross section 9250E located near the centre of the Goldboro Deposit, within both the East Goldbrook ("EG Gold System") and Boston-Richardson ("BR Gold System") Gold Systems (Exhibit A and B). 

The Drill Program has successfully extended known mineralization down-dip approximately 100 metres within the EG Gold System at cross section 9250E. The drilling also extended three zones of mineralization within the southern limb of the fold structure that were recently discovered east of section 9250E and are above previously modeled zones of the EG Gold System as reported on April 5, 2018 (Exhibit A and B). These three new zones have expanded the overall width of the Goldboro Deposit from 200 metres to 350 metres and expanded the strike of the deposit, eastward by 100 metres (Exhibit A). Drilling also intersected several broad zones of mineralization within the EG Gold System indicating that broad mineralized zones, like those found in the BR Gold System, can be found within the EG Gold System. At depth, mineralized intersections within the BR Gold System successfully extended the depth of the deposit in section 9250E by 150 metres to approximately 500 metres (Exhibit B).

Highlights of recent assays from the Drill Program on section 9250E include:

• 752.54 grams per tonne ("g/t") gold over 0.5 metres (145.0 to 145.5 metres) in hole BR-18-25;
• 56.67 g/t gold over 1.0 metre (132.5 to 133.5 metres) in hole BR-18-25;
• 17.00 g/t gold over 1.0 metre (39.0 to 40.0 metres) in hole BR-18-25;
• 6.55 g/t gold over 2.5 metres (84.5 to 87.0 metres) in hole BR-18-24;
• 12.29 g/t gold over 1.0 metres (321.0 to 322.0 metres) in hole BR-17-13; and
• 49.61 g/t gold over 0.5 metres (342.8 to 343.3 metres) in hole BR-17-12.

Highlight assays from historic drilling on section 9250E include:

• 4.36 g/t gold over 9.0 metres (127.0 to 136.0 metres) in hole BR-08-20A, including 9.02 g/t gold over 1.0 metre;
• 2.72 g/t gold over 20.0 metres (118.5 to 138.5 metres) in hole BR-08-21;
• 6.43 g/t gold over 1.5 metres (144.5 to 146.0 metres) in hole BR-08-20A;
• 5.97 g/t gold over 1.5 metres (89.5 to 91.0 metres) in hole BR-08-21; and
• 5.19 g/t gold over 1.5 metres (69.5 to 71.0 metres) in hole BR-08-20A

A full table of composited assays is presented below.

"We continue to receive exciting results from our Goldboro drill program. To date, we have been able to demonstrate the continuity of mineralization within the overall deposit structure and proven that the mineralized zones exist along strike, down-dip and down the plunge of the current resource model. The results encountered in section 9250E are typical of those expected in this section, with the added bonus of broader zones of mineralization within the EG Gold System.  With the success of the drill program to date, we have extended the current drill program to begin testing new concepts, such as a relationship between faults and broader, high-grade zones as encountered in section 9100E, while continuing to move the project towards more advanced feasibility studies. Drill results to date indicate the potential for further deposit expansion and an extended project life."

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

Anaconda has initiated a further 2,000 metres of diamond drilling to follow up on the success of the Drill Program to date. The primary purpose of the additional meterage is to drill adjacent to section 9100E from which the BR Gold System contained broad zones of high-grade mineralization associated with displacement of the existing deposit along a fault system. The Company will test the hypothesis that it has encountered a new, fault related setting for gold mineralization within the Goldboro Deposit as has been observed in similar deposits within the Victoria Gold Fields of Australia.

As reported on April 19, 2018, drill results from section 9100E included the following highlights:

• 11.27 g/t gold over 13.5 metres (201.0 to 214.5 metres) in hole BR-18-22, including 15.63 g/t gold over 1.4 metres and 44.33 g/t gold over 2.5 metres;
• 4.13 g/t gold over 20.5 metres (324.5 to 345.0 metres) in hole BR-18-23, including 9.93 g/t gold over 7.5 metres and 79.34 g/t gold over 0.5 metres;
• 10.55 g/t gold over 6.1 metres (223.0 to 229.1 metres) in hole BR-18-22, including 18.78 g/t gold over 3.1 metres;
• 5.10 g/t gold over 9.6 metres (116.0 to 125.6 metres) in hole BR-18-22, including 25.82 g/t gold over 1.5 metres;
• 7.22 g/t gold over 6.5 metres (310.5 to 317.0 metres) in hole BR-18-23, including 16.00 g/t gold over 2.0 metres; and
• 9.29 g/t gold over 2.1 metres (420.6 to 422.7 metres) in hole BR-18-21.

As part of the extended drill program, Anaconda will allocate approximately 500 metres to infill certain areas of the Mineral Resource that form part of the Company's planned underground bulk sample, which is expected to occur later in 2018.

Table of composited assays from section 9250E

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 are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd. ("Eastern") in Springdale, NL, for Au by fire assay (30 g) with an AA finish.

Samples analyzing greater than 0.5 g/t Au via 30 g fire assay were re-analyzed at Eastern via total pulp metallic.  For the total pulp metallic analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Anaconda considers total pulp metallic analysis to be more representative than 30 g fire assay in coarse gold systems such as the Goldboro deposit.

Reported mineralized intervals are measured from core lengths. Intervals are estimated to be approximately 90-100% of true widths of the mineralized zones, with the exception of historical intervals below 100 metres within hole BR-08-20A which are estimated at 50% of true width.

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, development, and exploration 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 Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and tailings facility, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the 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 of Newfoundland and the Tilt Cove Property on the Baie Verte Peninsula, also in Newfoundland.

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, the Company's future exploration, development and operational plans. 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 seven months 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.