Anaconda Mining recovers over 95% gold in Goldboro Metallurgical Test Program

TORONTO, Sept. 27, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX:ANX) is pleased to announce positive bench scale gold processing test results on a dry 324-kilogram sample of diamond drill core from the Goldboro Project in Nova Scotia. Preliminary development of a process flowsheet has defined overall gold recoveries in the range of 95.1% to 95.3% by gravity separation, flotation and cyanide leaching of both gravity and flotation concentrates.

"We are very pleased with the results of the Goldboro metallurgical test program. Using conventional processing methods, we were able to recover over 95% of the gold from our sample. The high recovery of gold is a positive step in the development of the Goldboro Project. We remain on course to publish a preliminary economic assessment on the project by the end of 2017."

~ Dustin Angelo, President & CEO

The test program and preliminary process design for the recovery of gold was conducted by Thibault & Associates Inc. of Fredericton, New Brunswick. Pre-concentration by gravity separation and flotation was investigated for a potential reduction in throughput tonnage for downstream cyanide leaching. At a grind size of 80% passing 110 micron, the recovery of gold to the gravity concentrate was 46.4% to 62.1% at a concentrate grade of 4,255 grams per tonne ("gpt") Au to 4,587 gpt Au. Flotation of the gravity separation tails using a standard reagent scheme for flotation produced a mass yield of 5.8% to 6.7% at a concentrate grade of 22.3 gpt Au to 24.3 gpt Au.  The combined recovery of gold by gravity and flotation pre-concentration was 96.6% to 97.8%.

Gold in the gravity and flotation concentrates was amenable to cyanide leaching. Intensive cyanide leaching tests on gravity concentrates defined a gold extraction of 99.5% over 48 hours. Cyanide leaching of the flotation concentrate had a gold extraction in the range of 96.6% to 97.3% over 48 hours for a regrind of 80% passing 18.1 and 12.8 micron, respectively. The overall gold recovery based on a process flowsheet including gravity, flotation, flotation concentrate regrind, cyanide leach of flotation concentrates and intensive cyanide leaching of gravity concentrates was 95.1% to 95.3%.

This news release has been reviewed and approved by, J. Dean Thibault, P.Eng., Senior Process Chemical Engineer of Thibault & Associates Inc., a "Qualified Person" under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

ABOUT ANACONDA

Anaconda Mining 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 deposit, a new discovery called Argyle, 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 document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve several business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

SOURCE Anaconda Mining Inc.