January news from anaconda: q4 results, drill campaign, drill program, Geophysical survey
ANACONDA MINING INTERSECTS 2.73 G/T GOLD OVER 6.5 METRES AND 4.57 G/T GOLD OVER 3.0 METRES AND IDENTIFIES NEW SHALLOW MINERALIZATION AT GOLDBORO
accesswire.com
TORONTO, ON / ACCESSWIRE / January 13, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce final results from an infill diamond drill program (the "Infill Drill Program") completed at the Company's 100%-owned Goldboro Gold Project ("Goldboro", or the "Project") located in the Municipality of the District of Guysborough, Nova Scotia. The Infill Drill Program was designed to upgrade both near-surface and underground Inferred Mineral Resources in an area between the two open pits outlined in the Feasibility Study for Goldboro announced on December 16, 2021. The drill program comprised 19 drill holes totaling 2,585.0 metres (BR-21-290 to 308). Assay results have been received for the final 9 drill holes (BR-21-300 to 308) (Exhibit A) of the Infill Drill Program, with assays for the first 10 drill holes (BR-21-290 to 299) reported in a news release dated October 12, 2021.
The Infill Drill Program successfully intersected several new zones of near-surface gold mineralization on the northern side of the Goldboro Deposit between the two proposed open pits, over a strike length of 200 metres, as well as infilled deeper sections of the Goldboro Deposit (Exhibits A, B, C). The new near-surface mineralized zones were not included within the Mineral Resource Estimate announced on December 16, 2021, and present near-term potential to upgrade both near surface and underground Inferred Mineral Resources, further optimize the pit design outlined in the Feasibility Study, reduce the strip ratio, and positively impact the value of the Project. Successful intersection and infill drilling of deeper, underground Inferred Mineral Resource further highlights the potential for an underground mining phase for the Project. Only 5 of the 19 drill holes completed in this program were included in the recent Mineral Resource Estimate update with the remainder to contribute to future updates.
Selected composited highlights (core length) from the drill program include:
26.10 grams per tonne ("g/t") over 0.5 metres within a broader zone consisting of 2.73 g/t gold over 6.5 metres (94.5 to 101.0 metres) in diamond drill hole BR-21-300;17.20 g/t gold over 0.5 metres within a broader zone consisting of 3.91 g/t gold over 2.5 metres (137.5 to 140.0 metres) in diamond drill hole BR-21-301;20.60 g/t gold over 0.5 metres within a broader zone consisting of 4.57 g/t gold over 3.0 metres (148.1 to 151.1 metres) in diamond drill hole BR-21-305;13.30 g/t gold over 0.6 metres within a broader zone consisting of 1.49 g/t gold over 7.0 metres (157.5 to 164.5 metres) in diamond drill hole BR-21-305;11.00 g/t gold over 0.5 metres (94.7 to 95.2 metres) in diamond drill hole BR-21-306;31.30 g/t gold over 0.5 metres (126.2 to 126.7 metres) in diamond drill hole BR-21-307;10.40 g/t gold over 1.0 metre (38.0 to 39.0 metres) in diamond drill hole BR-21-308;34.80 g/t gold over 0.5 metres (145.7 to 146.2 metres) in diamond drill hole BR-21-308; and24.50 g/t gold over 0.6 metres (235.6 to 236.2 metres) in diamond drill hole BR-21-308."This infill drill program and the related results highlight the tremendous potential that continues to exist for the Goldboro Gold Project. Since acquiring the Project in 2017, we have grown the deposit significantly, culminating in the recent Mineral Resource Estimate update which demonstrates a combined open pit and underground Measured and Indicated Mineral Resource of 2,581,000 ounces and a combined open pit and underground Inferred Mineral Resource of 484,000 ounces. In the fall 2021 we recognized an opportunity to target and potentially upgrade inferred near-surface and underground mineral resources in the area between the two open pits outlined in the Goldboro Feasibility Study. Several new zones of near surface mineralization were encountered within and between the two open pits over a strike length of 200 metres, demonstrating the potential to upgrade near-surface Inferred Resources and reduce the strip ratio. The assay results from the drill program also show continuity of high-grade gold within broader mineralized envelopes within the underground resource, indicating the potential to further upgrade underground Mineral Resources. Looking ahead to the new year, we are excited to commence further drill programs to both upgrade and expand the Goldboro Mineral Resource, which has the near-term potential to further increase value to what is already a robust, economically valuable Project."
~ Kevin Bullock, President and CEO, Anaconda Mining Inc
Highlights of the Goldboro Project Feasibility Study*
Total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine with average gold production of 100,000 ounces per annum, at an average diluted grade of 2.26 g/t gold;Pre-tax Net Present Value at a 5% discount rate ("NPV 5%") of $484 million and a pre-tax Internal Rate of Return ("IRR") of 31.2%, with a projected pre-tax payback of 2.7 years;After-tax NPV 5% of $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years;Maiden Probable Mineral Reserves of 1,150,200 ounces of gold (15.8 Mt at 2.26 g/t gold)Combined open pit and underground Measured and Indicated Mineral Resources of 2,581,000 ounces (21.5 Mt at 3.72 g/t gold) and Inferred Mineral Resources of 484,000 ounces (3.19 Mt at 4.73 g/t gold);Initial capital cost ("Capex") of $271 million, resulting in an after-tax NPV 5% to Capex ratio of 1.3, and LOM sustaining capital of $63.1 million;Life-of-Mine Operating Cash Costs of $966 (US$772) per ounce sold1 and All-In Sustaining Costs ("AISC") of $1,062 (US$850) per ounce sold1;Projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments;Mill capacity of 4,000 tonnes per day ("tpd") based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; andAt a gold price of $2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.* Please refer to Press Release dated December 16, 2021 at www.anacondamining.com
1 Refer to Non-IFRS Financial Measures below.
Goldboro Gold Project - Mineral Resource Estimate
The Mineral Resource Estimate presented was prepared by Independent Qualified Person Glen Kuntz, P. Geo., of Nordmin Engineering Ltd. The Mineral Resource Estimate is based on validated results of 681 surface and underground drill holes for a total of 121,540 metres of diamond drilling completed between 1984 and the effective date of November 15, 2021, including 55,803 metres conducted by Anaconda.
Mineral Resource Estimate for the Goldboro Gold Project - Effective Date November 15, 2021
Resource Type
| Gold Cut-off (g/t gold)
| Category
| Tonnes
| Grade
(g/t gold)
| Gold Troy Ounces
| | Open Pit | 0.45
| Measured
| 7,680,000
| 2.76
| 681,000
| Indicated
| 7,988,000
| 2.89
| 741,000
| Measured + Indicated
| 15,668,000
| 2.82
| 1,422,000
| Inferred
| 975,000
| 2.11
| 66,000
| | Underground | 2.40
| Measured
| 1,576,000
| 7.45
| 377,000
| Indicated
| 4,350,000
| 5.59
| 782,000
| Measured + Indicated
| 5,925,000
| 6.09
| 1,159,000
| Inferred
| 2,206,000
| 5.89
| 418,000
| | Combined Open Pit and Underground* | 0.45
and
2.40
| Measured
| 9,255,000
| 3.56
| 1,058,000
| Indicated
| 12,338,000
| 3.84
| 1,523,000
| Measured + Indicated
| 21,593,000
| 3.72
| 2,581,000
| Inferred
| 3,181,000
| 4.73
| 484,000
|
* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.45 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.40 g/t gold cut-off grade.
Mineral Resource Estimate Notes
Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.Mineral Resources are inclusive of Mineral Reserves.Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083.Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%.Assays were variably capped on a wireframe-by-wireframe basis.Specific gravity was applied using weighted averages to each individual wireframe.Effective date of the Mineral Resource Estimate is November 15, 2021.All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.Excludes unclassified mineralization located within mined out areas.Reported from within a mineralization envelope accounting for mineral continuity.Table of selected composites from the Goldboro Drill Program
Hole ID
| From (m)
| To (m)
| Interval (m)
| Gold (g/t)
| Visible Gold
| BR-21-300
| 20.2
| 21.2
| 1.0
| 1.91
| | and
| 65.6
| 66.6
| 1.0
| 1.21
| | and
| 94.5
| 101.0
| 6.5
| 2.73
| VG
| including
| 99.0
| 99.5
| 0.5
| 26.10
| VG
| and
| 150.4
| 158.5
| 8.1
| 1.26
| | including
| 151.4
| 152.4
| 1.0
| 5.87
| | and
| 170.4
| 175.5
| 5.1
| 0.86
| | and
| 248.8
| 249.8
| 1.0
| 24.90
| | BR-21-301
| 137.5
| 140.0
| 2.5
| 3.91
| VG
| including
| 138.5
| 139.0
| 0.5
| 17.20
| VG
| and
| 178.8
| 179.7
| 0.9
| 3.19
| | and
| 205.1
| 206.1
| 1.0
| 3.64
| | BR-21-302
| 101.4
| 104.3
| 2.9
| 0.86
| | and
| 110.8
| 111.3
| 0.5
| 3.09
| VG
| and
| 200.2
| 200.7
| 0.5
| 7.52
| VG
| BR-21-303
| 14.9
| 15.6
| 0.7
| 1.03
| | and
| 63.9
| 67.0
| 3.1
| 2.07
| | and
| 71.7
| 72.7
| 1.0
| 2.53
| | and
| 97.2
| 100.2
| 3.0
| 0.68
| | BR-21-304
| 94.3
| 97.2
| 2.9
| 1.55
| | and
| 114.0
| 116.7
| 2.7
| 2.92
| | including
| 114.0
| 114.7
| 0.7
| 9.45
| | and
| 128.0
| 128.5
| 0.5
| 32.30
| VG
| and
| 214.2
| 214.7
| 0.5
| 0.79
| VG
| and
| 259.4
| 261.6
| 2.2
| 1.10
| | BR-21-305
| 82.4
| 84.1
| 1.7
| 1.28
| | and
| 94.5
| 97.8
| 3.3
| 1.37
| VG
| and
| 148.1
| 151.1
| 3.0
| 4.57
| VG
| including
| 148.6
| 149.1
| 0.5
| 20.60
| | and
| 157.5
| 164.5
| 7.0
| 1.49
| VG
| including
| 162.9
| 163.5
| 0.6
| 13.30
| VG
| and
| 176.8
| 177.3
| 0.5
| 1.92
| VG
| BR-21-306
| 51.0
| 51.5
| 0.5
| 1.29
| VG
| and
| 94.7
| 95.2
| 0.5
| 11.00
| VG
| and
| 122.6
| 123.1
| 0.5
| 3.07
| VG
| BR-21-307
| 12.3
| 13.3
| 1.0
| 1.37
| | and
| 71.0
| 72.0
| 1.0
| 1.18
| | and
| 79.5
| 80.0
| 0.5
| 4.29
| VG
| and
| 126.2
| 126.7
| 0.5
| 31.30
| VG
| BR-21-308
| 31.2
| 31.7
| 0.5
| 5.66
| VG
| and
| 38.0
| 39.0
| 1.0
| 10.40
| VG
| including
| 38.5
| 39.0
| 0.5
| 17.80
| VG
| and
| 94.6
| 95.6
| 1.0
| 3.94
| | and
| 107.1
| 108.9
| 1.8
| 0.86
| | and
| 123.0
| 123.5
| 0.5
| 2.19
| VG
| and
| 130.0
| 130.5
| 0.5
| 1.42
| VG
| and
| 145.7
| 146.2
| 0.5
| 34.80
| VG
| and
| 183.2
| 183.7
| 0.5
| 2.69
| | and
| 235.6
| 236.2
| 0.6
| 24.50
| | and
| 259.4
| 261.4
| 2.0
| 1.86
| VG
|
Intervals are reported as core length only. True widths are estimated to be between 70% and 90% of the core length.All drill hole results are reported using fire assay only. See notes on QAQC procedures at the bottom of this press release.The Company has critically considered logistical matters given the ongoing COVID-19 pandemic, to ensure that this Drill Program and any other programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate.
 Exhibit A The location of the drill holes and selected assay composites reported from the full nineteen-hole drill program conducted between the western and eastern pit shells and showing the new mineralized zones intersected during the drill program.
 Exhibit B. Cross Section 9150E showing drill holes and selected assay composites reported from the drill program between the western and eastern pit shells.
 Exhibit C. Cross Section 9350E showing drill holes and selected assay composites reported from the drill program between the western and eastern pit shells and showing the areas of new mineralization.
SOURCE: Anaconda Mining Inc.
_____________________________________________________________________________________
accesswire.com
TORONTO, ON / ACCESSWIRE / January 18, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to report its production results and certain preliminary and unaudited financial information for the three months and year ended December 31, 2021. All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by February 24, 2022. The Company is also pleased to provide production guidance for the upcoming 2022 fiscal year.
2021 Highlights
Anaconda produced 12,054 ounces of gold in 2021 from its Point Rousse operation, achieving its revised annual guidance of approximately 12,000 ounces. The revised annual guidance was based on the mine plan from an updated Probable Mineral Reserve1 for Argyle as of September 1, 2021, which included 529,100 tonnes at an average diluted grade of 1.99 grams per tonne ("g/t") gold containing 33,850 ounces.Based on the updated Probable Mineral Reserve, Argyle demonstrates robust economics with undiscounted after-tax cash flows of $18.4 million and an after-tax NPV (5%) of $17.4 million with an IRR of 1,631%, using a base case gold price of $2,000 (US$1,550) 1.The Company sold 12,218 ounces of gold in 2021, generating metal revenue of $27.6 million at an average realized gold price2 of C$2,261 (US$1,804) per ounce of gold.The Pine Cove Mill achieved annual throughput of 446,562 tonnes during 2021, attaining similar mill throughput compared to 2020 despite unplanned ball mill and crusher downtime in Q1 2021. The mill also achieved a strong average recovery of 86.5%, despite the relatively lower-grade profile of mill throughput during the year.Mining operations moved 209,157 ore tonnes and 2,853,011 waste tonnes during 2021, reflecting the heavy focus on mine development for Argyle up until Q3 2021. As a result, the mine was able to produce 102,395 tonnes in Q4 2021, almost 49% of the annual total, and is positioned to continue more productive mining into 2022.As of December 31, 2021, the Company had a cash balance of $10.1 million, preliminary working capital2 of $1.4 million, and additional available liquidity of $3.0 million from an undrawn revolving line of credit facility.In December 2021, the Company executed a $5.0 million gold prepayment facility to provide further un-dilutive liquidity as the Company completes the Feasibility Study and Environmental Assessment Registration Document for the Goldboro Gold Project. The facility will be repaid in gold deliveries totaling 2,273 ounces over the next nine months.2022 Guidance
Gold production and sales of between 21,500 and 23,000 ounces, projected to be a record year of production.Operating cash costs per ounce sold2 between $1,150 and $1,250 per ounce of gold (US$920 - US$1,000 at an approximate exchange rate of 0.80).Continued advancement of the expanded Stog'er Tight Mineral Resource, which now includes 62,300 ounces of Indicated Mineral Resource and 9,600 ounces of Inferred Mineral Resource within constrained open pit shells.1 Refer to the technical report entitled "2021 NI 43-101 Technical Report, Mineral Resources and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada" dated November 27, 2021. The technical report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.anacondamining.com.
2 Refer to Non-IFRS Measures Section below. Non-IFRS financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements and may not be comparable to similar financial measures disclosed by other issuers
"While 2021 was a challenging year operationally for our Point Rousse operation, the site finished the year strong, producing 4,095 ounces of gold in Q4 2021, resulting in annual production of 12,054 ounces, in line with revised guidance. The Company continues to be confident in the independently prepared updated mine plan for the Argyle Gold Mine implemented in the third quarter, and we continue to reconcile to plan so far in 2022. While annual production was lower than historical performance, the adjustments to the mine plan have set Point Rousse up for a strong year in 2022. We are guiding for a record year of gold production in 2022 of between 21,500 and 23,000 ounces at operating cash costs per ounce of between $1,150 and $1,250 per ounce of gold sold (US$920 - US$1,000). We also continue to advance the expanded Stog'er Tight Deposit, which now includes 62,300 ounces of Indicated Mineral Resource and 9,600 ounces of Inferred Mineral Resource. We believe the Point Rouse Project has the potential for continued cash generation for several years. "
~Kevin Bullock, President and CEO, Anaconda Mining Inc.
2022 Guidance
Anaconda is projecting to produce between 21,500 and 23,000 ounces of gold in 2022, a record year of production for Point Rousse, with mill feed predominantly from mining at the Argyle Gold Mine and supplemented with lower-grade Pine Cove stockpiles. Operating cash costs per ounce1 for the full year are expected to be between $1,150 and $1,250 per ounce of gold sold (US$920 - US$1,000 at an approximate exchange rate of 0.80), reflecting the lower strip ratio and increasing grade profile after heavy focus on mine development in 2021. The 2022 guidance reflects the updated Mineral Reserve and Resource Estimate for the Argyle Deposit prepared independently by Nordmin Engineering Ltd.
The Company expects to incur approximately $2,500,000 in sustaining capital expenditures in 2022 at Point Rousse, which mainly reflects remaining mine development at Argyle and capital upgrades for the Pine Cove Mill. Sustaining capital also reflects costs required to continue progressing the Stog'er Tight Deposit.
Operating Statistics for the Three Months and Year Ended December 31, 2021
| Three months ended December 31, 2021
| Three months ended December 31, 2020
| Year ended December 31, 2021
| Year ended December 31, 2020
| | Mine Statistics | | | | | | Ore production (tonnes) | 102,395
| 110,455
| 209,157
| 512,028
| | Waste production (tonnes) | 918,217
| 453,859
| 2,853,011
| 1,964,689
| | Total material moved (tonnes) | 1,020,612
| 564,314
| 3,062,168
| 2,476,717
| | Waste: Ore ratio | 9.0
| 4.1
| 13.6
| 3.8
| | | | | | | Mill Statistics | | | | | Availability (%) | 97.8
| 91.5
| 93.2
| 96.3
| | Dry tonnes processed | 118,011
| 107,257
| 446,562
| 459,085
| | Tonnes per day ("tpd") | 1,312
| 1,274
| 1,313
| 1,302
| | Grade (grams per tonne) | 1.23
| 1.39
| 0.97
| 1.42
| | Recovery (%) | 87.8
| 86.8
| 86.5
| 87.4
| | Gold Ounces Produced | 4,095
| 4,171
| 12,054
| 18,268
| | Gold Ounces Sold | 3,368
| 3,970
| 12,218
| 17,918
|
Operations Overview for the Three Months and Year Ended December 31, 2021
Anaconda produced 4,095 ounces of gold in the fourth quarter of 2021, an 85% increase over the third quarter of 2021 when mine activity was focused on mine waste development to provide access to higher grade ore at Argyle. Gold production for 2021 was 12,054 ounces, achieving revised annual guidance of approximately 12,000 ounces. The revised annual guidance was based on the mine plan from an updated Probable Mineral Reserve for Argyle as of September 1, 2021. The Company sold 3,368 ounces of gold in the fourth quarter of 2021 and 12,218 ounces for the year, generating metal revenue of $27.6 million at an average realized gold price1 of C$2,261 (US$1,804) per ounce of gold.
After heavy focus on mine waste development in the third quarter, the mining operation moved 102,395 tonnes of ore in Q4 2021, almost 49% of the total ore tonnes mined in 2021 of 209,157 tonnes. This is a significant decrease from the 512,028 tonnes of ore mined in 2020, when the operation was concentrated on the higher-tonnage Pine Cove mine during the first half of the year. Waste production in the fourth quarter was 918,217 tonnes and 2,853,011 tonnes for the full year, reflecting the focus on mine waste development at Argyle and resulting in a strip ratio of 13.6 waste tonnes to ore tonnes. The strip ratio of 3.8 waste tonnes to ore tonnes in 2020 reflects mining in the final lower benches of the Pine Cove open pit.
The Pine Cove Mill posted another strong quarter of performance, processing 118,011 tonnes during Q4 2021 and achieving an availability rate of 97.8%, resulting in a throughput rate of 1,312 tonnes per day, a slight increase compared to the corresponding period of 2020. Total tonnes milled for 2021 was 446,562 tonnes, only 3% lower than 2020 despite unplanned maintenance relating to the ball mill and the jaw crusher in the first quarter of 2021. The significant decrease in year over year gold production was the result of a 32% decrease in the grade profile of mill throughput, the result of processing a high proportion of low-grade Pine Cove ore stockpiles. Notwithstanding the low-grade throughput, the mill was able to achieve an average recovery rate of 86.5% during 2021, a decrease of only 1.0% compared to 2020 despite the significantly lower grade delivered to the mill.
1 Refer to Non-IFRS Measures Section below.
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study with Mineral Reserves of 1.15 million ounces of gold (15.80 million tonnes at 2.26 g/t gold), Measured and Indicated Mineral Resources inclusive of Mineral Reserves of 2.58 million ounces (21.6 million tonnes at 3.72 g/t gold) and additional Inferred Mineral Resources of 0.48 million ounces (3.18 million tonnes at 4.73 g/t gold) (Please see Press Release dated December 16, 2021 at www.anacondamining.com). Anaconda also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.
Kevin Bullock, P. Eng., President and Chief Executive Officer of Anaconda Mining Inc. is a "qualified person" as such term is defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and approved the scientific and technical information and data included in this press release.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.
Average realized gold price per ounce sold is reconciled to the preliminary, unaudited consolidated statement of comprehensive income as follows:
| Three months ended
December 31, 2021
| Three months ended
December 31, 2020
| Year ended
December 31, 2021
| Year ended
December 31, 2020
| | | | | | | Gold revenue ($) | 7,569,085
| 9,935,158
| 27,627,604
| 41,495,843
| | Gold ounces sold | 3,368
| 3,970
| 12,218
| 17,918
| | Average realized gold price per ounce sold ($) | 2,247
| 2,503
| 2,261
| 2,316
| | Average US Dollar exchange rate during period | 0.7936
| 0.7676
| 0.7980
| 0.7461
| | Average realized gold price per ounce sold (US$) | 1,783
| 1,921
| 1,804
| 1,728
|
Working Capital - Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.
Working capital is reconciled to the preliminary, unaudited consolidated statement of financial position as follows:
| December 31, 2021
| December 31, 2020
| | | | | Current assets | 17,841,194
| 22,964,876
| | Current liabilities | 16,416,109
| 9,026,405
| | Working capital | 1,425,085
| 13,938,471
|
___________________________________________________________________________________________________
accesswire.com
ANACONDA MINING FILES THE POSITIVE PHASE I OPEN PIT FEASIBILITY STUDY FOR THE GOLDBORO GOLD PROJECT
TORONTO, ON / ACCESSWIRE / January 20, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce the filing of a technical report prepared in accordance with National Instrument 43-101 ("NI 43-101") with respect to a Feasibility Study ("FS") for its 100%-owned Goldboro Gold Project in Nova Scotia, Canada ("Goldboro", or the "Project"). The technical report, entitled "NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia" (the "Technical Report"), follows the previous announcement on December 16, 2021. All currency is presented in Canadian dollars (C$) and referenced as "C$" or "$", unless otherwise stated.
The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.anacondamining.com.
Highlights of the Feasibility Study
Total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine ("LOM") with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne ("g/t") gold;Pre-tax Net Present Value at a 5% discount rate ("NPV 5%") of $484 million and a pre-tax Internal Rate of Return ("IRR") of 31.2%, with a projected pre-tax payback of 2.7 years;After-tax NPV 5% of $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years;Maiden Open Pit Probable Mineral Reserves of 1,150,200 ounces of gold (15.8 million tonnes ("Mt") at 2.26 g/t gold);Open pit Measured and Indicated Mineral Resources of 1,422,000 ounces (15.7 Mt at 2.82 g/t gold) and Underground Measured and Indicated Mineral resources of 1,159,000 ounces (5.9 Mt at 6.09 g/t gold);Open pit Inferred Mineral Resources of 66,000 (0.98 Mt at 2.11 g/t gold) and Underground Inferred Mineral Resources of 418,000 ounces (2.2 Mt at 5.89 g/t gold);Initial capital cost ("Capex") of $271 million and LOM sustaining capital of $63.1 million;LOM Operating Cash Costs of $966 (US$773) per ounce1 and All-In Sustaining Costs ("AISC") of $1,062 (US$849) per ounce1;Projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments;Mill capacity of 4,000 tonnes per day ("tpd") based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; andAt a gold price of $2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.With Strong Opportunity for Further Value Creation
Ongoing infill drilling has the potential to reduce the strip ratio and positively impact NPV and IRR by upgrading Inferred Mineral Resources coincident with the current open pit designs based on Measured and Indicated Mineral Resources only;Potential for Mineral Resource expansion, particularly towards the west with further exploration of a 1.5-kilometre-long area along strike of the existing Goldboro Deposit ("Deposit") towards the past producing gold mine at Dolliver Mountain;The Goldboro Deposit has been drill tested to only 500 metres and remains open at depth. A future study will consider upgrading and expanding potentially mineable underground Mineral Resources as part of the longer-term mine development plan.1 Refer to Non-IFRS Financial Measures below.
The Goldboro Gold Project Feasibility Study
The Feasibility Study, with a report date of January 11, 2022, was completed by Nordmin Engineering Ltd. ("Nordmin") as Lead Mining and Geological Consultant. Ausenco Engineering Canada Inc. ("Ausenco") acted as Metallurgical and Processing Consultant, Knight Piésold Ltd. ("Knight Piésold") as Tailings Consultant, GHD Ltd. ("GHD") as Site Water Management and Environmental Consultant, Lorax Environmental Services Limited ("Lorax") as Geochemistry Consultant, and McCallum Environmental Ltd. ("McCallum") as Consultation and Permitting Consultant.
Table 1: Summary of Key Estimated Results and Assumptions in the Feasibility Study
Production Data
| Values
| Units
| Life of Mine
| 10.9
| Years
| Processing Rate
| 4,000 / 1.46
| tpd / Mtpa
| Recovered Gold
| 1.10
| Moz
| Average Gold Recovery
| 95.8
| %
| Pre-production Tonnes Mined
| 4.1
| Mt
| Total Material Mined (including pre-production)
| 142.6
| Mt
| Total Ore Tonnes Mined
| 15.8
| Mt
| Overall Strip Ratio
| 8.0
| waste: ore
| Total Tonnes Milled
| 15.8
| Mt
| Average Annual Gold Production
| 100
| koz
| Average Mill Feed Grade
| 2.26
| g/t gold
| | | |
| | | Capital Costs
| Values
| Units
| Initial Capital, Direct Cost Estimate
| 193.9
| C$M
| Initial Capital, Indirect Costs and Contingency
| 77.1
| C$M
| Total Initial Capital Costs
| 271.0
| C$M
| LOM Sustaining Capital Costs, including Indirect Costs and Contingency
| 63.1
| C$M
| Total Reclamation and Other Costs
| 50.3
| C$M
| Total LOM Capital Costs
| 384.5
| C$M
| | | |
| | | Operating Costs
| Values
| Units
| Open Pit Mining
| 4.99
| C$/t mined
| Processing
| 13.45
| C$/t milled
| Refining and Transport
| 4.23
| C$/oz
| Water Management and Treatment
| 1.16
| C$/t milled
| Site Support Costs
| 8.70
| C$/t milled
| Total Operating Cost
| 67.05
| C$/t milled
| Average Operating Cash Cost per Ounce 1
| 966 (US$773)
| C$/oz
| Average All-In Sustaining Cost per Ounce 1
| 1,062 (US$849)
| C$/oz
| | | |
| | | Financial Analysis
| Values
| Units
| Gold Price Assumption
| $1,600
| US$/oz
| Exchange Rate
| 1:1.25
| US$:C$
| Gold Price Assumption
| $2,000
| C$/oz
| Pre-Tax Unlevered Free Cash Flow
| 755
| C$M
| Pre-Tax NPV 5%
| 484
| C$M
| Pre-Tax IRR
| 31.2
| %
| Pre-Tax Payback
| 2.7
| years
| After-Tax Unlevered Free Cash Flow
| 529
| C$M
| After-Tax NPV 5%
| 328
| C$M
| After-Tax IRR
| 25.5
| %
| After-Tax Payback
| 2.9
| years
| LOM Direct Income and Provincial Mining Taxes
| 226
| C$M
|
Notes:
Refer to "Non-IFRS Financial Measures" below.Mineral Reserve Estimate
The Mineral Reserve Estimate presented in Table 2 was prepared by Independent Qualified Person Joanne Robinson, P.Eng., of Nordmin.
Table 2: Mineral Reserve Statement for the Goldboro Gold Project - Effective Date of December 15, 2021
Category
| Area
| Cut-off Grade
(g/t gold)
| Tonnes (t)
| Diluted
Grade
(g/t gold)
| Contained Gold Metal (Troy ounces)
| Probable Mineral Reserve
| East Pit
| 0.45 g/t
| 5,468,300
| 2.54
| 446,000
| Probable Mineral Reserve
| West Pit
| 0.45 g/t
| 10,330,600
| 2.12
| 704,200
| | Total
| 0.45 g/t
| 15,798,900
| 2.26
| 1,150,200
|
Mineral Reserve Estimate Notes
Mineral Reserves were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). This estimate of Mineral Reserves may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.The Effective Date of the Mineral Reserves Estimate is December 15, 2021.The Mineral Reserve Estimate is based metallurgical recovery algorithms which result in an overall average recovery of 95.8%.Metal prices are set at US$ 1,600/oz gold with an exchange rate assumption of 1US$:1.25C$ resulting in C$2,000/ozThe Mineral Reserve was derived from a pit limit analysis and detailed pit design. A cut-off grade of 0.45 g/t gold was based on parameters described in Table 3.The Mineral Reserve Estimate incorporates mining dilution and mining loss assumptions through regularization of block size to 2mx2mx4m. An additional 5% mining loss assumption was incorporated. The overall impact is approximately 26% additional tonnes and approximately 8% reduction in contained gold.Mineral Resource Estimate
The Mineral Resource Estimate presented in Table 3 was prepared by Independent Qualified Person Glen Kuntz, P. Geo., of Nordmin. The Mineral Resource Estimate is based on validated results of 681 surface and underground drill holes for a total of 121,540 metres of diamond drilling completed between 1984 and the effective date of November 15, 2021, including 55,803 metres conducted by Anaconda.
Table 3: Mineral Resource Estimate for the Goldboro Gold Project - Effective Date November 15, 2021
Resource Type
| Gold Cut-off (g/t gold)
| Category
| Tonnes
| Grade
(g/t gold)
| Gold Troy Ounces
| | Open Pit | 0.45
| Measured
| 7,680,000
| 2.76
| 681,000
| Indicated
| 7,988,000
| 2.89
| 741,000
| Measured + Indicated
| 15,668,000
| 2.82
| 1,422,000
| Inferred
| 975,000
| 2.11
| 66,000
| | Underground | 2.40
| Measured
| 1,576,000
| 7.45
| 377,000
| Indicated
| 4,350,000
| 5.59
| 782,000
| Measured + Indicated
| 5,925,000
| 6.09
| 1,159,000
| Inferred
| 2,206,000
| 5.89
| 418,000
| | Combined Open Pit and Underground* | 0.45
and
2.40
| Measured
| 9,255,000
| 3.56
| 1,058,000
| Indicated
| 12,338,000
| 3.84
| 1,523,000
| Measured + Indicated
| 21,593,000
| 3.72
| 2,581,000
| Inferred
| 3,181,000
| 4.73
| 484,000
|
* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.45 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.40 g/t gold cut-off grade.
Mineral Resource Estimate Notes
Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.Mineral Resources are inclusive of Mineral Reserves.Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083.Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%.Assays were variably capped on a wireframe-by-wireframe basis.Specific gravity was applied using weighted averages to each individual wireframe.Effective date of the Mineral Resource Estimate is November 15, 2021.All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.Excludes unclassified mineralization located within mined out areas.Reported from within a mineralization envelope accounting for mineral continuity.¨
________________________________________________________________________________________________
ANACONDA MINING INITIATES 5,000 METRE EXPLORATION DRILL CAMPAIGN AT POINT ROUSSE IN NEWFOUNDLAND
TORONTO, ON / ACCESSWIRE / January 25, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce the initiation of a 5,000 metre diamond drill program ("Winter Drill Program") at its Point Rousse operation in Newfoundland. The Winter Drill Program is based on targets developed from a ground Induced Polarization ("IP") geophysical survey conducted in 2021 which was designed to locate anomalies at depths down to 250 metres not previously investigated at Point Rousse. The initial results from the IP survey have been received and used to develop five (5) new drill targets all within four (4) kilometres of the Pine Cove mill and in-pit tailings facility (Exhibit A). Several of these targets are associated with the Goldenville Horizon, a suite of rocks that are equivalent to the Nugget Pond Horizon which hosted the historical Nugget Pond Mine and produced approximately 168,000 ounces at an average mill grade of 9.8 grams per tonne ("g/t"). These targets have the potential to host high-grade gold systems analogous to Nugget Pond and demonstrate the continued potential to extend the mine life of the Point Rousse operation.
Highlights of the prospective targets include:
Pumbly Point - Hosted within the Goldenville Horizon where recent drilling by Anaconda intersected 1.89 g/t gold over 7.8 metres (as announced on May 28th, 2021). A drill program of 500 metres will target along strike of existing mineralization.Penny Cove - This target consists of a 500 metre long north striking IP chargeability anomaly that sits immediately north of the Corkscrew gold zone. This geophysical target coincides with iron-rich sediments of the Goldeville Horizon and has not been previously tested by drilling.Green Cove - Green Cove consists of a 2.0 kilometre long east-west striking IP chargeability anomaly that coincides with iron-rich sedimentary rocks of the Goldenville Horizon. The target is located to the immediate north of the Big Bear gold occurrence and is associated locally with anomalous soil samples assaying up to 745 ppb gold and grab samples assaying up to 6.44 g/t gold.Iron Formation -This target is 700 metres in strike and is defined by a north-northeast trending IP chargeability anomaly and several parallel fault zones, and anomalous soils assaying up to 893 ppb gold. Historical trenching and grab samples from the target area include assays up to 22.93 g/t gold.Corkscrew Road - This target consists of a 1.0 kilometre long, west-northwest trending IP chargeability high that is flanked to the south by a large gold soil anomaly. This area has not been previously drill tested."We are keen to start our Winter Drill Program with the goal of discovering a high-grade gold deposit in the area proximal to our Point Rousse operation. The first five targets are characterized by multiple anomalous gold indicators both at surface and at depth and are identified as having the potential to host high-grade gold systems like the Nugget Pond Deposit, located 40 km to the east near our Tilt Cove Project. This drill campaign follows on the heels of announcing a new Mineral Resource at the Stog'er Tight Deposit, currently being considered for development, and an updated Mineral Reserve and mine plan at Argyle that indicate 2022 is projected to be a record production year for Anaconda. With established infrastructure and long-term tailings capacity, a high-grade discovery near the Pine Cove mill could significantly impact the production and cash flow profile of our Newfoundland operations."
~ Kevin Bullock, President and CEO, Anaconda Mining Inc.
Fall 2021 Exploration Program
As announced in July 2021, the Company conducted an IP geophysical survey across parts of the Point Rousse peninsula and completed 5,226 metres of diamond drilling in 41 holes, testing the Corkscrew, Big Bear, Pine Cove East, Deer Cove, Argyle East and Animal Pond targets. Assays from this drilling have not been received but are anticipated in the first quarter of 2022.
Disclosure of a scientific or technical nature in this news release has been approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person". Paul McNeill has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information it contains.
________________________________________________________________________________________________________________________________
accesswire.com
ANACONDA MINING INITIATES 100 LINE KM GEOPHYSICAL SURVEY AND DRILL PROGRAM AT THE TILT COVE GOLD PROJECT, NEWFOUNDLAND
TORONTO, ON / ACCESSWIRE / January 27, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce that it has initiated an exploration program at its 100% owned Tilt Cove Gold Project, located within the Baie Verte Mining District, Newfoundland, approximately 45 kilometres by road from the Company's Pine Cove Mill and long-term tailings storage facility (Exhibit A). Anaconda has consolidated more than 11,000 hectares of prospective mineral lands including a significant property package covering 35 kilometres of high-potential strike length including the Nugget Pond Horizon, a geological unit that hosts the past producing, high-grade Nugget Pond Mine.
The winter exploration program will consist of a 100-line-kilometre ground Induced Polarization ("IP") geophysical survey and 4,000 metres of diamond drilling (the "Winter Exploration Program"). The IP geophysical survey is designed to locate anomalies analogous to the Nugget Pond Deposit to depths down to 250 metres, which have not been previously investigated at Tilt Cove. The Winter Exploration Program will also include 4,000 metres of diamond drilling at two target areas known as the Nugget Pond and Long Pond Target Areas. The drill program will include drilling from frozen ponds and will leverage improved access conditions at this time of year. The Winter Exploration Program is based on information gathered during the late summer and fall of 2021, a summary of which is provided below with remaining analytical results anticipated in Q1 2022.
Highlights of the Tilt Cove Gold Project and results to date include:
Large land position that has been consolidated for gold exploration for the first time in 20 years with 35 kilometres of prospective strike;Includes the Nugget Pond Horizon, which hosts the past-producing high-grade Nugget Pond Mine that produced 168,748 ounces and an average grade of 9.85 grams per tonne ("g/t") gold;Significant high-grade historical and recent drill intercepts and the identification of 13 high-priority gold exploration targets including:4.99 g/t gold over 4.0 metres, including 17.40 g/t gold over 1.0 metre in diamond drill hole EP-21-09 along the Red Cliff Horizon at East Pond;8.82 g/t gold over 1.0 metre in historic diamond drill hole NBC-96-01 at East Pond;1.74 g/t gold over 12.0 metres, including 11.43 g/t gold over 1.0 metre in diamond drill hole BC-21-05 at Betts Cove;6.77 g/t gold over 5.0 metres in historic diamond drill hole BC-89-02 at Betts Cove;11.20 g/t gold over 1.1 metres in historic diamond drill hole BC-89-01 at Betts Cove; andRecognition of several other favorable targets, including iron-rich sediments of the Red Cliff Horizon;Recognition of gold-rich environments in the hanging wall of past-producing copper mines, including the Tilt Cove and Betts Cove Mines;Intersection of high-grade copper mineralization at the Scarp Zone near the Tilt Cove mine"We are pleased to begin the next phase of drilling at our Tilt Cove Gold Project, as well as initiating a geophysical survey to develop further targets at depths not yet explored in this area. The investment thesis at Tilt Cove is based on a 35-kilometre strike extent of highly prospective geological terrane adjacent to the Green Bay Fault, a crustal scale structure proximal and genetically linked to both the past-producing Nugget Pond and Hammerdown high-grade gold mines. Targets within the Tilt Cove Project are also immediately along strike from the past producing, high-grade Nugget Pond mine. This rich geological environment is located within trucking distance to the Company's Pine Cove Mill and long-term tailings facility, making the discovery of a high-grade gold deposit an immediate catalyst for growth. While we have immediate targets available for drill testing during the winter program, the IP geophysical survey is designed to identify currently unknown high-grade gold targets at depth in favorable geological environments. We believe this is an excellent opportunity to make the next high-grade gold discovery in Newfoundland."
~ Kevin Bullock, President and CEO, Anaconda Mining Inc.
Summer-Fall 2021 Exploration Program
The Tilt Cove Gold Project has several exploration targets in four main areas: the Nugget Pond, Long Pond, Betts Cove and Nippers Harbour Target areas (Exhibit B).
Work conducted in the summer and fall of 2021 at Tilt Cove focused on geochemical surveys and alteration studies at the Nugget Pond Target Area. Work included:
Collection of 30 till samples at West Pond and the collection of 621 soil samples across the West Pond to East Pond area;Collection of 1,139 rock samples during a prospecting, mapping and a structural analysis of the property; andReview of historic core and sample collection for alteration studies including geochemistry on 905 samples collected for analysis.At the Nippers Harbour Target Area exploration work focused on reconnaissance geochemical surveys as well as follow-up sampling and geological mapping of existing gold occurrences: Work included:
Collection of 43 rock samples;Collection of 72 reconnaissance-style stream sediment samples;An airborne LiDAR survey to provide a detailed digital elevation model to aid in structural and glacial geological interpretation; andA desktop glacial geological study to better understand glacial ice flow directions and its significance for interpreting geochemical data.Rock and soil samples were submitted to Eastern Analytical Limited for gold assay and multi-element ICP analysis. Till and stream sediment samples were shipped to Overburden Drilling Management Limited for processing of heavy mineral separates, including gold, which will then be sent to ActLabs Ltd. for gold fire assay and multi-element ICP analysis. Final analytical data for the summer and fall exploration program are expected tin the first quarter of 2022.
Winter 2022 Exploration Targets on the Tilt Cove Project
Nugget Pond Target Area
The Nugget Pond Target Area is a 7.5-kilometre zone along the Nugget Pond Horizon extending northeast from the Nugget Pond Gold Mine to the Tilt Cove Mine (Exhibit B). There are four key exploration targets that are prospective for Nugget Pond-style mineralization on the Property as follows:
East Pond Prospect - The East Pond Prospect comprises a minimum 800-metre long segment of the Nugget Pond Horizon beneath East Pond. Diamond drilling in 1997 and 1998 from the north side of East Pond intersected gold mineralization in the footwall of the Nugget Pond Horizon similar to footwall style mineralization at the Nugget Pond Mine. This suggests that the Nugget Pond Horizon above these holes may be mineralized and that these holes intersected northwest oriented mineralized structures like those at the Nugget Pond Mine. Recent drill testing of the Red Cliff Horizon at East Pond included an intersection of 4.99 g/t gold over 4.0 metres.
West Pond Prospect - The West Pond Prospect comprises a minimum 1.3-kilometre long target beneath West Pond that is marked by the continuation of the Nugget Pond Horizon northeast of the Nugget Pond Mine. The horizon outcrops on the east and west shores of the pond where gold mineralization has been sampled. Continuation of the horizon under the pond is inferred from combined magnetic and IP conductivity data. There is a strong combined till and soil anomaly that extends down ice (SE) from the Nugget Pond Horizon for at least 600 metres. The Nugget Pond Horizon in this area is associated with a break in the magnetic trend indicative of alteration and magnetic destruction associated with a cross-cutting northwest oriented fault, similar to that present at the Nugget Pond Mine. The combined soil geochemical and geophysical features make this an attractive target for follow up drilling testing.
Long Pond Target Area
The Long Pond Target Area is a 4.0-kilometre long zone that is located at the contact between ultramafic rocks of the Betts Cove Complex and younger Silurian felsic volcanic rocks of the Silurian Cape St. John Group (Exhibit B). The Long Pond Zone includes six gold (+/- copper) prospects over its strike length that include:
Long Pond Prospect - A zone of strongly silicified, hematized, carbonatized, brecciated ultramafic rock that is host to quartz stringers, veinlets and stockworks up with veins up to two metres wide. The mineralized zone is exposed over a 125 metre strike extent and is up to 35 metres wide. Grab samples from the prospect have returned assays up to 75.90 g/t gold with abundant visible gold. Historic drilling has returned assays of up to 21.5 g/t gold over 1.19 metres.
Long Pond West Prospect - This prospect comprises a quartz vein with grab samples assay up to 9.90 g/t gold and channel sampling returned assays of 1.52 g/t gold over 15 centimetres. A single drill hole testing the occurrence intersected 2.69 g/t gold over 1.12 metres. The prospect was discovered via follow-up of a till sample that assayed 83.90 g/t gold.
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 collected by Anaconda 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. Diamond drill core and percussion samples were analyzed for Au at Eastern Analytical Ltd. in Springdale, NL ("Eastern"), using standard fire assay (30 g) 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.
Historical grab and float rock samples and historical drill core samples are compiled from historic reports and data filed with the Department of Natural Resources, Newfoundland and Labrador. Sufficient work has not been completed by Anaconda geologists and QPs to verify the validity of these individual assays.
"Rock grab and float samples" are selected samples and are not necessarily representative of mineralization that may be hosted on the property.
 Exhibit A. A map showing the location of the Tilt Cove project relative to the Pine Cove Mill and Tailings infrastructure as well as other past producing mines in the region.
 Exhibit B. A map showing the extents of the Tilt Cove Gold Project and the 35 kilometres of strike. |
