Anaconda Mining intersects 62.01 g/t over 1.5 metres and 23.24 g/t over 2.5 metres at Goldboro

TORONTO, May 31, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company“) (TSX: ANX; OTCQX: ANXGF) is pleased to announce assay results from four drill holes (1,043 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“). Two drill holes (BR-18-26 and -27) targeted cross section 9350E and two holes (BR-18-28 and -29) targeted cross section 9550E located in the eastern portion of the Goldboro Deposit within the East Goldbrook  Gold System (“EG Gold System“) (Exhibit A, B and C). Drilling within both section 9350E and 9550E are part of an infill and expansion drill program designed to better define specific areas of the EG Gold System as part of the work outlined within the Goldboro Preliminary Economic Analysis filed on SEDAR on March 2, 2018.

The Drill Program testing sections 9350E and 9550E has successfully extended known mineralization identified by historical drilling and new zones identified by Anaconda’s recent drilling. Within section 9350E (Exhibit B) holes BR-18-26 and -27 successfully extended three mineralized zones of the EG Gold System on the northern limb of the fold structure by 150 metres. Within section 9550E (Exhibit C), holes BR-18-28 and -29 extended three recently discovered mineralized zones of the EG Gold System down the southern limb by 200 metres and confirmed the down plunge extension of these mineralized zones. Holes BR-18-28 and -29 also confirmed the extension of the two deepest mineralized zones of the EG Gold System down plunge. Thirteen separate occurrences of visible gold were observed in the four reported drill holes.

Highlight assays from the Drill Program on section 9350E and 9550E include:

• 62.01 grams per tonne (“g/t”) gold over 1.5 metres (108.5 to 110.0 metres) in hole BR-18-26;
• 12.66 g/t gold over 1.7 metres (27.8 to 29.5 metres) in hole BR-18-26;
• 23.24 g/t gold over 2.5 metres from (21.5 to 24.0 metres) in hole BR-18-28;
• 7.12 g/t gold over 4.5 metres from (193.5 to 194.0 metres) in hole BR-18-29; and
• 151.42 g/t gold over 2.6 metres (33.1 to 35.7 metres) in hole BR-17-04 (previously reported).

Highlight assays from historic drilling on section 9350E include:

• 81.71 g/t gold over 2.5 metres (85.5 to 88.0 metres) in hole BR-08-22;
• 66.89 g/t gold over 3.0 metres (83.5 to 86.5 metres) in hole BR-08-22;
• 21.66 g/t gold over 3.25 metres (156.75 to 160.0 metres) in hole BR-08-25;
• 4.58 g/t gold over 12.0 metres (103.0 to 115 metres) in hole BR-08-22 including 61.50 g/t gold over 0.5 metres; and
• 6.68 g/t gold over 3.0 metres (197.5 to 200.5 metres) in hole BR-08-24.

Highlight assays from previously reported and historic drilling on section 9550E include:

• 252.76 g/t gold over 0.4 metres (76.6 to 77 metres) in hole BR-18-15 (previously reported); and
• 8.57 g/t gold over 1.0 metres (344.5 to 345.5 metres) in hole BR-87-09.

A full table of composited assays is presented below.

“The Drill Program continues to yield consistent, strong results in terms of grade and width. As with other sections drilled in the Goldboro Deposit, we have extended sections 9350E and 9550E down dip and down plunge. We’re building off robust historical drill results and seeing that there is continuity across sections, both down and up plunge. The overall predictability of the deposit is increasing our confidence that we can efficiently grow the mineral resource. Future drilling within sections 9350E and 9550E will focus on going deeper to reach the prolific Boston-Richardson Gold System and demonstrating that Boston–Richardsoncontinues down plunge beneath the EG Gold System.”

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

Anaconda is currently drilling an additional 2,000 metres 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 is testing 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 Victorian Gold Fields of Australia. Anaconda is also allocating 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 cross section 9350E:

Table of composited assays from cross section 9550E:

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 Goldborodeposit.

Reported mineralized intervals are measured from core lengths.  Intervals are estimated to be approximately 75-100% of true widths of the mineralized zones. In section 9350E holes BR-17-04, BR-88-22 and -23 encounter the northern limb of the fold at approximately 75 meters, where the true width of the mineralized zones may be less than 50%.

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.