Anaconda Mining intersects 5.52 g/t gold over 15 metres and 9.31 g/t gold over 6 metres at Argyle

TORONTO, Jan. 18, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) is pleased to announce the assay results from the second phase of diamond drilling at the Argyle Prospect (the "Phase 2 Drilling Program"), located at the Point Rousse Project and approximately 4.5 kilometres from the Pine Cove Mill. The Phase 2 Drilling Program consisted of 22 diamond drill holes totaling 2,174 metres where Anaconda was targeting a consistent level of altered and mineralized stratigraphy within the greater Argyle Prospect Area ("Argyle"). The Company intersected gold mineralization within 20 of 22 holes at relatively shallow depths (See Exhibit A), which include the following highlights:

• 5.52 grams per tonne ("g/t") gold over 15.0 metres (34.0 to 49.0 metres) in hole AE-16-40;
  
  
• 9.31 g/t gold over 6.0 metres (86.8 to 92.8 metres) in hole AE-16-39;
  
  
• 2.95 g/t gold over 15.0 metres (94.0 to 109.0 metres) in hole AE-16-43; and
  
  
• 2.91 g/t gold over 12.1 metres (68.3 to 80.4 metres) in hole AE-16-33.

A table summarizing the composited drill results of the Phase 2 Drilling Program is shown below.

Since initial trenching and the first phase of diamond drilling at Argyle, Anaconda has discovered a shallow-dipping, near-surface (less than 100 metres), mineralized system close to the Pine Cove Mill, with several intercept grades in core that are higher than the current production grade at the Pine Cove pit ("Higher-Grade Zones"). The Phase 2 Drilling Program has successfully extended the strike length of gold mineralization by about 50% to over 600 metres while more than doubling the down-dip extension to at least 225 metres (Exhibits A and B). Both the strike and down-dip extensions remain open.

During the Phase 2 Drilling Program, the Company encountered two Higher-Grade Zones of mineralization with thicknesses ranging from 6.0 to 15.0 metres, similar to a zone discovered during the Phase 1 Drilling Program, located in the western area of Argyle (Exhibit A). These two new Higher-Grade Zones are down-dip to the north and are located in the northern and eastern parts of the drilling area (Exhibit A). The easternmost Higher-Grade Zone is outlined by drill holes AE-16-33, -40 and -43 and averages 14 metres thick with composited assays between 2.91 g/t and 5.52 g/t gold. The strike of this zone is at least 150 metres and is still open for expansion. The northernmost Higher-Grade Zone is outlined by a single drill hole (AE-16-39), is 6.0 metres thick with a composited grade of 9.31 g/t gold and is open along strike and down-dip.

President and CEO, Dustin Angelo, states; "During the Phase 2 Drilling Program, we encountered the highest grades and thickest intercepts at Argyle as we stepped out to the north. The mineralized system is open in all directions and shows potential to host thick, high-grade domains in targeted areas. We have found the type of mineralization that may help us increase production and extend project life. Argyle is close to the Pine Cove Mill, near-surface and shallow dipping, all additional characteristics that support further work on the prospect. We also look forward to testing other targets in the immediate area that share the same geophysical and geological characteristics as Argyle."

Anaconda is planning several exploration programs at Argyle, aimed at further expanding and developing resources within the Point Rousse Project. The Company plans to drill-test the continuity of Argyle beyond known mineralization along strike and to the north, as well as more infill drilling focused on near-surface mineralization (less than 25 metres). Several other exploration targets with similar geophysical and geological characteristics to Argyle are in the greater Argyle area and will be drill-tested to determine if there are multiple mineralized zones.

Composited drill results of the Phase 2 Drilling Program:

JEA Grant from The Government of Newfoundland and Labrador

The Phase 1 and Phase 2 Drilling Programs at Argyle are part of a proposal submitted to the Department of Natural Resourcesof theGovernment of Newfoundland and Labrador, to be considered under the Junior Exploration Assistance Program ("JEA"). The JEA aims to grow the mineral inventory of the Province through the discovery of new mineral districts, occurrences, prospects and deposits. Anaconda gratefully acknowledges the financial assistance of the Government of Newfoundland and Labrador and the Department of Natural Resources. Anaconda could receive up to 40% of the cost of exploration related to Phase 1 and Phase 2 Drilling Programs to a maximum of $150,000.

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

Mineralized intervals are reported as drill intersections and are apparent widths only. Apparent widths reported in this press release are estimated to be approximately 80 – 100% of true widths.

ABOUT ANACONDA

Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and three exploration/development projects called the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.

The Point Rousse Project is approximately 6,300 hectares of property on the Ming's Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove Mill. A second project called the Tilt Cove Property, consisting of 350 hectares, is located approximately 60 kilometres by road from the Pine Cove Mill but is also within the Baie Verte Mining District and underlain by similar geology to the Point Rousse Project.

Anaconda also controls the Viking and Great Northern Projects, which have approximately 6,225 and 6,375 hectares of property, respectively, in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The Viking Project contains the Thor Deposit and other gold prospects and showings and the Great Northern Project includes numerous prospects and showings within a similar geological setting as the Viking Project. The Company's plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of nearly 16,000 ounces.

As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.

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 a number of 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.