Anaconda Mining options 1,575 hectares adjacent to its Pine Cove gold mine
TORONTO, May 7, 2012 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) announced today that, effective May 1, 2012, it entered into a five-year option agreement with Tenacity Gold Mining Company Ltd. ("Tenacity") to acquire a 100% undivided interest in four mining licenses in the Pine Cove to Stog'er tight area near Baie Verte, Newfoundland totaling 63 claims and approximately 1,575 hectares (the "Licenses"). The Licenses are adjacent to the existing mining license where the Pine Cove gold mine currently operates and are further illustrated on the attached map.
President and CEO, Dustin Angelo, stated, "This option agreement is an important step in our growth plans for Pine Cove as it more than triples the size of the Company's land package in the area. The Company is committed to expanding the life and production of Pine Cove through exploration. The Tenacity properties, which are adjacent to our current operations, offer an ideal and logical extension of the area we currently control."
In the near term, the Company does not have any material, mandatory obligations related to the Licenses; however, it is obliged to keep the Licenses in good standing during the term of the option. During the remainder of calendar 2012, the Company is required to make exploration expenditures of approximately $67,000.
ABOUT ANACONDA
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
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.
Image with caption: "Anaconda/Tenacity Properties (CNW Group/Anaconda Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20120507_C4406_PHOTO_EN_13140.jpg