TORONTO, ON / ACCESSWIRE / July 21, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce the initiation of a 35-line kilometre geophysical survey and 10,000 metre diamond drill program at the Tilt Cove Gold Project ("Tilt Cove"), located within the Baie Verte Mining District in Newfoundland, approximately 45 kilometres by road from the Company's Pine Cove Mill and tailings facility (Exhibit A). Tilt Cove is a significant, recently consolidated land package encompassing the same geological trend as the past producing, high-grade Nugget Pond Mine, which had an average recovered grade of 9.85 grams per tonne ("g/t") gold. Tilt Cove covers a 20-kilometre strike extent of the Betts Cove Complex, a highly prospective geological terrane including the Nugget Pond Horizon ("NPH"), the iron-rich sedimentary unit that hosts the past-producing Nugget Pond Mine (Exhibit A).
"As a result of the recently announced $5.51M private placement, we are immediately and aggressively executing on our goal of discovering a high-grade deposit at our prospective Tilt Cove Gold Project. With the success of previous field work, all within sight of a past producing high-grade gold mine, we are confident that Tilt Cove has more high-grade gold to offer. We have commenced a 35-line kilometre ground magnetic and IP geophysical survey with crews now mobilized in the field. Furthermore, we will be testing at least five priority targets over the next six months with 10,000 metres of diamond drilling. The recent financing and the ability to accelerate our work at Tilt Cove makes this an exciting time for Anaconda and is consistent with our strategy to leverage the Pine Cove Mill and permitted tailings facility, fast-tracking the period from discovery to production and realizing full shareholder value from new discoveries."
~ Kevin Bullock, President and CEO, Anaconda Mining Inc.
Tilt Cove Project Advancements to Date
To date, Anaconda has made the following advances at Tilt Cove:

  • Discovered the new Growler Showing with channel samples that include 2.75 g/t gold over 5.2 metres and 1.78 g/t gold over 5.0 metres (see Table 1 below for full results);
  • Discovered an additional 2 kilometres of prospective strike in the Growler area that includes the NPH which is host to two significant showings: the Growler Showing and the Betts Big Pond Showing which has historic grab samples up to 60.66 g/t gold and chip samples of 8.19 g/t gold over 2.3 metres. These Nugget Pond-style showings are within 400 metres of each other and are broadly considered part of the new Growler target area (Exhibit B);
  • Discovered a new prospective iron-rich horizon, the Red Cliff Horizon, in the footwall of the Nugget Pond Horizon with a 6 kilometre strike, establishing two potential host rocks for Nugget Pond-style gold mineralization in this area (Exhibits A and C);
  • Developed multiple drill targets associated with coincident structures that cross the Nugget Pond and Red Cliff Horizons, with coincident magnetic lows and gold-in-soil anomalies located along the southeast trend of historic glacial movement ("down-ice") (Exhibit C);
  • Identified a broad gold-in-soil anomaly down-ice from the Red Cliff Pond Target (Exhibit C);
  • Found 154 rock grab and float samples with anomalous gold (82 samples greater than 0.50 g/t gold, 31 greater than 3.00 g/t gold and 14 high-grade samples ranging from 5.16 g/t gold to 216.10 g/t gold) and two visible gold occurrences (previously announced; see press release dated November 27, 2019);
  • Conducted a LiDAR survey over the entire property and a detailed drone magnetic survey (453 line-kilometres) covering the NPH; and
  • Conducted 2,975 metres of diamond drilling in 18 drill holes at the Red Cliff Pond, East Pond, West Pond and Growler targets and intersected prospective host rocks, anomalous gold, geological structures and quartz veins with associated sulfides, all typically associated with Nugget Pond-style gold mineralization (Exhibits B and C).

Geophysical crews are now mobilized at Tilt Cove to conduct a combined 35-line kilometre ground magnetic and IP geophysical survey. This work will be coincident with a mapping and prospecting program, which will be followed by a 10,000-metre diamond drill program at highly prospective targets including the Scarp, West Pond, Growler, East Pond and Betts Cove targets (collectively referred to as the "2020 Tilt Cove Program").
The 2020 Tilt Cove Program
The 2020 Tilt Cove program will test the top five priority targets on the Tilt Cove Project as well as collect data from other targets to advance them to the drill stage. The top five priority targets include the Scarp Zone, West Pond, Betts Cove, Growler and East Pond (Exhibit A). 35-line kilometres of ground geophysics (magnetics and IP) and 10,000 metres of diamond drilling will test the priority targets as follows:
The Scarp Zone - This target is characterized by more than a kilometre of exposed NPH coincident with a similar strike length consisting of 107 gold bearing rock grab and float samples over 0.5 g/t gold (Exhibit D). The area is also characterized by a strong deformation zone adjacent to the Nugget Pond Horizon which dips shallowly northwest beneath younger Silurian rocks. This target will be tested with 6.2 kilometres of ground magnetic and IP geophysics as well as 2,500 metres of diamond drilling and 500 metres of percussion drilling.
West Pond Target - This target is characterized by a 1.3-kilometre long zone beneath West Pond that is up-ice from a very strong gold-in-soil anomaly very similar in character and dimension to the gold-in-soil anomaly associated with the discovery of the high-grade Nugget Pond Deposit as well as a coincident break in magnetic intensity where a north-westerly trending lineament intersects the NPH. West Pond will be tested using 2,000 metres of diamond drilling that will be drilled either from shore or from a barge.
Betts Cove Target - At the Betts Cove Mine disseminated to massive pyrite and chalcopyrite +/- gold mineralization is hosted at the contact between gabbroic sills and pillow basalts, particularly within a chlorite schist unit that may represent a sheared alteration zone; a similar setting to the Tilt Cove Mine 20 kilometres to the northeast along strike. Historic drilling at the Betts Cove Mine has returned significant gold intercepts that include: 4.48 g/t gold over 4.0 metres (from 52.0 to 56.0 metres), including 11.20 g/t gold over 1.1 metres in hole BC-89-01; 6.77 g/t gold over 5.0 metres (from 63.1 to 68.1 metres) in hole BC-89-02; 1.87 g/t gold over 13.0 metres (from 63.5 to 76.5 metres) including 7.50 g/t gold over 0.5 metres and 8.82 g/t gold over 1.0 metre in hole NBC-96-01; and 4.59 g/t gold over 1.5 metres (from 63.5 to 65.0 metres) in hole NBC-96-02. 17.6-line kilometres of IP geophysics and up to 1,500 metres of diamond drilling will test this area.
Growler Target - The Growler Target is a newly recognized zone of prospectivity with a strike of 2 kilometres underlain by the NPH and associated with two large shear zones adjacent to the NPH contact. The area also includes recently discovered surface mineralization with channel samples at the Growler Showing assaying 2.75 g/t gold over 5.2 metres and 1.78 g/t gold over 5.0 metres as well as historic chip samples at the Betts Big Pond Showing assaying 8.19 g/t gold over 2.3 metres. 11.1-line kilometres of IP geophysics and up to 2,500 metres of diamond drilling will test this area.
East Pond - East Pond is characterized by an 800-metre strike length of the NPH coincident with reduction in magnetic intensity and cross cutting lineaments. The target also includes historic drilling, which intersected footwall mineralization similar to the Nugget Pond Mine including 5.74 g/t gold over 0.5 metres (RCP-97-01); 10.30 g/t gold over 0.5 metres (RCP-97-02); 1.16 g/t gold over 3.4 metres (RCP-97-02); and 4.90 g/t gold over 0.5 metres (RCP-98-01). 1,500 metres of drilling is designed to test the East Pond target.
The Winter Program
On November 27, 2019 and February 27, 2020, the Company announced an exploration program at Tilt Cove that intended to include 4,000 metres of diamond drilling in addition to a trenching program at Growler (collectively the "Winter Program"). A large portion of the Winter Program was not completed due to concerns over ice conditions required for drilling on the ponds and other factors related to the COVID-19 pandemic. The Company was able to complete the trenching at Growler and 2,975 metres of diamond drilling in 18 holes across four targets at Tilt Cove.
Growler Exploration - During late fall 2019, the Company completed a short trenching program exposing the Growler Showing based on results of grab sampling earlier that summer. Trenching exposed an area of altered and pyrite mineralized sediments that the Company interprets to be a thrust repeated section of the NPH. A total of 47 channel samples averaging 1.0 metre in length were cut in various orientations across the Growler exposure (Exhibit B). The best channel sample results include 2.75 g/t gold over 5.2 metres and 1.78 g/t gold over 5.0 metres (Table 1).