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Press release from Marketwire

Anaconda Mining Intersects 41 Meters of 2.34 g/t Gold Near Surface at the Western Extension Area of Pine Cove

Wednesday, June 05, 2013

Anaconda Mining Intersects 41 Meters of 2.34 g/t Gold Near Surface at the Western Extension Area of Pine Cove

07:00 EDT Wednesday, June 05, 2013

TORONTO, ONTARIO--(Marketwired - June 5, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") (TSX:ANX) is pleased to report that it has successfully completed its second phase of diamond drilling on the Western Extension Area at the Pine Cove mine on the Baie Verte Peninsula, Newfoundland. Nine of ten drill holes intersected gold mineralization over variable core lengths. Additional drilling is expected, following a detailed structural analysis of all the drill data.

Highlights:

  • Hole PC-13-210 intersected multiple intervals of gold mineralization which together assayed 2.34 grams per tonne (g/t) gold over 41 meters beginning from a depth of 41 meters, and included 5 meters of 1.83 grams per tonne (g/t) gold from a depth of 51 meters, 5 meters of 6.31 g/t gold from a depth of 60 meters and 6 meters of 7.14 g/t gold from a depth of 72 meters.
  • Hole PC-13-212 intersected 7 meters of 3.05 g/t gold from a depth of 47 meters, including 2 meters of 2.77 g/t gold from a depth of 47 meters and 2 meters of 7.73 g/t gold from a depth of 52 meters.
  • The mineralization in the Western Extension Area has now been traced discontinuously for approximately 100 meters from PC-13-202 northeast to PC-13-210 (Figure 1).

President and CEO, Dustin Angelo, stated, "The Western Extension Area has returned some significant assay results; however, the area is structurally complex. We are encouraged by some of the significant intersections we have hit especially since they are near surface. Detailed structural analysis is planned for this summer in an attempt to model the mineralization and develop a strategy for future drilling."

In January 2013, Anaconda intersected significant gold mineralization adjacent to the western margin of the Pine Cove open pit (Figure 1). PC-13-196 returned 11.4 meters of 2.19 g/t gold from a depth of 26.6 meters (Anaconda Press Release, February 28, 2013). Similar mineralization was subsequently intersected in PC-13-202 which returned 20.0 meters of 2.15 g/t gold from a depth of 73.1 meters and 12.7 meters of 1.28 g/t gold from a depth of 108.9 meters (Anaconda Press Release, March, 25, 2013).

In March 2013, second phase drilling totaling approximately 1,500 meters was initiated along the Western Extension Area. Three vertical holes and four inclined holes tested the northeast-trend defined by PC-13-196 and PC-13-202. Six of the drill holes intersected gold mineralization over variable core widths with PC-13-210 returning the best interval (Table 1). The mineralization has now been traced discontinuously for approximately 100 meters from PC-13-202 northeast to PC-13-210. Of the four inclined holes only PC-13-212, which was drilled at a dip of 55° and an azimuth of 315°, intersected significant gold mineralization. This hole intersected approximately 7 meters of mineralization midway between PC-13-196 and PC-13-210. From the drilling it would appear that the mineralization is quite irregular along strike but overall is subvertical.

PC-13-208 and PC-13-209 tested a coincident historic gold-in-soil-magnetic-VLF anomaly lying approximately 150 meters northwest of the Pine Cove open pit. Both holes returned narrow intervals of gold mineralization (Table 1).

Anaconda is now in the process of reviewing all the data and is initiating a structural interpretation of the Western Extension Area to guide future drilling activities.

This news release has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a "Qualified Person" under National Instrument 43-101.

Note that all assay intervals refer to core length and at present true thicknesses of mineralized zones are not known. The diamond drilling was carried out by New Valley Drilling of Springdale, Newfoundland and was supervised by Silvertip Exploration Consultants Inc. The NQ core was logged and sampled at the Pine Cove mine site. Samples selected for analyses were sawn and half the sample was tagged and placed in a sealed plastic bag. Samples generally comprised one meter core intervals. Samples were transported by Silvertip personnel to the Eastern Analytical Laboratory in Springdale, Newfoundland for fire assay. As part of the QA-QC protocol standards and blanks were randomly inserted during the sampling process. The remaining core is stored at the Pine Cove mine.

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.

Table 1. Selected diamond-drill assays, Western Extension Area, Pine Cove.
Drill Hole Azimuth Dip Depth
Meters
From
Meters
To
Meters
Width
Meters
Gold
grams/
tonne
PC-13-204 90 172.4 117.22 118 0.78 2.81
127 128.13 1.13 1.24
131 132 1 2.12
PC-13-205 90 191.73 84.3 84.95 0.65 3.3
113 114 1 3.59
131.88 132.82 0.94 1.99
PC-13-206 90 175 160.35 161.35 1 2.06
PC-13-207 133 70 152.1 68 69 1 2.07
102.04 102.4 0.36 1.35
PC-13-208 225 55 119.3 55 57 2 1.33
PC-13-209 200 55 209.4 113.2 114.18 0.98 2.64
PC-13-210 90 176 7 8 1 1.57
11 12 1 1.04
25 26 1 1.04
28 29 1 0.92
41 92 41 2.34
Including 41 43 2 2.92
Including 51 56 5 1.83
Including 60 65 5 6.31
Including 72 78 6 7.14
Including 88 92 4 1.06
PC-13-212 315 55 90.9 20.7 21.67 0.97 3.22
47 54 7 3.05
Including 47 49 2 2.77
Including 52 54 2 7.73
PC-13-213 315 55 117.4 83 84 1 3.83
102 104 2 2.12
PC-13-214 315 55 96.9 NSA
NOTE: Hole PC-13-211 was an infill hole drilled in the southern part of the Pine Cove pit and not part of the Western Extension Area.

To view Figure 1. Phase 2 diamond drill plan, Western Extension Area, Pine Cove, visit the following link: http://media3.marketwire.com/docs/Anaconda_Western_Extension_Area.jpg

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
dangelo@anacondamining.com
www.anacondamining.com


ProConsul Capital Ltd.
Andreas Curkovic
Investor Relations
(416) 577-9927
acurkovic@proconsulcapital.com

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