GOLD: Anaconda cuts near surface mineralization near Pine Cove deposit

NEWFOUNDLAND – Toronto's Anaconda Mining has completed a successful exploration program at the Northwestern Extension area of the Pine Cove gold mine 6 km east of Baie Verte. The newly discovered mineralization extends at least 125 metres along strike, said the company.

Anaconda did 462 metres of diamond drilling and 264 metres of percussion drilling. Fourteen cores from earlier diamond drill holes were also relogged and resampled. Hopefully this newly discovered zone can be incorporated into the Pine Cove mine plan.

Three diamond drill holes intersected gold mineralization at around 100 metres or less below surface. Hole 15-246 returned 5.38 g/t Au over 3.1 metres and 1.12 g/t over 8 metres. Hole 15-248 returned 1.30 g/t Au over 4.0 metres.

Resampling the old holes pointed toward new zones as well as extending previously known zones, said Anaconda. Notable among the results were 1.41 g/t Au over 19.0 metres in hole 13-196; 1.47 g/t Au over 5.4 metres in hole 00-113; and 5.03 g/t over 8.5 metres in hole 07-117.

Percussion drilling resulted in the discovery of a previously unknown area of surface mineralization. Hole 15-50 intersected 1.45 g/t over 7.0 metres beginning at the surface.

Anaconda expects to create a new resource estimate soon. Please see AnacondaMining.com.