ANACONDA MINING PROVIDES UPDATE ON THE GOLDBORO GOLD PROJECT

TORONTO, ON / ACCESSWIRE / April 23, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to provide an update on its 100%-owned Goldboro Gold Project ("Goldboro" or the "Project") located in Nova Scotia, Canada. Given the revised permitting timelines for the Project as discussed below, as well as COVID-19 related delays, the Company has initiated optimization work on the Project based on opportunities identified as part of work undertaken in connection with the preparation of a Feasibility Study, including a robust drill program designed to upgrade certain Inferred Mineral Resources into Indicated Mineral Resources.

 

Key Takeaways

 

 

"The revised permitting timeline has provided the Company a timely opportunity to optimize the Goldboro Gold Project, as it has identified many opportunities to increase the net present value of the Project. In particular, we are excited to initiate a robust 5,500-metre diamond drill program, which has the potential to further improve the Project's economics and extend mine life. We look forward to announcing the results in the third quarter of 2020. As we work to submit an updated Environmental Assessment and optimize the Project, Anaconda continues to engage with all of our community stakeholders and rightsholders including ongoing engagement with Nova Scotia Mi'kmaq, as the Company continues to progress Goldboro towards a development decision."

 

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

 

Permitting Process Update

 

During the first quarter of 2020, in light of feedback from Nova Scotia Environment and recent Anaconda personnel changes, a detailed review of all permitting activity to date was undertaken to identify further work required to support the filing of an EARD. As a result, it was determined that additional data collection and predictive work would be required. GHD is now leading the permitting activities for the Project and is overseeing the water monitoring program and other work to support the EARD and the subsequent Industrial Approval Application (GHD was involved in the permitting of the Moose River Consolidated Project in Nova Scotia and is involved with MEL with ongoing projects and permitting by St Barbara Limited in Nova Scotia).

 

Furthermore, there are evolving Federal regulatory requirements at the regional level with respect to waterways and the potential location of any mine waste (including tailings facilities), which the Company anticipates will require further assessment and predictive work and extend the permitting timelines. The Company expects to file the updated EARD in the third quarter of 2020 and as a result, based on the aforementioned matters, expects to receive required permits (including release from the Environmental Assessment, the Industrial Approval, and Mining Lease) in the second half of 2021.

 

Feasibility Study Update and Mineral Resources Conversion Drill Program

 

The revised permitting timeline has provided the Company a strong opportunity to optimize the Project, as it has identified many opportunities to increase the net present value of the Project based on initial results and feedback arising from the work undertaken to date in connection with the Feasibility Study. The Company has now engaged Nordmin Engineering Inc., replacing the previous consultants on the Study, to evaluate these opportunities and complete the Feasibility Study. Nordmin is well placed for this optimization work as they bring significant experience with narrow-vein underground mining. The Company continues to work with Ausenco Solutions Canada Inc. ("Ausenco"), who led and completed the process optimization and mill design for the Study (Ausenco was involved in the engineering and construction of Atlantic Gold Corporation's mill at the Moose River Consolidated Project in Nova Scotia).

 

Furthermore, Anaconda is initiating an approximately 5,500-metre diamond drill program at Goldboro with the aim of converting Inferred Mineral Resources proximal to planned development into Indicated Mineral Resources. Based on conversion rates observed to date in over 27,000 metres of drilling, the Company believes the drill program has the potential to add significant value by possibly extending the life of mine and improving the Project's economics. The diamond drill program will be funded from existing flow-through funds.

 

The Company has commenced activities required to permit the drill program, and critically consider logistical matters given the ongoing COVID-19 pandemic, to ensure that any drill programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate.

 

Anaconda is now targeting to complete the Feasibility Study on the Project by the fourth quarter of 2020.

 

Qualified Person

 

Kevin Bullock, P. Eng., President and Chief Executive Officer, and Paul McNeill, P. Geo., VP Exploration, each with Anaconda Mining Inc., are "qualified person[s]" as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects and have reviewed and approved the scientific and technical information and data included in this news release.

 

ABOUT ANACONDA

 

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past-producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource, and the subject of an on-going feasibility study.