Anaconda Mining Intersects 485 g/t Gold over 2.6 Metres at Goldboro

Anaconda Mining Inc. [TSX:ANX] is pleased to announce it has received the results of its first drill program at the Company’s Goldboro Project in the Province of Nova Scotia, which contains a Measured and Indicated Mineral Resource of 457,400 gold ounces at a grade of 5.57 grams per tonne (“g/t”) gold (2,556,000 tonnes) and an Inferred Mineral Resource of 372,900 gold ounces at a grade of 4.35 g/t gold (2,669,000 tonnes) (2.0 g/t gold cut-off, see press release of March 3, 2017).
The five-hole diamond drill program, totaling 649 metres, was conducted in the Boston Richardson and East Goldbrook gold systems of the Goldboro Deposit (Exhibit A). Multiple occurrences of visible gold and assays with high-grade tenor were observed in all five holes. Assay highlights from the program, including the highest grades yet recorded at Goldboro, are as follows:

• 2,513.20 g/t gold over 0.5 metres within 485.07 g/t gold over 2.6 metres (33.1 to 35.7 metres) and 33.26 g/t gold over 1.0 metre (110.0 to 111.0 metres) in hole BR-17-04;
• 7.85 g/t gold over 3.7 metres within 3.22 g/t gold over 11.4 metres (169.2 to 180.6 metres) in hole BR-17-02;
• 9.77 g/t gold over 2.3 metres within 2.33 g/t gold over 13.4 metres (17.4 to 30.8 metres) in hole BR-17-03;
• 16.96 g/t gold over 1 metre within 3.96 g/t gold over 5.5 metres (115.5 to 121 metres) in hole BR-17-05; and
• 5.56 g/t gold over 1.2 metres within 1.35 g/t gold over 10 metres (25.0 to 35.0 metres) and 13.00 g/t over 0.5 metres within 3.65 g/t gold over 2 metres (53.5 to 55.5 metres) in hole BR-17-01.

See Table 1 below for a summary of assay results from the drill program.

“The discovery of the highest-grade gold intercepts at Goldboro, amongst multiple other, high-grade intercepts, and the recognition of the growth potential down-plunge and along strike, make the Goldboro Project an exciting opportunity for Anaconda, its shareholders and other stakeholders. As with historical exploration work, we continue to see significantly high-grades and very good thickness in the drill core. We are encouraged by the predictable geological model, which gives us confidence in the mineral resource and our ability to expand the deposit. Over the coming months, we expect to plan and initiate additional drilling to demonstrate the mineral expansion potential of Goldboro.”

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

The Boston Richardson gold system of the Goldboro Deposit is host to 15 tightly-stacked, high-grade, gold-bearing vein zones. Holes BR-17-01 to BR-17-03 are located within the core of the Boston Richardson system and intersected up to 7 of the 15 vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke as predicted by recent geological modelling. The high-grade assays returned from these drill holes are of a tenor consistent with previous drill programs on the deposit as well as with recent geological and resource modelling, and confirms the validity of the geological and resource models.
The East Goldbrook gold system is characterized by 7 stacked vein zones and is generally drilled at a broader spacing (~100 metres) than Boston Richardson. Hole BR-17-05 intersected 5 of the 7 East Goldbrook vein zones including vein zones 3 and 4, which appear to extend 40 and 100 metres, respectively, farther to the west beyond what has been currently modelled. Hole BR-17-04 within East Goldbrook contains the highest-grade intercepts within the entire Goldboro Deposit as shown in the highlights above.

Deposit Expansion Potential

To date, the Boston Richardson gold system has been modelled to a depth of 350 metres and plunges moderately eastward beneath East Goldbrook (Exhibit B). Sparse historic drilling from the 1980s, under East Goldbrook, intersected similar geological structures and gold bearing vein zones below depths of 425 vertical metres. These vein zones represent the down-plunge extension of the Boston Richardson gold system. In addition, East Goldbrook has only been modelled to approximately 300 metres and West Goldbrook, which includes the faulted offset extension of Boston Richardson, has been modelled to just a depth of 225 metres.

Based on all historic and current exploration information related to the Goldboro Deposit, Anaconda believes the deposit continues at depth. Historic drill results from some of the deepest and eastern most drilling at the margins of the Boston Richardson and East Goldbrook gold systems returned significant values both in grade and width, as demonstrated in the highlights of historic drill results below and the sample of visible gold shown in Exhibit C. Consequently, Anaconda believes that gold mineralization will continue at depth along the East Goldbrook, Boston Richardson and West Goldbrook gold systems and down-plunge of the current resource.

Assay highlights from selected historic drill core at depth at the Goldboro Deposit:

• 15.9 g/t gold over 5.9 metres (293.7 to 299.6 metres) in hole BR-87-35A.
• 11.9 g/t gold over 5.0 metres (276.3 to 281.3 metres) in hole BR-87-43.
• 8.2 g/t gold over 5.5 metres (360.3 to 365.8 metres) in hole BR-87-31.
• 10.0 g/t gold over 2.7 metres (345.3 to 348.0 metres) in hole BR-87-07.

In addition, the current known strike length of the Goldboro Deposit is approximately 1.6 kilometres and is associated with a geophysical anomaly (IP conductor)( Exhibit D). The anomaly is known to extend east and west beyond the limits of the current strike length of the known deposit (the “Potential Strike Extension”) and includes the Dolliver Mountain prospect immediately west and along strike from the Goldboro Deposit. Gold mineralization of similar style and tenor as that found in the Goldboro Deposit has been intersected in drill core from historical holes in the area of the Potential Strike Extension. The following highlights summarize assay results from historic drill holes along the Potential Strike Extension area. Anaconda believes there is potential to expand the Goldboro Deposit east and west along strike.

Assay highlights from selected historic drill core in the Potential Strike Extension area:

• 1,570.0 g/t gold over 0.5 metres within 269.9 g/t gold over 2.7 metres (193.8 to 196.5 metres) in hole OSK-11-04;
• 412.0 g/t gold over 0.5 metres within 137.8 g/t gold over 1.5 metres (117.0 to 118.5 metres) in hole OSK-11-02;
• 10.3 g/t gold over 2.1 metres (116.4 to 118.5 metres) in hole BR-87-12; and
• 6.2 g/t gold over 1.5 metres (223.0 to 224.5) in hole OSK-11-04.

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