TORONTO, ON / ACCESSWIRE / August 18, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce results of an ongoing drill program (the "Drill Program") along strike from the Stog'er Tight Mine and Deposit ("Stog'er Tight"), located approximately three (3) kilometres east of the Company's operating Pine Cove Mill and Tailings Facility in Newfoundland (Exhibit A). The Drill Program to date consists of 1,727 metres in 22 diamond drill holes (BN-20-319 to -340) and was initiated to follow up on the recent drill discovery of mineralization announced on July 7, 2020, which included 5.54 grams per tonne ("g/t") gold over 20.0 metres. To date the Drill Program has successfully expanded mineralization northwestward in the down-dip direction to 170 metres and has added 180 metres of strike (Exhibit B).

Highlights of the Drill Program include:
•4.37 g/t gold over 15.0 metres (98.0 to 113.0 metres), including 10.41 g/t gold over 5.0 metres in diamond drill hole BN-20-338;
•3.32 g/t gold over 8.0 metres (38.0 to 46.0 metres); including 11.80 g/t gold over 1.0 metre in diamond drill hole BN-20-326;
•2.40 g/t gold over 9.0 metres (27.0 to 36.0 metres); including 13.50 g/t gold over 1.0 metre in diamond drill hole BN-20-323;
•3.86 g/t gold over 5.0 metres (12.0 to 17.0 metres) in diamond drill hole BN-20-333; and
•2.15 g/t gold over 8.0 metres (81.0 to 89.0 metres), including 6.37 g/t gold over 1.0 metre in diamond drill hole BN-20-335.

Selected intersections from the Drill Program at Stog'er Tight are shown in Table 1 below.

"Our recent drilling has successfully expanded mineralization at Stog'er Tight down-dip to 170 metres and added 180 metres of strike. Importantly, this mineralization is less than 75 metres below surface and remains open for expansion with geological and geophysical evidence indicating more immediate drill targets. We have therefore expanded the drill program to 4,000 metres with the goal of further outlining this growing deposit. Located only a few kilometres from the Pine Cove Mill and Tailings Facility, the continuing growth of the Stog'er Tight Deposit represents excellent potential for future mining at Point Rousse."

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

The results of the Drill Program indicate that a significant zone of gold mineralization extends at least 650 metres west of, and represents a strike extension of, the Stog'er Tight Mine sequence. Mineralization at Stog'er Tight now extends over a total strike length of 1,200 metres and is open along strike to the southwest and down-dip on its western half. Gold mineralization is hosted within a shallowly northwest dipping gabbro sill and has been tested to a vertical depth of 75 metres.

The highest grades and thicknesses intersected thus far are associated with a geophysical anomaly (an IP chargeability high associated with all gold deposits at Point Rousse) that extends 250 metres northward, parallel with a similar IP anomaly associated with the Stog'er Tight Deposit. A second IP chargeability anomaly, of similar extent and associated with surface gold mineralization, is located 250 metres further southwest along strike, highlighting additional potential for expansion (Exhibit C). Both geophysical anomalies trend beneath a shallow pond (generally less than a few metres) known as Camp Pond (Exhibit B and C). Fox Pond, located east of Camp Pond, was similarly underlain by the Stog'er Tight Deposit which was successfully mined in 2018 and 2019 by partial dewatering of the pond under appropriate Provincial and Federal Government permits.

Table 1: Highlighted composited assays from diamond drill holes BN-20-319 to BN-20-340

Drillhole From (m) To (m) Length (m) Gold (g/t)
BN-20-323 27.0 36.0 9.0 2.40
including 29.0 30.0 1.0 13.50
BN-20-324 33.0 36.0 3.0 1.01
BN-20-325 22.0 28.0 6.0 1.94
BN-20-326 38.0 46.0 8.0 3.32
including 43.0 44.0 1.0 11.80
BN-20-328 32.0 33.0 1.0 0.86
BN-20-329 56.0 57.0 1.0 2.45
and 64.0 74.0 10.0 0.61
BN-20-330 37.0 38.0 1.0 0.98
and 50.0 55.0 5.0 1.79
BN-20-331 17.0 18.0 1.0 1.08
and 67.0 68.0 1.0 0.89
BN-20-332 19.0 20.0 1.0 2.08
and 23.8 24.8 1.0 0.58
BN-20-333 12.0 17.0 5.0 3.86
and 46.0 47.0 1.0 2.75
BN-20-334 20.6 21.6 1.0 0.60
and 37.8 38.8 1.0 1.10
BN-20-335 81.0 89.0 8.0 2.15
Including 86.0 87.0 1.0 6.37
BN-20-336 81.0 82.0 1.0 4.42
BN-20-338 98.0 113.0 15.0 4.37
including 108.0 113.0 5.0 10.41
and 112.0 113.0 1.0 45.70
Footnotes:

1 - Diamond drill holes BN-19-319 to -322, -327 and BN-20-339 to - 340 have no significant assays.

2 - Interval expressed as core length only; true thickness is estimated to be 50-90% of interval length due to local drilling conditions that does not always allow for drilling orthogonally to the apparent dip of mineralization.

About Stog'er Tight

The Stog'er Tight Deposit, located three (3) kilometres east of the Pine Cove Mill adjacent to existing road networks, has been defined over a strike length of 650 metres to date. Anaconda produced a total of 17,102 ounces of gold from 349,942 tonnes of ore from the Stog'er Tight Mine between June 2018 and January 2020. Gold from Stog'er Tight was recovered through the Pine Cove Mill with an average head grade of 1.75 g/t gold at an overall recovery of approximately 87%. Anaconda is currently assessing the potential for expanding the Stog'er Tight Deposit and developing additional resources along strike.

This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

Mineralized intervals referred to in this press release are reported as drill intersections and are apparent widths only. True widths reported in this press release are estimated to be approximately 50-90% of drill intervals.

All samples and the resultant composites referred to in this release were collected using QA/QC protocols including the regular insertion of certified standards and blanks within each sample batch sent for analysis and completion of check assays of select samples. Diamond drill core and percussion samples were analyzed for Au at Eastern Analytical Ltd. in Springdale, NL ("Eastern"), using standard fire assay (30 g) pre-concentration and Atomic Absorption finish methods. Eastern is a fully accredited firm within the meaning of NI 43-101 for provision of this service.

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.