The Great Northern Project is located near the community of Jackson’s Arm, Newfoundland, and is centered along the Doucer’s Valley Fault, a regional splay off the Long Range Fault (Exhibit A). The Doucer’s Valley Fault is a significant geological control on and host to several gold deposits, including Anaconda’s Thor Deposit (83,000 ounces Indicated and 31,000 ounces Inferred Resources)* and the Rattling Brook Deposit (495,000 ounces Inferred Resources).*
The Great Northern Project (Exhibit B) boasts several gold prospects and showings, including the Shrik, Stocker, Boot N’ Hammer, 954 Prospects and the Incinerator Trail Zone. Surface grab samples assaying up to 20.2 gram-per-tonne (“g/t”) gold and 1232.0 g/t silver at the Boot N’ Hammer Prospect; up to 56.7 g/t gold and 2.75 ounces per tonne silver at the Stocker Prospect; up to 7.2 g/t gold at the Shrik prospect; and 13.6 g/t gold at the 954 Prospect. The Incinerator Trail Zone has been tested by four reconnaissance-style diamond drill holes in the 1980’s and returned gold assays of 1.78 g/t over 4.00 metres (hole RB-35) and 2.30 g/t gold over 4.05 metres (hole RB-41).
Near-term exploration plans
Anaconda is planning a field program on the Great Northern Project that will begin this fall and include geological mapping of existing prospects and surrounding areas and the development of drill targets. Immediate work on the Tilt Cove Property will begin with a thorough review and compilation of all historical data and field investigations to determine the highest priority drill targets and metallurgical test work on the stockpile.
The Jackson’s Arm Agreement: To earn a 100% interest in the Jackson’s Arm Property, the Company is required to make aggregate payments to MEK of $200,000 in cash and 500,000 common shares of Anaconda over a three-year period. The Jackson’s Arm Agreement provides for a two percent (2%) net smelter returns royalty (“NSR”) to MEK on the sale of gold-bearing mineral products from the Jackson’s Arm Property. The NSR is capped at $1,500,000, after which, the NSR will be reduced to one percent (1%). Anaconda is required to spend a total of $750,000 in qualified exploration expenditures on the Jackson’s Arm Property during the option period.
*Resource taken from the NI 43-101 report for the Jackson’s Arm Project entitled “TECHNICAL REPORT ON MINERAL RESOURCE ESTIMATE FOR JACKSON’S ARM GOLD PROJECT WHITE BAY AREA NEWFOUNDLAND AND LABRADOR, Latitude 49o 53’ 2.65’’North, Longitude 56 o 50’ 7.09’’ West”, with an effective date of April 20th, 2009. Prepared For: Kermode Resources Ltd. by Mercator Geological Services Limited.