The Argyle Deposit

The Argyle Gold Deposit is a development stage project that forms a significant part of the Company’s strategy for continued and expanded gold production at it’s Point Rousse Project.  The Argyle Deposit is located 4.5 kilometres from the Pine Cove Mine and Mill Complex near the community of Ming’s Bight, Newfoundland and Labrador.

Work completed at the Argyle Deposit since the fall of 2012 has outlined a zone of gold mineralization over strike length of 600 metres and to down-dip extent of 225 metres.  The Argyle resource is shown in the table below at a cut off grade of 0.5 g/t gold and a grade cap of 12 g/t as well as the equivalent cut off without grade capping to show the sensitivity of the resource to grade capping.

 

Resource (capped/uncapped)

Category

Rounded Tonnes

Grade (g/t)

Gold Ounces

12 g/t grade cap

Indicated

543,000

2.19

38,300

Inferred

517,000

1.82

30,300

   

uncapped

Indicated

543,000

2.46

43,000

Inferred

517,000

2.63

43,800

 

The Argyle Deposit contains a resource of 543,000 tonnes of indicated resources at 2.19 g/t Au for 38,300 ounces and 517,000 tonnes of inferred resources at 1.82 g/t Au for 30,300 ounces at a cut-off grade of 0.5 g/t Au.  The resource is calculated using a capped grade of 12 g/t Au on 1 m assay composites.  Uncapped the Argyle Gold Deposit contains a mineral resource of 543,000 tonnes of indicated resources at 2.46 g/t Au for 43,000 ounces and 517,000 tonnes of inferred resources at 2.63 g/t Au for 43,800 ounces at a cut-off grade of 0.5 g/t Au.  The table below shows resource estimate sensitivity to cut off grade.

 

Argyle Gold Deposit - Resource Estimate Sensitivity Report - Capped @ 12 g/t Au*

Block Cut-off Grade (Au g/t)

Category

Reported Tonnes

Rounded Tonnes

Au g/t

Rounded Ounces

0.00

Indicated

555,751

556,000

2.15

38,400

Inferred

539,132

539,000

1.76

30,500

0.25

Indicated

554,530

555,000

2.15

38,300

Inferred

528,895

529,000

1.79

30,400

0.50

Indicated

543,363

543,000

2.19

38,300

Inferred

517,295

517,000

1.82

30,300

0.75

Indicated

519,340

519,000

2.26

37,700

Inferred

482,876

483,000

1.91

29,700

1.00

Indicated

477,573

478,000

2.38

36,500

Inferred

418,692

419,000

2.06

27,700

 

The deposit was discovered via soil sampling over an area not previously covered by exploration work.  Follow-up trenching of soil anomalies in 2014 and 2015 exposed strongly-altered, quartz-veined and pyritized gabbro associated with gold mineralization.

Highlights of the trenching include:

  • 3.75 g/t Au over 16.0 m (including 8.27 g/t Au over 4.0 m) and 1.49 g/t Au over 3.5 m in trench A8
  • 1.31 g/t Au over 11.0 m in trench A12
  • 6.58 g/t Au over 2.0 m and 3.08 g/t Au over 1.0 m in trench A14
  • 1.50 g/t Au over 1.0 m in trench A7
  • 1.47 g/t Au over 14.0 m in trench A18

Diamond drilling at the Argyle Prospect since summer 2016 (52 holes; 4,820.2 metres) has defined a zone of mineralization similar in character to the nearby Stog’er Tight deposit with highlight drill grades as follows:

  • 5.52 g/t gold over 15.0 metres (34.0 to 49.0 metres) in hole AE-16-40;
  • 9.31 g/t gold over 6.0 metres (86.8 to 92.8 metres) in hole AE-16-39;
  • 2.95 g/t gold over 15.0 metres (94.0 to 109.0 metres) in hole AE-16-43;
  • 2.91 g/t gold over 12.1 metres (68.3 to 80.4 metres) in hole AE-16-33; and
  • 3.63 g/t gold over 12.0 metres (58.0 to 70.0 metres) in hole AE-17-46.

The table below shows drill composites from significant intersections from diamond drilling at Argyle.

Hole ID

From

To

Interval

Au g/t

AE-16-03

4.5

16.5

12.0

1.32

including

5.5

15.5

10.0

1.52

and

5.5

7.5

2.0

4.71

AE-16-04

3.1

6.0

2.9

1.02

AE-16-05

4.0

5.0

1.0

1.59

AE-16-06

3.7

10.0

6.3

4.35

including

4.2

9.0

4.8

5.58

AE-16-08

4.4

5.0

0.6

1.09

AE-16-09

23.4

28.0

4.6

1.42

including

25.0

28.0

3.0

1.95

AE-16-10

25.5

29.6

4.1

0.34

AE-16-11

35.0

43.9

8.9

6.09

including

37.0

43.9

6.9

7.67

AE-16-12

22.8

27.0

4.2

1.15

including

24.0

27.0

3.0

1.46

and

25.0

27.0

2.0

2.06

and

42.0

43.0

1.0

1.45

AE-16-13

22.8

23.4

0.6

0.57

AE-16-14

24.0

25.6

1.6

3.20

AE-16-15

34.0

37.0

3.0

0.74

AE-16-16

13.0

16.0

3.0

1.41

AE-16-17

43.0

45.1

2.1

1.25

AE-16-19

19.0

21.6

2.6

1.68

AE-16-20

18.0

32.0

14.0

2.05

including

28.0

32.0

4.0

4.86

AE-16-21

35.0

35.9

0.9

1.51

AE-16-23

25.5

27.7

2.2

1.10

and

44.6

45.8

1.2

0.56

AE-16-24

28

29

1

0.88

and

33

34

1

0.55

and

34.6

36

1.4

1.08

AE-16-26

58.3

61.9

3.6

1.59

AE-16-27

73.2

74

0.8

0.52

AE-16-28

69.5

69.7

0.2

0.50

AE-16-29

32.6

33.4

0.8

0.54

and

109

109.9

0.9

4.13

AE-16-30

48

51

3

1.36

and

53.5

55

1.5

0.80

and

56

57

1

0.74

and

62

63

1

0.81

AE-16-31

25

26

1

1.52

AE-16-32

50

52

2

1.27

AE-16-33

68.3

80.4

12.1

2.91

including

72

75

3

8.55

AE-16-34

32

34

2

3.63

AE-16-35

15.9

26

10.1

0.74

including

22

26

4

1.31

AE-16-37

33.4

36

2.6

0.95

AE-16-38

74

77.7

3.7

0.59

AE-16-39

86.8

92.8

6

9.31

including

89.8

90.8

1

46.60

AE-16-39

95.8

97.8

2

0.64

AE-16-39

100.8

101.8

1

1.07

AE-16-40

34

49

15

5.52

including

39

43

4

14.01

and

39

40

1

34.50

AE-16-41

49

50

1

0.50

AE-16-41

56

58

2

0.69

AE-16-42

76

78

2

3.05

AE-16-43

94

109

15

2.95

including

94

108

14

3.14

including

103

106

3

6.94

AE-16-44

59

60

1

0.50

AE-16-44

87

87.9

0.9

2.44

and

99

100

1

1.90

AE-17-45

45

49

4

3.22

AE-17-46

58

70

12

3.63

AE-17-47

77

80

3

1.56

and

94

95

1

1.11

AE-17-48

86

90

4

1.22

AE-17-49

104.0

106.0

2.0

1.71

and

110.0

118.0

8.0

1.45

including

111.0

116.0

5.0

2.11

AE-17-51

87.0

93.0

6.0

1.11

 

Metallurgical testing of a 25-kilogram sample of blended core samples with an average grade of 2.69 grams per tonne (“g/t”) gold from the Argyle Deposit, achieved a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9%.   The program was conducted to determine the metallurgical characteristics of Argyle mineralization and verify its compatibility with the existing circuit at the Pine Cove Mill located 4.5 km from Argyle. The results demonstrate that Argyle mineralization can be effectively processed at the Pine Cove Mill without mill modifications.

Anaconda is also focused on determining the trend of high-grade zones discovered through previous drilling. The easternmost high-grade zone to date is outlined by drill holes AE-16-33, AE-16-40 and AE-16-43 and averages 14 metres thick with composited assays between 2.91 g/t and 5.52 g/t gold. The northernmost high-grade zone, outlined by drill hole AE-16-39, is 6.0 metres thick with a composited grade of 9.31 g/t gold and is open along strike and down-dip.


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