The Stog'er Tight Deposit

The Stog’er Tight Deposit is a development stage project that forms a significant part of the Company’s strategy for continued and expanded gold production at its Point Rousse Project. Stog’er Tight is located 3.0 kilometres east of the Pine Cove Mine and Mill Complex near the community of Ming’s Bight, Newfoundland and Labrador.

Development activities have commenced at the Stog'er Tight deposit, including the dewatering of the nearby Fox Pond, the construction of a settling pond, and pre-stripping of the West Pit. Mining from the West Pit is expected to start in the first quarter of 2018 with ore being transported to the Pine Cove Mill for processing.

During 2015 Anaconda completed an NI43-101 compliant resource on the Stog’er Tight Deposit (Copeland et al., 2015).  The deposit is estimated to contain Indicated Mineral Resources of 204,100 tonnes grading 3.59 g/t Au for a total of 23,540 ounces and Inferred Mineral Resources of 252,100 tonnes grading 3.27 g/t Au for a total of 26,460 ounces, both using a cut-off grade of 0.8 g/t Au.

Summary of Mineral Resources - Stog'er Tight Deposit^

Category

Cut-off

Tonnes

Grade

Ounces

Indicated

0.8

204,100

3.59

23,540

Inferred

0.8

252,100

3.27

26,460

 

The Stog’er Tight Deposit was discovered by Noranda Exploration Company Ltd. who explored the Stog’er Tight property from 1987 to 1989. In 1996, Ming Minerals Inc. extracted a 30,735 tonne bulk sample from the Stog’er Tight deposit, but due to dilution and poor mill recoveries, no further work was continued. In 2006, Tenacity Gold Mining Company Ltd. mined a 29,695 tonne bulk sample with an estimated average grade of 4.8 g/t Au and processed the material at the nearby Nugget Pond mill. The resulting 1.92 g/t Au head grade was also attributed to dilution. No further work was undertaken and the Stog’er Tight Mining Lease was subsequently acquired by Anaconda in 2012.

Since the Stog’er Tight Deposit was discovered in 1988 a total of 18,073.73 m (282 holes) have been completed in four drilling campaigns: 1988-1990 – Noranda, 8,631 m (78 holes); 1996 & 1999 – Ming, 1,931.3 m (30 holes); 2010 – Tenacity, 1,772.7 m (77 holes); and 2014-2016 – Anaconda, 5,738.73 m (97 holes).

Assay Highlights from the 2014 and 2015 Diamond-Drill Programs, Stog’er Tight Deposit

Hole ID

From (m)

To (m)

Width (m)

Au g/t

BN-14-187

38.0

41.5

3.5

18.60

BN-14-192

33.0

43.5

10.5

4.94

BN-14-195

32.0

39.0

7.0

6.77

BN-14-208

72.0

76.5

4.0

8.13

BN-14-201 

56.0

60.0

4.0

7.20

BN-14-202

55.0

55.8

0.8

4.94

and

61.0

62.0

1.0

3.01

BN-14-203

38.0

41.5

3.5

10.52

BN-14-204

3.6

6.5

2.9

1.63

BN-14-205

58.0

59.0

1.0

1.56

and

82.0

83.0

1.0

2.65

BN-14-207

122.0

123.0

1.0

2.50

BN-14-208

72.0

76.5

4.5

8.13

BN-14-210

15.0

17.0

2.0

1.75

BN-14-211

39.0

32.0

2.0

2.85

BN-14-213

25.0

27.0

2.0

3.32

and

36.0

37.0

1.0

1.74

BN-14-214

3.4

4.0

0.6

4.05

and

34.0

38.0

4.0

1.14

BN-14-215

17.0

23.0

6.0

4.55

BN-14-216

63.6

64.1

0.5

1.58

and

66.2

67.7

1.5

1.63

BN-15-217

15.6

21.9

9.3

2.78

BN-16-225

21.8

24.0

2.2

1.76

BN-16-226

6.0

7.0

1.0

1.99

and

14.0

19.0

5.0

1.42

BN-16-227

17.0

19.0

2.0

1.08

and

22.0

28.0

6.0

1.81

including

23.0

26.0

3.0

3.04

BN-16-228

9.0

13.0

4.0

2.28

BN-16-229

18.5

22.0

3.5

0.63

BN-16-230

35.5

38.5

3.0

2.46

BN-16-231

14.0

15.0

1.0

0.69

BN-16-232

14.0

15.0

1.0

0.67

BN-16-233

20.0

21.0

1.0

1.10

BN-16-234

26.0

30.0

4.0

2.04

BN-16-235

16.0

20.0

4.0

6.70

including

16.0

19.0

3.0

8.85

BN-16-236

6.0

10.0

4.0

3.72

and

18.0

21.0

3.0

2.27

BN-16-238

43.0

44.0

1.0

0.54

BN-16-242

38.0

39.0

1.0

1.17

BN-16-265

28.7

33.0

4.3

1.20

BN-16-266

27.6

31.8

4.2

1.61

BN-16-268

4.9

6.0

1.1

0.78

BN-16-269

31.0

32.0

1.0

0.89

and

47.7

49.5

1.8

3.93

and

53.5

54.5

1.0

1.00

BN-16-271

16.0

16.8

0.8

0.50

BN-16-273

53.0

54.3

1.3

2.10

BN-16-275

26.0

30.0

4.0

0.56

BN-16-276

29.0

33.0

4.0

1.13

BN-16-278

21.0

29.8

8.8

1.28

including

25.0

29.8

4.8

1.82

including

25.0

26.0

1.0

5.91

BN-16-279

49.9

52.9

3.0

3.81

BN-16-281

27.7

30.0

2.3

1.46

 

Anaconda conducted flotation testing in 2015 to confirm that Stog’er Tight mineralized material could be successfully floated at its current mill complex as the previous metallurgical tests completed by Noranda and Tenacity have proved that this ore is amenable to leaching with recoveries in a range of 96-98% when ground to 82-87% passing -200 mesh. Metallurgical testing by RPC Science & Engineering conducted in the summer of 2015 indicates that Stog’er Tight material collected as a part of the channel sampling program when subjected to the same flotation conditions as used in the Pine Cove Mill a final product was obtained at gold recovery of 96.9 percent in 25.8 percent of the mass. The studies determined that Stog’er Tight material could be combined with ore from the Pine Cove Mine under current Pine Cove Mill conditions.

^ NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on The Pine Cove Mine and Mineral Resource Estimate on The Stog’er Tight Deposit, Point Rousse Project, Baie Verte, Newfoundland And Labrador, Canada. Prepared By: David Copeland, P.Geo., and Catherine Pitman, P.Geo.  (Independent Qualified Persons); and David T. W. Evans, P.Geo., Paul McNeill, P.Geo., and Gordana Slepcev, P.Eng. (Qualified Persons). Effective Date: October 22, 2015. Published: December 5, 2015


© Copyright 2018. Anaconda Mining Inc. All rights reserved. Legal Information  |  Privacy Policy