Anaconda Mining Options Strategic Property Near Its Pine Cove Mine; Identifies New Gold Occurrence

TORONTO, Dec. 11, 2012 /CNW/ – Anaconda Mining Inc. (“Anaconda” or “the Company”) – (TSX: ANX) is pleased to provide an update on its recent property acquisition and gold exploration program near its Pine Cove mine, Baie Verte Peninsula, Newfoundland and Labrador. The Company has entered into two option agreements to explore property that connects its current land position in the highly prospective Goldenville banded iron formation (the “Goldenville Horizon”). Initial prospecting work along the Goldenville Horizon has:

President and CEO, Dustin Angelo, stated: “The recent acquisitions further consolidate Anaconda’s land position, which has grown to approximately 4,785 hectares, adjacent to the Pine Cove mine. The reconnaissance prospecting results are encouraging and highlight the largely untested potential along the Goldenville Horizon. We plan to do further sampling and trenching in this area, when the trenching season resumes again in May. In the mean time, we continue to advance other parts of our exploration program. An airborne survey covering our entire property package is planned for mid-winter. Interpretation of data collected during the 2012 season is ongoing and will be used in conjunction with the airborne data to delineate targets for follow-up in 2013. Trenching programs will also be formulated to test the new showings and any additional targets.”

Additional Property Control:

During November 2012, Anaconda entered into two five-year option agreements with local prospectors to acquire a 100% undivided interest in 18 claims in three licenses (the “Licenses”) totaling approximately 450 hectares (Figure 1). In the near term, the Company does not have any material, mandatory obligations related to the Licenses; however, it is obliged to keep the Licenses in good standing during the term of the option. During calendar 2013, the Company is required to make exploration expenditures of approximately $2,200. Anaconda now holds mineral exploration rights to 4,785 contiguous hectares around the Pine Cove mine, covering ophiolitic and cover sequence rocks of the Point Rousse Complex, including a significant portion of the highly prospective Goldenville Horizon.

Confirmed High-Grade Gold Mineralization in Banded Iron Formation:

Grab samples collected by Anaconda from several historic pits and old shafts (circa 1903-1906) have confirmed the presence of high-grade gold mineralization associated with the banded-iron formation of the Goldenville Horizon (Figure 2). Selected grab sample assays are presented in Table 1 and include a high of 12.04 grams per tonne gold for a sample of pyritic iron formation collected from the old Goldenville Mine waste dump and 7.41 grams per tonne for a sample collected from an old exploration pit located approximately 1.5 kilometers northeast of the old mine.

Prospecting has also identified a new gold occurrence located approximately 130 meters west of the old exploration pit shown on Figure 2. A fallen tree has exposed a one meter by two meter outcrop of oxide-facies iron formation containing heavily disseminated pyrite, grab samples of which have returned assay values up to 4.23 grams per tonne gold (Table 1).

In addition, Anaconda’s prospecting team has identified mineralized float located approximately 250 meters northeast of the Goldenville Mine (Figure 2). Grab samples collected from a shallow stream have returned assay values of 7.71 and 15.90 grams per tonne gold. The float consists of dark green siliceous volcaniclastic rock containing abundant disseminated pyrite. Similar pyritic and silicified volcanic rocks have been traced sporadically in outcrop over a strike length of approximately 350 meters and a width of 200 meters adjacent to the float. Grab samples collected from outcrops of the altered volcanic rocks have returned assays ranging from 10 parts per billion up to 290 parts per billion gold.

Goldenville Horizon Background:

The Goldenville Horizon is a regionally extensive unit of ferruginous chert and iron formation that can be traced discontinuously across the Ming’s Bight Peninsula. The horizon, which varies from approximately 3 meters up to 7 meters in thickness, occupies the core of an east-west trending, overturned north dipping syncline developed within the Point Rousse Complex.

The Goldenville Horizon has a long exploration history, but previous land tenure hampered concerted exploration efforts. It is host to several historic gold occurrences including the Goldenville Mine which produced 158 ounces of gold from 1904-1906. Noranda Exploration Company Ltd. explored the horizon east of the Goldenville Mine from 1986 to 1989 and made a number of gold discoveries which returned grab sample assay values up to 14.3 grams per tonne gold from the iron formation. In 1988, Granges Exploration Ltd. tested the area adjacent to the Goldenville Mine with 8 diamond-drill holes; three of which intersected narrow intervals of gold mineralization including 12.37 grams per tonne gold over 1.8 meters.*

*While the Company has no reason to doubt the accuracy of the historic results, the existing data has not been verified. Historic results and the work that generated them predate the enactment of National Instrument 43-101, and may not meet the requirements of that policy. Historical data were obtained from assessment files archived by the Newfoundland and Labrador Department of Natural Resources.

Table 1: 2012 grab sample assay results. Rock samples were placed in sealed plastic bags and delivered to the Eastern Analytical Laboratory in Springdale, Newfoundland by Anaconda personnel. The samples were then analyzed by Fire Assay methods with AA finish.

This news release has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a “Qualified Person” under National Instrument 43-101.