Canadian listed Anaconda Mining is a gold producer explorer and property developer in Newfoundland & Labrador and Nova Scotia. Their main producing property, Point Rousse, produces roughly 16,000 oz of gold per year and is located on the Ming’s Bight Peninsula located in the Baie Verte Mining District.
Share Talk will publish an exclusive interview with Gordana Slepcev, Chief Operating Officer for Anaconda Mining (TSX:ANX) tomorrow, 11 August 2017.
Anaconda’s other projects include Goldboro and Viking, which bring Anaconda’s total gold resource to over a million ounces and counting.
[idz_button color=”default” size=”large” label=” Anaconda Mining Corporate Presentation ” icon=”” link=”http://anacondamining.com/CorporatePresentation.pdf” target=”_blank” type=”square_shape” class=””]
Anaconda is a growth-oriented, Atlantic Canada regional gold producer, developer and explorer with a producing project called the Point Rousse Project on the Baie Verte Peninsula, Newfoundland and a major development project called the Goldboro Project in Nova Scotia. Anaconda also has three other exploration projects called the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.
The Goldboro Gold Deposit is located on tidewater approximately 185 km northeast of Halifax, Nova Scotia. The Goldboro Deposit contains 457,400 Measured and Indicated ounces of Gold and 372,900 Inferred ounces (see Orex press release dated March 1 on Sedar). A summary of the 43-101 Resources of the Goldboro Project is provided below.
Including all projects, Anaconda controls over 600,000 ounces of measured and indicated gold resources and over 400,000 ounces of inferred gold resources. Approximately 70% of the measured and indicated resources are greater than 5.0 grams per tonne and approximately 85% of the inferred resources are more than 4.0 grams per tonne.
Anaconda has plans to grow its resource portfolio and production profile through exploration and mergers and acquisitions. To maximize potential profit and minimize capital investment, it will leverage its existing operating infrastructure at the Point Rousse Project including Anaconda’s mill facility, tailings capacity and port facility.
The island of Newfoundland forms part of the Paleozoic Appalachian-Caledonian Orogenic Belt which on the island can be subdivided into distinct tectonostratigraphic zones including the Humber and Dunnage zones. These zone record the formation and destruction of the late Precambrian – early Paleozoic Iapetus Ocean. The Humber Zone represents the passive continental margin of Paleozoic North America and it comprises shelf-facies carbonate and siliciclastic rocks deposited upon crystalline Precambrian basement. The Dunnage Zone is often referred to as the vestiges of Iapetus as it contains sequences of ophiolitic and volcanic, volcaniclastic and sedimentary rocks of island arc and back-arc origins.
The Baie Verte Peninsula occupies portions of both the Humber and Dunnage zones which are separated by a major arcuate, structural zone known as the Baie Verte Line. The Dunnage Zone comprises: i) Cambro-Ordovician ophiolitic sequences, the Baie Verte Oceanic Tract; ii) Ordovician volcanic/volcaniclastic cover sequences; iii) Silurian terrestrial volcanic and sedimentary rocks, which unconformably overlie the Ordovician sequences; and iv) Siluro-Devonian intrusive rocks. The protracted interaction between the Baie Verte Line and the sequences lying mainly to its east produced the prolific gold occurrences of the Baie Verte Belt.
Local Geological Setting
The Point Rousse Project is underlain by Cambro-Ordovician ophiolitic and cover-sequence rocks of the Point Rousse Complex, which is part of the Baie Verte Oceanic Tract. The Point Rousse Complex comprises a dismembered ophiolite sequence conformably overlain by a mafic volcanic–volcaniclastic cover sequence. The ophiolitic Point Rousse Complex consists of ultramafic and gabbroic rocks, sheeted dykes, and mafic volcanic rocks. The cover sequence consists of: banded magnetite and jasper iron formation (including the Goldenville Horizon); mafic volcanic rocks including high-Ti tholeiitic basalts; calc-alkaline basalt, clinopyroxene-phyric tuff and tuff breccia; and mafic epiclastic wackes and conglomerates. This cover sequence is correlated regionally with the Snooks Arm Group and where practical the formational nomenclature of the Snooks Arm Group is applied.
The Point Rousse Complex lies in the core of the Baie Verte Flexure where the Baie Verte Line swings abruptly from a northeast-southwest to an approximately east-west orientation. Internally the complex is disposed in a broad, generally east-trending, structurally-modified synclinorium. Ophiolitic plutonic rocks lie to the north and south of the cover sequence which is exposed in the core of the syncline. The ophiolitic components are confined to structural blocks bounded by high angle and thrust faults which dip moderately to the northwest. The rocks of the Point Rousse Complex have been affected by at least four phases of regional deformation, D1 – D4. The main deformational event resulted from south-directed thrusting, accompanied by folding and shearing, of the Point Rousse Complex. This thrusting occurred along several parallel west-trending south directed reverse faults culminating with the Scrape Thrust, a ductile shear zone that juxtaposes the Point Rousse Complex over the Pacquet Harbour Group. South-southeast to south-trending transverse faults that dissect the west-trending thrust and reverse faults may represent lateral ramps or tear faults. Deformational fabrics related to this event have been affected by at least two younger events that have folded the older features.
The Point Rousse Complex is host to both orogenic-style gold and volcanogenic sulphide mineralization. Anaconda has identified three mineralized trends within the Point Rousse Project: the Scrape Trend, the Goldenville Trend, and the Deer Cove Trend. The majority of known gold occurrences including the significant deposits all sit within these trends. Gold mineralization appears to be largely restricted to the cover sequence rocks and is best developed in titanomagnetite-rich mafic intrusive or volcanic rocks and oxide-facies banded-iron formation. Leucoxene is common to most of the occurrences and its presence and genesis is thought to play a crucial role in host rock preparation. Known gold occurrences with the ophiolitic rocks of the Point Rousse Complex are few and typically small.
The gold is structurally controlled and localized within deformation zones subsidiary (2nd or 3rd order features) to major regional structures. These structures are generally pre- or syn-D2 since the mineralization is folded by F3 and F4 folds. Typically the variation in rock type, and resultant rheological contrast during deformation, appears to play an important role in mineralization since it is commonly the more competent of the rocks present which host gold.
The gold occurs as either quartz vein-hosted as in the Romeo and Juliet prospect and the Deer Cove Main Zone, or as disseminated (altered-wall rock) style mineralization as in the Pine Cove and Stog’er Tight deposits. In the latter the gold is intimately associated with pyrite either within the host rock or within accompanying quartz-carbonate veins. At the Goldenville Mine quartz veins with narrow auriferous-pyritic halos are developed within the oxide-facies banded-iron formation and are typical of Banded Iron Formation (BIF) gold deposits.
The Point Rousse gold mineralization typically exhibits a relatively narrow, but distinctive alteration halo dominated by Fe-carbonate, albite, sericite, chlorite and leucoxene. The ore mineralogy is relatively simple and is generally comprised of either free gold or as gold coating fractures/grain boundaries in pyrite. Silver and base metals can be present in minor amounts and the deposits typically contain only trace arsenopyrite. These deposits are typically non-acid generating due to the abundance of carbonate.
Volcanic rocks of the cover sequence have the potential to host volcanogenic sulphide mineralization similar to the Rambler Deposits in the Pacquet Harbour Group. The Barry and Cunningham prospect, which is located on the coast approximately 2.5 km north of the community of Ming’s Bight, consists of small lenses of copper-rich massive sulphide mineralization. Zones of semi-massive to massive pyrite are also associated with the numerous bands of iron formation within the cover sequence.
Anaconda’s primary goals are to extend and increase gold production within the Point Rousse Project. The Company has implemented an exploration strategy that includes exploring to: expand the known resources adjacent to the Pine Cove deposit; expand historical resources at the Stog’er Tight Deposit; increase the potential resources at prospects such as Romeo and Juliet, Corkscrew, the Deer Cove Main Zone and Anoroc; and make new discoveries, such as the Argyle zone.
The Point Rousse Project contains a complete pipeline from grass roots exploration to the producing Pine Cove mine. The Company’s approach is to advance projects through the exploration, development and production stages while leveraging the existing infrastructure such as the Pine Cove mill and tailings storage facility. Each individual deposit and prospect is assessed in light of reaching the Company’s goals of increasing the project mining life and an increase of production.
Exploration efforts are focused on three primary prospective gold trends, which have approximately 20 km of cumulative strike length and include two deposits and numerous prospects and showings, all within 8 km of the Pine Cove mill. The three trends include the Scrape trend, the Goldenville trend and the Deer Cove trend.
From 2007 to 2012 Anaconda’s exploration efforts focused mainly on the Pine Cove mine area and were limited to small diamond drilling programs targeting specific areas of the deposit. The Company began to assemble the Point Rousse Project in 2012 and since then it has completed 15,899.42 m of drilling in 140 drill holes. This includes drilling at the: Pine Cove Mine, Stog’er Tight Deposit, Romeo and Juliet prospect; and the Deer Cove Main Zone. More specifically, the Company, since 2012, has conducted the following exploration activities:
- An airborne DIGHEM magnetic and Electromagnetic survey including 725.2 line km at a 100 m line spacing (2012).
- An initial compilation of historical soil samples, ground magnetics and geology over the project area (2012).
- 12,908.93 m of diamond drilling in 89 holes on the Pine Cove deposit.
- Twenty five trenches and test pits and 200 m of channel samples in the area between Pine Cove and Romeo and Juliet (2012).
- 2,004 m of diamond drilling in 19 holes on the Romeo and Juliet prospect.
- 2,100.72 m of diamond drilling in 17 holes on the Deer Cove deposit (2014).
- 2,486.54 m of diamond drilling in 39 holes on the Stog’er Tight deposit (2014 and 2015).
- 121.75 m of channel samples from 12 trenches in the Stog’er North area (2014).
- Collection of 2,494 soil samples in the Argyle and Goldenville areas (2012 and 2014).
- 205.41 m of channel samples from 13 trenches in the Argyle area (2014 and 2015).
- Reprocessing of historical ground magnetic, VLF and IP surveys (2012 and 2015).
- Compilation of remaining geological and geochemical data sets for the project area (2015).
Location and Property
The Viking Project is located 10 km southwest the communities of Pollards Point and Sop’s Arm in White Bay, Newfoundland and Labrador, and approximately 180 km by road (100 km by barge) from Anaconda’s Pine Cove mill. The project is accessible via a 2.5 km forest road leading from provincial Route 420 that intersects the Trans-Canada Highway approximately 75 km to the south. Deer Lake Airport, with daily scheduled flights to St. John’s, Halifax and Toronto, is located roughly 120 km south of the property by road.
The Viking Project consists of ground acquired under two option agreements with Spruce Ridge Resources Ltd. (“Spruce Ridge”) on the adjoining Viking and Kramer Properties, as well as ground staked 100% by Anaconda. These agreements allow the Company to acquire a 100% undivided interest in the Viking Project. The Project is, in part, subject to NSR agreements with Altius Minerals Corp. (“Altius”) and Spruce Ridge. In total the Viking Project comprises 6,225 hectares of highly prospective mineral licenses and is similar in size to Anaconda’s Point Rousse Project.
The Viking Project is underlain by rocks of variable age that are separated along the large-scale Doucers Valley Fault system. The oldest rock units in the area are those of the Long Range Inlier which are mainly ~1500 Ma granitoid gneisses. Younger granites (~1030-980 Ma) intruded these gneisses as did late Precambrian (~613 Ma) ultramafic and mafic intrusions associated with the Long Range Dyke Complex. West of the Doucers Valley Fault feldspar augen granodiorite gneiss and younger monzogranite dykes are mapped as part the Main River Pluton which is correlated with the ca.1036 Ma Apsy Granite that occurs several km to the northeast. Mafic intrusive rocks of the Long Range Dyke Complex are characterised by fine to medium grained diorite to coarse gabbro. The mafic intrusions generally show distinct chilled margins and crosscut the older augen gneiss and monzogranite but also locally show strong effects of deformation, hydrothermal alteration and mineralization.
Humber Zone sedimentary sequences of Cambro-Ordovician age outcrop to the east of the Doucers Valley Fault and unconformably overlie rocks of the Main River Pluton. These rocks were initially deformed by late Ordovician tectonism and subsequent deformation during the Silurian. The eastern edge of the Inlier in this area was intruded by the Silurian Devil’s Room Granite (425±10 Ma) and Taylor Brook layered gabbro (430.5±2.5 Ma).
The Doucers Valley Fault marks the eastern limit at surface of the Long Range Inlier and is interpreted to have accommodated substantial amounts of both strike-slip and reverse slip motion beginning during the Ordovician and continuing episodically until early Carboniferous time. Deering (1989) considered this fault in the Viking area to be comprised of at least two or three parallel, steeply east-dipping main structures with secondary splays crossing the Long Range Inlier and showing association with gold mineralization. This fault zone is considered to mark a major tectono-stratigraphic break within the Appalachian orogen and to have a complex reactivation history throughout Paleozoic time. Predominantly sedimentary sequences of the Silurian Sops Arm Group occur east of the Doucers Valley Fault.
Topographic trends in the property areas are dominated by regional scale northeast trending stream valleys that mark major shear zone trends crossing the meta-igneous rocks of the area. Property scale mapping indicates that these features are secondary splays of the major north northeast striking Doucers Valley Fault. Several secondary splay structures have been defined to date on the Viking Project and both can be traced as topographic features to points of respective intersection with the Doucers Valley Fault. In addition to these major splays, detailed mapping along the Thor Trend has shown that north-south trending zones of shearing are also present on the property and that these, as well as some members of the northeast splay set of structures, have been the focus of extensive alteration associated with both low and high-grade styles of Au mineralization on the property.
Mineralization and alteration on the Viking Property are mainly developed in potassium-feldspar megacrystic to augen granodiorite of the Main River Pluton. Mineralization and alteration on the Kramer Property are developed in the Main River plutonic rocks and adjacent Cambro-Ordovician quartzites.
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