VMS System At The Tilt Cove Gold Project

TORONTO - Anaconda Mining Inc. reported results from the initial stages of an ongoing 10,000 meter exploration drilling program at its Tilt Cove Gold Project, located within the Baie Verte Mining District in Newfoundland, approximately 45 kilometers by road from the Company's Pine Cove Mill and long-term tailings facility.

Results have been received for ten (10) holes totaling 1,641 meters from the Scarp Zone targeting surface mineralization and associated geophysical anomalies over approximately one kilometer of strike length. Drilling consistently encountered strongly altered and mineralized rocks that represent the volcanogenic massive sulphide alteration system (VMS System) believed to be part of the same geological system that hosts the nearby, past producing Tilt Cove Mine, which mined 8.16 million tonnes of copper ore at grades ranging between 1.25 and 12.0% copper as well as producing 42,425 ounces of gold. The Tilt Cove Mine was active from 1864 to 1917 and again in 1957 to 1967. The extensive VMS System is locally gold-enriched, consistently hosts disseminated, stringer and semi-massive pyrite, chalcopyrite and sphalerite, including an intersection of semi-massive chalcopyrite in hole SZ-20-04.

Highlights of the drilling include intersections of both gold and copper including: 4.41% copper over 2.2 meters (64.3 to 66.5 meters) in diamond drill hole SZ-20-04; 1.79% copper over 3.0 meters (37.0 to 40.0 meters) in diamond drill hole SZ-20-01; and 1.36 grams per tonne ("g/t") gold over 3.0 meters (72.0 to 75.0 meters) and 0.93 g/t gold over 2.7 meters (25.5 to 28.2 meters) in diamond drill hole SZ-20-02.

Kevin Bullock, President and CEO, said, “Initial drill testing of the Scarp Zone has outlined a kilometer long strike extent of a VMS System including high-grade copper mineralization and elevated levels of gold, proximal to the past-producing Tilt Cove Mine. The results highlight the prospectivity of the area for base metals through the discovery of high-grade copper mineralization in this previously untested area. Our focus remains on the discovery of a high-grade gold deposit similar to the past producing Nugget Pond Mine, but we are pleased with the discovery of base metal mineralization in addition to precious metals, demonstrating the strong potential of the area. Further drilling is anticipated in this area in 2021, targeting other gold prospects both along strike and associated with the VMS alteration system. We continue to execute on the ongoing 10,000 meter Tilt Cove drill program, with drilling completed at West Pond and with two drills currently turning at the Betts Cove and Growler prospects. Results of the drilling will be released upon receipt and evaluation of related assays."

The Scarp Zone is characterized by more than a kilometer of exposed Nugget Pond Horizon coincident with a similar strike length consisting of 107 gold bearing samples over 0.5 g/t gold. The area is also characterized by a strong deformation zone adjacent to the Nugget Pond Horizon which dips shallowly northwest beneath younger Silurian rocks. As part of a larger, ongoing 10,000 meter Drill Program at Tilt Cove, the Scarp Zone was tested with 1,641 meters in 10 holes (SZ-20-01 to 10) over a 1.0 kilometer strike extent, following up on surface gold mineralization indicated by coincident rock grab and float samples as well as IP chargeability anomalies.