Anaconda Mining Initiates Diamond Drilling to Test Potential

Anaconda Mining Initiates Diamond Drilling to Test Potential Down-Dip
Extension of the Pine Cove Deposit 
TORONTO, ONTARIO -- (Marketwire) -- 01/14/13 -- Anaconda Mining Inc.
("Anaconda" or "the Company") - (TSX:ANX) is pleased to report that
diamond drilling has commenced at its Pine Cove mine on the Baie
Verte Peninsula, Newfoundland and Labrador. The ten hole, 2,000-metre
program will test the potential down-dip extension of the Pine Cove
deposit. Drilling will focus on extending the gold mineralization
intersected by previous drilling immediately north of the open pit.
This mineralization lies approximately 100 metres down the projected
dip of the Pine Cove deposit and has the potential to extend the mine
resources.  
Potential Down-Dip Extension 
Historic, but widely spaced and mostly shallow, diamond drilling
immediately north of the Pine Cove open pit has indicated potential
for a down-dip extension to the Pine Cove deposit. Drilling carried
out by Anaconda in 2011 (Anaconda Press Release, July 2, 2011)
intersected significant gold values from a drill hole located less
than 100 metres north of the rim of the ultimate open pit (based on
the current mine plan and reserves) (Figure1). Drill hole PC-11-181
intersected 2.50 grams per tonne over a core length of 40.8 metres,
including 7.18 grams per tonne over 3.2 metres and 11.44 grams per
tonne over 4.3 metres. Follow-up diamond drilling completed in 2012
(Anaconda Press Release, Sept. 13, 2012) consisted of two holes
collared north and south of PC-11-181. PC-12-188, which was collared
44 metres south of PC-11-181 on section 295550E (Figure 2) at a dip
of -75 degrees and an azimuth of 175 degrees, deviated significantly
to the east and did not intersect the projected mineralized zone.
PC-12-189, which was drilled on the same section 25 metres north of
PC-11-181 at an azimuth of 180 degrees and a dip of -75 degrees,
intersected several zones of gold mineralization, the widest assaying
0.848 grams per tonne gold over a core length of 32 metres. 
Current Diamond Drill Program 
This 2013 diamond drilling program will attempt to trace the gold
mineralization intersected in PC-11-181 both up dip towards the Pine
Cove deposit and to the north and northeast. Initial drilling will
focus on the potential up dip area south of PC-11-181 along section
295550E. Infill drilling will also target the immediate area beneath
the bottom of the ultimate open pit to help with pit design and
tighten ore definition in the deeper levels of the deposit (Figure
1). It is anticipated that the drill program will take six to eight
weeks to complete.  
President and CEO, Dustin Angelo, stated, "We are excited by the
potential of the down-dip area to extend resources at the Pine Cove
mine. Drill hole PC-11-181illustrates the potential of this area to
host economically significant gold mineralization. Hole 181
intersected gold grades that are substantially higher than Pine
Cove's average grade of 2.07 grams per tonne."  
The diamond drilling is being carried out by New Valley Drilling of
Springdale, Newfoundland. The NQ core will be logged and sampled by
Anaconda personnel at the Pine Cove Mine site. Samples selected for
analyses will be sawn; half the sample will be tagged and placed in a
sealed plastic bag. Samples will be transported by Anaconda personnel
to the Eastern Analytical Laboratory in Springdale, Newfoundland for
fire assay. As part of the QA-QC protocol standards and blanks will
be randomly inserted during the sampling process. The remaining core
will be stored at the Pine Cove mine. 
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. 
Vancouver Resource Investment Conference 
Anaconda Mining will be an exhibitor at the Vancouver Resource
Investment Conference on January 20th and 21st at the Vancouver
Convention Centre West. Please visit the Company's booth or come to a
lunch presentation in Rooms 116 and 117 of the West Hall of the
Convention Centre to learn more about Anaconda's producing gold mine
and exploration potential.  
ABOUT ANACONDA 
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold
mining and exploration company with a producing asset located on the
Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove
mine.  
FORWARD LOOKING STATEMENTS 
This document contains or refers to forward-looking information. Such
forward-looking information includes, among other things, statements
regarding targets, estimates and/or assumptions in respect of future
production, mine development costs, unit costs, capital costs, timing
of commencement of operations and future economic, market and other
conditions, and is based on current expectations that involve a
number of business risks and uncertainties. Factors that could cause
actual results to differ materially from any forward-looking
statement include, but are not limited to: the final approval of the
private placement by the Toronto Stock Exchange; the grade and
recovery of ore which is mined varying from estimates; capital and
operating costs varying significantly from estimates; inflation;
changes in exchange rates; fluctuations in commodity prices; delays
in the development of the any project caused by unavailability of
equipment, labour or supplies, climatic conditions or otherwise;
termination or revision of any debt financing; failure to raise
additional funds required to finance the completion of a project; and
other factors. Additionally, forward-looking statements look into the
future and provide an opinion as to the effect of certain events and
trends on the business. Forward-looking statements may include words
such as "plans," "may," "estimates," "expects," "indicates,"
"targeting," "potential" and similar expressions. These
forward-looking statements, including statements regarding Anaconda's
beliefs in the potential mineralization, are based on current
expectations and entail various risks and uncertainties.
Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause actual results to
differ materially from expected results. Readers should not place
undue reliance on forward-looking statements. These forward-looking
statements are made as of the date hereof and we assume no
responsibility to update them or revise them to reflect new events or
circumstances, except as required by law. 
To view "Figure 1: Pine Cove Diamond Drill Plan - Proposed Drill
Holes", please visit the following link:
http://media3.marketwire.com/docs/ANAFIG1.jpg.  
To view "Figure 2: Pine Cove Diamond Drill Plan - Section 295550E
Looking West", please visit the following link:
http://media3.marketwire.com/docs/ANAFIG2.jpg. 
Contacts:
Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
dangelo@anacondamining.com
www.anacondamining.com 
ProConsul Capital Ltd.
Andreas Curkovic
Investor Relations
(416) 577-9927
acurkovic@proconsulcapital.com