Anaconda Mining intersects 2.5 grams per tonne gold over 40.8 metres at Pine Cove Mine

TORONTO, July 27, 2011 /CNW/ --
TORONTO, July 27, 2011 /CNW/ - Anaconda Mining Inc. ('Anaconda') - (TSX:
ANX) is pleased to announce results from a three-hole diamond drill
program designed to test a target gold mineralized area less than 100
metres to the north of the ultimate open pit design outline at its 100%
owned Pine Cove Gold Mine near Baie Verte, Newfoundland. The best
results from this program were obtained in hole PC-11-181 which intersected 2.50 grams per tonne gold over 40.8 metres, including 7.18 grams per
tonne over 3.2 metres and 11.44 grams per tonne over 4.3 metres. These grades are substantially higher than Pine Cove's probable
reserves of 2.6 million tonnes, grading 2.07 grams per tonne.
Additional results from this diamond drill program are illustrated in
the following table.

                     Table 1. Diamond Drill Results - Q2-2011 DD Program

                                                                              

                                                   Length of

   Sample                                          Intersection           Gold
   Number            From             To                                Grade  

                                                     (metres)       (grams/tonne)
                (metres)        (metres)   

                                                                              

PC-11-180            85.0            86.0                1.0              3.50

                    122.3           129.7                7.4              1.58

(including)         125.3           128.7                3.4              2.86

                    222.0           226.0                4.0              1.11

                    278.8           284.8                7.0              1.12

(including)         284.3           284.8                0.5              12.59

                                                                     

PC-11-181             2.0             7.0                5.0              1.52

                    175.7           180.7                5.0              2.87

                    203.0           262.2               59.2              1.96

(including)         203.0           208.2                5.2              2.10

(including)         221.4           262.2               40.8              2.50

(which              221.4           224.6                3.2              7.18
included)

(which              241.2           245.5                4.3              11.44
included)

                                                                     

PC-11-182            83.8            84.6                0.8              2.49

Note: Reported drill intersection lengths are not meant to represent
true thicknesses of the mineralized zone.

Dustin Angelo, President and CEO of Anaconda, commented on the drill
results, stating: 'We're encouraged by these results. With the Pine Cove processing plant
having recently achieved improved gold recoveries, the local
availability of a drill rig opened up a window of opportunity for us to
turn our attention towards exploration. The target of this program was
an area less than 100 metres north from the ultimate pit design limit
in the current mine plan. Drilling of this area was selected based on
intriguing results obtained from 2003-05 and 2007 exploration programs.
It appears, particularly in hole PC-11-181 that we've encountered a
very robust zone both in gold grade and thickness. We're encouraged by
the potential of this zone to add to the resources of the mine and
possibly enable an extension to the current mine life. We're in the
process of determining how to better identify the grade and quantity of
gold mineralization of this zone. The mineralized zone remains open at
depth and along strike to the east, with no previous drilling having
taken place in this area.'

Further Information on the Q2-2011 Diamond Drill Program:

The Q2-2011 diamond drill program was targeted to follow-up on some
near-pit exploration results achieved in diamond drilling campaigns
conducted in 2003-05 and 2007. A total of 847.5 metres in three diamond
drill holes were collared less than 100 metres north of the ultimate
pit wall. The program was limited to three diamond drill holes
primarily based on a brief period of availability of a diamond drill
rig and crew in the area of the mine. Results from the 2003-05 and 2007
drilling and locations of these drill holes are illustrated in Figure 1 - Surface Plan Anaconda Mining Pine Cove Mine, Figure 2 - Cross Section 295500E and Figure 3 - Cross Section 295550E.

Results from the 2003-05 and 2007drill programs are illustrated in the
following table. Drill collar locations from these programs are
illustrated in Figure 1.

               Table 2. Diamond Drill Results - 2003-05 and 2007 DD Programs

                                                                    

                                                 Length of
   Sample                                                         
  Number            From             To         Intersection          Gold Grade

                                                                           
                (metres)       (metres)             (metres)       (grams/tonne)  

                                                                    

PC-03-114           31.4           33.1                1.7                 5.13

                    41.1           41.9                0.8                10.16

                                                                    

PC-07-176           80.8           84.9                4.1                 5.96

(including)         82.9           84.9                2.0                11.70

                   107.4          109.6                2.2                 1.35

                                                                    

PC-07-177           66.0           67.8                1.8                 2.78

                                                                    

PC-07-179          181.5          192.0                10.5                3.70

                   187.0          190.4                3.4                 6.80

Note: Reported drill intersection lengths are not meant to represent
true thicknesses of the mineralized zone.

Future exploration activities in the area are currently under
consideration and could include: (1) A ground Induced Polarization
geophysical survey with the ability to target deep anomalies as a means
by which to delineate the extent of the mineralized zone prior to
drilling; and/or (2) step out diamond drilling on approximate 50 metre
intervals to follow the target zones. No decisions have yet been made
on how to proceed with this exploration. Once a decision is made, and
prior to commencement of any future exploration activities, the company
plans to publicly disclose an update on such plans and activities.

Qualified Person Comments/Quality Control Procedures

This press release has been reviewed and approved by Dr. Wayne Ewert,
P.Geo, and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc., both
qualified persons under the National Instrument 43-101 guidelines. All
analytical work on core samples was conducted by Eastern Analytical
Ltd. of Springdale Newfoundland. Gold analysis was conducted using fire
assay. Quality control systems used by Eastern Analytical Ltd. include
the use of a blank, a standard and a duplicate every 20 samples. These
procedures comply with NI-43-101 standards.

ABOUT ANACONDA

Anaconda is a Toronto, Canada based mining and exploration company
focused on operating the Pine Cove gold mine located near Baie Verte in
Newfoundland, Canada and, with its joint venture partner, Inversiones
SBX Limitada, advancing the development and exploration of its iron ore
portfolio in Chile.

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.

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