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"Back in the saddle again"

Kevin Dougan
Posted May 16, 2018

“The Singing Cowboy” Gene Autry wrote this hit classic in the 1950’s. It was considered Rock n’ Roll back then if you can believe it.

Who would think that rap music would be in vogue today, but I digress.

Little did Gene know, that almost 70 years later his hit song would be referencing none other than the “Sultan of Saddle Back”, none other than the iconic founder of 321.gold…. Mr. Robert Moriarty.

Bob is indeed back in the saddle again. However, the saddle we are talking about is a Saddle Reef Gold Deposit.

The saddle reef Bob is riding is in Nova Scotia… at the Goldboro property owned by Anaconda Mining (ANX/ANXGF).

Mr. Moriarty is very much in tune with how rare, unique, and prolific saddle reef properties are. Bob was one of the first to grasp hold of the scope of the Novo Gold project in Australia. He was right alongside the renowned geologist, Quinton Hennigh very early on and got his readers and followers in at 50 cents and the rest they say is history. It had ridden up to as high as $8.60 and that was in a bear market. Mr. M has a knack for finding undervalued, undiscovered juniors before anyone else.

Bob, as well as the geological team at Anaconda, are ecstatic about what they are learning about the Goldboro property.

As the drilling continues it is open at depth and at strike. Most importantly the complexity of the saddle reef is being understood with each new round of drilling.

Clint Eastwood in his Dirty Harry series of films, the one line beside “do you feel lucky today”, that has stuck with me was the line “a man has to know his limitations”.

With that being said… and with a very limited geological background… I will attempt to try to explain to you in a superficial way what a saddle reef deposit is. I know my limitations.

According to Funk & Wagnalls definition of a saddle reef: noun- A mineral deposit associated with the crest of an anticlinal fold following the bedding planes, usually found in the vertical succession, especially the gold-bearing quartz veins of Australia & Nova Scotia, Canada … What???? That sounds like Swahili to me!!!

In its simplest explanation (Doogie Terms) a saddle reef has been described as an accordion. The folds at the bottom represent the fingers and ribbons of the deposit fanning out in belts of various widths and folds. They are very rare but contain insane amounts of Gold. As luck would have it along with parts of Australia, Nova Scotia is blessed to have these unique geological structures. The ANX website description of Goldboro…

The Goldboro Deposit contains at least 30, stacked, ribbons that vary in thickness from less than a meter up to 20 meters. The ribbons are folded into a tight, gently east-plunging, anticline referred to as the Upper Seal Harbour Anticline. The deposit is divided into three broad zones: The East Goldbrook, Boston-Richardson, and West Goldbrook Systems. The East Goldbrook and Boston Richardson systems are separated by a thick (up to 80 meters) greywacke sequence (the Boston-Richardson Marker) with the East Goldbrook System above the greywacke and the Boston Richardson below. The West Goldbrook is separated from the Boston Richardson by a fault zone but is generally the continuation of the Boston Richardson zone on the west side of the fault. The trace of this Upper Seal Harbour anticline crosses the property and is found near the Dolliver Mountain several kilometers to the west of the Goldboro.

I asked Paul McNeill, VP of Exploration for his take on Goldboro and his take on it being a saddle reef. He is like a kid in a candy store. I asked him if he felt pressure to preform and produce, as saddle reefs are very hard to drill accurately as some of the veins are so narrow, you could literally miss by inches and never know you did.

As for pressure, Paul jokingly told me… to him pressure was trying to come up with beer money on his cross-country post-graduation trip as a starving student. We’ve all been there at one time and can relate. I like his style!!!

(Click on image to enlarge)

Paul and the ANX team of Geologists just released some robust numbers on the latest round of drilling:-

May 10, 2018

  • 752.54 g/t over 0.5 meters
  • 56.67 g/t over 1.0 meters
  • 17.00 g/t over 1.0 meters

In April 19, 2018 these results were released

  • 11.27 g/t over 13.5 meters
  • 4.13 g/t over 20.5 meters
  • 10.55 g/t over 6.1 meters

What Paul explained to me is so exciting besides the marvelous grades… is the fact they are discovering them as they continue to stretch out their targets. What they are doing is adding valuable ounces to the resource as they go further out and at depth. Paul told me there will come a time when the resource will finally start to peter out… but so far there is no indication they are anywhere near to that and that is very exciting. An updated PEA will be out later this year!!!

Future subsequent infill drilling could birth staggering intercepts as that is the why a saddle reef is so exciting. Like a box of chocolates… you never know what you’re going to get…

Some of all time historic numbers at Goldboro are as follows???

  • 23.59 g/t over 18.1 meters    August 9, 2005
  • 10.9 g/t over 26.4 meters      September 22, 2005
  • 11.8 g/t over 19.5 meters      November 2, 2005
  • 9.07 g/t over 29.5 meters      December 11, 2008
  • 46.46 g/t over 10.5 meters    January 30, 2009

Will ANX hit similar numbers??? A seasoned, local geologist I know thinks so. He has described it to me as “jewelry boxes” he has seen underground at Goldboro.

Yes, that’s right: The Unknown Geologist “is one of the few that has been underground at Goldboro.” He has a very good idea where the bodies are buried. When it happens, I have given him permission to come out from under the bag he hides. He can take the kudos he deserves and I will be buying him beers forever, perhaps a keg or two.

U/G is the one that got me interested properly over 15 years ago. I bought it hook, line & sinker. I went all in… I know you are thinking… how foolish …especially when the previous owners of Goldboro nearly ran it off a cliff and my investment was down to a penny a share. My friends affectionately used to call me “the Jacques Cousteau of investing” as I was so underwater on my stock picks.

All the Gold ounces in the world amount to a hill of beans when you have incompetent management. The importance of management cannot be stressed enough. Bob Moriarty has tongue in cheek when he said he would like to marry the ANX management team but his wife Barb would have none of that. I would be honored to be the best man if he can pull it off! The management of ANX has breathed new life into me.

With the merger of Orex Exploration and Anaconda Mining my investment was resurrected from the dead. Well the rest they say is history… a white knight came along named Jonathan Fitzgerald and he rescued Orex Exploration and revived the Goldboro project. He presented it to a prince named Dustin Angelo, CEO of ANX who had the foresight and vision to do a merger and here we are today.

The amazing thing is now CEO Dustin Angelo is trying to do the same and rescue the shareholders of Maritime Resources, with a merger with Anaconda Mining. The Synergy for ANX & MAE is better than peanut butter & jelly they fit so well together. A highly mineralized near surface gold property with a producing company that has highly experienced management and a profitable extremely efficient mill nearby. It makes so much sense it is an absolute no brainer!!! It is almost the same scenario being presented to MAE shareholders today.

The only people fighting, kicking, and screaming are the current management team of Maritime. Suddenly it has become a priority to finally do something with the property after dragging their feet for years. One of the first things they did recently was award themselves with 10 cent options and shares. This is ludicrous when you consider the Anaconda offer of 16 cents a share and also the actual “know how” and experience they have to take this project forward quickly. Rewarding all shareholders (ANX & MAE) who after all are the true owners of the companies. Dustin and his team will straighten this company out, their track record and experience dictate that.

Finally, when the Gold price finds its true value and Goldboro in all its splendor is unearthed, the saddle reef has been solved and conquered.

At last old Doogie will be sitting on a tropical island somewhere toasting the “Sultan of Saddle Reef” … Bob Moriarty & the Unknown Geologist for making me ridiculously wealthy again.

Investing in Junior miners is not for the faint of heart and the trip is quite turbulent. During bear markets, a steady diet of government cheese and top ramen becomes the norm. Finally… when the stars line up… once again even Jacques Cousteau comes up to breathe again and KD will be rewarded for his patience in spades.

Anaconda Mining
38 cents/share
M/Cap $40 Million

This report is my opinion after my research on Anaconda. It certainly is NOT investment advice. Take responsibility for your own investment decisions and do your own due diligence. I am a shareholder of ANX and they help support my website so I am biased. I have been investing in this sector for over 15 years sometimes with great success and ultimately always with the help from the price of Gold.


Kevin Dougan
website: www.blueskymarketing.com

Blue Sky Marketing is a contract marketing firm connecting under valued Jr. Miners with interested investors. It is run by Kevin Dougan, a former IR person and 15 year successful investor and follower of the Jr. Mining Sector.

321gold Ltd