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Posts tagged ‘Anaconda Mining Inc (ANX)’

Anaconda Mining president/CEO Dustin Angelo on the Pine Cove gold mine in Newfoundland

April 16th, 2013

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New-found gold in Newfoundland

April 4th, 2013

Anaconda wants to expand production, Marathon wants new resources

by Greg Klein

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At first glance the numbers seem modest enough—just under 12,000 gold ounces and $3.3 million net income for fiscal 2012. But that in itself might put Anaconda Mining TSX:ANX in an enviable position among micro-cap juniors. With an expanded land package and two active exploration areas, the company hopes to increase production in the Baie Verte peninsula of northern Newfoundland.

So it was more gold lust than fabled romance that drew Anaconda to the Romeo and Juliet prospect, about 1.5 kilometres northwest of the company’s Pine Cove open pit mine and mill. Last year the company decided that impressive, near-surface historic results called for an initial 1,000-tonne bulk sample. On April 4 Anaconda released high-grade assays from five sub-samples averaging 12,598 grams grading 5.71 grams per tonne gold. The individual numbers show:

Anaconda wants to expand production, Marathon wants new resources

Anaconda Mining expects about 14,000 gold ounces this year from Pine Cove but hopes to expand production in its newly enlarged land package.

  • 6.32 g/t gold from an 11,842-gram sample
  • 5.14 g/t from 12,774 grams
  • 5.15 g/t from 12,299 grams
  • 4.91 g/t from 13,061 grams
  • 7.05 g/t from 13,018 grams.

The results follow closely on drill results released March 25 from a new Western Extension area within Pine Cove’s current pit limit. Highlights include:

  • 1.81 g/t gold over 26.87 metres
  • (including 2.15 g/t over 20 metres)
  • (and including 1.44 g/t over 2.87 metres)
  • 1.28 g/t over 12.7 metres
  • (including 2.05 g/t over 6.1 metres)
  • 1.82 g/t over 4 metres
  • (including 4.47 g/t over 1 metre)
  • 7.31 g/t over 1.03 metres
  • 2.21 g/t over 4 metres
  • 3.1 g/t over 0.99 metres.

True widths weren’t available. The top-most intercept started at a vertical depth of 7.83 metres, while the deepest ended at 178.59 metres from surface. The zone remains open to the northwest, which will be the focus of Phase II drilling.

“These holes were drilled within the current pit limit but the mineralization was found below the pit shell,” Anaconda president/CEO Dustin Angelo tells ResourceClips. “We have to remove that waste because you have to fan back to maintain a stable pit wall. Where we’re drilling was an area that was deemed waste, but when you drill far enough down there are areas that are gold-bearing. So we were removing waste in this area already and now we’ve found gold under it.”

As for Romeo and Juliet, “We’re going to do some more definition drilling from the surface,” Angelo says. “But I think we’ll have to do some underground exploration to better define it and help with the mine plan.”

With a mill less than two klicks away, the star-crossed lovers might have a promising future. But “we have to do metallurgical tests to see how we would process that material,” Angelo explains. “Various parts of our circuit have different levels of capacity right now. There’s a potential that there’s plenty of mill capacity but if we have to put it through our ball mill and flotation circuit as well, there’s probably less. But what we could do is blend the feed stock so instead of doing a thousand tonnes a day right now from the pit, we could do 900 from the pit and 100 of this, and blend the head grade.”

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