NEWFOUNDLAND – Toronto-based Anaconda Mining has entered into two option agreement to acquire a 100% interest in the Deer Cove and Stog'er Tight gold properties. The two mining leases are adjacent to the company's Pine Cove gold mine on the Baie Verte Peninsula.
Anaconda considers Deer Cove and Stog'er Tight to be key components in its regional exploration program. The company is planning an aggressive exploration program beginning with detailed compilation, structural interpretation and ground geophysical surveys at Stog'er Tight followed up with a winter diamond drilling campaign. Detailed compilation of all Deer Cove data will also be undertaken with follow-up diamond drilling to begin in the spring of 2014.
Terms of the option agreements call for Anaconda to make payments totaling $400,000 to 1512513 Alberta, a subsidiary of Coordinates Capital, over a three year period. Anaconda also agreed to make exploration expenditures of $1 million, spread equally between the two properties. Both properties are subject to a 3% net smelter royalty, but Anaconda may purchase 1.8% of either for $1 million.
Anaconda president and CEO Dustin Angelo said, "Anaconda has dramatically expanded its operations from a single mine with modest exploration opportunities to a profitable gold producer with a district scale exploration program with approximately 6,000 hectares of property on some of the most prospective but under explored land in Canada. With the benefit of having a district scale perspective, the company is optimistic that it can take the historical work done on these projects and transform them into the next mineable gold deposits on the Baie Verte Peninsula."
Visit AnacondaMining.com for further details on the Pine Cove mine.