NEWFOUNDLAND - The Pine Cove gold project near Baie Verte has moved a step closer to production, since 30% partner ANACONDA GOLD of Toronto secured a US$2.0-million project facility loan for completion of the project. Auramet Trading of Fort Lee, New Jersey, will provide the loan and also receive 150,000 Anaconda shares. Anaconda can earn an additional 30% interest from NEW ISLAND RESOURCES by funding the mine to production.
Construction is now underway, and plans are to begin mining and operation of a 500-t/d mill by the middle of this year. First year gold production is targeted to be 22,000 oz at a cash cost of US$323/oz. The property has probable reserves of 2.3 million t at 2.76 g/t Au. The area also has excellent potential for expanding the resource base, says Anaconda.
At www.NewIslandResources.com readers may examine a picture gallery of the Pine Cove exploration.