Anaconda bulk sample encouraging

Anaconda Gold (ANX-V) has produced 1,045 oz. gold from a 6,337-tonne bulk sample taken at its Pine Cove project, 6 km northeast of Baie Verte, Nfld.

The block model predicted a grade of 5.4 grams gold per tonne; the mill grade returned 5.3 grams gold per tonne (a 96% recovery was achieved).

The ore was processed on a contract basis by Richmont Mines (ric-t) at its Nugget Pond mill about 50 km from the Pine Cove site.

To date, 914.45 oz. of gold have been sold at US$448 per oz. Overall cash costs per oz. wereUS$290 per oz.

An independent feasibility study should be completed in December.

In 1993, the deposit was estimated to contain 1.86 million tonnes grading 3.19 grams gold per tonne of mineable, diluted open pit reserves. In addition, there was 587,000 tonnes at 1.4 grams gold per tonne, for a total mineable gold resource of 217,000 ounces. This was based on a gold price of US$330 per ounce.

Anaconda has the right to earn a 30% interest in the 28-sq.-km project from New Island Resources (NIS-V), by spending $500,000 on exploration and development by the end of this year. On making a positive production decision and arranging project financing, Anaconda would be entitled to all project cash flows until capital costs are paid back. After such time the project would be 60%-owned by Anaconda and 40% by New Island Resources. Barrick Gold (ABX-T) has a 7.5% net profit interest in the property.