Anaconda Mining has started a diamond drill programme at its 100%-owned Goldboro gold project in Nova Scotia, Canada.

The 5,500-metre drill programme is designed to convert priority Inferred Mineral Resources into Indicated Mineral Resources.

Anaconda Mining expects the drill programme has the potential to add significant value by extending the life of mine.

The drill programme will target existing Inferred Mineral Resources in four separate zones within the Boston-Richardson and East Goldbrook Gold Systems.

The combined systems contain 325,000 tonnes at an average grade of 16.10 grams per tonne (g/t) gold containing 168,400 ounces of gold.

The company will fund the drill programme through its existing flow-through funds.

Anaconda Mining President and CEO Kevin Bullock said: “We have identified significant opportunities to optimize the Goldboro Gold Project and in particular to increase the overall economics of the Project.

“The Company is well-funded to advance its growth strategy and take advantage of these opportunities. This robust Drill Program has the real potential to directly impact the Project’s economics and key economic metrics, creating significant incremental value.

“We look forward to announcing the results of the Drill Program in the third quarter of 2020, which will be included in a Mineral Resource Update on the Project and will also be incorporated into the  life of mine in the optimized Feasibility Study.”

Goldboro gold project will include onsite milling facility

Located approximately 175km northeast of Halifax, the Goldboro Gold project will include both open pit and underground mining phases.

It will also include an onsite milling facility that is expected to have a processing rate of 575 tonnes per day.

Anaconda is a gold mining, development, and exploration company, focused in Atlantic Canada. It operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland.