Anaconda Mining announced the commencement of exploration and development activities on the Company's Goldboro Project in the Province of Nova Scotia.
The recently acquired Goldboro Project currently contains a Measured and Indicated Mineral Resource of 457,400 gold ounces at a grade of 5.57 g/t Au (2,556,000 tonnes) and an Inferred Mineral Resource of 372,900 gold ounces at a grade of 4.35 g/t Au (2,669,000 tonnes)(2.0 g/t Au cut-off).
The initial exploration and development programs will provide various data required to advance permitting, metallurgical evaluations and economic modeling, culminating in the publishing of a Preliminary Economic Assessment by the end of the year. Initial programs, which are underway, include:
- Diamond drilling to test historic areas of drilling in the core of the deposit and to collect samples necessary for metallurgical test work;
- Ore characterization and metallurgical test work including crushing and grinding characterization, gravity, floatation and leachability and acid rock drainage testing;
- Environmental baseline studies including wildlife, fauna, and aquatic surveys, MEKS (Mi'kmaq ecological knowledge study) and archeological studies;
- Optimization of the Goldboro Resource to mirror the development plan;
- Government and community consultations including meetings with the Federal and Provincial Governments, Mi'kmaq First Nations and community organizations;
- Geotechnical investigations including rock and surface quality to support open pit, underground and waste dump designs;
- Transportation costing associated with various development scenarios.
As part of this process, Anaconda will review opportunities to leverage existing operating expertise and fully-owned infrastructure at the Company's Point Rousse operation in Newfoundland, which currently comprises a 1,300-tonne per day mill, tailings capacity for approximately 15 years (based on the current mill throughput rate) and a tide-water port facility. The Goldboro Project is connected to a tide-water wharf via a 2-kilometre road. Leveraging tide water access at both sites has the potential to reduce upfront capital requirements and expedite the development timeline.
Dustin Angelo, President and CEO of Anaconda, said, "We have built a scalable platform for growth with an existing mill facility, significant tailings capacity and a fully-owned port facility at Point Rousse. The initial exploration and development programs will support our strategy of leveraging our existing expertise and infrastructure, through detailed technical and economic studies. These initial programs will support the Company's aim to publish a PEA by the end of 2017, which we believe will reinforce Anaconda's vision that Goldboro can provide, near-term, high value to Anaconda shareholders as well as stakeholders in both Nova Scotia and Newfoundland and Labrador."