Anaconda Mining Inc. (ANX-TSX, ANXGD-OTC), on Thursday released more drilling results from the company’s Goldboro Project in Nova Scotia.
Anaconda shares rallied on the news, rising 4.05% or $0.015 to 38.5 cents in late morning trading, Thursday.
The latest results include assays from five drill holes (1,621 metres) of a 30-hole program that commenced in October 2017. The drill holes targeted cross section 9100E near the centre of the Goldboro Deposit within both the East Goldbrook (EG) and Boston-Richardson (BR) Gold Systems.
“Within the BR Gold System, the drill program successfully intersected multiple wide, high-grade zones in areas not previously drilled, extended mineralization down-dip along known limbs and extended the depth of the BR Gold System by approximately 100 metres more than previously known in this section,’’ the company said.
“Close to surface, the drill program was also successful in extending eight mineralized zones in the EG Gold System westward by 50 metres,” the company said in Thursday’s press release.
Highlights area as follows:
11.27 grams per tonne gold over 13.5 metres (201.0 to 214.5 metres) in hole BR-18-22, including 15.63 g/t over 1.4 metres and 44.33 g/t gold over 2.5 metres.
Anaconda is currently the only producing gold miner in Atlantic Canada. The company is producing roughly 15,500 ounces of gold annually at its Point Rousse Project on the Baie Verte Peninsula, Newfoundland.
The Point Rousse Project is comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog’er Tight deposit and a new discovery called Argyle. The project covers 5,800 hectares of prospective gold-bearing property.
The 100%-owned Goldboro Gold Project is located in the Eastern Goldfields of Guysborough County.
“We continue to prove that mineralization extends in all directions in both the EG and BR Gold Systems,” said Anaconda President and CEO Anaconda Mining Inc.
“We are encountering typical grade and thickness in most of the newly discovered mineralized areas and then we’re uncovering sweet spots that contain broader, higher grade intersections that are among the best results reported from Goldboro to date,’’ he said.
“The presence of a fault in areas around holes BR-18-21 to -23 is an important feature that may control the localization of high gold grades and we plan to further test this potential for thicker high-grade intersections within the coming months.’’
The latest drill results come just weeks after the company released a preliminary economic assessment (PEA). It demonstrates the financial potential inherent in the project, the company said. Highlights are as follows:
- Average annual production of 41,770 ounces, peaking at 62,000 ounces.
- Average cash costs of US$525 an ounce and an all-in sustaining cash cost of US$640 an ounce.
- A processing rate of 600 tonnes per day.
- Total cap-ex of $89 million (only $47 million in pre-production expenditures).
- Average head grade of 5.13 grams per tonne gold.
- Potential for up to 200 jobs at peak production
The base case scenario outlined in the study envisions the creation of the company’s second center of operations, while leveraging Anaconda’s existing infrastructure and operating experience in Atlantic Canada.