Anaconda Mining Inc. [ANX-TSX; ANXGF-OTCQX] has commenced a 10,000-metre diamond drilling program at its Tilt Cove gold project within the Baie Verte mining district in Newfoundland approximately 45 km by road form the company’s Pine Cove mill and a long- term tailings facility.
The drill program follows the recent completion of a 19.1 line-km IP geophysical survey and geological mapping.
“We are excited to resume drilling in the Tilt Cove area of Newfoundland, a significant, recently consolidated land package encompassing the same geological trend as the past producing, high-grade Nugget Pond Mine, which had an average recovered grade of 9.85 g/t gold,” said Anaconda President and CEO Kevin Bullock.
Bullock said drilling will focus on the Scarp Zone and Growler target, and then move to the West Pond and East Pond targets, with drilling expected to continue into the winter.
Anaconda shares advanced on the news, rising 5.4% or $0.03 to 58 cents on volume of 185,627. The shares are currently trading in a 52-week range of 78 cents and $0.095.
Anaconda recently produced 5,444 oz gold in Q3 2020, a 16% increase from the equivalent period in 2019 and a 49% increase compared to Q2 2020. This was due to higher grade and tonnes processed.
The Pine Cove mill processed 120,359 tonnes during the third quarter of 2020 and achieved mill availability of 97.6%. Mining operations produce 187,185 tonnes of ore during Q3, a 39% increase over Q3 2019, as the operation mined the bottom levels of the Pine Cove Pit.
Anaconda said it has commenced the development of the Argyle Gold Mine, with the first load of ore being deposited on the ore pad this week.