Junior miner has one producing asset in Newfoundland, and it’s not stopping there
ANACONDA MINING INC.’S Pine Cove gold mine has enough reserves to produce for another 2.5 years. Yet Anaconda CEO Dustin Angelo doesn’t seem worried that the Toronto-based junior miner’s producing asset doesn’t have long to live.
“We’re optimistic about extending the life of the project,” Angelo says.
The project Angelo is talking about is called Point Rousse and it includes more than the Pine Cove open pit mine the company is currently exploiting (Pine Cove produced over 11,800 ounces of gold in nine months in 2016). Thanks to acquisitions the company has made since 2012, the project encompasses 6,300 hectares and Anaconda controls several gold deposits close to the Pine Cove mine and processing mill.
That’s why Angelo sounds so confident the company will be producing gold in northcentral Newfoundland for a while. “The mill and the entire infrastructure in the area is an asset that can be used for a long period of time,” Angelo says.
In fact, Anaconda’s goal is to produce gold from Point Rousse for 10 years. It also closed a deal in 2016 that shows it is looking beyond Point Rousse. In February Anaconda acquired the Viking and Kramer gold properties from Spruce Ridge Resources Ltd. They are located 180 kilometres by road and 100 kilometres by barge from the Pine Cove site.
Angelo says the two properties are the first it’s acquired beyond the cozy confines of the Point Rousse project area. The company is producing approximately 15,000 ounces of gold annually there, but is looking to grow production, and it needs many promising deposits to make that happen. Its initial goal is to produce 30,000 ounces annually.
As Atlantic Canada’s only gold producer as this magazine went to press, Anaconda benefits from a steady stream of cash. That gives the company an advantage over many juniors who don’t have a mine or mines in production and must issue more shares or look for investors to fund their work – not an easy sell as capital for exploration-focused juniors has all but dried up in the equity markets.
Angelo says the cash from Pine Cove gives Anaconda an opportunity to be aggressive during a time when most junior miners are struggling to keep their doors open. “We continue to look at growth opportunities and look at the market and see if we can add projects we can bring under the tent of Anaconda Mining,” Angelo says.