Why a junior miner is pegging Nova Scotia as its latest gold hot spot

Why a junior miner is pegging Nova Scotia as its latest gold hot spot
Anaconda digging for gold in Nova Scotia. Photo courtesy Anaconda Mining

Anaconda Mining takes a stab at mining for profit in Nova Scotia’s Eastern Shore

ANACONDA MINING INC. is a familiar face in Newfoundland and Labrador thanks to its gold mining operations in the Baie Verte mining district. But the Toronto-based junior miner is doing its best to make a name for itself in Nova Scotia as well.

Its Nova Scotia operations are focused on the Goldboro project. The company added the project to its portfolio in 2017 when Orex Exploration Inc. (the company that owned Goldboro) became a wholly-owned subsidiary of Anaconda. Anaconda has since been working on a plan to mine Goldboro and ship the ore to its Pine Cove processing mill in central Newfoundland. “We’re trying to establish our presence there and get people to know who Anaconda is because we are the new player in Nova Scotia,” says Gordana Slepcev, Anaconda’s COO.

The Goldboro project is 185 kilometres northeast of Halifax in an area that has had producing gold mines in the past. A preliminary economic assessment released in January 2017 provided a case for developing an open pit and underground mine. The base case assumes a long-term gold price of $1,550 per ounce and the mine would produce an average of 41,700 ounces of gold annually. Goldboro would have a mine life of approximately nine years. Slepcev says the pre-production cost to build the mine is estimated to be $47 million, and $89 million in total costs.

Anaconda started a 10,000 tonne underground bulk sample at Goldboro in October and expects to complete it by December. Slepcev says the bulk sample is part of a larger effort to complete a feasibility study that will provide a detailed account of the geology, mine infrastructure and plan, capital costs and more. If the feasibility study (to be completed by the fall of 2019) shows Goldboro can be mined economically, Anaconda can use it to obtain financing to build the mine.

Slepcev says a green-lighted Goldboro will result in a nice boost of employment for the area, located in Guysborough County. She says between 150-200 people will be employed at the mine during peak construction and underground mine development. “We want to get it approved and into production as soon as possible,” she says.

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