Anaconda Continues to Deliver Gold Intercepts
I’ve followed Anaconda for years and never come to grips as to why they seem to get no respect. In their latest press release they showed 871.2 g/t gold over half a meter, 47.87 g/t over 1.5 meters and 20.08 g/t Au over 2.4 meters at Goldboro. This is all part of an 18,000 meter drill program designed to move resources from the inferred category into the measured and indicated as part of an ongoing feasibility study. Goldboro is already the largest gold deposit in Nova Scotia.
Goldboro already measures a total of about 1.3 million ounces at an average grade of about 6 g/t gold. In addition to the existing drill program at Goldboro, Anaconda also recently announced a 1,000 meter drill program at what they call the Lower Seal Harbour project located on the same formation as Goldboro and 1.6 km away. The Lower Seal Harbour deposit was mined from 1904 until 1949.
Anaconda is actually in small-scale production in Newfoundland at the Pine Cove Mill producing about 16,000 ounces of gold a year from the Point Rousse Project. At current production rates the company has a ten-year mine life but is expanding resources in the area.
When Anaconda announced the 871.2-gram intercept the stock went up a single cent. It sorta makes you wonder what it would take to make the price go up.
Anaconda has excellent management. They are located in an area that is going to get a lot of attention from new investors due to the success of New Found Gold and as such will get a rerating at some point. Management believes they can get into production of 150,000 ounces of gold a year in 3-5 years. I believe it will happen.
Anaconda Mining is an advertiser. I have participated in private placements and bought shares in the open market in the past. As such I am biased and you should do your own due diligence.