Anaconda drills at Pine Cove

Drilling is under way at the Pine Cove project near Baie Verte, Nfld., where Anaconda Gold (ANX-V) is earning a 60% interest from New Island Resources (NIS-V).

The partners plan to drill 1,500 metres on eastern and western strike extensions of the known Pine Cove mineralization, as well as perform some infill drilling. A target north of the Pine Cove deposit, Pasture Pond North, will also be drilled.

Previous exploration by Corona Corp. and NovaGold Resources (NRI-T) outlined a reserve of 1.9 million tonnes grading 3.2 grams gold per tonne. Two zones, Thunder and Lightning, were outlined. The reserve estimate, by consulting firm Watts, Griffis & McOuat, was based on pre-1993 guidelines and is not in compliance with present securities regulations.

Pasture Pond North, about 100 metres north of the Pine Cove mineralized zones, has one drill hole in it. That hole intersected 3.7 metres at a grade of 7.8 grams gold per tonne.

Several surface showings about 5 km east of the main mineralization will be followed up in the present project.