Anaconda firms up resource at Pine Cove (July 21, 2004)

Anaconda Gold (ANX-V) reports that an independent gold resource calculation has been completed on its Pine Cove project, 6 km northeast of Baie Verte, Nfld.

The estimated indicated resource now stands at 2.216 million tonnes grading 2.94 grams gold per tonne, or 209,500 oz. gold. An additional inferred resource stands at 837,000 tonnes grading 2.2 grams gold, or 59,200 oz. gold.

The estimate used a 0.8 gram gold per tonne cut off. A total of 2,583 assays were used in the calculation. Grade capping was set at 30 grams gold for the Thunder 1 zone, 25 grams gold for the Lightning 1 zone and 20 grams gold for the Thunder 2 and Lightning 2 zones.

Between 1988-1992 two gold zones were delineated with 12,540 metres of drilling. During the winter Anaconda drilled 30 holes totaling 1,700 metres (primarily infill drilling at 25-30-metre spacing).

The new resource will be used in a feasibility study, to be completed later this year. The property is accessible by road and by water across from Baie Verte.

Anaconda has an option to earn up to 60% of the 176-claim, 28-sq.-km property from New Island Resources (NIS-V).

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