The Pine Cove gold deposit was discovered in June 1987 by South Coast Resources Ltd. In 2003, Anaconda acquired an option from then-owner New Island Resources Ltd. to earn up to a 60% interest in the Pine Cove Project. A successful bulk sample and a positive NI 43-101-compliant Technical Report lead to production in 2008. The mill was subsequently reconfigured and a flotation circuit to produce a gold-pyrite concentrate was added. Commercial production was achieved in September 2011, enabling Anaconda to earn its 60% interest. In January 2011, Anaconda acquired New Island’s remaining 40% interest. The Company has been mining at the Pine Cove open pit mine continuously since 2008 and has extracted 76,379.34 ounces of gold (Au).
Since 2005, the Company has focussed on expanding and identifying additional resources at the Pine Cove mine. Since 2007, 11,799.58 m of drilling in 74 holes has been completed (Figure ST2). Exploration drilling has been largely concentrated on three areas with potential to expand the Pine Cove deposit; 1) the down-dip extension of the Pine Cove mine, 2) the Northwestern Extension, and 3) the Pine Cove Pond area. Detailed mapping of the Pine Cove pit area in 2013 and 2015 produced a revised geometrical, structural and stratigraphic interpretation for the Northwestern Extension involving thrust-fault-displaced repetition of the main Pine Cove ore body (Figure ST3).
The 2007 to 2015 diamond drilling and the revised geological interpretations formed the basis for the revised NI 43-101 compliant resource estimate for the Pine Cove Deposit released on October 22, 2015. The new resource estimate includes an indicates resource of 1,560,000 tonnes grading 1.67 g/t Au for a total of 83,690 ounces and an inferred resource of 208,700 tonnes grading 1.57 g/t Au for a total of 10,570 ounces, both using a cut-off grade of 0.7 g/t Au. This resource estimate was completed by AMC Consultants using Datamine™ software. The Mineral Resources are reported according to the CIM Definition Standards.
The estimated probable reserves remaining in the Pine Cove pit are approximately 858,800 tonnes of ore at a diluted grade of 1.46 g/t Au. These reserves are included within the Mineral Resource and are not in addition to the Mineral Resource.