The Tilt Cove Property is located within the Baie Verte Mining District, near the community of La Scie, Newfoundland, approximately 60 kilometres by road from the Company’s Pine Cove Mill. The Tilt Cove Property is characterized by the same geological environment as part of the Point Rousse Project, specifically the Nugget Pond horizon, an iron formation that hosted the historical high-grade-gold Nugget Pond Mine, which produced 166,000 ounces of gold with an average grade of approximately 11 g/t. The Tilt Cove Property has several occurrences with high-grade gold grab samples from prospecting including 69.38 g/t gold from the Scarp zone, 13.47 g/t gold from the Shaft zone and 6.02 g/t gold from the Road showing.
The area in which the Tilt Cove Property is located is also host to several historical (1864-1967) open pit and underground copper mines. Gold is typically associated with copper mineralization and several of the historic copper deposits require follow-up testing for gold potential. A stockpile of gold-bearing ore from historical mining, estimated at 30,000 tonnes, is located on the Tilt Cove Property.
Near-Term Exploration Plans
Anaconda is planning a field program on the Great Northern Project that will begin this fall and include geological mapping of existing prospects and surrounding areas and the development of drill targets. Immediate work on the Tilt Cove Property will begin with a thorough review and compilation of all historical data and field investigations to determine the highest priority drill targets and metallurgical test work on the stockpile.
The Tilt Cove Agreement
To earn a 100% interest in the Tilt Cove Property, the Company is required to make aggregate payments to MEK of $200,000 in cash and 500,000 common shares of Anaconda over a three-year period. The Tilt Cove Agreement provides for a one percent (1%) NSR to MEK on the sale of gold-bearing mineral products from the Tilt Cove Property. Anaconda is also assuming an existing two percent (2%) NSR (the “Existing NSR”) on one of the two licenses that comprises the Tilt Cove Property. One percent (1%) of the Existing NSR is purchasable for $1,250,000. Anaconda is required to spend a total of $750,000 in qualified exploration expenditures on the Tilt Cove Property during the option period.