Gold mine

Company plans to ramp up development of Goldboro mine with new deal

By Helen Murphy    

GUYSBOROUGH – With Anaconda Mining’s pending purchase of Orex Exploration, it hopes to accelerate development of a gold mining operation at Goldboro.

Dustin Angelo, CEO of Anaconda, told The Journal on Monday that the deal -- announced March 3 and scheduled to be completed in May -- makes sense because each company has something the other needs. Orex has the Goldboro property, which Angelo describes as a “significant deposit”, and Anaconda has the infrastructure, management and operational experience to develop the project.

Anaconda has been active in the Baie Verte area of Newfoundland and Labrador for seven years, producing about 16,000 ounces of gold a year at its Point Rousse Project. The company’s mill at Baie Verte has gone from processing about 700 tonnes a day to 1300 tonnes. It has also built a port facility and ships its waste rock to South Carolina.

“We’ve build a track record of profitable operations,” said Angelo, adding that the company has reinvested profits back into its projects.

“What we’ve lacked over the years is the building of our resource portfolio….That has been the biggest challenge for us because we’re a small company...So the piece of the puzzle that we were sort of missing was the resources, and Goldboro has that.”

While a number of variables -- including the price of gold, community-relations and capital costs -- will affect timelines and production targets, Angelo said the company’s plan is to develop the site at Goldboro.

“We’re a company that has developed mines in the past and we are a producer first… so our intention is to put the project into production.”

At its Baie Verte operation, Anaconda has a payroll of about $4 million per year with operating expenses around $15 million per year -- with more than 80 per cent of that spent with local or regional vendors.

Orex Exploration’s property at Goldboro consists of 37 contiguous claims (600 hectares, or 6 square kilometres), in which Orex has owned a 100% interest since 1988.

The Goldboro property has been the subject of extensive past exploration work. History of exploration in the area dates back to 1861 when gold was discovered in quartz veins in the Isaac’s Harbour anticline. In 1892, Howard Richardson was the first to note gold occurrences in the slate belt that would later bear his name.