Anaconda continues shipping bulk sample

By Helen Murphy    

GOLDBORO -- Anaconda Mining has restarted the shipping of a 10,000-tonne bulk sample from its Goldboro Gold Project this past week, after an interruption caused by a dispute with its original shipper for the work.

On Oct. 18 Anaconda Mining announced it has engaged Atlantic Towing Limited, a member of the J.D. Irving Group of Companies, to ship the remaining approximately 6,100 tonnes of the underground bulk sample to the company's Point Rousse Complex in Newfoundland, to be processed at the Pine Cove Mill.

The barge vessel recently arrived in Goldboro and the company expects the remaining bulk sample tonnes to be unloaded at Point Rousse before the end of September.

Anaconda is now preparing the Pine Cove Mill to process the approximately 9,000 tonnes of the bulk sample which is unaffected by legal action undertaken by the original shipper contracted for the job, NIL Group Limited. As previously reported, NIL filed a statement of claim, alleging that Anaconda is responsible for certain additional costs in relation to the shipment. As a result, NIL issued and served a warrant with respect to the approximately 1,000 tonnes which were yet to be discharged from the barge at the time of filing of the claim.

Anaconda had already unloaded approximately 2,900 tonnes from the barge at its port facilities at Point Rousse.

The company says it expects the bulk sample to be fully processed in October, with results to follow soon after. This analysis will support the ongoing feasibility study for Goldboro, which is expected before the end of 2019. The company says it will also release an update on the known mineral resource at the site in the fourth quarter of 2019.

Better-than-expected results from test drilling led the company to change its earlier plans to process ore from the project at its Newfoundland operation, with processing now to take place on-site at Goldboro. As reported last week, Anaconda is replacing its original environmental assessment application for the Goldboro project with a new one, largely to reflect this major change.

In its Sept. 18 news release, Anaconda says it considers the claim by NIL "to be without merit and on August 16, 2019, the Company filed its Statement of Defense and Counterclaim against NIL, Newman Investments Limited, a related company to NIL, as well as NIL's principals, alleging, among other things, contractual breach, negligent and/or fraudulent misrepresentation, and fraudulent deceit."