Part of Anaconda’s bulk sample subject of arrest warrant

By Helen Murphy    

GOLDBORO – The company transporting Anaconda Mining’s bulk sample from Goldboro to Point Rousse in Newfoundland for processing, NIL Group Limited, has filed a statement of claim alleging that Anaconda is responsible for some additional costs in relation to the shipment. As a result, NIL has issued and served an arrest warrant with respect to the approximately 800 tonnes which were yet to be discharged from the barge at the time of filing of the claim.

Anaconda said in a statement Tuesday that it considers the claim “to be without merit and will vigorously defend all the allegations in Court in due course.” The mining company is also exploring legal options against NIL.

The 10,000-tonne underground bulk sample is being shipped for processing at Anaconda’s Pine Cove Mill. Approximately 3,900 tonnes of the bulk sample has now been delivered by barge to the company’s port at Point Rousse.

The approximately 800 tonnes under the claim have since been unloaded from the shipping barge and sequestered at Anaconda’s site “pursuant to an agreement with NIL and will remain sequestered pending resolution of the Claim or an earlier order of the Court,” according to Anaconda’s statement.

Anaconda is preparing the Pine Cove Mill to process the initial 3,100 tonnes of the bulk sample, which is unaffected by the Claim and the arrest warrant.

“The Company is reviewing other shipping options to transport the remaining bulk sample tonnes from Goldboro and will provide further updates as arrangements are finalized,” said the statement.

The bulk sample is a key step in determining the production potential of the Goldboro Gold Project. Anaconda is also currently preparing a new environmental application (EA) for the project. A new EA was required once the company decided the amount of mineralization identified through test drilling warranted processing at Goldboro when the mine is operational, instead of in Newfoundland as originally planned.