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Innovation, Trade and Rural Development
July 27, 2011

Prospects Brighten for Pine Cove Gold Mine

To capitalize on gold resources from the Pine Cove Gold Mine, located between Baie Verte and Ming’s Bight, Anaconda Mining has received a $500,000 term loan from the Provincial Government. Provincial support will enable the company to acquire the technology to maximize the mine’s long-term potential and increase its workforce to 54 people, including on-site contractors.

The announcement was made today by the Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development, at the Pine Cove Gold Mine. Accompanying Minister Sullivan at the announcement was Kevin Pollard, MHA for Baie Verte - Springdale, and Allan Cramm, General Manager at Anaconda Mining.

“Helping local businesses improve their operations and create new employment opportunities are cornerstones of the Provincial Government’s business development agenda,” said Minister Sullivan. “Our support for Anaconda Mining demonstrates this agenda in action and is providing the company with the tools it needs to succeed. The company is now better positioned to add staff and contribute to the economy of the Baie Verte Peninsula.”

Publicly traded on the Toronto Stock Exchange, Anaconda Mining (TSX: ANX) acquired the Pine Cove gold deposit in 2003. The deposit is home to a reserve of more than two million tonnes grading 2.07 grams of gold per tonne for 175,000 oz. of gold.

The area’s MHA believes that contributing to the long-term viability of the Pine Cove Mine will have positive benefits for the Baie Verte Peninsula.

“The Pine Cove Mine holds considerable potential for the people and businesses of the Baie Verte Peninsula,” said Kevin Pollard, MHA, Baie Verte - Springdale. “By introducing new technology, the company is able to improve operations which will make it more efficient and add to its profitability. Both will help bolster the mine’s impact on the region.”

With the addition of the new technology called a flotation circuit, the company is able to improve operational efficiencies and productivity at the mine site.

“Anaconda Mining, its employees, and contractors all benefit in the success of the Pine Cove Gold Mine,” said Mr. Cramm. “The new technology improves the operations at the processing plant and serves as a showcase for other developers throughout the world considering new or expanded operations. Our relatively young workforce can also take a lot of credit for the positive improvements we are experiencing by learning the fundamentals of this technology and safely applying them to the day-to-day operations of the mine.”

Mr. Cramm adds that “with strong gold prices, recent exploration success and continued improvements, Pine Cove has the potential to provide many years of employment to its current workforce and be an important contributor to the local economy.”

This initiative was funded through the Small and Medium-Sized Enterprise (SME) Fund, which through Budget 2011 Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador, has nearly $13 million available for investment. Administered by the Department of Innovation, Trade and Rural Development, the fund is available for start-up, modernization, or expansion of a business venture in key growth sectors. 

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Media contacts:

Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
Donna Ivey
Communications Manager
Government Members Office
709-729-0898, 697-1424
Allan Cramm
General Manager
Anaconda Mining

2011 07 27                                                                            3:35 p.m.

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