SNOOK'S ARM -
The first gold dorÉ bar has been poured from Pine Cove ore at the Nugget Pond facility.
After New Island Resources purchased the mill from Crew Gold Canada, the company entered into an agreement with Anaconda Mining to ship Pine Cove ore to Nugget Pond.
"The toll processing agreement calls for 200,000 tonnes to be trucked during the course of 12 months," said Greg DiTomaso of Anaconda. "We are currently processing 450 tonnes per day through the Nugget Pond mill.
"The company (Pine Cove) will not save on expenses by trucking the ore to Nugget Pond, but the arrangement was implemented to provide increased cash flow to the company and take advantage of a climate of record high gold prices. This cash flow is integral to redevelopment and expansion of the Pine Cove mill."
On July 14, employees from Anaconda and the Nugget Pond facility were present to witness the first gold dorÉ bar that weighed 400 ounces.
"The toll milling relationship has been going according to plan," said Mr. DiTomaso. "It's been going well. We are excited to have emerged as a producer and to be bringing in some positive cash flow to the company." Pine Cove currently employs 45 people, will continue its plan for modifications to the Pine Cove mill in order to boost output and perform at commercial production in the near future. New Island Resources also holds the Pine Cove property where Anaconda can earn a 60 per cent interest, once the Pine Cove mill is operating to commercial capacity.
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