VANCOUVER (miningweekly.com) – Junior gold producer Anaconda Mining has announced a new mineral resource estimate for its Argyle gold discovery, at the Point Rousse project, in Newfoundland and Labrador.

The TSX-listed miner has reported a compliant indicated resource of 38 300 oz of gold, held in 543 000 t grading 2.19 g/t gold, when applying a 12 g/t capping factor and using a cutoff grade of 0.5 g/t.

Argyle also hosts an inferred resource of 30 300 oz of gold, held in 517 000 t grading 1.82 g/t gold. Argyle is located 4.5 km from the Pine Cove mill and the area is accessible by existing road networks.

"It is a big milestone for Anaconda to have outlined another deposit in close proximity to the Pine Cove mill. At the Point Rousse project, we have built significant processing capability and tailings capacity while generating over $42-million in project level earnings before interest, taxes, depreciation and amortisation from our mining activities in the last six years,” president and CEO Dustin Angelo stated in a news release.

The plan is for Argyle – and other similar nearby discoveries – to add incremental ore feed to the 1 300 t/d Pine Cove mill. Later, the more substantial Goldboro project, in Nova Scotia, is expected to also supplement ore deliveries at the Pine Cove mill and increase the company's production.

Anaconda, which currently produces about 16 000 oz/y of gold, is targeting output of 50 000 oz/y of yellow metal by 2020.

The company said that about 45% of currently defined mineral resources are contained within an initial conceptual openpit shell prepared by Anaconda staff.

A 1 000 m diamond drilling programme to expand the deposit was started in early December, and is currently ongoing.

Anaconda expects to submit an environmental assessment application to the Newfoundland and Labrador Department of Environment by February, with all permits and approvals for production expected in the spring of 2019.