Point Rousse Project
The Point Rousse Project (the “Project”) is located within the Baie Verte Mining District, on the Point Rousse/Ming’s Bight Peninsula, in the northern portion of the Baie Verte Peninsula, approximately 6 km northeast of the town of Baie Verte, in north central Newfoundland, in the Province of Newfoundland and Labrador. The area encompassing the Point Rousse Project includes 5 mining leases and 24 mineral licences with a total of 5,794.27 hectares (57.94 square kilometers). The Project is accessible year-round through a network of provincial paved roads and a 5 km mine road maintained by the Company.
The Project covers three prospective gold trends: the Scrape Trend, the Goldenville Trend and the Deer Cove Trend. These trends have approximately 20 km of cumulative strike length and include three deposits (Pine Cove, Stog’er Tight and Argyle) and numerous prospects and showings all located within 8 km of the Pine Cove Mine and Mill.
Anaconda has been mining at the Pine Cove open pit mine continuously since 2010, has produced in excess of 118,028 ounces of gold, and has been growing the project infrastructure and mill capacity since 2010 with current production at approximately 15,000 to 16,000 ounces per year. Anaconda has sufficient Probable Mineral Reserves to continue mining until Q1 of 2020. Mining is in the process of transitioning from the Pine Cove Mine to Stog’er Tight. The Company also has recently discovered the Argyle Deposit, an advanced exploration asset located within 4.5 kilometres of the Pine Cove Mill.
Advancements at the Point Rousse Project since 2015 include:
- The discovery of and delineation of a maiden Mineral Resource at the Argyle Deposit;
- Mining at Stog’er Tight beginning in Q1 of 2018;
- The construction of a new port and tailings storage facilities;
- Approval of the in-pit tailings storage facility with over 7 million tonnes capacity; and
- Generation of a new revenue source through the sale of waste rock as aggregate.
The Point Rousse Project has combined Indicated Mineral Resources of 1,610,600 tonnes grading 2.30 g/t for 119,570 ounces and Inferred Mineral Resources of 1,245,300 tonnes grading 1.95 g/t gold for 78,090 ounces from the Pine Cove, Stog’er Tight and Argyle Deposits as shown in the table below.
Probable Mineral Reserves at Point Rousse total 887,700 tonnes grading 1.27 g/t gold for 36,180 ounces from the Pine Cove and Stog’er Tight Deposits as shown in the table below.
Geology and Deposit Type
Gold deposits in Newfoundland are typical of orogenic gold deposits. They are associated with large scale fault systems everywhere they are found in the province. Gold deposits at Point Rousse are orogenic gold deposits and are associated with the Scrape Thrust – a secondary fault associated with the larger-scale Baie Verte – Brompton Fault. Gold mineralization is intimately associated with disseminated and massive pyrite within the host rock indicating that iron rich rocks are an important precursor to mineralization. Alteration within mafic volcanic and gabbroic rocks can be is characterized by albitization and carbonitization. Iron and titanium rich lithologies associated with the Scrape Thrust are typical host rocks.
The Point Rousse Project overlies rocks of the Cambro-Ordovician ophiolitic Betts Cove Complex and Snooks Arm Group cover rocks. The Betts Cove Complex includes ultramafic cumulates, gabbros, sheeted dykes and pillow basalts. The Snooks Arm Group consists of a lower banded magnetite and jasper iron formation referred to as the Nugget Pond Horizon (Goldenville Horizon within the Point Rousse Complex) overlain by tholeiitic basalts overlain by calc-alkaline basalt, clinopyroxene-phyric tuff, mafic epiclastic wackes and conglomerates, iron formation and tholeiitic basalts. Four phases of regional deformation termed D1 through D4 are evident, with gold related to D1 - D2 progressive deformation potentially synchronous with the emplacement of the Taconic allochthons.
Mineral Resources and Reserves
The Mineral Resources for the Pine Cove Mine and Stog’er Tight Deposit were estimated by Ms. Catherine Pitman, P.Geo. Director and Principal Geologist with AdiuvareGE. Modelling and the gold block grade estimation were carried out using Datamine™ software. Mr. Michael Cullen, P. Geo., of Mercator Geological Services Ltd. is responsible for the Argyle Deposit mineral resource estimate that was completed using GEOVIA SurpacTM 6.8 modeling software.
Mineral Reserves for the Pine Cove Mine and Stog’er Tight Deposit were estimated by Qualified Person Ms. Gordana Slepcev, P.Eng. and Chief Operating Officer of Anaconda Mining. Additional details regarding Mineral Resources and Minerals Reserves are presented under the specific Deposit pages on this website and in the 2017 NI43-101 Technical Report on the Point Rousse Project by Cullen et al. (2018).
The Mineral Reserve estimates reported in the table below are inclusive of Mineral Resources reported above. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
The Point Rousse Project has combined Indicated Mineral Resources of 1,610,600 tonnes grading 2.30 g/t for 119,570 ounces and Inferred Mineral Resources of 1,245,300 tonnes grading 1.95 g/t gold for 78,090 ounces from the Pine Cove, Stog’er Tight and Argyle Deposits as shown in the table below.
Probable Mineral Reserves at Point Rousse total 887,700 tonnes grading 1.27 g/t gold for 36,180 ounces from the Pine Cove and Stog’er Tight Deposits as shown in the table below.
|
Point Rousse Mineral Resources1 |
||||
|
(Effective December 31, 2017) |
||||
|
Deposit |
3Cut-off (g/t)3 |
Indicated Tonnes4 |
Au (g/t) |
Ounces |
|
Pine Cove |
0.5 |
863,500 |
2.07 |
57,730 |
|
Stog’er Tight |
0.8 |
204,100 |
3.59 |
23,540 |
|
Argyle |
0.5 |
543,000 |
2.19 |
38,300 |
|
Total Point Rousse |
|
1,610,600 |
2.30 |
119,570 |
|
Deposit |
3Cut-off (g/t) |
Inferred Tonnes4 |
Au (g/t) |
Ounces |
|
Pine Cove |
0.5 |
476,300 |
1.39 |
21,330 |
|
Stog’er Tight |
0.8 |
252,000 |
3.30 |
26,460 |
|
Argyle |
0.5 |
517,000 |
1.80 |
30,300 |
|
Total Point Rousse |
|
1,245,300 |
1.95 |
78,090 |
|
Point Rousse Probable Mineral Reserves2,5 (Effective December 31, 2017) |
||||
|
Deposit |
3Cut-off (g/t) |
Probable Tonnes4 |
Au (g/t) |
Ounces |
|
Pine Cove |
0.5 |
696,200 |
0.96 |
21,440 |
|
Stog’er Tight |
1.0 |
191,500 |
2.39 |
14,740 |
|
Total |
|
887,700 |
1.27 |
36,180 |
1 – Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
2 – The Pine Cove and Stog’er Tight Mineral Resource statement is inclusive of Mineral Reserves
3 – Grams per tonne
4 – Rounded tonnes
5 – Proven Mineral Reserves have not been defined at the Point Rousse Project
NI 43-101 TECHNICAL REPORT, MINERAL RESOURCE AND MINERAL RESERVE UPDATE ON THE POINT ROUSSE PROJECT BAIE VERTE, NEWFOUNDLAND AND LABRADOR, CANADA. Prepared By: Michael Cullen, P.Geo., and Catherine Pitman, P.Geo. (Independent Qualified Persons); and David Copeland, P.Geo., Paul McNeill, P.Geo., and Gordana Slepcev, P.Eng. (Qualified Persons). Effective Date: December 31, 2017. Published: February 22, 2018.
