Anaconda Mining (TSX:ANX) has received key permits from the government of Newfoundland and Labrador for the development of its Stog’er Tight gold project. The project is located roughly 3.5 kilometers east of the Pine Cove mill.

Anaconda is permitted to mine the Stog’er Tight deposit within the limits set out in the approved Development, Rehabilitation and Closure Plan submitted to the Government of Newfoundland and Labrador. The Stog’er Tight deposit contains 204,100 tonnes of Indicated Resources grading 3.59 grams per tonne (“g/t”) and 252,000 tonnes of Inferred Resources grading 3.27 g/t (see press release dated October 22, 2015). Anaconda anticipates test-mining the Stog’er Tight deposit during the upcoming fiscal third quarter ending February 2016 to evaluate and optimize blasting and grade control techniques, determine mine/mill scheduling and assess ore processing at the Pine Cove mill. Upon the completion of the test mining program, Anaconda will pursue the second phase of its development plan, pending dump condemnation work.

Anaconda President and CEO, Dustin Angelo, said:

As we grow the resource at Stog’er Tight through exploration, we are also conducting detailed studies to evaluate the feasibility of mining at a larger scale. The permits received from the Government of Newfoundland and Labrador allow Anaconda to begin test mining as part of the evaluation, which represents a significant milestone towards developing a larger scale project. Our goal is to ultimately build a mine with a minimum life of five years at our current production rate. Coupled with the existing Pine Cove pit and the extension potential there, we could extend the life of the Point Rousse Project to over 10 years.

Click here for the full press release.