The operators of the only gold mine in Atlantic Canada have expanded their reach in Newfoundland and Labrador by acquiring another gold deposit in the province.

Toronto-based mining company Anaconda has entered into an agreement with Spruce Ridge Resources Ltd. to acquire 100 per cent interest in its Viking property, located near the communities of Pollards Point and Sop's Arm in White Bay.

The property includes an area known as the Thor deposit.

Anaconda currently operates the Pine Cove pit gold mine on the Baie Verte Peninsula, which officials estimate has about two-and-a-half years left for production.

Anaconda mining Viking-Kramer property

(Anaconda Mining)

Additional property

The company has also entered into a second agreement with Spruce Ridge acquiring its Kramer property, which is adjacent to the Viking property.

That will give Anaconda control of 6,200 hectares in the White Bay area.

President and CEO, Dustin Angelo, said in a statement that it is an "exciting transaction" for the company and the plan is to process any ore mined from this property at the Pine Cove mill.

"We are encouraged by the overall gold bearing potential of the entire land package," said Angelo in a news release.

"Ultimately, we foresee simultaneously operating two large gold mining projects at Point Rousse and Viking while processing their ore at the Pine Cove mill."