The operators of the only gold mine in Atlantic Canada are now turning their attention to the mainland by bringing in gold ore from Nova Scotia to process at its mine site on the Baie Verte Peninsula.
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"This is the first big go at it, I would say," says Dustin Angelo, CEO of Anaconda Mining, which controls the Point Rousse and Viking projects in N.L.
"What we've been doing has been small-scale and profitable for a long time, so we do think we have a certain experience and expertise in it. We want to take advantage of that."
Angelo said the company has taken ore from other deposits, but only within Newfoundland and Labrador.
"We've been looking for projects all throughout Atlantic Canada to continue to grow as a company, and this project seems to fit all the main criteria we are looking for," he told CBC Radio's Central Morning Show.
Offsetting shipping costs
The gold ore will leave from the Goldboro project, about 180 kilometres northeast of Halifax, to be processed at the Pine Cove mill.
Angelo said shipping the ore from Nova Scotia will add to operating costs, but the company will come out ahead in the long run.
"What we're intending to do is leverage the existing infrastructure that we already have built. It's very costly to establish all the mill infrastructure," he said.
"In terms of return on the investment, we see that if we don't have to put as much capital expenditures into the ground or into infrastructure locally at Goldboro [in N.S.], the project will have a good return."
Longer mine lifespan
Angelo said gold ore from Nova Scotia means good business here at home.
"We are looking at at least 10 plus years," he said, when asked how much longer this latest project would add to the life of the Pine Cove operation.
Angelo said in a way, the company's just getting started when it comes to venturing off the Rock.
"Part of our growth plan has always been mergers and acquisitions, so we're not going to stop here with this first one," he said.
"That can only be good for the company as a whole and any project within it, because it creates more diversification within the company and creates more longevity."