August 25, 2011 / 2:42 PM / in 6 years

Anaconda Mining's Pine Cove mine shines, shares rise

Aug 25 (Reuters) - Canadian metals miner Anaconda Mining said it continued to produce high-grade gold at its mine in Newfoundland that generated cash, sending its shares up 6 percent in early trade.

Anaconda said it expects to meet its grade target of 2.19 grams per tonne (g/t) for 2012, despite currently being about 20 percent below target.

For June and July, the Pine Cove mine sold 1,877 ounces of gold for C$2.8 million ($2.8 million) in revenue. In April-May, sales from the mine’s production was 1,081 gold ounces for revenue of C$1.6 million.

“The Pine Cove mine is generating cash on a consistent basis and the company expects this trend to continue,” Chief Executive Dustin Angelo said.

Recovery and output rates are expected to increase in the near term as the company completes mill-circuit maintenance.

Toronto-based Anaconda’s shares rose 6 percent to 9 Canadian cents in early trade on Thursday morning on the Toronto Stock Exchange. ($1 = 0.990 Canadian Dollars) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)

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