Anaconda Gold Corp.
TSX VENTURE : ANX

Anaconda Gold Corp.

November 09, 2005 16:31 ET

Anaconda Gold Engages Dowding, Reynard & Associates Americas for Pine Cove Plant Design and Lease Investment

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2005) - Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to report that Dowding, Reynard & Associates Americas (DRAA), a subsidiary of South African-based DRA International, have been engaged by Anaconda to complete detailed plant engineering and a lease proposal for the Pine Cove gold project near Baie Verte, Newfoundland.

Anaconda has retained DRAA to provide Anaconda with a design for a process plant along with a fixed price for the capital costs associated with the proposed plant. During the project execution DRAA and Anaconda will also work towards finalizing a lease agreement that suits the needs of both parties.

Deliverables for this phase of work will include:

- A value engineering appraisal and cost optimization

- Detailed PFD's (Final Equipment and motor sizes, line sizes etc.)

- Detailed process descriptions with envisaged operational philosophy

- Full equipment lists (Mechanical, electrical, instruments)

- Plant Layouts

- Structural take offs (Steel, concrete etc)

- Lump Sum Turn Key Price for Plant

Established in 1984, DRA is South Africa's largest mining engineering company specializing in project management and process plant design with projects on five contintents. Projects currently being executed by DRA in Canada include the supply and installation of the diamond recovery plants at DeBeers Snap and Victor projects as well as the supply of the DMS plant to Tahera Diamond Corporation for their new Jericho diamond project.

"DRA's involvement with our Pine Cove gold project is a positive step towards Anaconda's plans of bringing Pine Cove to commercial production next year," Nick Tintor, President and CEO said.

"DRA is a world-class company with broad expertise in all facets of plant design and operations. Their involvement in providing design, a turn key budget and leasing capabilities will enable Anaconda to achieve its goal of becoming a gold producer in 2006," John Cook, Chairman added.

Anaconda anticipates having DRAA's mandate completed before year-end.

Following the completion of a positive feasibility study, Anaconda made a decision to bring Pine Cove to production. Pine Cove hosts indicated resources of 2,635,000 tonnes grading 2.93 grams gold per tonne for 248,000 oz. of gold. Inferred resources total 254,000 tonnes grading 2.11 grams gold per tonne for 17,000 oz. of gold.

Mine planning and project economics are based on probable reserves of 2,333,000 tonnes grading 2.76 grams gold per tonne and based on a 0.95 gram cut off grade and US$400 gold prices. (See Anaconda Press Releases January 21 and April 28, 2005. These press releases are available at www.anacondagold.com and www.sedar.com).

Resource and reserve estimates were prepared by Eugene Purtich, P.Eng., and Dr. Wayne Ewert, P.Geo principals of P&E Mining Consultants Inc. and Qualified Persons as defined by NI 43-101.

Anaconda has also engaged St. John's-based Jacques Whitford & Associates to act as lead environmental consultant for all of the project's Federal and Provincial regulatory and environmental permitting applications.

Pending the completion and acceptance of all permitting applications and project financing, Anaconda anticipates having Pine Cove in production by the fourth quarter of 2006.

Anaconda Gold has a 30% interest in the Pine Cove project and has the right to earn an additional 30% interest by arranging project financing and bringing the property to production. New Island Resources Inc. is Anaconda's partner at Pine Cove.

The terms of the underlying agreement also provide Anaconda with 100% of all project cash flow until capital payback is achieved, recovery of certain sunk costs and project management fees for acting as project operator.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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