Anaconda Gold Corp.

Anaconda Gold Corp.

March 02, 2005 09:00 ET

Anaconda Gold Extends Mineralization At Pine Cove Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ANACONDA GOLD CORPORATION

TSX VENTURE SYMBOL: ANX

MARCH 2, 2005 - 09:00 ET

Anaconda Gold Extends Mineralization At Pine Cove
Project

TORONTO, ONTARIO--(CCNMatthews - March 2, 2005) -

Results Expected To Increase Resources And Improve Project Economics

Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to announce that
drilling on the Pine Cove gold project, located near Baie Verte,
Newfoundland, has successfully extended several zones of gold
mineralization.

Highlights from the new drilling include 14 m grading 3.33 grams gold
per tonne in hole PC-05-173 and 8 m grading 9.47 grams gold per tonne in
PC-05-172.

Anaconda Gold and project partner New Island Resources (TSXV-NIS) made a
production decision earlier this year following the completion of a
positive feasibility study. (See Anaconda Press Release January 21,
2005). Anaconda completed 14 drill holes in and around the Pine Cove
deposit which were designed to convert some inferred resources into
probable reserves and to test areas of mineralization which remained
open.

Hole PC-05-172, which intersected 8 m grading 9.47 grams gold per tonne,
was successful in extending a high grading lense in the Lightning zone
40 m down dip. Another intersection in the same hole, 6 m grading 1.32
grams gold per tonne, extended another lense by 25 m down dip and 25
along strike. Hole PC-05-173 was also successful in extending another
lense 15 m along strike and 10 m down dip.

Full results from the Pine Cove drilling are listed below.



---------------------------------------------------------------------
Hole Section From To Inter- Au Comments
(m) (m) section Grade
(m) (g/t)
---------------------------------------------------------------------
PC-05-165 675 56.9 59.3 2.4 7.68 On edge of
north pit
wall.
---------------------------------------------------------------------
includes 56.9 57.6 0.70 19.94
---------------------------------------------------------------------
75.65 76.55 1.90 11.30
---------------------------------------------------------------------
PC-05-166 750 79.8 87.5 7.70 3.64 Infill hole
to convert
inferred
resources
---------------------------------------------------------------------
122.0 126.0 4.0 4.39
---------------------------------------------------------------------
142.0 148.0 6.0 2.39
---------------------------------------------------------------------
156.0 176.0 20.0 4.16
---------------------------------------------------------------------
PC-05-167 775 109.0 131.0 22.0 1.9 Infill hole
---------------------------------------------------------------------
PC-05-168 675 99.0 104.0 5 2.24 25m step
out north
of pc-05
-165
Drilled
plannedpit
wall.
---------------------------------------------------------------------
PC-05-172 700 14.0 22.0 6.0 1.32 Extends
lense 25m
downdip
---------------------------------------------------------------------
55.0 58.0 8.0 9.47 Extends
lense 40m
downdip
---------------------------------------------------------------------
PC-05-173 687 41.0 55.0 14.0 3.33 Extends
lense 15m
along
strike and
10m
downdip.
---------------------------------------------------------------------

Results from the remaining eight holes are pending receipt of assays.

Two other holes, PC-05-165 and PC-05-168 both intersected gold
mineralization at the limits of the open pit and beyond it thereby
extending mineralization north of the pit.

Pine Cove hosts the following undiluted resources, which were
prepared in accordance with NI 43-101.

---------------------------------------------------------------------
INDICATED INFERRED
CUT-OFF --------------------------- --------------------------
Au g/t TONNES Au g/t Au oz TONNES Au g/t Au oz
-------------------------------------- --------------------------
0.80 2,216,000 2.94 09,500 837,000 2.20 59,200
---------------------------------------------------------------------

The feasibility study and mine plan are based on the following
diluted mineable open pit reserves.

DILUTED
-------
Au Price CUT-OFF PROBABLE INFERRED
Au ------------------------------------------
$US/oz (g/t) TONNES Au (g/t) TONNES (g/t)
--------------------------------------------------------------------
$400 0.95 1,874,117 2.88 392,751 2.49
--------------------------------------------------------------------


DILUTED
-------
Au Price PIT TONNAGE WASTE TOTAL W/O
------------------
$US/oz TONNES Au (g/t) TONNES TONNES RATIO
--------------------------------------------------------------------
$400 2,266,868 2.81 11,315,643 13,582,511 5.0
--------------------------------------------------------------------


Both the resource and diluted mineable reserve estimates, were prepared
by Eugene Puritch, P. Eng., a Qualified Person as defined by NI 43-101.
and were calculated in accordance with NI 43-101 standards.

Once all the drill results are received, Anaconda plans to complete an
updated diluted mineable reserve estimate later this month and an
updated economic model.

"We are very pleased with these results from Pine Cove, which are
expected to improve overall gold reserves and project economics," Nick
Tintor, President of Anaconda Gold said.

"Pine Cove, which will be Anaconda's first mine, will differentiate
Anaconda from its junior peer group by providing us with a sound
financial base from which to grow over the ensuing years through
acquisitions and exploration," John Cook, Chairman added.

Anaconda has earned a 30% interest in the 2,816-hectare project from New
Island Resources by making a production decision. Anaconda also has the
right to earn an additional 30% interest by arranging project financing
and bringing the property to commercial production.

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.

Pending completion of project financing, production at Pine Cove is
planned before year-end.

John Cook, P. Eng., a Qualified Person as defined by NI 43-101, has
reviewed the results of this press release.

In other news, Philip Walford, Anaconda's Vice President - Exploration
has accepted the position of President and CEO at another company. Mr.
Walford will continue to act as Anaconda's Vice President - Exploration
on a consulting basis.

Anaconda Gold is a Canadian exploration and development company with
exploration and development stage projects in the Northwest Territories,
Ontario, Newfoundland and Nevada.

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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