March 22, 2006 09:49 ET

New Island Resources Inc.: Pine Cove Preparing for Production in 2006

ST. JOHNS, NEWFOUNDLAND--(CCNMatthews - March 22, 2006) - New Island Resources Inc. (TSX VENTURE:NIS) of St. John's, NL is pleased to report that Anaconda Gold Corp. (TSX VENTURE:ANX) advises that it has engaged Gekko Systems Ltd. to manufacture, supply and install a Gekko gravity plant at the Pine Cove gold deposit near Baie Verte, Newfoundland (see Anaconda's news release March 17).

The Gekko gravity module will contain a feed distributor, a primary in-line pressure jig (IPJ1500), a cleaner in-line pressure jig (IPJ1000), three pumps, two pump boxes and a final concentrate hopper. The nominal feed rate will be 27 tonnes per hour, but the module is designed to receive up to 40 tonnes per hour of feed. All electrics and piping will be included. The gravity module will cost $321,000 FOB the factory in Australia and delivery is quoted as 18 weeks ex-works.

The in-line pressure jig is a movable screen concentrator, which pulses up and down to separate the heavy and light minerals. It can produce a mass concentrate yield between 0.5 and 40 per cent of feed. The yield is adjusted using the fully integrated control system attached to the side leg of the in-line pressure jig.

The module will be skid-mounted and ready to install on site at Pine Cove. The concentrate from the cleaner jig will then proceed to further treatment and gold recovery. "Pending the completion of permitting, we remain on track to bring Pine Cove to production by the fourth quarter of this year," John Cook, chairman, stated. Submissions have been made to the government of Newfoundland and Labrador regulatory bodies for the development of the mine and a mine development plan, environmental protection plan and human resources plan have been submitted. Various responses have been received from the agencies and replies to these are now being prepared. A closure plan has been drafted ready for submission when the development plan is accepted. Submissions and further information is being prepared for the Federal Department of Fisheries and Oceans and Transport Canada.

Pine Cove hosts probable reserves of 2,332,676 tonnes grading 2.76 grams gold per tonne for 207,000 ounces of gold. Inferred resources total 66,700 tonnes grading 2.43 grams gold per tonne for 5,200 ounces of gold. The above reserves and resources were prepared using a cut-off grade of 0.95 gram gold per tonne (see Anaconda's news release April 28, 2005). This reserve estimate was completed by independent mining consultants and qualified persons, Eugene Puritch, PEng, and Dr. Wayne Ewert, PGeo, of P&E Mining Consultants Inc. of Brampton, Ont.

Anaconda Gold Corp. has earned a 30% interest in the property and can earn a further 30% interest and operator status by arranging the project financing and bringing the property into commercial production. Upon receipt of the necessary permitting and prior to the completion of the mill at Pine Cove, it is planned that 75,000 tons of Pine Cove ore will be processed at Richmont Mines Inc.'s gold mill at Nugget Pond some 451 kilometers to the east.

Information on the company and its properties can be viewed at

Statements contained in this release that are not historical facts are forward-looking statements, which involve known and unknown risks and uncertainties not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements.

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

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