New Island starts gold production at Pine Cove mine

2008-05-06 09:44 ET - News Release

Mr. Harold Wareham reports NEW ISLAND RESOURCES INC.: GOLD PRODUCTION COMMENCES AT PINE COVE

New Island Resources Inc. has commenced production at the Pine Cove gold mine located near Baie Verte, Nfld., where Anaconda Mining Inc. is earning a 60-per-cent interest in the joint venture project -- see Anaconda news in Stockwatch of May 5, 2008.

Apart from earning a 60-per-cent interest in the property, Anaconda has operator status and will receive a management fee. The agreement also provides that net cash flow will be first applied to repayment of financing costs before profit distribution to the joint venture partners.

The mill is projected to produce 13,000 ounces of gold in 2008 and the property holds the promise for increased reserves and grades to extend the life of the mine.

Harold Wareham, president and chief executive officer of New Island, states that the company is quite pleased and gratified that the property which it has held for more than 20 years is now coming into production in a period of high gold prices auguring well for an early repayment of capital debt and distribution of profits.

We seek Safe Harbor.