Anaconda begins production at Pine Cove2008-05-05 10:36 ET - News ReleaseSee News Release (C-ANX) Anaconda Mining Inc Mr. Lew Lawrick of Anaconda reports ANACONDA COMMENCES GOLD PRODUCTION AT PINE COVE Anaconda Mining Inc. has begun production at its Pine Cove gold mine, located near Baie Verte, Nfld. Solids commissioning has now been completed and on May 2, 2008, the company received its mill licence from the Province of Newfoundland and Labrador, the final step in the regulatory and permitting process for production. Construction of the project began in June, 2007, and was completed within established capital budget allocations, despite severe winter construction conditions. The Pine Cove gold mine is projected to produce 13,000 ounces of gold in 2008. As a result of Anaconda financing the mine through to production, it will earn its 60-per-cent interest in the Pine Cove project from New Island Resources Inc., the company's partner at Pine Cove. The Pine Cove mine will produce gold at a time of high metal prices and increasing demand. Incremental cash flow to the company will finance continuing exploration work on its portfolio of projects in Canada and Chile. Lew Lawrick, president and chief executive officer of Anaconda, comments: "We are excited to bring the province's newest gold mine on-line within the current climate of high gold prices. I would like to congratulate Pine Cove general manager Allan Cramm and the rest of the Pine Cove team for all their hard work and dedication to this project. Now that commissioning is complete and production is under way, we can focus our attention on optimizing production and evaluating additional target areas on the property." Mr. Lawrick added: "The benefits of the Pine Cove gold mine will undoubtedly be advantageous to the community of Baie Verte and to the province. We acknowledge and appreciate their support throughout the construction phase." The company is extremely appreciative of the entire Pine Cove construction team whose attention to safety and the environment are commendable. Approximately 50,000 person-hours relating to mill construction and mine development were recorded by the company and its primary contractors, all without a single lost-time accident or environmental incident. The mill at Pine Cove incorporates a Gekko gravity concentrator at the front end of the plant, allowing for maximum utilization of the grinding and leach circuit. Commissioning testing has confirmed throughput at above 22 tonnes per hour, the target capacity of the plant. The processing circuit, including the crushing plant, has many features to allow for throughput and recovery optimization which ensures safe and efficient operations. The feasibility study for Pine Cove was completed in March, 2005, using a projected gold price of $400 (U.S.) per ounce, significantly below the current gold price and recent highs in excess of $1,000 (U.S.). The company sees excellent potential for the revaluation of zones of mineralization which were not considered ore at this historical price. It is also considering exploration outside of the current planned pit area. These include a recently drilled target area located just 100 metres north of the proposed pit, as well as the Romeo and Juliet zone, located in the northern part of the property. As reported in Stockwatch March 19, 2008, the company reported recent diamond drilling which intersected 3.7 grams per tonne Au over 10.5 metres, including 13.0 g/t Au over 0.4 metre and 29.1 g/t over 0.3 metre, thereby confirming the down dip potential of the main zone. Farther north at Romeo and Juliet, past work has returned grades as high as 23 g/t Au over 1.0 metre in a chip sample. John Cook, PEng, a designated qualified person as defined by NI 43-101 of the Canadian Securities Administrators, is responsible for reviewing the contents of this news release.

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