Pine Cove is an open-pit gold mine, part of the larger Point Rousse Project, owned and operated by Anaconda Mining Inc. (Anaconda). Pine Cove is located within the Baie Verte Mining District, in north central Newfoundland, in the Province of Newfoundland and Labrador, Canada. The Pine Cove deposit was discovered in June 1987. Anaconda has been mining at Pine Cove continuously since 2010.
The Pine Cove Mill operates as a grind/flotation circuit followed by leaching. Comminution is via a two-stage crushing plant followed by a 10 foot by 14 foot primary ball mill, which processes an average of 1,340 tonnes per day of ore. Cyclone overflow feeds the flotation circuit, with 3 column cells for roughing, 1 scavenger/staged reactor cell, and one cleaner cell. The concentrator has a flotation circuit which produces a gold-pyrite concentrate that advances to the leach circuit. Mass concentration is typically 2-4%, with a recovery of 92-93%. Flotation concentrate is thickened in a 4.5 meter diameter thickener and reground in a 5.5 foot diameter ball mill down to a P80 of 20 microns. Leaching is conducted in a series of four 70 cubic meter mechanically-agitated leach tanks. Two drum filters and a Merrill-Crowe circuit are used for gold recovery from the pregnant solution. Cyanide destruction of leach tailings is achieved through the Inco SO2 process. The mill currently achieves 86-88% recovery.
Royal Gold holds a 7.5% net profits interest royalty on gold produced from the Pine Cove mine, calculated as the gross receipts generated from the claims less all cumulative development and operating expenses. The operation is currently in production; however the payback of capital, a requisite to royalty payments, has not occurred to date.
Royal Gold acquired this royalty interest effective October 1, 2008, as part of the acquisition of a royalty portfolio from Barrick Gold Corporation.