Anaconda Mining Inc announced that it has begun custom milling ore from the Pine Cove gold mine at Crew Gold's Nugget Pond mill as per their Toll Processing Agreement with Crew.

Milling of Pine Cove ore commenced at Nugget Pond on June 29 from stockpiled ore that was trucked from the mine site during the previous week. The Nugget Pond mill has a rated milling capacity of 450 tonnes per day and it is anticipated gold recoveries will be in excess of 90%.

Mr Lewis Lawrick president & CEO of Anaconda said that "We are very pleased with the start-up of toll milling operations. Thus far throughput and gold recovery are as projected, which bodes well for our cash flow projections from this arrangement."

Anaconda recommenced normal mining operations on June 1 to facilitate the stockpiling of ore ahead of the scheduled start-up of custom milling. The Company also continues to process ore at its Pine Cove mill. Mr Lawrick added that "While production at the Pine Cove mill is not at a commercial rate, we have made significant improvements to both throughput and recovery and we are reviewing options for the refinement of our processing circuit.