Anaconda Gold Makes New Gold Discovery At Pine Cove Project.

TORONTO -- Anaconda Gold Corp. (TSXV-ANX) is pleased to report that surface prospecting and trenching at its Pine Cove gold project, located 6 km northeast of Baie Verte, Newfoundland, has led to the discovery of a new zone of gold mineralization.

Known as the Animal Pond zone, the new find is located approximately 2 km northeast of the Pine Cove gold deposit. Highlights from the new zone include grab sample assays of 61.5 grams gold per tonne, 30.7 grams gold per tonne and 17.7 grams gold per tonne.

The Animal Pond discovery is the result of a surface-prospecting program, which generated a high-grade assay of 23 grams gold per tonne from a float sample in an area of extensive overburden.

A trench exposed a 42-m wide zone of altered gabbro with quartz stockwork vein development. A map below provides details of the Animal Pond geology with corresponding chip and grab sample assay and locations.

Grab samples from the main zone include:

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          Sample              Gold Grade (g/t)
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          48974                   30.77
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          48975                    9.48
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          48977                   17.74
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          48980                   61.54
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          48982                   28.91
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          48983                    5.32
       ---------------------------------------

These grab samples come from a 5-m wide chlorite-epidote altered gabbroic zone with well developed quartz stockwo rking and veining. The entire mineralized zone, including anomalous gold samples, is 42 m in width.

A chip sample across the main zone assayed 3.96 grams gold across 5.2 m. Another chip sample located approximately 30 m east of Trench 3 in Trench 2, assayed 1.9 grams gold per tonne across 3 m.

Another trench located 20 m west of trench 3 could not be completed due to excessive water inflows, which precluded the completion of chip and grab sampling.

"These results from the Animal Pond discovery underscore our belief that the Pine Cove property hosts potential for discovering additional mineralization in deposits satellite to the main Pine Cove deposit," Phillip Walford, Vice President - Exploration or Anaconda Gold said. Mr. Walford is Anaconda's designated Qualified Person as defined by NI-43-101.

Anaconda plans to drill this target before year-end.

The Pine Cove project is in feasibility with the final study scheduled for completion by year-end at which time Anaconda will make a production decision. A bulk-sampling program is also in progress with approximately 6,500 tonnes of Pine Cove ore shipped to Richmont Mines Inc., Nugget Pond mill for processing.

A resource study completed by Anaconda earlier this year outlined indicated resources of 2,216,081 tonnes grading 2.94 grams gold per tonne hosting 209,543 ounces of gold and inferred resources of 837,226 tonnes grading 2.2 grams gold per tonne which contain 59,192 ounces of gold.

Anaconda has the right to earn a 60% interest in the 2,816-hectare project from New Island Resources Inc. (TSXV-NIS). (See Anaconda's press release dated May 7, 2003.)

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange  has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For a detailed map of the Pine Cove Project, please click on the link below:

http://www2.cdn-news.com/database/fax/2000/anx1014.pdf

Anaconda Gold Corporation (TSX VENTURE:ANX)