TORONTO, ONTARIO – March 16, 2017 – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) announces certain financial and operating results from the three and nine month period ended February 28, 2017. During the third quarter of fiscal 2017, the Company sold 3,597 ounces of gold and generated $5,643,410 in gold sales revenue at an average sales price of $1,569 per ounce. Anaconda also earned approximately $430,000 in revenue from the sale of its Pine Cove Pit waste rock for the aggregates project announced in October 2016. The Company expects to file its full financial statements by April 14, 2017. All dollar amounts are in Canadian dollars unless otherwise noted.
President and CEO, Dustin Angelo, stated, “The Point Rousse Project had another solid operating performance in the third quarter when we are typically challenged by inclement weather. Just as we did in the second quarter, we processed approximately 108,000 dry tonnes of ore. Over the last six months, Anaconda has sold nearly 8,000 ounces of gold as grade has increased approximately 14% since the first quarter. On the mining side, the Pine Cove pit strip ratio was reduced to 3.2 : 1 in the third quarter, which is a significant improvement over Q1 and Q2. For the fourth quarter of fiscal 2017, we expect the strip ratio to remain around 3 : 1 and grade to be in the 1.30 to 1.40 grams per tonne range. Consequently, we anticipate a strong finish to the fiscal year, particularly with the additional revenue from our aggregates venture.”
FY Q3 2017 Operations Overview:
The Pine Cove Mill operated for 85 days during the third quarter of fiscal 2017 at an availability rate of 95%. The mill achieved an average run rate of 1,268 tonnes per operating day compared to 1,038 tonnes per operating day in the third quarter of fiscal 2016, a 22% increase. The Pine Cove Mill processed 107,762 dry tonnes of ore during the quarter compared to 91,370 dry tonnes of ore in the similar period of fiscal 2016. Overall mill recovery was 85% compared to 81% in third quarter fiscal 2016. Average feed grade during the quarter was 1.28 grams per tonne. Grade of ore to be processed in the fourth quarter of fiscal 2017 is expected to increase by approximately 10% compared to the third quarter of fiscal 2017.
The mining operation at the Point Rousse Project operated for 50 days in the Pine Cove Pit and one day at Stog’er Tight during the third quarter of fiscal 2017. Total production was 102,531 tonnes of ore and 325,076 tonnes of waste for a strip ratio of 3.2 : 1 waste to ore. Anaconda was able to scale back total tonnes mined by 35% compared to the same period in fiscal 2016 and reduce operating days because of the low strip ratio and the fact that it drew ore feed from large stockpiles that accumulated during the first and second quarters of the fiscal year. Even with the reduction in mining activities, ore production increased from 78,196 tonnes in the third quarter of fiscal 2016 to 102,531 tonnes in the third quarter of fiscal 2017, a 31% increase. The reduced strip ratio is expected to continue throughout the fourth quarter of fiscal 2017.
In addition, Anaconda earned approximately $430,000 of revenue from 12 shipments of waste rock totaling 718,500 tonnes.
The following table summarizes the key operating statistics for the three and nine months ended February 28, 2017 and February 29, 2016:
|OPERATING STATISTICS:||For the three months ended||For the six months ended|
|February 28 2017||February 29 2016||February 28 2017||February 29 2016|
|Dry tonnes processed||107,762||91,370||315,248||283,531|
|Tonnes per 24-hour period||1,268||1,038||1,231||1,112|
|Grade (grams per tonne)||1.28||1.48||1.28||1.59|
|Overall mill recovery||85%||81%||85%||85%|
|Gold sales volume (troy oz.)||3,597||3,266||10,904||11,827|
|Mine – Total|
|Ore production (tonnes)||102,531||78,196||339,914||299,607|
|Waste production (tonnes)||325,076||584,345||1,810,864||1,787,134|
|Total production (tonnes)||427,607||662,541||2,150,778||2,086,741|
|Waste: Ore ratio||3.2||7.5||5.3||6.0|
|Mine – Pine Cove Pit|
|Ore production (tonnes)||101,105||69,849||338,488||280,074|
|Waste production (tonnes)||325,076||564,832||1,810,864||1,737,378|
|Total production (tonnes)||426,181||634,681||2,149,352||2,017,452|
|Waste: Ore ratio||3.2||8.1||5.3||6.2|
|Mine – Stog’er Tight|
|Ore production (tonnes)||1,426||8,347||1,426||19,533|
|Waste production (tonnes)||–||19,513||–||49,756|
|Total production (tonnes)||1,426||27,860||1,426||69,289|
|Waste: Ore ratio||–||2.3||–||2.5|
NOTE: Operating statistics exclude changes in in-circuit inventory.
Anaconda is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and three exploration/development projects called the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of property on the Ming’s Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove Mill. A second project called the Tilt Cove Property, consisting of 350 hectares, is located approximately 60 kilometres by road from the Pine Cove Mill but is also within the Baie Verte Mining District and underlain by similar geology to the Point Rousse Project.
Anaconda also controls the Viking and Great Northern Projects, which have approximately 6,225 and 6,375 hectares of property, respectively, in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The Viking Project contains the Thor Deposit and other gold prospects and showings and the Great Northern Project includes numerous prospects and showings within a similar geological setting as the Viking Project. Anaconda’s plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of nearly 16,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “may,” “estimates,” “expects,” “indicates,” “targeting,” “potential” and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
FOR ADDITIONAL INFORMATION CONTACT:
Anaconda Mining Inc.
President and CEO
Anaconda Mining Inc.
VP Public Relations