TORONTO, ONTARIO – September 14, 2017 – Anaconda Mining Inc. (“Anaconda” or the “Company”) (TSX:ANX) is pleased to announce production results and certain financial information from its fiscal first quarter ended August 31, 2017. All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by October 12, 2017.
First Quarter FY2018 Highlights
- Anaconda sold a record 4,723 ounces of gold in the first quarter of FY 2018, eclipsing the previous record of 4,658 ounces in the fourth quarter of FY 2017, and represents a 61.8% increase over the first quarter of FY 2017.
- The Company recorded revenue of $7.6M in the first quarter based on an average gold price of $1,612 per ounce, a 55% increase in revenue over Q1 FY 2017.
- Anaconda achieved record mill throughput of 119,401 tonnes, a 20% increase over the first quarter of FY 2017.
- The Company produced 158,857 tonnes of ore from the Pine Cove Pit in the first quarter of FY 2018, at a significantly reduced strip ratio of 2.3:1 waste tonnes to ore tonnes.
- Anaconda strengthened its Point Rousse infrastructure with the government approval to convert the Pine Cove Pit into a tailings facility with a 15-year storage capacity based on existing throughput rates.
President and CEO, Dustin Angelo, stated, “We are off to a great start to the 2018 fiscal year, with a record quarter in terms of gold sold and mill throughput. After achieving 4,723 gold ounces sold in the first quarter of FY 2018, we are well on track to meet our fiscal year 2018 guidance of 15,500 ounces. The Pine Cove Mill continues to demonstrate consistent throughput and recovery rates, validating its operational value as a cornerstone asset for the Company. Our infrastructure was also recently strengthened with the government approval to convert the Pine Cove Pit into a 7 million-tonne tailings storage facility. The strong operational performance at our Point Rousse Project is key to our growth strategy, allowing us to progress exciting projects such as the high-grade Goldboro Project in Nova Scotia and the Argyle discovery at Point Rousse.”
First Quarter Operating Statistics
|Q1 2018||Q1 2017|
|Ore production (tonnes)||158,857||108,305|
|Waste production (tonnes)||364,380||890,120|
|Total production (tonnes)||523,237||998,425|
|Waste: Ore ratio||2.3||8.2|
|Dry tonnes processed – Quarter||119,401||99,441|
|Dry tonnes processed – Per Day||1,353||1,130|
|Grade (grams per tonne)||1.35||1.17|
|Overall mill recovery||87%||86%|
|Gold Ounces Sold||4,723||2,919|
FY Q1 2018 Operations Overview
The Pine Cove Mill operated for 88 days during the first quarter of fiscal 2018 at an availability rate of 96%, continuing its consistent performance from the prior year. The mill was able to improve on its run rate of 1,200 tonnes per day in Q4 2017, to over 1,350 tonnes per day in the first quarter of fiscal 2018, a 20% increase. Consequently, the mill achieved record quarterly throughput of 119,401 tonnes during the quarter at an average grade of 1.35 g/t and a recovery rate of 87%, leading to record quarterly gold sales of 4,723 ounces of gold.
The mining operation at the Pont Rousse Project operated for 66 days during the first quarter in the Pine Cove Pit, up from 58 days in the fourth quarter of FY 2017 when the operation was challenged by weather conditions. Ore produced from the pit was 158,857 tonnes, up significantly from the 108,305 tonnes produced in Q1 2017, and up significantly from 92,167 tonnes produced in the fourth quarter of FY 2017. However, total production tonnes moved during the first quarter of FY 2018 was 47.6% lower than the first quarter of the prior year, when a high strip ratio was experienced and waste rock was needed for the construction of the second tailings storage facility. The strip ratio in the most recently completed quarter was 2.3:1 waste tonnes to ore tonnes, down from 4.2:1 in the fourth quarter of FY 2017, and down significantly from 8.2:1 in Q1 2017.
Anaconda expects to complete mining in the Pine Cove Pit by the end of 2017 in line with FY 2018 guidance, and will transition to the Stog’er Tight pits early in the 2018 calendar year. The Company has received approval from the Newfoundland and Labrador Department of Natural Resources to amend the Pine Cove Property Development Plan and Rehabilitation and Closure Plan to utilize the Pine Cove Pit at the Point Rousse Project as a 7 million-tonne in-pit tailings storage facility. During the remaining months of the 2017 calendar year, the Company will accelerate the mining rate at the base of the Pine Cove Pit and stockpile ore, which will allow for the deposition of tailings into the facility in early 2018.
Gordana Slepcev, P. Eng., Chief Operating Officer, Anaconda Mining Inc., is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
Anaconda Mining is a TSX-listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog’er Tight deposit, a new discovery called Argyle, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company’s Point Rousse Project.
The Company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.
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 several 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