TORONTO, ON – September 7, 2017 – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) is pleased to announce that it 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 (“Mt”) in-pit tailings storage facility (the “TSF”). Over the coming months, the Company plans to accelerate the mining rate at the base of the Pine Cove Pit and stockpile ore so it can put the TSF into service in early 2018.
“The addition of the in-pit tailings facility strengthens our infrastructure at the Point Rousse Project and fortifies our platform to support our growth initiatives in Atlantic Canada. Anaconda has generated over $140 million in revenue from the Pine Cove deposit and now the potential tailings capacity will continue to generate significant financial and strategic value. Given the high cost and permitting hurdles of constructed tailings facilities, the Pine Cove Pit is a tremendous, low cost asset. At our current rate of mineral processing, the pit provides tailings storage capacity of approximately 15 years. A long life, in-pit tailings storage facility is the perfect complement to our 1,300-tonne per day mill and deep water port.”
– Dustin Angelo, President and CEO, Anaconda Mining Inc.
Unlike tailing facilities with engineered walls, in the case of an in-pit tailings facility, there are less technical and environmental risks than in conventional, constructed facilities. Furthermore, based on its review of recent tailings construction projects in Canada, Anaconda estimates that the cost of storing tailings can range from $5 to $10 per tonne of tailings, depending on geography and geology as well as the chemistry of the tailings themselves. Consequently, the Company estimates it is saving approximately $35 million to $70 million in capital expenditures related to tailings storage based on seven million tonnes of capacity in the Pine Cove Pit.
As the Pine Cove Pit transitions to a tailings storage facility, the Company will continue to mine the Pine Cove deposit in areas adjacent to the pit. Anaconda also plans to develop the Stog’er Tight deposit, which is approximately 3.5 kilometres from the Pine Cove Mill, in the fall of 2017 and begin mining in early 2018.
Over the next two years, Anaconda expects to mine and process ore from Pine Cove and Stog’er Tight. On a longer-term basis, the Company is focused on outlining a mineral resource at the Argyle discovery, approximately 4.5 kilometres from its mill at the Point Rousse Project, and developing the high-grade Goldboro Project in Nova Scotia.
Qualified Person Statement
Gordana Slepcev, Anaconda’s Chief Operating Officer and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained 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 newly discovered Argyle discovery, and approximately 6,300 hectares of prospective 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 to leverage existing infrastructure, including the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.
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.
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Anaconda Mining Inc.