TORONTO, Dec. 14, 2017 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX:ANX) is pleased to announce
production results and certain financial information from the three
month period ended November 30, 2017
("Q2 FY 2018") and the six months ended November 30, 2017 ("YTD FY 2018"). All dollar
amounts are in Canadian Dollars.
The Company recently announced a change to its fiscal year end
to December 31, from its previous
fiscal year-end of May 31.
Consequently, the Company will report audited financial results for
a seven month transitional fiscal year from June 1, 2017 to December
31, 2017. The current and comparative reporting periods in
this press release reflect the Company's former fiscal year-end of
May 31.
Highlights for the three months ended November 30, 2017 (Q2 FY 2018)
- Anaconda produced 4,170 ounces of gold in Q2 FY 2018 and 8,751
ounces of gold for the six months ended November 30, 2017; year-to-date gold production
has increased 20% compared to FY 2017 and is on track to exceed its
fiscal 2018 guidance of 15,500 ounces
- The Company recorded revenue of $5.8
million in the second quarter of FY 2018 based on an average
gold price of $1,621 per ounce and
3,560 ounces sold, and had 656 poured gold ounces in inventory as
at November 30, 2017
- Anaconda mined 191,068 tonnes of ore during the quarter, a 48%
increase over the corresponding period of FY 2017, at a low strip
ratio of 1.4:1 waste tonnes to ore tonnes
- The Pine Cove Mill continues to maintain strong throughput of
118,539 tonnes, or 1,325 tonnes per day, representing a 10%
increase over the second quarter of FY 2017
- The Company earned income of $295,000 from the sale of waste rock during Q2 FY
2018, for a total of $809,000 during
the current fiscal year
- Anaconda has extended mining in the Pine Cove Pit into early
2018, and has commenced planning for the transition to the Stog'er
Tight deposit
- With the completion of a $3
million non-brokered private placement, the Company has
commenced extension drill programs at the Goldboro Project and the
Point Rousse Project
President and CEO, Dustin Angelo,
stated, "The Point Rousse Project has continued its solid
performance, achieving increased ore mining rates, continued high
mill throughput, and strong gold production. With 8,751 ounces of
gold produced for the six months ended November 30, 2017, we are well placed to exceed
our fiscal year guidance of 15,500 ounces. The continued
performance of the Company's Point Rouse Project adds to an
exciting period for Anaconda, as it plans to release a Preliminary
Economic Assessment on the Company's high-grade Goldboro Project in
Nova Scotia, and has commenced
extension drill programs at both Goldboro and the Point Rousse Project."
Operating
Statistics
|
For the three
months ended
November 30, 2017
|
For the three
months ended
November 30, 2016
|
For the six
months ended
November 30, 2017
|
For the six
months ended November
30, 2016
|
Mine
Statistics
|
|
|
|
|
Ore production
(tonnes)
|
191,068
|
129,078
|
349,925
|
237,383
|
Waste production
(tonnes)
|
267,407
|
595,668
|
631,787
|
1,485,788
|
Total material moved
(tonnes)
|
458,475
|
724,746
|
981,713
|
1,723,171
|
Waste: Ore
ratio
|
1.4
|
4.6
|
1.8
|
6.3
|
|
|
|
|
|
Mill
Statistics
|
|
|
|
|
Availability
|
98%
|
91%
|
98%
|
93%
|
Dry tonnes processed
– quarter
|
118,539
|
108,045
|
237,940
|
207,486
|
Dry tonnes processed
– per day
|
1,325
|
1,302
|
1,332
|
1,213
|
Grade (grams per
tonne)
|
1.29
|
1.38
|
1.32
|
1.28
|
Overall mill
recovery
|
85%
|
85%
|
86%
|
85%
|
Gold Ounces
Produced
|
4,170
|
4,075
|
8,751
|
7,258
|
Gold Ounces
Sold
|
3,560
|
4,388
|
8,283
|
7,307
|
FY Q2 2018 Operations Overview:
Point Rousse Mill Operations - The Pine Cove Mill
operated for 89.5 days during the quarter, achieving an
availability rate of 98%, continuing its consistent performance
from the first quarter and marking a significant improvement over
the prior fiscal year. The mill achieved an average run rate of
1,325 tonnes per operating day during the quarter and has
maintained a similar throughput rate for YTD FY 2018, a marked
increase from the 1,200 tonne per day rate achieved as recently as
Q4 2017. On a year-to-date basis, mill throughput per day has
increased 10% due to process improvements implemented in the Pine
Cove Mill, which processed 118,539 tonnes of ore during the quarter
compared to 108,045 tonnes in the comparative period of FY
2017.
Overall mill recovery was 85% during the recent quarter,
consistent with the prior year, although down from 87% in the first
quarter of FY 2018. Average feed grade during the quarter was 1.29
g/t, lower than the second quarter of fiscal 2017. Gold production
was 4,170 ounces during the second quarter, a slight increase over
the prior year as the lower grade profile was offset by higher
throughput.
Point Rousse Mine Operations - The mining
operation at the Point Rousse Project operated for 57 days during
the second quarter in the Pine Cove Pit, down from 66 days in the
first quarter of FY 2018 due to constrained mining areas near the
bottom of the pit. Ore produced from the Pine Cove Pit was 191,068
tonnes, up over 20% from the first quarter of FY 2018 due to the
sequencing of the mine plan, which resulted in less waste mined in
Q2 FY 2018. Ore mined in the most recent quarter was also up
48% compared to the corresponding period of FY 2017, with the prior
period impacted by a relatively higher strip ratio as the operation
was completing rock placement during that quarter on the second
tailings storage facility. The strip ratio in Q2 FY 2018 was 1.4:1
waste tonnes to ore tonnes, down from 2.3:1 in the first quarter of
FY 2018.
Total material moved for the six months ended November 30, 2017, was 981,713 tonnes, a decrease
of 43% compared to the corresponding period of FY 2017. This is
reflective of the reduced mining rates as the operation approaches
the planned base of the Pine Cove Pit, with the decrease in
material wholly relating to lower waste material mined.
Anaconda expects to complete mining in the main pit at Pine Cove
in February 2018, and will commence
planning for small pushbacks of the main pit in 2018. The mine
operation has commenced the transition to the Stog'er Tight
deposit, with mining from the West Pit expected to start in
April 2018.
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 as
a 7 million-tonne in-pit tailings storage facility, which will
allow for the deposition of tailings into the facility in early
2018 (refer to press release dated September
7, 2017).
Qualified Person
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.
ABOUT ANACONDA MINING INC.
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.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information"
within the meaning of applicable Canadian and United States securities legislation.
Forward-looking information includes, but is not limited to, use of
proceeds and TSX final acceptance of the Offering. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates
of management at the date the information is made, and is based on
a number of assumptions and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Anaconda to be
materially different from those expressed or implied by such
forward-looking information, including risks associated with the
exploration, development and mining such as economic factors as
they effect exploration, future commodity prices, changes in
foreign exchange and interest rates, actual results of current
production, development and exploration activities, government
regulation, political or economic developments, environmental
risks, permitting timelines, capital expenditures, operating or
technical difficulties in connection with development activities,
employee relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of resources, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Anaconda's annual information form
for the year ended May 31, 2017,
available on www.sedar.com. Although Anaconda
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. Anaconda does
not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Anaconda Mining Inc.