Anaconda Mining Sells Over 16,000 Ounces of Gold in Fiscal 2016; Generates Over $24M in Revenue; Sets Annual Production Records

TORONTO, June 7, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) announces certain financial and operating results from the fiscal fourth quarter and full year ended May 31, 2016. During the fourth quarter, the Company sold 4,253 ounces of gold and generated $6,875,371 in revenue at an average sales price of $1,617 per ounce. Sales volume and revenue for the quarter were approximately 8% and 22% higher than the fourth quarter of fiscal 2015. For fiscal 2016, the Company sold 16,080 ounces of gold and generated $24,447,310 in revenue at an average sale price of $1,520 per ounce. Compared to fiscal 2015, sales volume and revenue increased by 2% and 10%, respectively. Year-over-year revenue increased due to a rise in average sales price from $1,405 per ounce in fiscal 2015 to $1,520 per ounce in fiscal 2016, and an increase in sales volume of 259 ounces. The Company expects to file its full financial statements by August 26, 2016. All dollar amounts are in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, "Fiscal 2016 was another record setting year for Anaconda Mining and the Point Rousse Project. The project generated and sold, for the first time, over 16,000 ounces of gold. This accomplishment was made possible by a determined operating team who delivered record ore production in the mine, and record throughput and availability in the mill despite being challenged by grade. During the fourth quarter, the mill was able to periodically achieve throughput levels above 1,300 tonnes per operating day as the team continued to work on optimizing performance. Beyond the Pine Cove pit, we mined, on a limited basis, the Stog'er Tight deposit and successfully demonstrated the positive impact of blending higher grade ore with Pine Cove ore, which is a key part of our strategic plan going forward."

FY Q4 2016 Mill Operations Overview:

The Pine Cove mill operated for 87 days during the fourth quarter of fiscal 2016 at an availability rate of 94%, a 2% increase above the availability in the fourth quarter of fiscal 2015. The mill achieved an average run rate of 1,197 tonnes per operating day and processed a record 104,163 dry tonnes of ore during the quarter compared to 1,018 tonnes per operating day and 86,495 dry tonnes of ore in the fourth quarter of fiscal 2015. Average feed grade during the quarter was 1.26 grams per tonne, 24% less than the feed grade in the fourth quarter of fiscal 2015. The Company expected low grade based on the mine plan and is projecting an improvement to the Pine Cove grade during the remaining pit life. Overall mill recovery was 85%, compared to 86% in fourth quarter fiscal 2015.

During the quarter, 9,991 tonnes of ore were processed from the Stog'er Tight deposit at an average feed grade of 3.08 grams per tonne, yielding approximately 824 ounces of gold in one week of production.

The mechanical issues in the regrind circuit were resolved during the fourth quarter, which allowed the operation to maintain a stable feed size of concentrate to the leach tanks. As a result, recovery levels saw an improvement compared to the third quarter of fiscal 2016. In addition, the operation focused on and achieved consistent and evenly distributed product size from the crusher, which helped increase throughput.

FY Q4 2016 Mining Operations Overview:

The mining operation at the Point Rousse Project operated for 65 days in the fourth quarter in the Pine Cove pit and for 6 days in the quarter at the Stog'er Tight deposit. Total production over the 71 days was 98,214 tonnes of ore and 634,746 tonnes of waste, which included 7,727 tonnes of ore and 5,282 tonnes of waste from the Stog'er Tight deposit. Ore and waste production at the Pine Cove pit was 23% and 42% above the production in the fourth quarter of fiscal 2015. The increased production per the mine plan is expected to continue as production is focused on Phase III of the Pine Cove pit and material is required for construction of the tailings facility expansion.

The following table summarizes the key operating statistics by quarter for the fiscal year ended May 31, 2016:

NOTE: Operating statistics exclude changes in in-circuit inventory.

ABOUT ANACONDA

Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project 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 over 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.

Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 km by water (180 km via road) from the Pine Cove mill. The project contains the Thor Deposit and other gold prospects and showings. The Company's plan is to discover and develop more resources within these project areas and double annual production at the Pine Cove mill from its current rate of over 16,000 ounces to 30,000 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.

FORWARD-LOOKING STATEMENTS

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.

SOURCE Anaconda Mining Inc.