TORONTO, March 2, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda"
or the "Company") – (TSX:ANX) is pleased to announce the filing of a technical report prepared in accordance with National
Instrument 43-101 regarding a Preliminary Economic Assessment ("PEA") for its 100%-owned Goldboro Gold Project ("Goldboro", or
the "Project") in Nova Scotia, Canada.
The technical report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.anacondamining.com.
Anaconda announced the results of this PEA on January 17, 2017, which included the following
highlights:
- Undiscounted cash flow before income and mining taxes of $189 million;
- Pre-tax Net Present Value ("NPV") at a 7% discount rate of $120 million and a pre-tax
Internal Rate of Return ("IRR") of 38% implying a pre-tax payback period of 2.9 years;
- Total capital expenditures of $89 million, including pre-production capital expenditures of
$47 million;
- Undiscounted cash flow after income and mining taxes of $106 million;
- After-tax NPV at a discount rate of 7% of $61 million and an after-tax IRR of 26%, implying
an after-tax payback period of 3.4 years;
- Life of mine ("LOM") of 8.8 years, with 2.4 million tonnes of potential mill feed at an average grade of 5.13 grams per
tonne ("g/t") and recovery rate of 93.6%, resulting in gold production of 375,900 ounces;
- Mining rate of 600 tonnes per day ("tpd") of mineralized material at an average open pit grade of 2.99 g/t and underground
grade of 6.83 g/t; processing at 800 tpd (600 tpd of run-of-mine high-grade material and re-handle of 200 tpd of stockpiled
open pit lower grade material);
- Average annual gold production of 41,800 ounces with up to 62,000 ounces in year 5; and
- LOM average operating cash cost of $654 per ounce* (~US$525 per
ounce) and all-in sustaining cash cost of $797 per ounce* (~US$640
per ounce) at a 0.80 USD: CAD exchange rate.
*Refer to Non-IFRS Measures section below
The technical report, entitled "Anaconda Mining Inc., Goldboro Project Preliminary Economic Assessment" and which is dated
March 2, 2018, was authored by independent qualified persons Joanne
Robinson, P.Eng., Garth Liukko, P.Eng., and Sebastian
Bertelegni, P.Eng., all of WSP Canada Inc., Michael Cullen, P.Geo. of Mercator Geological
Services Inc., J. Dean Thibault, P.Eng., of Thibault & Associates Inc., and qualified person
Gordana Slepcev, P.Eng., of Anaconda.
Cautionary Statements
The PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
Thus, there is no certainty that the results stated in the PEA will be realized. Actual results may vary, perhaps materially.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Qualified Persons
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.
A version of this news release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.
ABOUT ANACONDA MINING INC.
Anaconda is a TSX-listed gold mining, development and exploration 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 Mine, the
Argyle Deposit, 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,
disclosure regarding the economics and project parameters presented in the PEA, including, without limitation, IRR, all-in
sustaining costs, NPV and other costs and economic information, possible events, conditions or financial performance that is
based on assumptions about future economic conditions and courses of action; the timing and costs of future development and
exploration activities on the Company's projects; success of development and exploration activities; permitting time lines and
requirements; time lines for further studies; planned exploration and development of properties and the results thereof; and
planned expenditures and budgets and the execution thereof. 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 the risks outlined in this news release, 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.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these
are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate
the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs per Ounce of Gold – Anaconda calculates operating cash costs per ounce by dividing operating expenses
per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the
applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as
royalties, however excludes depletion and depreciation and rehabilitation costs.
All-In Sustaining Costs per Ounce of Gold – Anaconda has adopted an all-in sustaining cost performance measure that
reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no
standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost
definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold
Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies.
The Company believes that this measure will be useful to external users in assessing operating performance and the ability to
generate free cash flow from current operations.
The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital
required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and
rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures
for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to
growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price,
operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant and
the Company uses the average foreign exchange rate for the period.
SOURCE Anaconda Mining Inc.
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