TORONTO, Oct. 11, 2018 /CNW/ - Anaconda Mining Inc. ("Anaconda"
or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce production results and certain financial information from the
three and nine months ended September 30, 2018 ("Q3 2018"). All dollar amounts are in Canadian
Dollars. The Company expects to file its third quarter financial statements and management discussion and analysis by
November 8, 2018.
In 2017, the Company changed its fiscal year-end to December 31, from its previous fiscal year
end of May 31. For comparative purposes, the results for the three and nine months ended
September 30, 2018, have been compared to the three and nine months ended August 31, 2017.
Q3 2018 Highlights
- Anaconda produced a quarterly record of 5,099 ounces of gold during Q3 2018, an 11% increase over the three months ended
August 31, 2017, and has produced 14,024 ounces year-to-date in 2018.
- Anaconda sold 4,314 ounces of gold in Q3 2018, generating metal revenue of $6.9 million at an
average realized gold price1 of $1,603 per ounce. As at September 30, 2018, the Company also had over 945 ounces in gold doré and bullion inventory, which was
subsequently sold in early October.
- The Pine Cove Mill processed 120,374 tonnes during Q3 2018, just below the quarterly record of 121,299 tonnes achieved in
the previous quarter of 2018. Throughput rates continue to be strong, achieving 1,332 tonnes per day ("tpd") during the three
months ended September 30, 2018.
- Mill feed during the quarter was comprised of 66,655 tonnes of ore mined from Stog'er Tight, supplemented by 53,719 tonnes
of ore stockpiled from the Pine Cove Pit.
- Mining activity was focused at the Stog'er Tight West Pit in Q3 2018; ore produced from Stog'er Tight during the third
quarter was 51,620 tonnes.
- The Company commenced the 10,000-tonne, underground bulk sample at its 100%-owned Goldboro Gold Project ("Goldboro") in
Nova Scotia in August, with mining activity expected to begin in late October following the
completion of decline dewatering and rehabilitation.
- As at September 30, 2018, the Company had a cash balance of $7.6
million, preliminary working capital1 of $7.2 million, and additional available
liquidity of $1,000,000 from an undrawn revolving line of credit facility.
1 Refer to Non-IFRS Measures Section below.
Anaconda is also pleased to welcome to its senior management team Rahim Kassim-Lakha in the
role of Vice President, Corporate Development, where he will help drive the Company's capital markets strategy. Mr. Lakha brings
a wealth of knowledge from over 25 years of capital markets experience, having held senior-level positions at bank and non-bank
brokerage firms.
"Anaconda continues to demonstrate operational excellence at its Point Rousse Project, achieving record quarterly gold
production of 5,099 ounces during the third quarter of 2018. The team is maximizing ore throughput and achieving strong recovery
rates. We've also transitioned smoothly from the Pine Cove Pit to Stog'er Tight where we are seeing better grade. Having already
produced 14,024 ounces through the first nine months of the year, we remain firmly on track to meet our annual guidance of 18,000
ounces of gold production at operating cash costs1 of under C$1,000 per ounce. With the
operational foundation at the Point Rousse Project, a high-grade gold development project in Goldboro, a strong balance sheet and an experienced management team, Anaconda is well-positioned in a
challenging gold market to continue to execute its business plan to become a high-growth gold producer in Atlantic Canada."
~Dustin Angelo, President and CEO, Anaconda Mining Inc.
Third Quarter Operating Statistics
|
Three months
ended
Sept 30, 2018
|
Three months
ended
Aug 31, 2017
|
Nine months
ended
Sept 30, 2018
|
Nine months
ended
Aug 31, 2017
|
Mine Statistics
|
|
|
|
|
Ore production (tonnes)
|
51,620
|
158,857
|
228,293
|
353,556
|
Waste production (tonnes)
|
380,580
|
364,380
|
987,354
|
1,075,843
|
Total material moved (tonnes)
|
432,200
|
523,237
|
1,215,647
|
1,429,399
|
Waste: Ore ratio
|
7.4
|
2.3
|
4.3
|
3.0
|
|
|
|
|
|
Mill Statistics
|
|
|
|
|
Availability (%)
|
98.2
|
97.0
|
96.8
|
96.4
|
Dry tonnes processed
|
120,374
|
119,401
|
350,892
|
335,119
|
Tonnes per day ("tpd")
|
1,332
|
1,338
|
1,328
|
1,269
|
Grade (grams per tonne)
|
1.52
|
1.35
|
1.45
|
1.37
|
Recovery (%)
|
86.6
|
86.8
|
85.9
|
86.0
|
Gold Ounces Produced
|
5,099
|
4,581
|
14,024
|
12,729
|
Gold Ounces Sold
|
4,314
|
4,723
|
13,170
|
12,977
|
Operations Overview for the Three Months Ended September 30, 2018
Anaconda sold 4,314 ounces of gold during the third quarter of 2018, generating gold and silver revenue of $6.9 million, and year-to-date has sold 13,170 ounces to generate revenue of $21.9
million at an average realized gold price1 of C$1,659 per ounce. As at
September 30, 2018, the Company also had over 945 ounces of gold doré and bullion inventory, which
were sold in early October. The Company continues to be on track to meet its 2018 production guidance of 18,000 ounces at
operating cash costs1 of under $1,000 per ounce and has now transitioned to processing
ore produced at the Stog'er Tight Mine.
Point Rousse Mill Operations – The Pine Cove Mill processing facility remains a cornerstone asset of the
Company, achieving quarterly throughput of 120,374 tonnes in Q3 2018, just 1% lower than the quarterly throughput achieved in the
second quarter of 2018. Mill throughput was 1,332 tpd in Q3 2018, down slightly from the comparative three months ended
August 31, 2017. Availability continues to be strong at 98.2%, and the Company continues to invest
in the Pine Cove Mill, making upgrades to the regrind motor and jaw and cone crushers, while continuing to maintain consistent
throughput from its crushed ore stockpiles.
Average grade during the third quarter of 2018 was 1.52 g/t, an increase of 10% over the second quarter of 2018 due to a
greater proportion of mill feed from Stog'er Tight relative to ore stockpiled from the Pine Cove Pit. Grade performance also
reflected a 13% improvement from the comparative three months ended August 31, 2017, reflecting the
higher grade ore being mined from Stog'er Tight relative to the Pine Cove Pit, which was the main ore feed in 2017. The Company
expects to maintain the increased grade profile through the second half of 2018, as ore feed continues to be predominantly
sourced from Stog'er Tight. The mill achieved an average recovery rate of 86.6% during Q3 2018, an improvement over both the
first two quarters of 2018, resulting in record quarterly gold production in Q3 2018 of 5,099 ounces.
Point Rousse Mine Operations – Mining activity in the first half of 2018 was focused on development activity
at Stog'er Tight and the completion of mining in the main Pine Cove Pit. The Company completed development at Stog'er Tight in
April, and commercial ore production began in May, with 28,974 tonnes of high grade ore mined from Stog'er Tight in May and
June.
During Q3 2018, mine operations produced a total of 51,620 tonnes of ore from the Stog'er Tight Mine, in addition to moving
380,580 tonnes of waste for a strip ratio of 7.4 tonnes of waste tonnes to ore tonnes. The strip ratio has decreased
significantly from the second quarter of 2018, when mining activity was focused on pre-production development activity, and is
expected to decrease further over the life of the pit.
Mine activity in the Pine Cove Pit finished in the middle of March, and the Company has commenced planning for pushbacks to
the pit, which are expected to contribute ore in 2019. The Company has now converted the Pine Cove Pit into a fully-permitted
in-pit tailings storage facility, which has approximately 15 years of capacity based on a throughput rate of 1,350 tonnes per
day.
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
Anaconda Mining 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 Stog'er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral Resource,
the fully-permitted Pine Cove Mill and tailings facility, and approximately 9,150 hectares of prospective gold-bearing property.
Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade Mineral
Resource, subject to a 2018 a preliminary economic assessment which demonstrates a strong project economics. The Company also has
a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick.
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.
Average Realized Gold Price per Ounce Sold – In the gold mining industry, average realized gold price per ounce sold is a
common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in
accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period
from each ounce of gold sold.
Working Capital – Working capital is a common measure of near-term liquidity and is calculated by deducting current
liabilities from current assets.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. 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 fiscal year ended
December 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.
View original content: http://www.newswire.ca/en/releases/archive/October2018/11/c7563.html