TORONTO, July 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 six months ended June 30,
2018 ("Q2 2018"). All dollar amounts are in Canadian
Dollars. The Company expects to file its second quarter financial
statements and management discussion and analysis by August 2, 2018.
In 2017, the Company changed its fiscal year-end to December 31, from its previous fiscal year end of
May 31. Consequently, Anaconda has
now reverted to a customary quarterly reporting calendar based on a
December 31 financial year-end, with
fiscal quarters ending on the last day in March, June, September,
and December each year. For comparative purposes, the results
for the three and six months ended June 30,
2018, have been compared to the three and six months ended
May 31, 2017.
Q2 2018 Highlights
- Anaconda sold 4,330 ounces of gold in Q2 2018, generating metal
revenue of $7.4 million at an average
realized gold price1 of $1,695 per ounce. As at June 30, 2018, the Company also had over 750
ounces in gold doré and bullion inventory, which was subsequently
sold in July 2018.
- The Company also generated $100,000 in revenue from the sale of waste rock
for road construction purposes.
- Anaconda produced 4,632 ounces of gold during Q2 2018, a 4.4%
increase over the three months ended May 31,
2017, and 8,925 ounces in the first half of 2018, an 8.7%
increase over the comparative period.
- The Pine Cove Mill processed a quarterly record 121,299 tonnes
during Q2 2018, a 12.4% increase over the comparative three-month
period ended May 31, 2017, at a
throughput rate of 1,350 tonnes per day ("tpd").
- Mill feed during the quarter was comprised of 113,857 tonnes of
ore stockpiled from the Pine Cove Pit, supplemented by 7,442 tonnes
of ore mined from Stog'er Tight.
- Development of the Stog'er Tight West Pit was completed in Q2
2018, with the removal of 133,576 tonnes of waste in April and the
commencement of commercial production on May
1, 2018; ore produced from Stog'er Tight during the second
quarter was 32,833 tonnes.
- The Company submitted an environmental application for the
Argyle Project during Q2 2018, and is preparing the development
plan for submission to the applicable regulatory authorities to be
able to start development in mid-2019.
- Anaconda successfully completed a non-brokered private
placement for $4.5 million, which
will enable continued drilling at the Goldboro Gold Project, the
Argyle Deposit, and other prospective targets at the Company's
Point Rousse Project.
1 Refer to Non-IFRS Measures
Section below.
|
"Anaconda Mining continues to achieve consistent and
profitable mining results from its Point Rousse Project, producing
4,632 ounces of gold in the second quarter of 2018. We are on
track to meet 2018 production guidance of 18,000 ounces, as we
transition to commercial production at the Stog'er Tight Mine. With
the proceeds from our recent private placement, drilling will begin
later this summer at Point Rousse and we expect to demonstrate the
ability to add more mineral resources beyond Pine Cove, Stog'er
Tight, and Argyle. We continue to execute on our business plan by
leveraging our operating infrastructure, growing our mineral
resource base around the Pine Cove Mill, and consolidating gold
properties on the Baie Verte
Peninsula. As such, we believe we can create significant
value for all stakeholders, including shareholders of Maritime
Resources Corp., with the acquisition of the Hammerdown
Project."
~Dustin Angelo, President and CEO, Anaconda Mining
Inc.
Second Quarter Operating Statistics
|
Three months
ended
June 30,
2018
|
Three months
ended
May 31,
2017
|
Six months
ended
June 30,
2018
|
Six months
ended
May 31,
2017
|
Mine
Statistics
|
|
|
|
|
Ore production
(tonnes)
|
32,833
|
92,167
|
176,673
|
194,698
|
Waste production
(tonnes)
|
356,642
|
386,387
|
606,774
|
711,463
|
Total material moved
(tonnes)
|
389,475
|
478,554
|
783,447
|
906,161
|
Waste: Ore
ratio
|
10.9
|
4.2
|
3.4
|
3.7
|
|
|
|
|
|
Mill
Statistics
|
|
|
|
|
Availability
(%)
|
98.7
|
97.5
|
96.1
|
96.1
|
Dry tonnes
processed
|
121,299
|
107,956
|
230,518
|
215,718
|
Tonnes per day
("tpd")
|
1,350
|
1,200
|
1,326
|
1,233
|
Grade (grams per
tonne)
|
1.38
|
1.49
|
1.41
|
1.35
|
Recovery
(%)
|
85.9
|
85.8
|
85.6
|
85.5
|
Gold Ounces
Produced
|
4,632
|
4,442
|
8,925
|
8,209
|
Gold Ounces
Sold
|
4,330
|
4,658
|
8,856
|
8,255
|
Operations Overview for the Three Months Ended June 30, 2018
Anaconda sold 4,330 ounces of gold during the second quarter of
2018, generating gold and silver revenue of $7.4 million, and year-to-date has sold 8,856
ounces to generate revenue of $14.9
million. As at June 30, 2018,
the Company also had over 750 ounces of gold doré and bullion
inventory, which were sold in early July. The Company continues to
be on track to meet its 2018 production guidance of 18,000 ounces
at operating cash costs1 of $1,100 per ounce, and has now transitioned to ore
production at the Stog'er Tight Mine. At a budgeted gold price of
$1,550, Anaconda expects to generate
approximately $28.0 million of
revenue based on production guidance, noting however that the
average realized gold price1 for the first half of 2018
was $1,686 per ounce.
1 Refer to Non-IFRS Measures
Section below.
|
Point Rousse Mill Operations – The Pine Cove
Mill processing facility remains a cornerstone asset of the
Company, achieving record quarterly throughput of 121,299 tonnes in
the second quarter of 2018. Mill throughput was 1,350 tpd in Q2
2018, a 12.5% increase over the comparative three months ended
May 31, 2017, and an improvement from
the 1,300 tpd in Q1 2018. Availability during the quarter was
strong at 98.7%, up from 93.4% in the first quarter of 2018, when a
planned preventative maintenance shutdown occurred. 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 second quarter of 2018 was 1.38 g/t, a
decrease over both Q1 of 2018 and the three-month comparative
period ending May 31, 2017. The lower
grade profile was as projected based on mill throughput being
largely comprised of ore stockpile from the Pine Cove Pit. The
Company expects an increased grade profile in the second half of
2018, as ore feed is predominantly sourced from Stog'er
Tight. The mill achieved an average recovery rate of 85.9%,
an improvement over Q1 2018, resulting in gold production in Q2
2018 of 4,632 ounces.
Point Rousse Mine Operations – Mining activity
in the first quarter of 2018 was focused on development activity at
Stog'er Tight and the completion of mining in the main Pine Cove
Pit. In Q1 2018, the nearby Fox Pond water level was lowered to
allow mining at Stog'er Tight, and a settling pond and dewatering
system was established. The Company completed development at
Stog'er Tight in April, removing a further 133,576 tonnes of waste,
which will be capitalized as development. Commercial ore production
began in May, with 28,974 tonnes of ore mined from Stog'er Tight in
May and June.
During Q2 2018, mine operations produced a total of 32,833
tonnes of ore, which included 3,859 tonnes mined from Stog'er Tight
during development activities. Given the focus on development in
the West Pit, the strip ratio of 10.9 waste tonnes to ore tonnes
was high compared to previous periods; however, the strip ratio is
expected to decrease over the life of the West Pit.
Mine activity in the Pine Cove Pit finished in the middle of
March, and the Company has commenced planning for pushbacks for the
Pine Cove Pond and the North West Extension to the pit, which are
expected to contribute ore in 2019. The Company is now converting
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. Anaconda expects to begin
tailings deposition in the third quarter of 2018.
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
Pine Cove open pit mine, the Stog'er Tight Mine, the Argyle Mineral
Resource, the fully-permitted Pine Cove Mill and tailings facility,
deep water port, and approximately 5,800 hectares of prospective
gold-bearing property. Anaconda is also developing the Goldboro
Gold 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 Great Northern Project on the Northern Peninsula of
Newfoundland and the Tilt Cove
Property on the Baie Verte
Peninsula, also in Newfoundland.
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.
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.