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.