TORONTO, Jan. 16, 2019 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased
to announce production results and certain financial information
for the three months and year ended December
31, 2018. All dollar amounts are in Canadian Dollars. The
Company expects to file its full audited annual financial
statements and management discussion and analysis by February 28, 2019.
2018 Highlights
- Anaconda produced an annual record of 20,149 ounces of gold
during 2018, surpassing production guidance of 18,000 ounces.
- The Company sold a record 19,290 ounces of gold in 2018,
generating $31.7 million in total
revenue at an average sales price of C$1,638 (US$1,264)
per ounce of gold. As at December 31,
2018, the Company also had over 860 ounces in gold doré
inventory, which was subsequently sold in early January.
- The Pine Cove Mill achieved record annual throughput of 461,439
tonnes during 2018, reflecting a throughput rate of 1,317 tonnes
per day. It also achieved a record quarterly recovery in Q4 2018 of
89.1% as a result of processing higher grade ore from Stog'er
Tight, contributing to an annual record recovery of 86.7%, a 1.4%
increase over the comparative period.
- As at December 31, 2018, the
Company had a cash balance of $6.4
million, preliminary working capital1 of
$3.4 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 extremely pleased to announce a record year at
its Point Rousse Project, processing over 460,000 tonnes of ore and
producing over 20,000 ounces of gold in 2018. We had an exceptional
fourth quarter due to strong grades at Stog'er Tight and record
quarterly recovery, contributing to annual gold production far
exceeding our guidance for the year. Our team and operating
infrastructure continue to achieve new heights, which highlights
the tremendous platform for growth we have developed on the
Baie Verte Peninsula and in
Atlantic Canada. Looking ahead, we
expect to achieve a similar production profile in 2019 of 19,000 to
20,000 ounces of gold. Anaconda once again finds itself in a strong
position entering the new year to execute its plan to become a
high-growth gold producer in Atlantic
Canada, through continued operational success at Point
Rousse and the advancement of the high-grade Goldboro Gold Project
in Nova Scotia to a shovel-ready
state."
~Dustin Angelo, President and CEO, Anaconda Mining
Inc.
2019 Guidance
Anaconda is projecting to produce and sell between 19,000 and
20,000 ounces of gold in 2019, which at a budgeted gold price of
$1,600 (approximately US$1,200) will generate approximately
$30.0 million of revenue. Production
for the first half of the year and into the third quarter is
expected to be from continued mining at Stog'er Tight and pushbacks
to the Pine Cove Pit. Development at Argyle is expected towards the
middle of the year, with ore production commencing in the third
quarter. The Argyle project has been released from environmental
assessment and is working towards the receipt of final permits.
Mill throughput is expected to remain consistent throughout the
year, with marginal ore stockpiles available to supplement mill
feed, although the Company continues to investigate opportunities
to defer marginal ore feed. Operating cash costs for the full year
are expected to be between $1,050 and
$1,100 per ounce of gold sold
(US$800 - US$835 at an approximate exchange rate of 0.76),
which is consistent with historical levels and slightly higher than
previous year guidance due to the processing of relatively
lower-grade ore from the Pine Cove Pit pushbacks, and marginal
stockpiles.
Operating Statistics for the Year Ended December 31, 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 months and year ended December 31, 2018, have been compared to the four
and seven months ended December 31,
2017, and the year ended May 31,
2017.
|
Three months
ended
Dec 31,
2018
|
Four months
ended
Dec 31,
2017
|
Year
ended
Dec 31,
2018
|
Seven months
ended
Dec 31,
2017
|
Year ended
May 31, 2017
|
Mine
Statistics
|
|
|
|
|
|
Ore production
(tonnes)
|
99,998
|
223,254
|
328,291
|
382,111
|
432,081
|
Waste production
(tonnes)
|
300,952
|
328,434
|
1,288,306
|
692,814
|
2,197,251
|
Total material moved
(tonnes)
|
400,950
|
551,688
|
1,616,597
|
1,074,925
|
2,629,332
|
Waste: Ore
ratio
|
3.0
|
1.5
|
3.9
|
1.8
|
5.1
|
|
|
|
|
|
|
Mill
Statistics
|
|
|
|
|
|
Availability
(%)
|
93.7
|
98.6
|
96.0
|
97.9
|
95.0
|
Dry tonnes
processed
|
110,547
|
156,239
|
461,439
|
275,640
|
423,204
|
Tonnes per day
("tpd")
|
1,282
|
1,299
|
1,317
|
1,316
|
1,223
|
Grade (grams per
tonne)
|
1.93
|
1.29
|
1.56
|
1.32
|
1.33
|
Recovery
(%)
|
89.1
|
85.0
|
86.7
|
85.8
|
85.0
|
Gold Ounces
Produced
|
6,125
|
5,421
|
20,149
|
10,002
|
15,566
|
Gold Ounces
Sold
|
6,120
|
4,786
|
19,290
|
9,509
|
15,562
|
Operations Overview for the Year Ended December 31, 2018
Anaconda produced an annual record of 20,149 ounces of gold in
2018 and achieved record quarterly production of 6,125 ounces
during the fourth quarter. The Company exceeded its 2018 guidance
of 18,000 ounces by 12%, as a result of higher grades from mining
at the bottom of the Pine Cove Pit in the earlier part of the year,
higher ore production than planned from the higher-grade Stog'er
Tight Mine, and record mill throughput and recovery rates.
During 2018, the Company sold 19,290 ounces at an average
realized gold price of C$1,638, to
generate total revenue of $31.7
million, which included $100,000 from the sale of waste rock as
aggregate. As at December 31, 2018,
the Company also had over 860 ounces of gold doré which were sold
in early January.
Point Rousse Mill Operations – The Pine Cove
Mill processing facility remains a cornerstone asset of the
Company, achieving a record annual throughput of 461,439 tonnes,
and also achieving a record quarterly throughput in Q2 2018 of
121,299 tonnes, representing a rate of 1,350 tonnes per day
("tpd"). The throughput rate during 2018 of 1,317 tpd was
consistent with the previous fiscal year, and an 8% increase over
the twelve months ended May 31, 2017.
Availability was 93.7% in the fourth quarter of 2018, which
resulted in decreased availability for the year compared to the
previous fiscal year, predominantly the result of unplanned power
outages due to inclement winter weather. 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 2018 was 1.56 g/t, an increase of 18% over
the previous fiscal year ended December 31,
2017, due to a greater proportion of mill feed from Stog'er
Tight relative to ore stockpiled from the Pine Cove Pit. In Q4
2018, the mill achieved an average grade of 1.93 g/t as 104,529
tonnes of Stog'er Tight was processed in the quarter. Grade
performance in Q4 2018 also reflects a 50% improvement from the
comparative four months ended December 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 the comparative period. The Company expects that over the
first half of 2019 the feed grade will decrease slightly, as
continued mining from Stog'er Tight is complemented by pushbacks to
the Pine Cove pit, supplemented with marginal ore stockpiles to
maintain throughput.
The mill achieved an annual record average recovery rate of
86.7% during the 2018 year, and a quarterly record of 89.1% during
the fourth quarter, reflecting the impact of the higher-grade feed
from Stog'er Tight. The recovery rates achieved represent an annual
and quarterly improvement of 1.0% and 4.8%, respectively, over the
comparative periods. The combination of higher throughput, grade,
and recoveries led to record quarterly and annual gold
production.
Point Rousse Mine Operations – Mine activity in
early 2018 was focused on the completion of mining in the Pine Cove
Pit and the development of the Stog'er Tight Mine area. The Company
completed development work at Stog'er Tight in April, and
commercial ore production began in May.
Anaconda mined 328,291 tonnes of ore and moved 1,288,306 tonnes
of waste in 2018, for total material moved of 1,616,597 tonnes.
This resulted in a strip ratio of 3.9 waste tonnes to ore tonnes
relating predominantly to Stog'er Tight, an increase over the
previous fiscal year when mining was occurring towards the bottom
of the Pine Cove Pit. The strip ratio however has decreased
significantly to 3.0 in Q4 2018, down from 7.4 in the third
quarter, and is expected to increase in Q1 2019 as mining
transitions to the eastern portion of the Stog'er Tight Mine. The
lower ore profile and higher waste tonnes in 2018 compared to the
previous fiscal year reflects the completion of higher-tonnage
mining from the Pine Cove Pit and the transition to the lower tonne
Stog'er Tight Mine. Of total tonnes mined during the year, 189,484
tonnes were produced from Stog'er Tight, including 99,998 tonnes
mined in Q4 2018.
In Q1 2019, the Company will continue to mine from Stog'er Tight
and preparing for pushbacks to the Pine Cove Pit, with these mining
areas providing mill feed into the second half of 2019, when the
development of the Argyle deposit is expected to commence. 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. The
in-pit tailings facility does not impact the planned pushbacks to
the Pine Cove Pit.
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 the 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.