TORONTO, March 21, 2016 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") - (TSX:ANX) announces certain
financial and operating results from the three and nine month
period ended February 29, 2016. The
Company sold 3,266 ounces of gold during the third quarter of
fiscal 2016 and generated $4,988,063
in gold sales at an average sales price of $1,527 per ounce. During the nine months ended
February 29, 2016, the Company sold
11,827 ounces of gold and generated $17,571,939 in gold sales at an average sales
price of $1,486 per ounce. Gold sales
in the first nine months of fiscal 2016 were 6% higher than the
comparable period of fiscal 2015. The Company expects to file its
full financial statements on or before April
12, 2016. All financial results are denominated in Canadian
dollars unless otherwise noted.
President and CEO, Dustin Angelo,
stated, "After completing three quarters of fiscal 2016, we have
produced and sold similar amounts of gold as in fiscal 2015 but at
higher prices. Over the long term, our operations continue to be
consistent while building for the future. During the third quarter
of fiscal 2016, we reached a milestone at the Stog'er Tight project
where we processed over 15,000 tonnes of ore at the Pine Cove mill.
The higher grade material helped with production during the quarter
as the Pine Cove mill was running at lower than normal levels of
throughput. Stepping out even farther, in February, we acquired,
via option, the Viking Project on the Northern Peninsula, which
gives us established historical resources and great potential to
build another significant size project to feed the Pine Cove
mill."
FY Q3 2016 Operations Overview:
The Pine Cove mill operated for 88 days during the third quarter
of fiscal 2016 at an availability rate of 98% compared to 92% in
the third quarter of fiscal 2015. For the quarter, the mill
processed 91,370 dry tonnes of ore, an increase of 5% compared to
the third quarter of fiscal 2015. Average head grade was 1.48 grams
per tonne ("g/t") and overall mill recovery was 81%. The mill's run
rate for the quarter was 1,038 tonnes per operating day.
The Company processed 15,167 tonnes of ore from the Stog'er
Tight deposit at an average grade of 1.66 g/t, producing 638 ounces
of gold. For this initial tonnage, the Company did not experience
any material differences in processing the Stog'er Tight ore
compared to the Pine Cove ore.
Mill throughput per operating day and recovery were lower than
normal during the third quarter due to mechanical issues with the
regrind mill, which ensures the proper feed size of the ore prior
to leaching. In the early part of the quarter, throughput at the
primary ball mill was reduced to get a finer grind than usual at
that stage to compensate for the loss of the regrind mill. The
Company then implemented a contingency plan where it replaced the
regrind mill with a stirred media detritor ("SMD"). The
commissioning of the SMD still required a slightly finer product
from the primary ball mill (thus, hindering throughput) to manage
the requisite product size from the SMD. Because of the
inconsistent grind size going into the leaching circuit, recovery
suffered during the quarter. By the end of the third quarter and
the beginning of the fourth quarter, the Company began to optimize
the new system and return to normal throughput and recovery levels.
The Company expects the repairs to the regrind mill to be completed
by the end of April, at which time it plans to switch from the SMD
back to the original regrind mill.
During the third quarter of fiscal 2016, the mining operations
at the Point Rousse Project included 62 days of production at the
Pine Cove pit and 8 days of production at the Stog'er Tight
deposit. Total production was 78,196 tonnes of ore and 584,345
tonnes of waste including 8,347 tonnes of ore and 19,513 tonnes of
waste from Stog'er Tight. Mining production increased 47% in the
third quarter of fiscal 2016 compared to the third quarter of
fiscal 2015 to gain greater access to new areas of ore in the third
phase of the Pine Cove pit. The Company has benefited from the use
of the North Pit Waste Dump, which has reduced haul distance and
per tonne cost of waste mined.
The following table summarizes the key operating statistics for
the three and nine months ended February 29,
2016 and February 28,
2015:
OPERATING
STATISTICS:
|
For the three
months ended
|
For the nine
months ended
|
|
February
29
2016
|
February
28
2015
|
February
29
2016
|
February
28
2015
|
Mill
|
|
|
|
|
Operating
days
|
88
|
83
|
255
|
251
|
Availability
|
98%
|
92%
|
93%
|
92%
|
Dry tonnes
processed
|
91,370
|
87,386
|
283,531
|
256,683
|
Tonnes per 24-hour
period
|
1,038
|
1,053
|
1,112
|
1,023
|
Grade (grams per
tonne)
|
1.48
|
1.84
|
1.59
|
1.75
|
Overall mill
recovery
|
81%
|
83%
|
85%
|
84%
|
|
|
|
|
|
Gold sales volume
(troy oz.)
|
3,266
|
4,508
|
11,827
|
11,872
|
|
|
|
|
|
Mine -
Total
|
|
|
|
|
Operating
days
|
62
|
59
|
204
|
186
|
Ore production
(tonnes)
|
78,196
|
81,459
|
299,607
|
248,187
|
Waste production
(tonnes)
|
584,345
|
370,209
|
1,787,134
|
1,319,636
|
Total production
(tonnes)
|
662,541
|
451,668
|
2,086,741
|
1,567,823
|
Waste: Ore
ratio
|
7.5
|
4.5
|
6.0
|
5.3
|
|
|
|
|
|
Mine – Pine Cove
Pit
|
|
|
|
|
Operating
days
|
62
|
59
|
204
|
186
|
Ore production
(tonnes)
|
69,849
|
81,459
|
280,074
|
248,187
|
Waste production
(tonnes)
|
564,832
|
370,209
|
1,737,378
|
1,319,636
|
Total production
(tonnes)
|
634,681
|
451,668
|
2,017,452
|
1,567,823
|
Waste: Ore
ratio
|
8.1
|
4.5
|
6.2
|
5.3
|
|
|
|
|
|
Mine – Stog'er
Tight
|
|
|
|
|
Operating
days
|
8
|
0
|
17
|
0
|
Ore production
(tonnes)
|
8,347
|
0
|
19,533
|
0
|
Waste production
(tonnes)
|
19,513
|
0
|
49,756
|
0
|
Total production
(tonnes)
|
27,860
|
0
|
69,289
|
0
|
Waste: Ore
ratio
|
2.3
|
0
|
2.5
|
0
|
NOTE: Operating statistics exclude changes in in-circuit
inventory.
ABOUT ANACONDA
Headquartered in Toronto,
Canada, Anaconda is a growth oriented, gold mining and
exploration company with a producing project, called the Point
Rousse Project, and approximately 6,300 hectares of exploration
property on the Ming's Bight Peninsula located in the Baie Verte
Mining District in Newfoundland,
Canada. Since 2012, Anaconda has increased its property
control by ten-fold on the peninsula. It is currently exploring
three primary, prospective gold trends, which have approximately 20
km of cumulative strike length and include three deposits and
numerous prospects and showings, all within 8 kilometres of the
Pine Cove mill. The Company's plan is to discover and develop more
resources within the project area and double annual production from
its current rate of approximately 15,000 ounces to 30,000 ounces.
Anaconda also controls approximately 6,225 hectares of property in
White Bay, Newfoundland,
approximately 180 km via road (100 km by barge) from the Pine Cove
mill. The White Bay property contains the Thor-Trend gold deposit
and other gold prospects and showings.
FORWARD-LOOKING STATEMENTS
This document contains or refers to forward-looking
information. Such forward-looking information includes, among other
things, statements regarding targets, estimates and/or assumptions
in respect of future production, mine development costs, unit
costs, capital costs, timing of commencement of operations and
future economic, market and other conditions, and is based on
current expectations that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statement include, but are not
limited to: the final approval of the private placement by the
Toronto Stock Exchange; the grade and recovery of ore which is
mined varying from estimates; capital and operating costs varying
significantly from estimates; inflation; changes in exchange rates;
fluctuations in commodity prices; delays in the development of any
project caused by unavailability of equipment, labour or supplies,
climatic conditions or otherwise; termination or revision of any
debt financing; failure to raise additional funds required to
finance the completion of a project; and other factors.
Additionally, forward-looking statements look into the future and
provide an opinion as to the effect of certain events and trends on
the business. Forward-looking statements may include words such as
"plans," "may," "estimates," "expects," "indicates," "targeting,"
"potential" and similar expressions. These forward-looking
statements, including statements regarding Anaconda's beliefs in
the potential mineralization, are based on current expectations and
entail various risks and uncertainties. Forward-looking statements
are subject to significant risks and uncertainties and other
factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on
forward-looking statements. These forward-looking statements are
made as of the date hereof and we assume no responsibility to
update them or revise them to reflect new events or circumstances,
except as required by law.
SOURCE Anaconda Mining Inc.