TORONTO, June 7, 2016 /CNW/ - Anaconda Mining Inc.
("Anaconda" or the "Company") - (TSX:ANX) announces certain
financial and operating results from the fiscal fourth quarter and
full year ended May 31, 2016. During
the fourth quarter, the Company sold 4,253 ounces of gold and
generated $6,875,371 in revenue at an
average sales price of $1,617 per
ounce. Sales volume and revenue for the quarter were approximately
8% and 22% higher than the fourth quarter of fiscal 2015. For
fiscal 2016, the Company sold 16,080 ounces of gold and generated
$24,447,310 in revenue at an average
sale price of $1,520 per ounce.
Compared to fiscal 2015, sales volume and revenue increased by 2%
and 10%, respectively. Year-over-year revenue increased due to a
rise in average sales price from $1,405 per ounce in fiscal 2015 to $1,520 per ounce in fiscal 2016, and an increase
in sales volume of 259 ounces. The Company expects to file its full
financial statements by August 26,
2016. All dollar amounts are in Canadian dollars unless
otherwise noted.
President and CEO, Dustin Angelo,
stated, "Fiscal 2016 was another record setting year for Anaconda
Mining and the Point Rousse Project. The project generated and
sold, for the first time, over 16,000 ounces of gold. This
accomplishment was made possible by a determined operating team who
delivered record ore production in the mine, and record throughput
and availability in the mill despite being challenged by grade.
During the fourth quarter, the mill was able to periodically
achieve throughput levels above 1,300 tonnes per operating day as
the team continued to work on optimizing performance. Beyond the
Pine Cove pit, we mined, on a limited basis, the Stog'er Tight
deposit and successfully demonstrated the positive impact of
blending higher grade ore with Pine Cove ore, which is a key part
of our strategic plan going forward."
FY Q4 2016 Mill Operations Overview:
The Pine Cove mill operated for 87 days during the fourth
quarter of fiscal 2016 at an availability rate of 94%, a 2%
increase above the availability in the fourth quarter of fiscal
2015. The mill achieved an average run rate of 1,197 tonnes per
operating day and processed a record 104,163 dry tonnes of ore
during the quarter compared to 1,018 tonnes per operating day and
86,495 dry tonnes of ore in the fourth quarter of fiscal 2015.
Average feed grade during the quarter was 1.26 grams per tonne, 24%
less than the feed grade in the fourth quarter of fiscal 2015. The
Company expected low grade based on the mine plan and is projecting
an improvement to the Pine Cove grade during the remaining pit
life. Overall mill recovery was 85%, compared to 86% in fourth
quarter fiscal 2015.
During the quarter, 9,991 tonnes of ore were processed from the
Stog'er Tight deposit at an average feed grade of 3.08 grams per
tonne, yielding approximately 824 ounces of gold in one week of
production.
The mechanical issues in the regrind circuit were resolved
during the fourth quarter, which allowed the operation to maintain
a stable feed size of concentrate to the leach tanks. As a result,
recovery levels saw an improvement compared to the third quarter of
fiscal 2016. In addition, the operation focused on and achieved
consistent and evenly distributed product size from the crusher,
which helped increase throughput.
FY Q4 2016 Mining Operations Overview:
The mining operation at the Point Rousse Project operated for 65
days in the fourth quarter in the Pine Cove pit and for 6 days in
the quarter at the Stog'er Tight deposit. Total production over the
71 days was 98,214 tonnes of ore and 634,746 tonnes of waste, which
included 7,727 tonnes of ore and 5,282 tonnes of waste from the
Stog'er Tight deposit. Ore and waste production at the Pine Cove
pit was 23% and 42% above the production in the fourth quarter of
fiscal 2015. The increased production per the mine plan is expected
to continue as production is focused on Phase III of the Pine Cove
pit and material is required for construction of the tailings
facility expansion.
The following table summarizes the key operating statistics by
quarter for the fiscal year ended May 31,
2016:
OPERATING
STATISTICS:
|
Q1
'16
|
Q2
'16
|
Q3
'16
|
Q4
'16
|
Total/Avg.
|
|
|
|
|
|
|
Mill
|
|
|
|
|
|
Operating
days
|
86
|
81
|
88
|
87
|
342
|
Availability
|
94%
|
88%
|
98%
|
94%
|
94%
|
Dry tonnes
processed
|
96,532
|
95,629
|
91,370
|
104,163
|
387,964
|
Tonnes per 24-hour
period
|
1,122
|
1,181
|
1,038
|
1,197
|
1,136
|
Grade (grams per
tonne)
|
1.62
|
1.66
|
1.48
|
1.26
|
1.50
|
Overall mill
recovery
|
87%
|
87%
|
81%
|
85%
|
85%
|
|
|
|
|
|
|
Gold sales volume
(troy oz.)
|
3,956
|
4,605
|
3,266
|
4,253
|
16,080
|
|
|
|
|
|
|
Mine - Pine Cove
Pit
|
|
|
|
|
|
Operating
days
|
78
|
64
|
62
|
65
|
269
|
Ore production
(tonnes)
|
104,278
|
105,947
|
69,849
|
90,487
|
370,561
|
Waste production
(tonnes)
|
642,828
|
529,718
|
564,832
|
629,464
|
2,366,842
|
Total production
(tonnes)
|
747,106
|
635,665
|
634,681
|
719,951
|
2,737,403
|
Waste: Ore
ratio
|
6.2
|
5.0
|
8.1
|
7.0
|
6.4
|
|
|
|
|
|
|
Mine - Stog'er
Tight
|
|
|
|
|
|
Operating
days
|
0
|
9
|
8
|
6
|
23
|
Ore production
(tonnes)
|
0
|
11,186
|
8,347
|
7,727
|
27,260
|
Waste production
(tonnes)
|
0
|
30,243
|
19,513
|
5,282
|
55,038
|
Total production
(tonnes)
|
0
|
41,429
|
27,860
|
13,009
|
82,298
|
Waste: Ore
ratio
|
0
|
2.7
|
2.3
|
0.7
|
2.0
|
|
|
|
|
|
|
NOTE: Operating statistics exclude changes in in-circuit
inventory.
ABOUT ANACONDA
Anaconda Mining is a growth-oriented, gold mining and
exploration company with a producing project called the Point
Rousse Project and an exploration/development project called the
Viking Project in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of
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 and gold production to over
16,000 ounces per year. In an effort to expand production, it is
currently exploring three primary, prospective gold trends, which
have approximately 20 km of cumulative strike length and include
five deposits and numerous prospects and showings, all within 8 km
of the Pine Cove mill.
Anaconda also controls the Viking Project, which has
approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 km by water
(180 km via road) from the Pine Cove mill. The project contains the
Thor Deposit and other gold prospects and showings. The Company's
plan is to discover and develop more resources within these project
areas and double annual production at the Pine Cove mill from its
current rate of over 16,000 ounces to 30,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning
the rock we live on into a growing and profitable resource. With a
young and motivated workforce, innovative technology and the
support of local suppliers, Anaconda is investing in the people of
Newfoundland & Labrador and
giving back to the communities in which we
operate – building a better future for all our
stakeholders, from the ground up.
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 the
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.