EDITOR: | June 18th, 2015

Anaconda Mining sets annual production records and sells nearly 16,000 ounces of gold in fiscal 2015

| June 18, 2015 | No Comments
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Anaconda-Mining-200x125June 18, 2015 (Source: CNW) — Anaconda Mining Inc. (“Anaconda” or “the Company”) – (TSX:ANX) announces certain financial and operating results from the fiscal fourth quarter for the three months ended May 31, 2015 and from the full year ended May 31, 2015. During the fourth quarter, the Company sold 3,949 ounces of gold and generated $5,657,527 in revenue at an average sales price of $1,433 per ounce. Sales volume and revenue for fourth quarter fiscal 2015 were approximately 4% and 7% higher than the fourth quarter fiscal 2014 sales volume and revenue, respectively. For fiscal 2015, the Company sold 15,821 ounces of gold and generated $22,234,072 in revenue at an average sale price of $1,405 per ounce. Compared to fiscal 2014, sales volume and revenue increased by 9% and 10% respectively. Year-over-year revenue increased due to a rise in average sales price from $1,384 per ounce in fiscal 2014 to $1,405 in fiscal 2015 and because the sales volume achieved in fiscal 2015 was over 1,200 ounces higher than the sales volume achieved in fiscal 2014. For fiscal 2015, the mill processed over 343,000 tonnes of ore, 38,000 more tonnes than fiscal 2014. Year-over-year, mill availability and overall recovery increased to 92% and 84%, respectively; up from 88% and 83%, respectively.  The Company expects to file its full financial statements by August 28, 2015.

President and CEO, Dustin Angelo, stated, “Operationally, fiscal 2015 was a record year for many metrics – sales volume, recovery, availability, tonnes processed, tonnes per operating day and, waste and ore production. The Point Rousse Project really hit its stride in the second half of the fiscal year where our continuous improvement efforts resulted in 8,457 ounces sold, nearly 1,100 more than the first half of the fiscal year. These achievements were set during the end of a very harsh winter and despite a major flood in the pit which slowed mining activities during the fourth quarter. Our operating team remains focused on achieving higher daily throughput and recovery and believes it can exceed current performance in fiscal 2016.”

FY Q4 2015 Mill Operations Overview:

The Pine Cove mill operated for 85 days during the fourth quarter fiscal 2015 at an availability rate of 92%. For the quarter, the mill processed 86,495 dry tonnes of ore at an average feed grade of 1.65 grams per tonne. Overall mill recovery was 86%, compared to 82% in fourth quarter fiscal 2014, primarily due to continued close monitoring of the optimal grind size in the leach and flotation circuits. Mill availability benefited in the fourth quarter from continued preventative maintenance activities while throughput benefited from the installation of a new cyclone feed pump motor which removed a previous bottleneck from the circuit. There was also extensive work done to optimize the recirculating load in the grinding circuit.

The mill’s run rate for the fourth quarter fiscal 2015 was 1,018 tonnes per operating day and continues to exceed the Company’s new standard of 1,000 tonnes per operating day. Building on this improvement, the Company has begun a project in the mill to automate various controls and procedures which are expected to further increase productivity and reduce operating costs. The project is scheduled to be completed in the third quarter fiscal 2016.

FY Q4 2015 Mining Operations Overview:

The mine operated for 64 days in the fourth quarter fiscal 2015 and produced 73,345 tonnes of ore and 442,676 tonnes of waste. Waste production increased in the fourth quarter as the operations focused on preparing the Phase III pit area. Phase III is the next phase of development for the open-pit operation and work focused on mucking till and overburden, as well as developing wide, easy-to-access benches for use in fiscal 2016. Preparation work in Phase III resulted in a higher strip-ratio for the quarter which was offset by low hauling costs due to operations being in close proximity to the waste dump. For fiscal 2016, the mining operation will continue production in the Phase III pit area.

The following table summarizes the key operating statistics by quarter for the fiscal year ended May 31, 2015:

OPERATING STATISTICS:

 Q1 ’15

 Q2 ’15

 Q3 ’15

 Q4 ’15

 Total/Avg.

Mill

Operating days

87

81

83

85

336

Availability

95%

88%

92%

92%

92%

Dry tonnes processed

83,782

85,515

87,386

86,495

343,178

Tonnes per 24-hour period

963

1,056

1,053

1,018

1,021

Grade (grams per tonne)

1.80

1.60

1.84

1.65

1.72

Overall mill recovery

84%

85%

83%

86%

84%

Gold sales volume (troy oz.)

3,933

3,431

4,508

3,949

15,821

Mine

Operating days

64

63

59

64

250

Ore production (tonnes)

89,239

77,489

81,459

73,345

321,532

Waste production (tonnes)

492,040

457,387

370,209

442,676

1,762,312

Total production (tonnes)

581,279

534,876

451,668

516,021

2,083,844

Waste: Ore ratio

5.5

5.9

4.5

6.0

5.5

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 6,000 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 nine-fold. It is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include four 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.

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.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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