EDITOR: | March 19th, 2015

Anaconda’s Point Rousse Project has record sales volume of over 4,500 ounces of gold in Q3 FY2015

| March 19, 2015 | No Comments
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Anaconda-Mining-200x125March 19, 2015 (Source: CNW) — Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) announces certain financial and operating results for the three and nine months ended February 28, 2015. During the third quarter of fiscal 2015, the Company sold 4,508 ounces of gold (a quarterly record by 141 ounces, or 3.2%).  Sales volume was approximately 59% higher than the third quarter of fiscal 2014 when the Company sold 2,832 ounces. Anaconda generated $6,266,754 in revenue at an average sales price of $1,390 per ounce. For the nine months ended February 28, 2015, Anaconda produced and sold 11,872 ounces of gold, nearly 1,100 ounces more than the comparable period in fiscal 2014. Anaconda generated $16,576,545 in revenue at an average sales price of $1,396 per ounce. The Company expects to file its full financial statements on or before April 13, 2015.

President and CEO, Dustin Angelo, stated, “Third quarter sales volume further demonstrates the Company’s ability to continuously improve. The revamping of our maintenance program, an enclosed crusher and other operating improvements have resulted in better performance during a quarter that typically creates the most challenges, primarily because of the winter weather. We were able to maintain an availability rate of 92% while processing a record 87,386 tonnes at a best-ever rate of 1,053 tonnes per operating day. As a result, we produced and sold over 4,500 ounces for the third quarter of fiscal 2015. As we move into the fourth quarter of fiscal 2015, we will maintain our focus on continuous improvement while working to extend the life of the Point Rousse Project beyond 10 years.”

Q3 FY2015 Operations Overview:

The mill operated for 83 days during the third quarter of fiscal 2015 and processed 87,386 dry tonnes of ore, resulting in a record average run rate of 1,053 tonnes per operating day. Tonnes processed in the third quarter of fiscal 2015 were a 38% increase from the similar period in fiscal 2014. Mill availability was 92%, eight percentage points higher than the third quarter of fiscal 2014. Recovery remained consistent at 83%. The Company modified its schedule and approach to crushing ore, introduced new reagents to control dust and prevent freezing, and managed to reduce the overall impact of winter weather at the crusher and on stockpiles. Also, an improved preventative maintenance program contributed to lower maintenance costs and significantly higher availability.

The mine operated for 59 days in the third quarter of fiscal 2015 and produced 81,459 tonnes of ore and 370,209 tonnes of waste. Mining production decreased in the third quarter of fiscal 2015 as planned since stacking of waste material for the tailings dam expansion project was completed in the second quarter. The final liner of the tailings expansion will be installed in the fourth quarter of fiscal 2015. Grade increased in the third quarter of fiscal 2015, per the mine plan, compared to the first half of fiscal 2015. Blast movement monitoring technology and a GPS system installed on the excavator have maximized head grade and reduced dilution from 20% to less than 10%.

The following table summarizes the key operating statistics for the three and nine months ended February 28, 2015 and February 28, 2014:

OPERATING STATISTICS:

Three months ended

Nine months ended

 February 28

2015

 February 28

2014

 February 28

2015

 February 28

2014

Mill

Operating days

83

76

251

240

Availability

92%

84%

92%

88%

Dry tonnes processed

87,386

63,123

256,683

223,127

Tonnes per 24-hour period

1,053

831

1,023

930

Grade (grams per tonne)

1.84

1.79

1.75

1.84

Overall mill recovery

83%

83%

84%

83%

Gold sales volume (troy oz.) 

4,508

2,832

11,872

10,780

Mine

Operating days

59

57

186

183

Ore production (tonnes)

81,459

78,043

248,187

236,765

Waste production (tonnes)

370,209

310,067

1,319,636

1,222,426

Total production (tonnes)

451,668

388,110

1,567,823

1,459,191

Waste: Ore ratio

4.5

4.0

5.3

5.2

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 mine and approximately 6,000 hectares of exploration property on the Ming’s Bight Peninsula, called the Point Rousse Project, 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 km 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 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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