"An investment in knowledge pays the best interest."


Anaconda Mining Inc. (ANX.T)  has released production results and certain financial information from its fiscal first quarter ended Aug. 31, 2017. The company expects to file its first quarter financial statements and management discussion and analysis by Oct. 12, 2017.

First quarter fiscal 2018 highlights:

  • Anaconda sold a record 4,723 ounces of gold in the first quarter of fiscal 2018, eclipsing the previous record of 4,658 ounces in the fourth quarter of fiscal 2017, and represents a 61.8-per-cent increase over the first quarter of fiscal 2017.
  • The company recorded revenue of $7.6-million in the first quarter based on an average gold price of $1,612 per ounce, a 55-per-cent increase in revenue over the first quarter of fiscal 2017.
  • Anaconda achieved record mill throughput of 119,401 tonnes, a 20-per-cent increase over the first quarter of fiscal 2017.
  • The company produced 158,857 tonnes of ore from the Pine Cove pit in the first quarter of fiscal 2018, at a significantly reduced strip ratio of 2.3:1 waste tonnes to ore tonnes.
  • Anaconda strengthened its Point Rousse infrastructure with the government approval to convert the Pine Cove pit into a tailings facility with a 15-year storage capacity based on existing throughput rates.

President and chief executive officer, Dustin Angelo, stated: "We are off to a great start to the 2018 fiscal year, with a record quarter in terms of gold sold and mill throughput. After achieving 4,723 gold ounces sold in the first quarter of fiscal 2018, we are well on track to meet our fiscal year 2018 guidance of 15,500 ounces. The Pine Cove mill continues to demonstrate consistent throughput and recovery rates, validating its operational value as a cornerstone asset for the company. Our infrastructure was also recently strengthened with the government approval to convert the Pine Cove pit into a seven-million-tonne tailings storage facility. The strong operational performance at our Point Rousse project is key to our growth strategy, allowing us to progress exciting projects such as the high-grade Goldboro project in Nova Scotia and the Argyle discovery at Point Rousse."

                                   Q1 2018       Q1 2017
Mine statistics
Ore production (tonnes)            158,857       108,305
Waste production (tonnes)          364,380       890,120
Total production (tonnes)          523,237       998,425
Waste: ore ratio                       2.3           8.2
Mill statistics
Availability                           96%           96%
Dry tonnes
processed -- quarter               119,401        99,441
Dry tonnes
processed -- per day                 1,353         1,130
Grade (grams per tonne)               1.35          1.17
Overall mill recovery                  87%           86%
Gold ounces sold                     4,723         2,919

Fiscal first quarter 2018 operations overview

The Pine Cove mill operated for 88 days during the first quarter of fiscal 2018 at an availability rate of 96 per cent, continuing its consistent performance from the prior year. The mill was able to improve on its run rate of 1,200 tonnes per day in the fourth quarter of 2017, to over 1,350 tonnes per day in the first quarter of fiscal 2018, a 20-per-cent increase. Consequently, the mill achieved record quarterly throughput of 119,401 tonnes during the quarter at an average grade of 1.35 grams per tonne and a recovery rate of 87 per cent, leading to record quarterly gold sales of 4,723 ounces of gold.

The mining operation at the Pont Rousse project operated for 66 days during the first quarter in the Pine Cove pit, up from 58 days in the fourth quarter of fiscal 2017 when the operation was challenged by weather conditions. Ore produced from the pit was 158,857 tonnes, up significantly from the 108,305 tonnes produced in the first quarter of 2017, and up significantly from 92,167 tonnes produced in the fourth quarter of fiscal 2017. However, total production tonnes moved during the first quarter of fiscal 2018 was 47.6 per cent lower than the first quarter of the prior year, when a high strip ratio was experienced and waste rock was needed for the construction of the second tailings storage facility. The strip ratio in the most recently completed quarter was 2.3:1 waste tonnes to ore tonnes, down from 4.2:1 in the fourth quarter of fiscal 2017, and down significantly from 8.2:1 in the first quarter of 2017.

Anaconda expects to complete mining in the Pine Cove pit by the end of 2017 in line with fiscal 2018 guidance, and will transition to the Stog'er Tight pits early in the 2018 calendar year. The company has received approval from the Newfoundland and Labrador Department of Natural Resources to amend the Pine Cove property development plan and rehabilitation and closure plan to utilize the Pine Cove pit at the Point Rousse project as a seven-million-tonne in-pit tailings storage facility. During the remaining months of the 2017 calendar year, the company will accelerate the mining rate at the base of the Pine Cove pit and stockpile ore, which will allow for the deposition of tailings into the facility in early 2018.

Qualified person

Gordana Slepcev, PEng, chief operating officer, Anaconda Mining, 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 Mining Inc.

Anaconda Mining is focused in the mining-friendly and 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, Canada, comprising the Pine Cove open-pit mine, Stog'er Tight deposit, the fully permitted Pine Cove mill and tailings facility, a new gold discovery referred to as Argyle, and approximately 6,300 hectares of prospective property. Anaconda is also developing the recently acquired Goldboro project in Nova Scotia, a high-grade mineral resource, with the potential to leverage existing infrastructure at the company's Point Rousse project.