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Anaconda Mining announces Q4 and full year 2020 production results


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Anaconda Mining announces Q4 and full year 2020 production results, achieves record metal revenue of $41.5 million

TORONTO, ON / ACCESSWIRE / January 14, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce production results and certain financial information for the three months and year ended December 31, 2020. All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2021.
2020 Highlights
 

  • Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000 to 19,000 ounces, predominantly from Pine Cove Pit mine production, with the processing of ore from the Argyle Gold Mine commencing in late Q4 2020.
  • Anaconda sold 17,918 ounces of gold in 2020, generating record metal revenue of $41.5 million at an average sales price1 of C$2,316 (US$1,728) per ounce of gold. As at December 31, the Company also had over 525 ounces in gold dor√© inventory, which was subsequently sold in January.
  • The Pine Cove Mill achieved annual throughput of 459,085 tonnes during 2020, just short of its annual record throughput, representing a 14% increase over 2019, when the mill was impacted by unplanned maintenance.
  • Mine operations moved 512,028 tonnes of ore during the year, including 103,557 tonnes of ore from Argyle in Q4 2020, at an average grade of 1.50 grams per tonne ("g/t") and at a strip ratio of 3.8 waste tonnes per ore tonne.
  • The Pine Cove Pit has now transitioned to a fully permitted in-pit tailings facility, with over 10 years of capacity at current throughput rates.
  • The Company announced the full exercise of share purchase warrants expiring on January 10, 2021, resulting in proceeds of $3,526,895 and the issuance of 7,837,544 common shares.
  • As of December 31, 2020, the Company had a cash balance of $14.6 million and preliminary working capital1 of $13.8 million. The Company's current loan balance as of December 31, 2020 was $1.9 million and the non-current portion was $0.8 million.


2021 Guidance
Anaconda is projecting to produce between 18,000 and 19,000 ounces of gold in 2021. Mill feed in 2021 will be predominantly from mining at the Argyle Gold Mine, with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are expected to be between $1,425 and $1,475 per ounce of gold sold (US$1,100 - US$1,145 at an approximate exchange rate of 0.775), reflecting the relatively lower grade profile of Argyle in the earlier part of the mine plan, the impact of processing lower grade marginal ore, and increased trucking costs to the Pine Cove Mill from Argyle. Mine grade will increase significantly towards the end of 2021 and into 2022 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold. Furthermore, any opportunity to displace marginal ore will positively impact operating costs on a per ounce sold basis.

The Company expects to incur $6,600,000 of sustaining capital expenditures for the mine and mill operations in 2021, which includes approximately $3,800,000 of mine development for pushbacks at the Argyle Gold Mine, which will also support ongoing mining in 2022. Looking further ahead at Point Rousse, the Company continues to infill drill the Stog'er Tight extension and advance baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.
In addition, milestones and catalysts for growth in 2021 include:
 

  • Ongoing production and free cash flow generation from Argyle throughout 2021.
  • Infill drilling at Stog'er Tight deposit to complete an updated Mineral Resource.
  • Final drill results from the Goldboro Gold Project ("Goldboro") infill drill program in Q1 2021.
  • An updated Mineral Resource for the Goldboro Gold Project in Q1 2021.
  • Ongoing initial 10,000 metre drill program at the Tilt Cove Gold Project in Q1 and Q2 2021.
  • Drill Program at the Lower Seal Harbour Property in Nova Scotia, proximal to Goldboro.
  • Completion of the Goldboro Feasibility Study in Q4 2021.


Operating Statistics for the Three Months and Year Ended December 31, 2020
During the fourth quarter of 2019, the Company processed a bulk sample for Goldboro (the "Bulk Sample") at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual 2019 mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis.

 

Three months ended December 31, 2020

Three months ended December 31, 2019

Year ended December 31, 2020

Year ended December 31, 2019

Mine Statistics

       

Ore production (tonnes)

110,455

123,302

512,028

413,139

Waste production (tonnes)

453,859

518,698

1,964,689

1,771,408

Total material moved (tonnes)

564,314

642,000

2,476,717

2,184,547

Waste: Ore ratio

4.1

4.2

3.8

4.3

         

Mill Statistics (including Bulk Sample in 2019)

     

Availability (%)

91.5

97.1

96.3

89.6

Dry tonnes processed

107,257

110,474

459,085

401,499

Tonnes per day ("tpd")

1,274

1,236

1,302

1,228

Grade (grams per tonne)

1.39

1.49

1.42

1.52

Recovery (%)

86.8

83.1

87.4

82.3

Gold Ounces Recovered

4,171

4,411

18,268

16,181

Gold Ounces Sold

3,970

4,209

17,918

17,265

Excluding the operating results from the Bulk Sample, the Pine Cove Mill Statistics specifically for production from the Point Rousse operation are as follows:

Dry tonnes processed

107,257

100,689

459,085

391,714

Tonnes per day ("tpd")

1,274

1,318

1,302

1,248

Grade (grams per tonne)

1.39

1.27

1.42

1.46

Recovery (%)

86.8

84.0

87.4

82.8

Gold Ounces Produced

4,171

3,441

18,268

15,211

Gold Ounces Sold

3,970

3,306

17,918

16,362

Operations Overview for the Year Ended December 31, 2020
Anaconda sold 17,918 ounces of gold in 2020 to generate record metal revenue of $41.5 million at an average realized gold price1 of C$2,316 (US$1,728) per ounce, representing a 41% increase in metal revenue compared to 2019 due to a combination of significantly higher gold prices and higher gold production. During the fourth quarter, the Company sold 3,970 ounces of gold from production from its Point Rousse operations, generating metal revenue of $10.0 million at an average realized gold price1 of C$2,503 per ounce (US$1,921).

The Point Rousse operation produced 18,268 ounces of gold during 2020, achieving annual guidance of 18,000 to 19,000 ounces, and representing a 13% increase over 2019 as a result of higher throughput and stronger recoveries. Production was predominantly from the Pine Cove Pit, where mining ceased in early Q4 2020 and mill production was maintained from the established stockpile of 100,000 tonnes. In 2021, production will be focused exclusively at Argyle, with mill throughput supplemented with marginal ore from the Pine Cove Pit.

Point Rousse Mine Operations - During the fourth quarter, the mine operation produced 110,455 tonnes of ore (of which 103,557 tonnes were from Argyle), a 10% decrease from Q4 2019 when mining was focused exclusively in the Pine Cove Pit. For 2020, the mine operation produced 512,028 tonnes of ore, a significant increase over 2019 when the first half of the year was focused on the lower tonnage profile Stog'er Tight Mine. The strip ratio for 2020 was 3.8 waste tonnes to ore tonnes, a decrease from 4.3 in 2019, as the mine operation completed mining in the Pine Cove Pit throughout 2020 and the tonnes of waste moved decreased accordingly. The strip ratio of 4.1 waste tonnes to ore tonnes in Q4 2020 reflects the impact of the commencement of development at Argyle.

As at December 31, 2020, the mine operation had stockpiled over 102,300 tonnes of ore, which included approximately 72,000 tonnes from Argyle at an average grade of 1.79 g/t. Going forward into 2021, the mine operations will be exclusively focused on production from Argyle, which together with existing stockpiles will contribute approximately 70% of mill throughput in the upcoming year, with Pine Cove and marginal stockpiles providing the balance.

Point Rousse Mill Operations - The Pine Cove Mill processing facility milled 107,257 tonnes during the fourth quarter of 2020, a 3% decrease compared to Q4 2019, the result of lower mill availability due to a planned shutdown for a mill liner change. For the 2020 year, the mill processed 459,085 tonnes of ore, an increase of 14% compared to 2019 due to strong mill availability of 96.3% in the most recent year compared to only 89.6% in 2019. The Pine Cove Mill has returned to consistent and sustainable operations since the challenges encountered in the early half of 2019, when unplanned maintenance of the regrind mill impacted mill availability, which in turn impacted throughput and recovery. Anaconda took the opportunity to accelerate other planned maintenance programs, invest in critical spares, and bolster preventative maintenance programs, the result of which can be seen with the strong performance of the mill in 2020.

Average grade during the fourth quarter was 1.39 g/t, a 7% decrease compared to Q4 2019 due to the impact of the Goldboro Bulk Sample in the comparative period, however a 9% increase when compared to ore milled only from the Point Rousse operation. The fourth quarter of 2020 reflected the impact of processing of 30,324 tonnes of ore from the relatively higher-grade Argyle deposit. Average grade for 2020 was 1.42 g/t, down slightly from 1.46 g/t in 2019 when comparing only to Point Rousse results, as ore feed in the first half of the prior year was mainly from the higher grade Stog'er Tight Mine. The mill achieved an average recovery rate of 86.8% in Q4 2020 and 87.4% for the 2020 year, both representing strong increases over the comparative periods of 2019, further reflecting the strong improvements that have been implemented at the mill operation.

Qualified Person
Kevin Bullock, P. Eng., President and CEO, Anaconda Mining Inc., 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.

Check out full press release here.

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  • 7 months later...

Here are some fresh news , just from today- as usual, they care for the environment andare keen on mentioning the efforts they are making to keep it clean. Nice to see that this stock went up smoothly, bought it just in time back then.

(for the full article, please read https://www.anacondamining.com/prviewer/release_only/id/4864282 ) 

  • 1.81 grams per tonne ("g/t") gold over 30.0 metres¬†(56.0 to 86.0 metres), including 10.00 g/t gold over 1.0 metre in diamond drill hole BN-21-496;
  • 0.98 g/t gold over 6.0 metres¬†(47.5 to 53.5 metres) in diamond drill hole BN-21-498; and
  • 0.54 g/t gold over 10.0 metres¬†(51.0 to 61.0 metres) in diamond drill hole BN-21-497.

     
  • 5.72 g/t gold over 7.0 metres¬†(30.0 to 37.0 metres) in diamond drill hole AE-21-184;
  • 2.16 g/t gold over 13.0 metres¬†(66.0 to 79.0 metres) in diamond drill hole AE-21-185;
  • 5.25 g/t gold over 6.0 metres¬†(28.0 to 34.0 metres) in diamond drill hole AE-21-169; and
  • 1.04 g/t gold over 8.0 metres¬†(29.0 to 37.0 metres) in diamond drill hole AE-21-174.
  • Selected intersections from holes BN-21-496 to BN-21-507 from infill drilling at Stog'er Tight are shown in¬†Table 1¬†below and selected intersection from holes AE-21-169 to AE-21-192 from delineation drilling at Argyle are shown in¬†Table 2¬†below. The results of both the Stog'er Tight and Argyle Drill Programs will be used to update the Mineral Resources and Reserves at Point Rousse, anticipated in Q4 2021.

    "As we continue to mine at Argyle and move forward with development work at Stog'er Tight, we see an opportunity for optimization and continued mining operations at Point Rousse in the coming years. The advancement of geotechnical and environmental work at Stog'er Tight allows for the optimization of the Mineral Resource and open pit design. Similarly, the delineation drill results at Argyle have provided an opportunity to better optimize the pit design and mining techniques. With this information we have commenced preparing an updated Mineral Resource and Reserve estimate for our Point Rousse operation, that includes a new Mineral Resource for Stog'er Tight, supporting potential extended life of the mining operations. At the same time, we continue to develop other exploration targets throughout Point Rousse and Tilt Cove and are actively drilling a 6,000 metre diamond drill program and completing a 100-line kilometre geophysical survey to test the broader prospectivity of the Point Rousse Project."

    ~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

    The Stog'er Tight Deposit is located three (3) kilometres east of the Pine Cove Mill, adjacent to existing road networks, and has been defined over a strike length of 1,250 metres to date. Anaconda produced a total of 17,102 ounces of gold from 349,942 tonnes of ore from the Stog'er Tight Mine between June 2018 and January 2020. Gold from Stog'er Tight was recovered through the Pine Cove Mill with an average head grade of 1.75 g/t gold at an overall recovery of approximately 87%.

    Preliminary environmental studies have been initiated at the expanded Stog'er Tight Deposit, including environmental baseline work associated with Camp Pond, which is anticipated to be impacted by potential development west of the Stog'er Tight Mine. The Company also continues to gather baseline data, including the installation of water monitoring wells, to support the submission of an enhanced Environmental Registration document to regulators in the fourth quarter of 2021. In addition, fish and fish habitat data is being collected to support the development of a Fisheries Act Authorization application and a fish habitat offsetting plan, which is also expected to be submitted in the fourth quarter.

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Anaconda Mining Reports Q3 Production Results and Announces Updated Mineral Reserve and Resource for Argyle & Intersects 7.88 g/t Gold Over 7.9 Metres and 6.19 g/t Gold Over 2.6 Metres on Underground Targets at the Goldboro Gold Project

 

TORONTO, ON / ACCESSWIRE / October 13, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is today announcing production results and certain financial information from the three and nine months ended September 30, 2021 ("Q3 2021"). The Company is also pleased to announce an updated Mineral Reserve and Resource Estimate ("Mineral Reserve and Resource") for the Argyle Deposit prepared in accordance with National Instrument 43-101 ("NI 43-101") and 2019 CIM MRMR Best Practice Guidelines. The Mineral Reserve and Resource was prepared by Independent Qualified Persons Joanne Robinson, P.Eng., and Glen Kuntz, P.Geo., of Nordmin Engineering Ltd. ("Nordmin"), respectively. All dollar amounts are in Canadian dollars. The Company expects to file its third quarter financial statements and management discussion and analysis on or around November 4, 2021.

"With the focus of Q3 2021 on mine waste development to access ore at Argyle, which was impacted by drill availability, mill throughput during the quarter was mainly limited to lower grade Pine Cove ore stockpiles, resulting in gold production of 2,218 ounces. As a result of the delays in mine development, the Company is revising its guidance downward to approximately 12,000 ounces sold and produced for 2021. While the challenges in developing mine waste at Argyle are disappointing, ore delivery ramped up at the end of September and we are confident in the mine plan going forward. This mine plan is based on the independently updated Mineral Reserves prepared by Nordmin, where 2022 is shaping up to be a record year of production for the Company. Over the next 14 months, we expect to mine approximately 529,100 tonnes of ore at an average diluted grade of 1.99 grams per tonne, which at a recovery rate of 87% will result in production of approximately 29,500 ounces. The Company also anticipates announcing an expanded Mineral Resource for Stog'er Tight in the coming weeks, which we believe will demonstrate the continued ability to expand the life of mine of the Point Rousse operations."

~Kevin Bullock, President and CEO, Anaconda Mining Inc.

Q3 2021 Highlights

  • Updated Probable Mineral Reserve for Argyle of 529,100 tonnes at an average diluted grade of 1.99 grams per tonne ("g/t") gold containing 33,850 ounces, using a base case gold price of $2,000 (US$1,550);
  • Gold production over the next 14 months is expected to be approximately 29,500 ounces based on an 87% overall mill recovery, setting up Anaconda for a record year of production in 2022, at an average operating cash cost per ounce sold of $1,112 (US$878)¬†1;
  • Argyle demonstrates robust economics with undiscounted after-tax cash flows of $18.4M and an after-tax NPV (5%) of $17.4M with an IRR of 1,631%;
  • Anaconda produced 2,218 ounces of gold in Q3 2021, a 61% decrease compared to Q3 2020 as throughput was predominantly from low-grade ore stockpiles while mine waste development was the focus at Argyle, with ore delivery ramping back up at the end of September;
  • Due to slower mine waste development at Argyle during Q3 2021 which delayed access to higher-grade ore, the Company has revised its 2021 guidance downward to approximately 12,000 ounces of gold sold and produced;
  • The Company sold 2,574 ounces of gold in Q3 2021, generating metal revenue of $5.8 million at an average realized gold price1¬†of $2,242 (US$1,779) per ounce;
  • The Pine Cove Mill processed 118,988 tonnes during Q3 2021 and achieved mill availability of 95.1%, achieving similar mill throughput as in Q3 2020. The mill achieved a strong average recovery rate of 86.2% during Q3 2021 despite throughput being comprised mainly of low-grade Pine Cove stockpiles;
  • Mining operations achieved 802,087 tonnes of waste development during the third quarter, lower than plan due to drill availability which delayed access to ore, resulting in 18,047 tonnes of ore mined. Ore mining has been ramping up significantly since the end of September and mill throughput in Q4 is expected to be predominantly from Argyle;
  • As of September 30, 2021, the Company had a cash balance of $10.6 million, preliminary working capital1¬†of $6.5 million, and additional available liquidity of $3.0 million from an undrawn revolving line of credit facility.

1 Refer to Non-IFRS Measures Section below.

Third Quarter Operating Statistics

 
 
Three months ended
September 30, 2021
   
Three months ended
September 30, 2020
   
Nine months ended
September 30, 2021
   
Nine months ended
September 30, 2020
 
Mine Statistics
                       
Ore production (tonnes)
    18,047       187,185       106,762       401,573  
Waste production (tonnes)
    802,087       387,116       1,934,794       1,510,830  
Total material moved (tonnes)
    820,134       574,301       2,041,556       1,912,403  
Waste: Ore ratio
    44.4       2.1       18.1       3.8  
 
                               
Mill Statistics
                               
Availability (%)
    95.1       97.6       91.7       98.0  
Dry tonnes processed
    118,988       120,359       328,551       351,828  
Tonnes per day ("tpd")
    1,361       1,340       1,313       1,311  
Grade (grams per tonne)
    0.67       1.59       0.88       1.42  
Recovery (%)
    86.2       88.5       85.9       87.5  
Gold Ounces Produced
    2,218       5,444       7,959       14,098  
Gold Ounces Sold
    2,574       5,105       8,849       13,948  
                                 

Operations Overview for the Three Months Ended September 30, 2021
Anaconda sold 2,574 ounces of gold during the third quarter of 2021, generating metal revenue of $5.8 million at an average realized gold price1 of $2,242 (US$1,779) per ounce, and year-to-date has sold 8,849 ounces to generate metal revenue of $20.1 million. For the nine months ended September 30, 2021, the Company produced 7,959 ounces due to the heavy focus on mine waste development coupled with the processing of low-grade ore stockpiles. Accordingly, the Company has revised its 2021 guidance downward to approximately 12,000 ounces of gold sold and produced. The Company will update its operating cash costs per ounce sold1 guidance when it releases its financial results for Q3 2021. The average operating costs per ounce sold over the 14 month mineral reserves for Argyle is expected to be $1,112 per ounce (US$878).

Mine operations in the third quarter were focused on mine waste development at Argyle with 802,087 tonnes of waste moved during the quarter. While the plan was to focus on waste development, the rate of waste development was impacted by drill availability delaying the access to ore in Q3 2021, resulting in a strip ratio of 44.4 waste tonnes to ore tonnes. Ore mining has been ramping up significantly since the end of September and mill throughput in Q4 is expected to be predominantly from Argyle.

The Pine Cove Mill processed 118,988 tonnes during Q3 2021 and achieved an availability rate of 95.1%, resulting in a throughput rate of 1,361 tonnes per day, similar to the corresponding period of 2021, with overall gold production impacted by the processing of low-grade Pine Cove ore stockpiles. Notwithstanding the low-grade throughput, the mill was able to achieve an average recovery rate of 86.2%, a decrease of only 2.6% compared to Q3 2020 despite grade being down 58% from the prior period.

1 Refer to Non-IFRS Measures Section below.

Argyle Mineral Reserve
The Mineral Reserve was prepared by Independent Qualified Person, Joanne Robinson, P.Eng., of Nordmin. The updated Probable Mineral Reserve at Argyle, effective as of September 1, 2021, is 529,100 tonnes at an average diluted gold grade of 1.99 g/t and contains 33,850 ounces of gold at a strip ratio of 5.3 to 1, based on a cut?off grade of 0.56 g/t gold and gold price of CAD$2,000/oz (US$1,550/oz). This cut?off grade is the minimum ore grade required to process the ore economically.

Table 1: Argyle Mineral Reserve Estimate - Effective Date: September 1, 2021

Category

Tonnes

Gold (g/t)

Rounded Ounces

Probable

529,100

1.99

33,850

Footnotes:

See Gold Price, Capital, Operating and Tax Assumptions in Table 2 below.

1. The independent and qualified person for the mineral reserve estimate, as defined by NI 43-101 is Joanne Robinson, P.Eng., of Nordmin Engineering Ltd.

2. The effective date of the mineral reserve estimate is September 1, 2021.

3. The Mineral Reserve was derived from an ultimate pit shell design analysis based on parameters from the pit shell used to constrain the Indicated Mineral Resource. The ultimate pit design was created using Surpac 2021‚ĄĘ mining software and running a volumetric report between the pit design and the most recently surveyed topographic surface from August 30, 2021.

4. The reserve estimate includes an estimated 17% dilution and 3% metal loss as a result of regularizing the block model plus 15% external dilution and 5% mining loss.

Total gold ounces expected to be mined over the 14 month life of mine is expected to be 33,850 ounces resulting in gold produced of approximately 29,500 ounces based on an estimated average recovery rate of 87.0%. Argyle ore is being mined using conventional open pit mining methods with waste rock being stored locally at site and ore being transported by truck to the Pine Cove Mill. It is expected that Argyle ore will be batch-processed at approximately 1,200 tonnes per day with additional material from Pine Cove stockpiles continuing to supplement the mill capacity of 1,300 tonnes per day.

With mine waste development now on track and ore mining ramping up, Argyle demonstrates robust economics with undiscounted pre-tax cash flows of $21.2M, a pre-tax discounted NPV (5%) of $20.0M with an IRR of 1,667%, and an after-tax NPV (5%) of $17.4M with an IRR of 1,631%. Sustaining capital over the remaining 14 months of mine life is estimated to be $4.2M, relating mainly to ongoing mine waste development of which approximately $2.0M has already been invested as of September 30, 2021.

Table 2: Key Assumptions and Costs Used in the Mineral Reserve

Production Profile
Gold Price - Base Case

CAD$2,000/ounce

Total Tonnes Milled

529,100 tonnes

Diluted Head Grade

1.99 g/t gold

Reserve Cut-Off Grade

0.56 g/t gold

Total Waste Tonnes

2,818,500 tonnes

Strip Ratio

5.3:1

Gold Recovery

87%

Total Gold Production

29,500 ounces

   
Capital Requirements
Sustaining Capital

$4.2M

 
Unit Operating Costs
Mining Costs

$34.55/tonne milled

Processing Costs

$26.35/tonne milled

G&A

$5.10/tonne milled

LOM Operating Cash Costs(1)

CAD$1,112 per ounce sold (US$878)

LOM All-in Sustaining Cash Costs(1)

CAD$1,252 per ounce sold (US$989)

   
Project Economics
Royalties(2)

3% net smelter return

Income Tax/Mining Tax Rates

30%/15%

Pre-Tax  
NPV (5% Discount Rate)

$20.0M

Internal Rate of Return

1,667%

Cumulative Cash Flows

$21.2M

After-Tax  
NPV (5% Discount Rate)

$17.4M

Internal Rate of Return

1,631%

Cumulative Cash Flows

$18.4M

(1) Cash cost includes mining cost, mine-level G&A, mill and refining cost. This is a non-GAAP performance measure; please see "Non-GAAP Measures and Other Financial Measures" below.

(2) A portion of the project is also subject to a 7.5% net profits interest ("NPI") with Royal Gold Inc. Depending on the price of gold in the future, operating and capital costs, the production profile of Argyle, the NPI could become payable at a future date.

Argyle Mineral Resource
The Mineral Resource was prepared by Independent Qualified Person, Glen Kuntz, P. Geo. of Nordmin. The Argyle Mineral Resource is based on validated results of 271 surface drill holes (171 diamond drill holes and 100 percussive drill holes), for a total of 16,231 metres of diamond drilling that was completed between 2016 and 2021 and the effective date of September 1, 2021. From these drill holes a total of 5,556 samples were analyzed for gold content. The Mineral Resource is defined at a 0.56 g/t gold cut-off and is based upon 1 metre assay composites using a variable gold grade cap. The Open pit constrained Mineral Resource uses the unit cost assumptions outlined in Table 2.

Table 3: Argyle Mineral Resource - Effective Date: September 1, 2021

Type Au (g/t) Cut -off Category Tonnes Au g/t Rounded Ounces
Open Pit

0.56

Indicated

436,800

2.53

35,530

Inferred

500

2.77

50

Mineral Resource Estimate Notes

  1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. Open pit Mineral Resources are reported at a cut-off grade of 0.56 g/t gold that is based on a gold price of CAD$2,000/oz (approximately US$1,550/oz) and a gold processing recovery factor of 87%.
  3. Assays were capped on the basis of the three Domain types Flat, Steep and Background.
  4. SG was applied on a lithological basis after calculating weighted averages based on lithological groups.
  5. Mineral Resource effective date September 1st, 2021.
  6. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
  7. Reported from within a mineralization envelope accounting for mineral continuity.
  8. Excludes unclassified mineralization located within mined out areas.



ANACONDA MINING INTERSECTS 7.88 G/T GOLD OVER 7.9 METRES AND 6.19 G/T GOLD OVER 2.6 METRES ON UNDERGROUND TARGETS AT THE GOLDBORO GOLD PROJECT

 

TORONTO, ON / ACCESSWIRE / October 12, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce results from an infill diamond drilling program (the "Infill Drill Program") completed at the Company's 100%-owned Goldboro Gold Project ("Goldboro", or the "Project"). The Infill Drill Program was designed to upgrade inferred mineral resources in an area of potential future underground development between the two open pits contemplated in the recently announced Preliminary Economic Analysis ("PEA"), comprising 19 drill holes totaling 2,585.0 metres (BR-21-290 to 308). The Infill Drill Program will also contribute to the optimization of open pit designs as part of the Feasibility Study anticipated in Q4 2021, part of Phase I of the long-term mine development plan which will focus exclusively on surface mining. Assay results have been received for 10 drill holes to date (Exhibit A), with assays for the remaining drill holes to be presented in an upcoming news release as results are received.

Selected composited highlights (core length) from the Infill Drill Program include:

  • 7.88 grams per tonne ("g/t") gold over 7.9 metres (364.3 to 372.2 metres), including 21.38 g/t gold over 1.5 metres and 17.32 g/t gold over 1.5 metres in diamond drill hole BR-21-291;
  • 6.19 g/t gold over 2.6 metres (94.6 to 97.2 metres), including 24.80 g/t gold over 0.6 metres in diamond drill hole BR-21-299;
  • 3.67 g/t gold over 4.2 metres and 14.10 g/t gold over 0.5 metres within a broader zone consisting of 1.91 g/t gold over 12.6 metres (279.4 to 292.0 metres), in diamond drill hole BR-21-295;
  • 6.75 g/t gold over 2.7 metres and 19.90 g/t gold over 0.5 metres within a broader zone consisting of 2.59 g/t gold over 8.0 metres (279.8 to 287.8 metres), in diamond drill hole BR-21-296; and
  • 33.00 g/t gold over 0.5 metres within a broader zone consisting of 2.54 g/t gold over 8.2 metres (120.5 to 128.7 metres), in diamond drill hole BR-21-299.

"The recently announced Goldboro PEA outlines the capacity for a long mine life with estimated average gold production of 112,000 ounces over more than 17 years, generating an after-tax NPV of $547 million and an after-tax IRR of 24.4% using a US$1,550 gold price. Based on the technical and financial merits demonstrated by the PEA, the Company is undertaking a phased development approach which will initially focus on the surface mining phase of the mine plan, which is subject to an ongoing Feasibility Study expected to be released in Q4 2021.

While we remain focused on the Feasibility Study and the development of two open pits, we were recently presented with an opportunity to upgrade a specific area of inferred mineral resources located between the two open pits where there was limited drilling. The results of infill drilling between the two pits demonstrate excellent geological continuity at depth and the results are consistent with previous drilling in this area. We continue to execute the current 20,000 metre diamond drill program with the aim of further upgrading mineral resources within or adjacent to the two open pits. Since the open pit mineral resource at Goldboro was constrained using only Measured and Indicated mineral resources, any additional conversion of inferred resources within or adjacent to the open pits creates further additional value to the Project."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc

Highlights of the Goldboro Gold Project PEA

  • After-tax Net Present Value at a 5% discount rate ("NPV 5%") of $547 million and an after-tax Internal Rate of Return ("IRR") of 24.4%, with an after-tax payback of 3.2 years based on a gold price of $2,000 per ounce (US$1,550 at an exchange rate of 1.29 C$:US$);
  • Pre-tax NPV 5% of $805 million and a pre-tax IRR of 29.0%, with a pre-tax payback period of 2.9 years;
  • Total gold recovered of over 1,950,000 ounces over a 17.6-year life of mine, based on 15.0 Mt at 2.09 g/t gold from surface mining, 6.0 Mt at 4.89 g/t gold from underground mining, and 3.2 Mt at 0.63 g/t gold from a low-grade stockpile;
  • Goldboro will generate approximately $3.9 billion of gross revenue, approximately $ 1.6 billion in undiscounted pre-tax net cash flow, and over $481 million in federal and provincial tax payments;
  • Initial capital cost ("Capex") of $286 million resulting in an after-tax NPV 5% to Capex ratio of 1.9;
  • Average gold production of over 89,500 ounces per year over the first 7 years of production from surface mining, increasing to average annual production of over 120,000 ounces in years 8 through 18;
  • Life-of-Mine Operating Cash Costs1¬†of $862 (US$668) per ounce sold and All-In Sustaining Costs ("AISC") of $1,031 (US$799) per ounce sold;
  • Mill capacity of 4,000 tonnes per day ("tpd") based on combined gravity and leaching circuit, demonstrating an average gold recovery of 96.4%; and
  • At a gold price of $2,200 (US$1,705), Goldboro could generate cumulative after-tax net cash flows of approximately $1.4 billion, an after-tax NPV 5% of over $700 million and an after-tax IRR of 29.2%.

1 Refer to Non-IFRS Financial Measures below.

* Cautionary statement NI 43-101: The PEA was prepared in accordance with NI 43-101. Readers are cautioned that the PEA is preliminary in nature. It includes inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

Table 1. Table of selected composites from the Goldboro Underground Infill Drill Program

Hole ID

From (m)

To (m)

Interval (m)

Gold (g/t)

Visible Gold

BR-21-291

55.4

55.9

0.5

5.42

VG

and

308.0

311.6

3.6

3.71

 

and

316.2

321.5

5.3

2.20

VG

including

316.2

316.7

0.5

6.33

VG

and

340.0

341.0

1.0

3.46

 

and

346.1

348.4

2.3

1.44

 

and

364.3

372.2

7.9

7.88

VG

including

366.3

367.8

1.5

21.39

VG

including

370.7

372.2

1.5

17.32

VG

BR-21-292

59.3

60.3

1.0

4.26

 

and

209.8

210.3

0.5

27.60

VG

and

264.5

265.5

1.0

2.74

 
BR-21-294

67.3

67.8

0.5

1.18

VG

and

71.5

72.0

0.5

0.52

VG

and

74.0

75.0

1.0

4.13

 

and

131.7

133.7

2.0

2.64

 

and

163.4

164.4

1.0

6.08

VG

BR-21-295

35.0

35.5

0.5

1.99

VG

and

60.2

61.3

1.1

3.39

 

and

279.4

292.0

12.6

1.91

 

including

285.8

290.0

4.2

3.67

 

including

285.8

286.3

0.5

14.10

VG

BR-21-296

149.5

151.0

1.5

5.57

VG

and

210.6

213.1

2.5

1.25

 

and

249.5

250.0

0.5

4.69

 

and

264.6

275.3

10.7

0.61

 

and

279.8

287.8

8.0

2.59

VG

including

285.1

287.8

2.7

6.75

VG

including

287.3

287.8

0.5

19.90

VG

and

304.8

305.3

0.5

25.20

VG

BR-21-297

96.7

97.2

0.5

6.53

 
BR-21-298

52.5

53.5

1.0

3.12

 

and

73.0

74.0

1.0

3.63

 

and

83.3

85.3

2.0

3.10

 

and

88.5

89.0

0.5

0.81

VG

and

144.4

145.4

1.0

5.03

 

and

243.5

246.5

3.0

1.73

 

and

259.9

260.4

0.5

3.68

 
BR-21-299

28.5

29.0

0.5

1.04

 

and

94.6

97.2

2.6

6.19

 

including

95.6

96.2

0.6

24.80

 

and

100.1

101.6

1.5

1.29

 

and

120.5

128.7

8.2

2.54

VG

including

123.4

123.9

0.5

33.00

VG

and

167.7

171.4

3.7

1.41

 

and

192.8

193.8

1.0

3.84

 

and

212.9

214.4

1.5

1.41

 

*Intervals are reported as core length only. True widths are estimated to be between 70% and 90% of the core length.

** All drill hole results are reported using fire assay only. See notes on QAQC procedures at the bottom of this press release.

Mineral Resource Statement for the Goldboro Gold Project (Previously Reported)

Resource Type

Gold Cut-off

(g/t)

Category

Tonnes

('000)

Gold Grade

(g/t)

Troy Ounces

Open Pit

0.44

Measured

6,137

2.73

538,500

Indicated

5,743

2.99

551,300

Measured + Indicated

11,880

2.86

1,089,900

Inferred

1,580

1.75

89,000

Underground

2.60

Measured

1,384

7.36

327,700

Indicated

2,772

5.93

528,600

Measured + Indicated

4,156

6.41

856,200

Inferred

3,726

5.92

709,100

Combined*

0.44/2.60

Measured

7,521

3.58

866,200

Indicated

8,515

3.95

1,079,900

Measured + Indicated

16,036

3.78

1,946,100

Inferred

5,306

4.68

798,100

* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.44 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.60 g/t gold cut-off grade.

Mineral Resource Estimate Notes

  1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. Open Pit Mineral Resources are reported at a cut-off grade of 0.44 g/t gold that is based on a gold price of CAD$2,000/oz (~US$1,550/oz) and a gold processing recovery factor of 96%.
  3. Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of CAD$2,000/oz (~US$1,550/oz) and a gold processing recovery factor of 97%.
  4. Assays were variably capped on a wireframe-by-wireframe basis.
  5. Specific gravity was applied using weighted averages to each individual wireframe.
  6. Mineral Resource effective date February 7, 2021.
  7. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
  8. Excludes unclassified mineralization located within mined out areas.
  9. Reported from within a mineralization envelope accounting for mineral continuity.

ANACONDA-EXHIBITA-101221.jpg

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Interesting news from this promising stock :D 

TORONTO, ON / ACCESSWIRE / October 19, 2021 / 
Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce an updated Mineral Resource Estimate ("Mineral Resource") for the Stog'er Tight Deposit, part of the Point Rousse Project ("Point Rousse"), prepared in accordance with National Instrument 43-101 ("NI 43-101") and 2019 CIM MRMR Best Practice Guidelines. The Mineral Resource was prepared by Independent Qualified Person Glen Kuntz, P.Geo., of Nordmin Engineering Ltd. ("Nordmin"). All dollar amounts are in Canadian dollars.

The Stog'er Tight Mineral Resource includes an Indicated Mineral Resource of 642,000 tonnes at a grade of 3.02 grams per tonne ("g/t") gold for 62,300 ounces and an Inferred Mineral Resource of 53,000 tonnes at a grade of 5.63 g/t gold for 9,600 ounces. These Mineral Resources are constrained within three open pits as well as adjacent to the past producing Stog'er Tight Mine. The Stog'er Tight deposit is located three kilometres from the Pine Cove mill along existing roads and was previously processed at the Pine Cove mill from June 2018 to January 2020, achieving an average recovery rate of 87%.

"The growth of the Stog'er Tight Deposit, now including 62,300 ounces of Indicated Mineral Resource and 9,600 ounces of Inferred Mineral Resource within constrained open pit shells, is a significant milestone in our strategy to expand the life of mine at our Point Rousse operations. Given the relative high grade nature of the Mineral Resource and its proximity to the Pine Cove mill and existing road networks, we have initiated development work required to enable us to convert these resources to reserves. We anticipate results from this work in the fourth quarter of 2021. Consequently, environmental baseline studies have been in progress throughout the 2021 field season and we anticipate the submission of an environmental registration document in the fourth quarter of 2021. We believe the Stog'er Tight resource combined with the recently announced Argyle Mineral Reserve demonstrate potential for an expanded mine life at the Point Rousse operation for several years. Given our history of discovery at Point Rousse and ongoing drill testing of additional targets at both the Point Rousse and Tilt Cove projects, we believe the Point Rousse Project has the potential for continued cash generation for several years and beyond."

~Kevin Bullock, President and CEO, Anaconda Mining Inc.

Stog'er Tight Development and Permitting
The Stog'er Tight Deposit is located three (3) kilometres east of the Pine Cove Mill and has been defined over a strike length of 1,250 metres to date. Anaconda produced a total of 17,102 ounces of gold from 349,942 tonnes of ore from the Stog'er Tight Mine between June 2018 and January 2020. Gold from Stog'er Tight was recovered through the Pine Cove Mill with an average head grade of 1.75 g/t gold at an overall recovery of approximately 87%.

Baseline studies to support an enhanced registration document were initiated in Spring 2021. These studies have included avifauna, bat, and rare plant surveys, as well as fish and fish habitat assessments and surface and groundwater monitoring Fish and fish habitat data will be used to support the development of a Fisheries Act Authorization application and a fish habitat offsetting plan, which are also expected to be submitted in Q1 of 2022.

Stog'er Tight Mineral Resource
The Mineral Resource was prepared by Independent Qualified Person, Glen Kuntz, P. Geo. of Nordmin. The Stog'er Tight Mineral Resource is based on validated results of 690 surface drill holes (506 diamond drill holes and 184 percussive drill holes), for a total of 37,584 metres of diamond drilling that was completed between 1988 and 2021 and the effective date of September 1, 2021. From these drill holes a total of 16,319 samples were analyzed for gold content. The Mineral Resource is defined at a 0.59 g/t gold cut-off and is based upon 1 metre assay composites using a variable gold grade cap. The Open pit constrained Mineral Resource (Table 1) uses the unit cost assumptions outlined in Table 2.

Table 1: Stog'er Tight Mineral Resource - Effective Date: September 1, 2021

Type Au (g/t) Cut -off Category Tonnes Au g/t Rounded Ounces
Open Pit

0.59

Indicated

642,000

3.02

62,300

Inferred

53,000

5.63

9,600

Mineral Resource Estimate Notes

  1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. Open pit Mineral Resources are reported at a cut-off grade of 0.59 g/t gold that is based on a gold price of CAD$2,000/oz (approximately US$1,550/oz) and a gold processing recovery factor of 87%.
  3. Assays were capped on the basis of the three Domain types Flat, Steep and Background.
  4. SG was applied on a lithological basis after calculating weighted averages based on lithological groups.
  5. Mineral Resource effective date September 1st, 2021.
  6. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
  7. Reported from within a mineralization envelope accounting for mineral continuity.
  8. Excludes unclassified mineralization located within mined out areas.

Input Parameters for the Stog'er Tight Mineral Resource Open Pit Calculation
For the open pit Mineral Resource¬†(Table 1)¬†a pit limit analysis was undertaken using the Lerchs-Grossmann algorithm in Geovia's Whittle‚ĄĘ 4.7 software to determine physical limits for a pit shell constrained Mineral Resource. The parameters used to generate a pit shell are shown in¬†Table 2.

Table 2: Physical Pit Limit Analysis Parameters

PARAMETER

VALUE

Currency Used for Evaluation

CA$

Block Size

3m x 3m x 3m

Overall Slope Angle

Rock: Varied by Sector - Range 42o - 44o

Overburden: 25o

Mining Cost

4.66$/tmined

Process Cost

31.85/tprocessed

includes assumptions for Milling, G&A, tailings, additional haulage to mill
Selling Cost

68.19$/oz.

includes dore transportation, refining, and royalty

Metal Price

1550 US$/oz.

1US$ : 1.3CA$

2000 CA$/oz.

Process Recovery

87%

Mining Loss & Dilution

5% each

Resources Used for Pit Shell Generation

Indicated + Inferred

Pit Shell Selection

Revenue Factor RF 1.00 for Resource Pit Shell

The milling cut-off grade is used to classify the material contained within the pit shell limits as open pit resource material. This break-even cut-off grade is calculated to cover the Process and Selling Costs. The open pit Mineral Resource cut-off grade is estimated to be 0.59 g/t gold. For resource cut-off calculation purposes, a mining recovery of 87% and 5% mining dilution were applied.

Geological Domaining Stog'er Tight Deposit
Nordmin undertook a full re-examination of the mineralogical, lithological, and structural correlations influencing the gold bearing structures present at the Stog'er Tight deposit. Detailed wireframing was carried out based on vertical 15 m spaced cross-sections and subsequently joined section to section. Each wireframe was given an individual numeric identifier, from there a domain type was assigned within based on the location and nature of the intercept (1=Flat, 2=Steep) Figure 1. A cut-off grade of 0.50 g/t Au was utilized in the creation of the wireframes at the Stog'er Tight deposit.

Explicit modelling was used to create the Mineral Resource, which allows for mineralization to better reflect the Deposit geology and associated geochemistry. Nordmin's opinion is that the explicit modelling approach minimizes risks compared to using implicit modelling for the Project.

ANACONDA-IMAGE101921.jpg

Figure 1: Geological domains (Flat and Steep structures).

Exploratory Data Analysis
The exploratory data analysis was conducted on raw drill hole data to determine the nature of the gold distribution within the flat-steep mineralized trends, correlation of grades within individual domains, and the identification of high-grade outlier samples. Nordmin used a geostatistical package (X10 Geo) to complete various descriptive statistics, histograms, probability plots, and XY scatter plots to analyze the grade population data. The findings of the exploratory data analysis were used to help define modelling procedures and parameters used in the Mineral Resource Estimate.

Data received from the Company had been cleaned and edited prior to use in the resource estimate. No significant issues were noted in drill hole collar locations, survey, assay, and lithology data supplied to Nordmin.

Individual drill hole tables (collar, survey, assay, etc.) were merged to create one single master drill hole file. The process splits assay intervals to allow for all records in all tables to be included.

Stog'er Tight Compositing
The raw sample data was found to have a very consistent range of sample lengths. Samples captured within all wireframes were composited to 1.0 m regular intervals based on the observed modal distribution of sample lengths, which supports a 3.0 m x 3.0 m x 3.0 m block model (Northing x Easting x Elevation) with three sub-blocking levels (a minimum size of Northing = 0.375 m x Easting = 0.375 m x Variable Elevation). An option to use a slightly variable composite length was chosen to allow for backstitching shorter composites located along the edges of the composited interval. All composite samples were generated within each background low-grade, northwest-southeast, and east-west wireframe. There are no overlaps along boundaries. The composite samples were statistically validated to ensure no material loss of data or change to each sample population's mean grade.

Nordmin reviewed the previous historical estimate capping method and determined that a more appropriate method would be to assign capping values based on the geological and structural features present on site. Therefore, the assays were variably capped by domain type (flat, steep and background) Table 3.

Table 3: Stog'er Tight Deposit Cap Values

 

Capped

Uncapped

Domain

Metal

Cap

# of Samples

Min

Max

Mean

# Capped

% Capped

% Metal Lost

CV

Min

Max

Mean

CV

(g/t)

Flat

Au

19.0

1050

0.003

19

2.73

19

1.80%

7.2

1.43

0.003

74.4

2.94

1.82

Steep

Au

30.0

1357

0.003

30

2.76

15

1.10%

3.7

1.69

0.003

147.6

2.87

2.05

Background

Au

1.0

13262

0.003

1

0.035

131

1.00%

15

3.35

0.003

21.4

0.041

6.05

Stog'er Tight Assessment of Spatial Grade Continuity
Datamine and Sage 2001 was used to determine the geostatistical relationships for each deposit. Independent variography was performed on composite data for each domain. Experimental grade variograms were calculated from the capped/composited sample gold data to determine the approximate search ellipse dimensions and orientations.

The analyses considered the following:

  • Downhole variograms were created and modelled to define the nugget effect;
  • Experimental pairwise-relative correlogram variograms were calculated to determine directional variograms for the strike and down dip orientations;
  • Variograms were modelled using an exponential with practical range;
  • Directional variograms were modelled using the nugget defined in the downhole variography and the ranges for the along strike, perpendicular to strike, and down dip directions;
  • Variograms outputs were re-oriented to reflect the orientation of the mineralization; and
  • The analysis demonstrated that gold continuity could be appropriately defined by one main variogram across all domains.

A Technical Report prepared in accordance with NI 43-101 for the Point Rousse Project will be filed on SEDAR (www.sedar.com) within 40 days of this news release and will include updated Argyle Mineral Reserves (as announced on October 13, 2021) and the Stog'er Tight Mineral Resources for the Point Rousse Project. For readers to fully understand the information in this news release, they should read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Reserves. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

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Here are 2021's Third quarter results. Looks promising. 


Read the entire article @ 
https://www.anacondamining.com/prviewer/release_only/id/4921467

 

ANACONDA MINING ANNOUNCES THIRD QUARTER 2021 FINANCIAL RESULTS

 

TORONTO, ON / ACCESSWIRE / November 4, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to report its financial and operating results for the three months ended September 30, 2021 ("Q3 2021"). The consolidated interim financial statements and management discussion and analysis documents can be found at www.sedar.com and the Company's website, www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.
 

"With mining at Argyle focused on waste development and throughput largely limited to lower-grade Pine Cove ore stockpiles, Anaconda sold 2,574 ounces of gold, generating metal revenue of $5.8 million, with operating cash costs* of $2,087 (US$1,656) per ounce of gold sold. Challenges in mine development during the quarter delayed access to Argyle ore and as a result the Company revised its production guidance for 2021 to approximately 12,000 ounces of gold sold and produced and is also revising its operating cash cost* guidance upward to between $2,150 and $2,200 per ounce of gold sold (US$1,720 - US$1,760). We are confident with the changes we have made at Argyle over the second and third quarter, including an independently prepared updated Mineral Resource, and 2022 is shaping up to be a record year of production for the Company. Furthermore, with the growth of the Stog'er Tight Deposit, now including 62,300 ounces of Indicated Mineral Resource and 9,600 ounces of Inferred Mineral Resource within constrained open pit shells, and ongoing drill testing of additional targets at both the Point Rousse and Tilt Cove projects, we believe the Point Rouse Project has the potential for continued cash generation for several years."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Third Quarter 2021 Highlights

  • Anaconda sold 2,574 ounces of gold in Q3 2021, generating metal revenue of $5.8 million at an average realized gold price* of $2,242 (US$1,779) per ounce sold;
  • Due to slower mine waste development at Argyle during Q3 2021 which delayed access to higher-grade ore, the Company has revised its 2021 guidance downward to approximately 12,000 ounces of gold sold and produced;
  • Gold production from the updated Argyle Mineral Reserve (effective September 1, 2021) is expected to be approximately 29,500 ounces based on an 87% overall mill recovery, setting up Anaconda for a record year of production in 2022, at an average operating cash cost per ounce sold of $1,112 (US$878)*;
  • Operating cash costs per ounce sold* at Point Rousse in Q3 2021 were $2,087 (US$1,656), driven by lower production from lower milled grade from low-grade ore stockpiles coupled with higher operating costs. Operating cash costs per ounce sold* for the full year are now expected to be between $2,150 and $2,200 per ounce of gold sold (US$1,720 - US$1,760 based on an exchange rate of 0.80);
  • All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was $3,979 (US$3,158) for Q3 2021, which reflects increased mine waste development and sustaining capital to advance Stog'er Tight;
  • The Company invested $2.2 million to advance its growth programs in Q3 2021, including $1.4 million on the Goldboro Gold Project relating to the Feasibility Study and permitting to support the advancement of the significantly expanded Mineral Resource;
  • Net loss for the three months ended September 30, 2021 was $1.1 million, or $0.01 per share, compared to net income of $4.0 million or $0.03 per share, for the three months ended September 30, 2020, driven predominantly by lower production;
  • On October 19, 2021, the Company announced an expanded Mineral Resource for Stog'er Tight, including Indicated Mineral Resources of 642,000 tonnes at a grade of 3.02 g/t gold (62,300 ounces of gold) and Inferred Mineral Resources of 53,000 tonnes at a grade of 5.63 g/t gold (9,600 ounces of gold), increasing the potential for a mine life extension at Point Rousse;
  • As of September 30, 2021, the Company had a cash balance of $10.6 million and working capital* of $6.3 million and additional available liquidity of $3.0 million from and undrawn revolving line credit facility with the Royal Bank of Canada.

*Refer to Non-IFRS Measures section below for reconciliation.

Consolidated Results Summary

Financial Results
 
Three months ended
September 30, 2021
   
Three months ended
September 30, 2020
   
Nine months ended
September 30, 2021
   
Nine months ended
September 30, 2020
 
Revenue ($)
    5,855,453       12,703,630 12,703,630       20,155,365       31,594,739  
Cost of operations, including depletion and depreciation ($)
    6,245,043       5,540,360       23,123,227       18,368,320  
Mine operating (loss) income ($)
    (389,590 )     7,163,270       (2,967,862 )     13,226,419  
Net (loss) income ($)
    (1,078,899 )     3,982,777       (5,778,000 )     7,436,040  
Net (loss) income per share ($/share) - basic and diluted ($)
    (0.01 )     0.03       (0.03 )     0.05  
Cash generated from operating activities ($)
    251,303       6,183,727       (1,030,618 )     12,007,716  
Capital investment in property, mill and equipment ($)
    3,125,994       387,383       5,431,463       1,577,708  
Capital investment in exploration and evaluation assets ($)
    2,227,982       2,150,374       9,195,864       4,638,061  
Average realized gold price per ounce*
 

US$1,779

   

US$1,866

   

US$1,812

   

US$1,672

 
Operating cash costs per ounce sold*
 

US$1,656

   

US$677

   

US$1,828

   

US$830

 
All-in sustaining cash costs per ounce sold*
 

US$3,158

   

US$947

   

US$2,799

   

US$1,121

 
 
                  September 30, 2021     December 31, 2020  
Working capital (*)
                    6,340,306       13,938,471  
Total assets ($)
                    89,145,317       81,396,971  
Non-current liabilities ($)
                    7,644,639       7,529,640  
 
                                               

*Refer to Non-IFRS Measures section for reconciliation

Third Quarter Operating Statistics

Operational Results
 
Three months ended
September 30, 2021
   
Three months ended
September 30, 2020
   
Nine months ended
September 30, 2021
   
Nine months ended
September 30, 2020
 
Ore mined (t)
    18,047       187,185       106,762       401,573  
Waste mined (t)
    802,087       387,116       1,934,794       1,510,830  
Strip ratio
    44.4       2.1       18.1       3.8  
Ore milled (t)
    118,988       120,359       328,551       351,828  
Grade (g/t Au)
    0.67       1.59       0.88       1.42  
Recovery (%)
    86.2       88.5       85.9       87.5  
Gold ounces produced
    2,218       5,444       7,959       14,098  
Gold ounces sold
    2,574       5,105       8,849       13,948  

2021 Guidance

Due to slower mine development at Argyle during Q3 2021 which delayed access to higher-grade ore, Anaconda revised its 2021 guidance downward to approximately 12,000 ounces of gold, from 16,000 and 17,000 ounces of gold in 2021. Operating cash costs per ounce for the full year are expected to be between $2,150 and $2,200 per ounce of gold sold (US$1,720 - US$1,760 at an approximate exchange rate of 0.80), up from $1,625 and $1,675 per ounce of gold sold, reflecting the impact of operating cash costs per ounce sold in the first nine months of 2021 and the expected grade profile from Argyle over the remainder of the year. The average operating costs per ounce sold over the remaining Mineral Reserves for Argyle is expected to be $1,112 per ounce (US$878) and all-in sustaining cash costs per ounce sold is expected to be $1,252 per ounce (US$989) based on a strip ratio of 5.3 waste tonnes to ore tonnes. Sustaining capital over the remaining Argyle mine life is estimated to be $2.1 million from September 30, 2021.

Third Quarter 2021 Review

Operational Overview

Anaconda produced 2,218 ounces of gold in Q3 2021, a 61% decrease compared to Q3 2020 as throughput was predominantly from low-grade ore stockpiles while mine waste development was the focus at Argyle. For the nine months ended September 30, 2021, the Company produced 7,959 ounces due to the heavy focus on mine waste development coupled with the processing of low-grade ore stockpiles.

Mine operations in the third quarter were focused on mine waste development at Argyle with 802,087 tonnes of waste moved during the quarter. However, the rate of waste development was impacted by drill availability delaying the access to ore in Q3 2021, resulting in a strip ratio of 44.4 waste tonnes to ore tonnes. Ore mining has been ramping up significantly since the end of September and mill throughput in Q4 is expected to be predominantly from Argyle.

The Pine Cove Mill processed 118,988 tonnes during Q3 2021 and achieved an availability rate of 95.1%, resulting in a throughput rate of 1,361 tonnes per day, similar to the corresponding period of 2020, with overall gold production impacted by the processing of low-grade Pine Cove ore stockpiles. Notwithstanding the low-grade throughput, the mill was able to achieve an average recovery rate of 86.2%, a decrease of only 2.6% compared to Q3 2020 despite grade being down 58% from the prior period.

Financial Results

Anaconda sold 2,574 ounces of gold during the third quarter of 2021, generating gold revenue of $5.8 million at an average realized gold price of C$2,242 per ounce (US$1,779).

Operating expenses for the three months ended September 30, 2021 were $5,402,512 compared to $4,616,353 in the comparative period of 2020. Operating expenses for Q3 2021 included mining costs of $1,918,128 which were 21% lower than the comparative period, primarily due to significantly lower tonnes mined as well as the impact of the capitalization of $2,553,947 in deferred stripping costs at Argyle. Argyle has higher blasting and haulage unit costs and a higher strip ratio in comparison to Pine Cove, which was being mined in the previous year. Processing costs of $2,539,275 in Q3 2021 were higher than the comparative period primarily due to higher maintenance costs. Operating cash costs per ounce sold in the three months ended September 30, 2021 were C$2,087 (US$1,656), which were impacted by lower mine grade and higher processing costs.

The royalty expense for Q3 2021 was $53,434, reflecting the 3% net smelter return royalty that applies to Argyle. There were no royalty expenses in Q3 2020, as the Company was processing Pine Cove ore which was not subject to a net smelter return royalty. Depletion and depreciation for Q3 2021 was $789,097 a decrease from $924,007 in Q3 2020 reflecting the 59% decrease in gold ounces produced, offset by the ongoing capitalization of Argyle development since Q3 2020.

Mine operating loss for the three months ended September 30, 2021 was $389,590, compared to mine operating income of $7,163,270 in the corresponding period of 2020, the result of lower revenue and higher comparable operating costs during Q3 2021.

Corporate administration costs were $905,089 for Q3 2021, a decrease of 10% from Q3 2020.

In July 2021, Novamera completed an equity financing in which the Company did not participate, diluting its interests in Novamera to 19%. Consequently, the Company ceased to account for its investment on a significant control basis and at that time recorded a gain of $1,020,432 based on the implied valuation of the financing, which represents the excess of the fair value of the investment on that date as compared to the investment's carrying value under the equity method.

Net comprehensive loss for the three months ended September 30, 2021, was $1,078,899, or $0.01 per share, compared to net comprehensive income of $3,982,777, or $0.03 per share, for the three months ended September 30, 2020. The decline compared to the comparative period of 2020 was the result of lower production and higher operating costs, which was partially offset by the gain on the loss of significant influence over Novamera and by a lower net income tax expense, as the Company did not record any current income tax expense in the recent period while also recording a deferred income tax expense of $617,000 during Q3 2021.

Financial Position and Cash Flow Analysis

As of September 30, 2021, the Company had working capital of $6,340,306, which included cash and cash equivalents of $10,567,042. The increase in trade and other payables reflects the higher operating costs incurred in Q3 2021 and was also impacted by the timing of exploration activities at Goldboro and Point Rousse. Current taxes payable reflects the Newfoundland mining taxes payable for year ended December 31, 2020, which was paid in the first half of 2021. The increase in other current liabilities is a result of the flow-through premium recorded during Q2 2021 in relation to the flow-through private placement completed in May 2021, representing the difference between the market price of the Company's shares upon closing and the cash consideration received in exchange for the flow-through common shares, less the proportion of the transaction costs associated with the flow-through portion of the private placement.

Anaconda generated $251,303 in operating cash flows during the three months ended September 30, 2021, which included corporate administration costs of $905,089. The Point Rousse Project generated EBITDA of $388,185 (refer to Non-IFRS Measures section), based on gold sales of 2,574 ounces at an average gold price of C$2,242 per ounce sold and operating cash costs of C$2,087 per ounce sold. Operating cash flows were also impacted by changes in working capital, namely the increase in accounts payable and a decrease in stockpiled inventory.

The Company continued to invest in its key growth projects in Newfoundland and Nova Scotia in Q3 2021, spending $2,227,982 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals as of September 30, 2021), primarily on the continued advancement of the Goldboro Project ($1,350,359). The Company also invested $3,125,994 into the property, mill and equipment at the Point Rousse operation, with capital investment focused on development activity at Argyle during Q3 2021.

Non-IFRS Measures

Anaconda has included in this press release certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Operating Cash Costs per Ounce of Gold - Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however, excludes depletion and depreciation and rehabilitation costs.

All-In Sustaining Costs per Ounce of Gold - Anaconda has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.

The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price, operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant, and the Company uses the average foreign exchange rate for the period.

Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.

Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") - EBITDA is earnings before finance expense, deferred income tax expense and depletion and depreciation.

Point Rousse Project EBITDA is EBITDA before corporate administration and other expenses (income).

Working Capital - Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.

ABOUT ANACONDA

Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project with Measured and Indicated Mineral Resources of 1.9 million ounces (16.0 million tonnes at 3.78 g/t) and Inferred Mineral Resources of 0.8 million ounces (5.3 million tonnes at 4.68 g/t) (Please see The Goldboro Gold Project Technical Report dated March 30, 2021), which is subject to an ongoing Feasibility Study. Anaconda also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, risks related to the COVID-19 pandemic, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the year ended December 31, 2020, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

 

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