Anaconda Mining Sells a Record 4,658 Ounces of Gold, Generating Over $7.72m in Gold Sales in the Fourth Quarter FY2017

TORONTO, June 15, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) is pleased to announce production results and certain financial information from the fiscal fourth quarter and full year ended May 31, 2017. All dollar amounts are in Canadian Dollars. The Company expects to file its full financial statements by August 25, 2017.

Fourth Quarter 2017 Highlights

• Anaconda sold a record 4,658 ounces of gold in the fourth quarter at an average sales price of $1,658 per ounce, an 11% increase in gold ounces sold over Q4 2016
• The Company generated $7.72 million in gold sales revenue in the fourth quarter ending May 31, 2017, an increase of 14% over Q4 2016
• Anaconda completed the transformational acquisition of the Goldboro Project in Nova Scotia, which contains Measured and Indicated Mineral Resources of 2,556,000 tonnes at 5.57 g/t Au for 457,400 ounces, and an Inferred Mineral Resource of 2,669,000 tonnes at a grade of 4.35 g/t Au for 372,900 ounces (cut-off grade of 2.0 g/t Au)

Full Year 2017 Highlights

• Anaconda achieved gold sales of 15,562 ounces during the fiscal year ended May 31, 2017, in line with revised mid-year guidance for fiscal 2017
• The Company generated $25.7 million in revenue at an average sale price of $1,651 per ounce, a 5% increase from the 2016 fiscal year.
• The Pine Cove Mill increased throughput by 8% to 1,223 tonnes per day compared to the previous fiscal year, while maintaining an increased grade profile for the second half of fiscal 2017 in line with mid-year revised guidance
• The Company generated a further $0.9 million from the sale of waste rock as aggregate from its Point Rousse Operation

President and CEO, Dustin Angelo, stated, "Despite challenging weather conditions impacting mining rates, Anaconda Mining was able to achieve record quarterly gold sales of over 4,600 ounces at the Point Rousse Operation. The Pine Cove Mill continues to maintain strong levels of productivity due to continued maintenance and availability at 98% during the fourth quarter of fiscal 2017. Looking ahead, the Company is poised to grow through the development of the newly acquired Goldboro Project in Nova Scotia, and the continued exploration success in the Point Rousse Project area, such as the Argyle discovery. Leveraging existing mill and tailings infrastructure, Anaconda is positioned to increase production through organic growth from its portfolio of exploration and development properties, in addition to evaluating other potential growth opportunities in Atlantic Canada."

Fourth Quarter and Full Year Operating Statistics

	Q1 '17	Q2 '17	Q3 '17	Q4 '17	FY '17	Q4 '16	FY '16
Mine Statistics
Ore production (tonnes)	108,305	129,078	102,531	92,167	432,081	98,214	397,821
Waste production (tonnes)	890,120	595,668	325,076	386,387	2,197,251	634,746	2,421,880
Total production (tonnes)	998,425	724,746	427,607	478,554	2,629,332	732,960	2,819,701
Waste: Ore ratio	8.2	4.6	3.2	4.2	5.1	6.5	6.1
Mill Statistics
Availability	96%	91%	95%	98%	95%	94%	93%
Dry tonnes processed	99,441	108,045	107,762	107,956	423,204	104,163	387,694
Tonnes per 24-hour period	1,130	1,302	1,268	1,200	1,223	1,197	1,134
Grade (grams per tonne)	1.17	1.38	1.28	1.49	1.33	1.26	1.50
Overall mill recovery	86%	85%	85%	86%	85%	85%	85%
Gold Ounces Sold	2,919	4,388	3,597	4,658	15,562	4,196	16,023

 

FY Q4 2017 Operations Overview:

At the Company's Point Rousse Operation, mining operations were challenged in the fourth quarter due to snowfall and related weather conditions, limiting operating days to 58 days for the fourth quarter of fiscal 2017.  Mine production was 92,167 tonnes of ore and 386,387 tonnes of waste for a strip ratio of 4.2:1 waste to ore. Tonnes mined were significantly lower than the fourth quarter of fiscal 2016, partly due to weather conditions, but also significantly impacted by a lower stripping ratio profile of 4.2:1, compared to 6.5:1 in the corresponding period of 2016.  Due to inclement weather conditions, the Company ensured appropriate focus on monitoring final pit walls and dewatering of the open pit to ensure continued ore production to the mill in the fourth quarter and into the next fiscal year.

The Pine Cove Mill operated at an availability rate of 98%, achieving an average run rate of 1,200 tonnes per operating day compared to 1,197 tonnes per operating day in the fourth quarter of fiscal 2016, a 4% increase. The Pine Cove Mill processed 107,956 dry tonnes of ore during the quarter compared to 104,163 dry tonnes of ore in the similar period of fiscal 2016, at relatively similar recovery rates over the comparative periods. Average feed grade during the quarter was 1.49 grams per tonne compared to 1.26 grams per tonne in the similar period of fiscal 2016, an 18% increase. Preventative maintenance continues to be a focus to maintain consistent levels of production which included cone crusher liner changes during the fourth quarter of fiscal 2017. A new refinery is scheduled to be installed in fiscal 2018, with the aim of optimizing recovery rates, reducing related costs, and providing improved safety conditions in the refining process.

Qualified Person

Gordana Slepcev, P. Eng., Chief Operating Officer, 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.

ABOUT ANACONDA

Anaconda Mining is a TSX-listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian provinces of Newfoundland and Nova Scotia.  The Company operates the Point Rousse Operation located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the newly discovered Argyle Deposit, 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 Operation.

The Company also has a pipeline of organic growth opportunities to leverage existing infrastructure, including the Viking and Great Northern Projects and the Tilt Cove Property in Newfoundland.

FORWARD-LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

SOURCE Anaconda Mining Inc.

Anaconda Mining Inc., Dustin Angelo, President and CEO, [phone], [email protected]; Anaconda Mining Inc., Lynn Hammond, VP Public Relations, [phone], [email protected]; www.AnacondaMining.com

Related Links

www.anacondamining.com