Anaconda's Pine Cove Mine sells approximately 3,800 ounces of gold; generates nearly $5.3M in revenue in Q4 FY2014
TORONTO, June 17, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) announces certain financial and operating results from the fiscal fourth quarter and full year ended May 31, 2014. During the fourth quarter, the Company sold 3,797 ounces of gold and generated $5,278,887 in revenue at an average sales price of $1,390 per ounce. The fourth quarter fiscal 2014 sales volume and revenue were approximately 13% and 22% lower than the fourth quarter fiscal 2013 sales volume and revenue, respectively. For fiscal 2014, the Company sold 14,577 ounces of gold and generated $20,175,326 in revenue at an average sale price of $1,384 per ounce. Compared to fiscal 2013, sales volume and revenue decreased by 2% and 17% respectively. Year-over-year revenue decreased due to a decline in average sales price from $1,625 per ounce in fiscal 2013 to $1,384 in fiscal 2014. For fiscal 2014, the mill processed approximately 305,000 tonnes of ore, nearly 17,000 more tonnes than fiscal 2013. Year-over-year, mill availability and overall recovery remained stable at 88% and 83% respectively. The Company expects to file its full financial statements by August 27, 2014.
President and CEO, Dustin Angelo, stated, "Fiscal fourth quarter operating performance established an important record, achieving a run rate of 995 tonnes per operating day. This milestone, accompanied by the strong mill availability, highlights the recovery of operations from the difficult winter conditions in the third quarter. Had we not been impacted by such a harsh winter, Pine Cove would have sold over 15,000 ounces for the fiscal year. Management is encouraged by the higher daily throughput achieved in the fourth quarter and believes it can maintain these levels in fiscal 2015. Therefore, the Company expects to exceed fiscal 2014 throughput and sales volume, and maintain approximately the same grade and recovery in fiscal 2015."
FY Q4 2014 Mill Operations Overview:
The Pine Cove mill operated for 82 days during the fourth quarter of fiscal 2014 at an availability rate of 89%. For the quarter, the mill processed 81,569 dry tonnes of ore at an average head grade of 1.80 grams per tonne. Overall mill recovery was 82%, compared to 84% in Q4 2013, primarily due to lower than expected leach-circuit recovery. Leach recovery in March was lower than target due to maintenance on certain tanks, which reduced capacity and retention time. In May, higher than normal grind size at the re-grind mill also negatively impacted leach recovery. Procedural changes and increased monitoring around the leach circuit has led to recoveries returning to expected levels.
The mill's run rate for the quarter was 995 tonnes per operating day and was the highest in the operation's history. Additional efforts undertaken in the fourth quarter to create consistency between operating teams, improve preventative maintenance activities and achieve higher hourly run rates proved favourable.
FY Q4 2014 Mining Operations Overview:
Changes in the pit's ore body due to extreme faulting and folding caused unpredicted dilution which was not forecasted from previous exploration results. Efforts to reduce the dilution factor and improve feed grade are ongoing. Some of the projects identified and started include down-hole probing, blast movement monitoring, reverse circulation drilling and mining ore in half benches. The team continues to work diligently to reduce dilution and improve ore recovery in the pit.
The following table summarizes the key operating statistics by quarter for the fiscal year ended May 31, 2014:
|OPERATING STATISTICS:||Q1 '14||Q2 '14||Q3 '14||Q4 '14||Total/Avg.|
|Dry tonnes processed||83,890||76,114||63,123||81,569||304,696|
|Tonnes per 24-hour period||987||956||834||995||946|
|Grade (grams per tonne)||1.92||1.80||1.79||1.80||1.83|
|Overall mill recovery||83%||83%||83%||82%||83%|
|Gold sales volume (troy oz.)||4,096||3,852||2,832||3,797||14,577|
NOTE: Operating statistics exclude changes in in-circuit inventory.
Headquartered in Toronto, Canada, Anaconda is a growth-oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
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.For further information:
Anaconda Mining Inc.
President and CEO