Anaconda's Point Rousse Project sells record 4,600 ounces of gold; generates $6.8m in revenue in Q2 FY2016

TORONTO, Dec. 14, 2015 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) announces certain financial and operating results from the three and six month period ended November 30, 2015. The Company sold a record 4,605 ounces of gold during the second quarter of fiscal 2016 and generated $6,798,076 in revenue at an average sales price of $1,476 per ounce. Sales volume in the second quarter of fiscal 2016 was 34% higher than the comparable period of fiscal 2015 when the Company sold 3,431 ounces. During the six months ended November 30, 2015, the Company sold 8,561 ounces of gold (also a record for a six-month period) and generated $12,583,877 in revenue at an average sales price of $1,470 per ounce. Sales volume in the first half of fiscal 2016 was 16% higher than the comparable period of fiscal 2015 when the Company sold 7,364 ounces.

The Company expects to file its full financial statements by January 12, 2015. All financial results are denominated in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, "The second quarter of fiscal 2016 was another strong operational quarter highlighted by a record gold sales volume of over 4,600 ounces. The entire team, from top to bottom, continues to demonstrate the ability to drive more productivity and efficiency in the mill and the mine. Recently, we've gotten huge gains from employing new technologies in the pit and automating portions of the mill along with repairing the ball mill motor in September. One of the most noteworthy achievements in the quarter was increasing throughput to over 1,200 tonnes per operating day in November. The performance of the mineral processing and mining teams bodes well for generating significant cash flow for many years to come as we demonstrate the longevity of the Point Rousse Project through our positive exploration and development results, starting with the Stog'er Tight deposit."

FY Q2 2015 Operations Overview:

The Pine Cove mill operated for 81 days during the second quarter of fiscal 2016 at an availability rate of 88% (which included an eight-day mill shutdown for scheduled annual maintenance). For the quarter, the mill processed 95,629 dry tonnes of ore at an average head grade of 1.66 grams per tonne. Overall mill recovery was 87%, compared to 85% in the second quarter of fiscal 2015. The mill's run rate for the quarter was 1,181 tonnes per operating day versus 1,056 in the same period in the previous fiscal year, a 12% increase.

During the second quarter of fiscal 2016, the mill had its annual scheduled shutdown for an eight-day maintenance program. During the shutdown, the primary ball mill was relined, repairs were completed on the ball mill electric motor, new feed boxes were put in and several components were installed for the mill automation project. The repairs to the ball mill motor have enabled it to start up with a higher ball charge, which has helped improve throughput in November to a new monthly high of 1,212 tonnes per operating day.

 The mine operated for 64 days in the second quarter of fiscal 2016 producing 105,947 tonnes of ore and 529,718 tonnes of waste. Mining production increased 19% in the second quarter of fiscal 2016 compared to the second quarter of fiscal 2015 to accommodate the increased levels of throughput at the Pine Cove mill.

The following table summarizes the key operating statistics for the three and six months ended November 30, 2015 and November 30, 2014:

OPERATING STATISTICS:

For the three months ended

For the six months ended


November 30,
2015

November 30,
2014

November 30,
2015

November 30,
2014

Mill





Operating days

81

81

167

168

Availability

88%

88%

91%

92%

Dry tonnes processed

95,629

85,515

192,161

169,297

Tonnes per 24-hour period

1,181

1,056

1,151

1,008

Grade (grams per tonne)

1.66

1.60

1.64

1.70

Overall mill recovery

87%

85%

87%

85%






Gold sales volume (troy oz.)

4,605

3,431

8,561

7,364






Mine





Operating days

64

63

142

127

Ore production (tonnes)

105,947

77,489

210,225

166,728

Waste production (tonnes)

529,718

457,387

1,172,546

949,427

Total production (tonnes)

635,665

534,876

1,382,771

1,116,155

Waste: Ore ratio

5.0

5.9

5.6

5.7






 

NOTE: Operating statistics exclude changes in in-circuit inventory.

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing project called the Point Rousse Project, and approximately 6,346 hectares of exploration property on the Ming's Bight Peninsula, located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by almost ten-fold. It is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include four deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove mill. The Company's plan is to discover and develop more resources within the project area and double annual production from its current rate of approximately 15,000 ounces to 30,000 ounces.

FORWARD-LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of 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., Dustin Angelo, President and CEO, (647) 260-1248, dangelo@anacondamining.com, www.AnacondaMining.com; Kingston Advisors, Investor Relations, (212) 796-5290, info@kingstonadvisors.com, www.KingstonAdvisors.com

RELATED LINKS
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