TORONTO, Sept. 8, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") – (TSX:ANX) is pleased to announce that the Company has completed its $1.025 million mill automation project (the "Automation Project") at the Pine Cove Mill, which began in September 2015. During the implementation of the Automation Project, Anaconda applied for and received $1.0M of financing through two government programs; the Atlantic Canada Opportunities Agency ("ACOA") and the Department of Business, Tourism, Culture and Rural Development ("DBTCRD") (together the "Financing").
President and CEO, Dustin Angelo, stated, "The completion of the mill automation project is a big milestone in the growth and development of the Pine Cove Mill, a continuously improving asset that is the cornerstone of our infrastructure at the Point Rousse Project. By utilizing some of the newest technology available such as a cyanide analyzer, we expect to benefit by reducing operating costs, increasing productivity and freeing up manpower to focus on more value added activities. Our newly constructed control room centralizes information at the mill and allows us to troubleshoot issues in real time. We can also leverage this centralized facility as the Company expands because the system has the capability to control and monitor operations at other locations remotely. The majority of funding for the project was provided by ACOA and the DBTCRD, with whom Anaconda has maintained long standing relationships. We appreciate our partnership with them and will continue to explore other initiatives together to help propel Anaconda and its projects in the future for the mutual benefit of the Company and the people of Newfoundland and Labrador."
The Company obtained the Financing to fund specifically the Automation Project. The ACOA loan of $500,000 is non-interest bearing and will be repayable in 60 equal installments commencing October 1, 2016. Per the terms of the ACOA loan agreement, the funds were received as reimbursement of paid qualifying expenditures, which occurred during the implementation of the Automation Project. The DBTCRD funding consists of a $100,000 grant (non-repayable) and a $400,000 loan, having an interest rate of 3%, which will be repayable in 60 monthly payments of $7,187 commencing November 30, 2016. The DBTCRD funding was received on September 6, 2016.
Automation Project Overview
The Automation Project at the Pine Cove Mill included the installation of many individual components such as flow meters, state-of-the-art analyzers, PLC's and other standard instrumentation. A new central control room was also constructed to house the control system and operator, from which the entire plant and crusher can be controlled and monitored. Full data trending is available to the operator and management, and the control interface (VTSCADA) can be accessed remotely by technical staff to provide 24/7 troubleshooting assistance. The new control room could also serve as the central operating point for future milling operations at other Anaconda projects outside of the Point Rousse Project.
Anaconda set up various flow meters, control valves and level sensors throughout the plant to establish automatic control loops on certain metrics such as tank levels, pump speeds and reagent addition, which will create more stable and consistent operating conditions. By increasing stability, Anaconda expects to achieve greater levels of throughput while maintaining the highest possible recovery. Manual processes such as sampling and monitoring of turbidity, pH and pressure have been significantly reduced because of automation. Consequently, manpower can now be spent on more value added tasks. Furthermore, the control room operator can, through the control system and cameras, better avoid process disruptions, identify issues at earlier stages or prevent them altogether.
To monitor and control the leaching circuit of the Pine Cove Mill, Anaconda installed a cyanide analyzer, manufactured by the Australian company Orica, which is the first of its kind in the world to be utilized in an operating mill. The analyzer handles cyanide addition and monitoring automatically, which is expected to reduce overall cyanide consumption; one of the Company's highest consumable costs.
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project in Newfoundland.
The Point Rousse Project is approximately 6,300 hectares of 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 ten-fold on the peninsula and gold production to approximately 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove Mill.
Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The project contains the Thor Deposit and other gold prospects and showings. The Company's plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of approximately 16,000 ounces.
As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.
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.: Dustin Angelo, President and CEO, (647) 260-1248, [email protected], www.AnacondaMining.com; High Stakes Strategy & Communications: Lynn Hammond, Executive Consultant, (709) 330-1260, [email protected]