On October 15, 2019, Anaconda and Magna Terra Minerals Inc. (“Magna Terra”) (TSX-V:MTT) announced they have entered into a definitive share purchase agreement dated October 14, 2019, whereby Magna Terra proposes to acquire all of the issued and outstanding common shares of Anaconda's wholly owned subsidiary, 2647102 Ontario Inc. (ExploreCo). ExploreCo owns a 100-percent interest in the Great Northern and Viking projects in Newfoundland and Labrador, and the Cape Spencer project in New Brunswick. The Jacksons Arm Project is part of ExploreCo’s Great Northern Project. http://www.metalscreek.com/november-12-2019 Under the revised terms of the Jacksons Arm Agreement, on or before the November 7, 2019 Anaconda will issue to Metals Creek 50,000 Consideration Shares (see definition below), and on or before January 6, 2020 - $20,000 in cash by wire transfer and $70,000 in Consideration Shares. All other terms of the agreement remain unchanged. Tilt Cove Agreement with Anaconda Under the revised terms of the Tilt Cove Agreement,to maintain the Option with respect to the Licenses in full force, ANX shall pay to MCR the following amounts: - on the Effective Date (November 7, 2016) – $20,000 in cash by wire transfer and 50,000 Consideration Shares (see definition below); (Paid) - on the first anniversary of the Effective Date – $40,000 in cash by wire transfer and 100,000 Consideration Shares; (Paid) - on the second anniversary of the Effective Date – $60,000 in cash by wire transfer and 150,000 Consideration Shares;(Paid) - On the third anniversary of the Effective Date - $20,000 in cash and 100,000 Consideration Shares; - On or before February 6, 2020 - $20,000 in cash; - On or before May 6, 2020 – $20,000 in cash; and - On or before August 6, 2020 – $20,000 in cash. To further maintain the Option in full force with respect to the Licenses, Anaconda shall fund Expenditures with respect to the Licenses aggregating a minimum of $150,000 at any time or times during the Option Period. All other terms of the agreement remain unchanged. Consideration Shares Under the Jacksons Arm Agreement the Consideration Shares shall be issued as fully paid and non-assessable shares and shall form part of a class of shares that is listed and posted for trading on an Exchange and shall be free and clear of all restrictions on trading other than those required by applicable Laws. For clarity, the number of Consideration Shares set forth herein refers to common shares in the capital of the Optionee as constituted on the date hereof. Such number of common shares shall be subject to adjustment, as deemed necessary by the directors of the Optionee, acting reasonably from time to time, including without limitation, upon the occurrence of a subdivision or consolidation of the common shares in the capital of the Optionee. Under the Tilt Cove Agreement the number of Consideration Shares set forth herein refers to common shares in the capital of Anaconda as constituted on the date hereof. Such number of common shares shall be subject to adjustment, as deemed necessary by the directors of the Optionee, acting reasonably from time to time, including without limitation, upon the occurrence of a subdivision or consolidation of the common shares in the capital of the Optionee.
Anaconda Mining Discovers New Prospective Areas at its Tilt Cove Gold Project and Initiates Trenching and Drilling Program Anaconda Mining Inc--Anaconda Mining Discovers New Prospective A Anaconda Mining Inc--Anaconda Mining Discovers New Prospective A Discovered the new Growler Showing with seven grab samples ranging in grade from 2.11 to 5.68 grams per tonne ("g/t") gold, with similarities to Nugget Pond-style gold mineralization (Exhibit A and B); Discovered a new prospective iron formation, the Red Cliff Horizon, in the footwall of the Nugget Pond Horizon with a 6 km strike, establishing two potential host rocks for Nugget Pond-style gold mineralization in this area (Exhibit A and B); Acquired new land adjacent to the Growler Showing that hosts the Betts Big Pond Showing with historic grab samples up to 60.66 g/t gold and chip samples of 8.19 g/t gold over 2.3 m; Developed three drill targets associated with coincident structures that cross the Nugget Pond and Red Cliff Horizons, associated with low magnetic intensity and includes gold-in-soil anomalies located along the southeast trend of historic glacial movement ("down-ice"); Identified a broad gold-in-soil anomaly down-ice from the Red Cliff Pond Target; Found 154 samples with anomalous gold (82 samples greater than 0.50 g/t gold, 31 greater 3.00 g/t gold and 14 high-grade samples ranging from 5.16 g/t gold to 216.10 g/t gold) and two visible gold occurrences; and Initiated a trenching program and a diamond drilling program of up to 4,000 metres, including initial trenching and 1,000 metres of drill testing at the Growler Showing, West Pond and Red Cliff Pond targets (Exhibit B). "Based on data from our recent comprehensive exploration evaluation program, combined with historical data, we have identified exciting new opportunities for discovery at the Tilt Cove Gold Project and have initiated trenching programs and drill testing of these targets. The identification of the Red Cliff Horizon parallel with the Nugget Pond Horizon over a six-kilometre strike means there are now two potential host rocks for Nugget Pond-style gold mineralization in this area. We have also discovered the Growler Showing, which bares similarities to Nugget Pond-style gold mineralization and is located in the immediate hanging wall of a large-scale fault system and acquired another property hosting the Betts Big Pond Showing. The Growler Showing is currently being tested through trenching and drilling, with drilling at the West Pond and Red Cliff Pond targets to follow. We expect to complete these initial trenching and drilling programs by the end of the year and anticipate commencing a second phase of drilling at Tilt Cove in the new year." ~ Kevin Bullock, President and CEO, Anaconda Mining Inc. The Red Cliff Horizon The Red Cliff Horizon is a previously unrecognized prospective horizon at Tilt Cove located between 50 and 200 metres northwest of, and within the footwall stratigraphy to the steeply dipping Nugget Pond Horizon and has a strike of approximately 6 kilometres (Exhibit B). Like the Nugget Pond Horizon, the Red Cliff Horizon includes iron-rich, magnetic rocks known to be important hosts to gold deposits like the Nugget Pond Deposit. Anaconda has identified three targets (the West Pond, East Pond and Red Cliff Pond targets) located along a six-kilometer strike of both the Nugget Pond Horizon and the Red Cliff Horizon where there is a confluence of cross-cutting structures, breaks in magnetic intensity, and down ice gold-in-soil anomalies, all consistent with the setting of the Nugget Pond Deposit. The Growler Showing The Growler Showing is located 1.2 kilometres west of the Nugget Pond Mine and is hosted within sedimentary rocks similar to those hosting the Nugget Pond Mine. The rocks hosting the Growler Showing are highly altered and contain abundant (up to 10%) coarse, cubic pyrite as part of the alteration system, a common feature at the Nugget Pond Deposit. The Growler Showing is in the hanging wall of a large-scale fault system as is common to many gold deposits in the Baie Verte Mining District. Ten grab samples were all anomalous in gold including seven samples grading between 2.11 g/t and 5.68 g/t gold. The Betts Big Pond Showing The Betts Big Pond Showing is located 1.9 kilometres west of the Nugget Pond Mine and 700 metres west of the Growler Showing. The Betts Big Pond Showing is hosted in a similar setting to the Nugget Pond Mine but near a faulted contact with younger Silurian Intrusive rocks of the Cape Brule Porphyry. Alteration comprises disseminated pyrite and associated quartz veins. Historic grab sampling completed in 1987 includes assays up to 60.66 g/t gold and chip sampling in 2017 across the exposed zone assaying 8.18 g/t gold over 2.3 m (true width unknown). Due diligence re-sampling by Anaconda yielded grab samples assaying up to 3.36 g/t gold. Highlights of the Tilt Cove Gold Project Large land position that has been consolidated for gold exploration for the first time in decades with 20 kilometres of prospective strike, encompassing the Nugget Pond Horizon, which hosts the past-producing high-grade Nugget Pond; Includes the newly identified Red Cliff Horizon, which is an iron rich magnetic rock prospective for gold deposits; Nugget Pond mineralization is like other Banded-Iron-Formation hosted lode gold deposits, such as Meadowbank, Lupin, Meliadine and Homestake; Includes the Venams Bight Formation, which is the same formation that hosts the Pine Cove Mine at the Point Rousse Project; Significant high-grade historical drill intercepts and the identification of 13 high-priority gold exploration targets including: 6.77 g/t gold over 5.0 metres in hole BC-89-02; 11.20 g/t gold over 1.1 metres in hole BC-89-01; 8.82 g/t gold over 1.0 metre in hole NBC-96-01; and Land package also includes the past-producing Tilt Cove and Betts Cove copper mines. This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects. All "non-historic" samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, NL, for Au by fire assay (30 g) with an AA finish. Composited assays from historical drill core are compiled from historic reports and data filed with the Department of Natural Resources, Newfoundland and Labrador. Sufficient work has not been completed by Anaconda geologists and QPs to verify the validity of these composited assays. A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days. ABOUT ANACONDA Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company 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 ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study. https://www.anacondamining.com/2019...-and-Initiates-Trenching-and-Drilling-Program
Anaconda Mining plans changes to proposed Goldboro mine https://www.cbc.ca/news/canada/nova...a1oYMSePAkVGzI6Nwad-IPz7E_VCex69nPzdsFFJaGBCs Anaconda Mining originally planned to create a 125-hectare surface and underground gold mine just outside Goldboro, N.S., about 250 kilometres east of Halifax. The proposal called for ore to be processed on site and then for gold concentrate to be trucked to the company's Point Rousse processing facility near Baie Verte, N.L., via the North Sydney ferry. Company spokesperson Lynn Hammond said the new plans will include a full-scale mill that will produce gold doré, or partially refined, bars at the Goldboro site. The revised plans also modify the original layout "with a goal of further minimizing environmental impact," Hammond said. The amount of time mining at the surface before moving underground will also shrink to two years from three years. The company now plans to produce gold bars at its proposed Goldboro, N.S., mine rather than trucking gold concentrate to Newfoundland for processing. (Zach Goudie/CBC) Hammond said the new proposal reflects input received from Mi'kmaq organizations and communities. The original project was submitted for environmental approval in August 2018. But the environment minister said the company's submission didn't contain enough information. She asked Anaconda to write a new, more extensive report on the environmental implications of the project, and gave a one-year deadline. This September, three days before that deadline, Anaconda withdrew its proposal for the Goldboro mine from the environmental assessment process. Hammond said Nova Scotia Environment advised the company to withdraw it because of the planned changes. The company plans to submit a new environmental assessment before the end of this month. The original plan called for construction to begin in 2020 and for production to wrap up in 2029. Hammond said that timeline hasn't changed.
Anaconda mining innovating in Art & trench anomalies https://www.juniorminingnetwork.com...ogram-kubi-gold-project-ghana-smd-update.html Anaconda Mining is adapting to an increasingly digital world with our entry to PwC Canada’s #artofmining photography competition. Check out www.pwc.com/ca/artofmining and vote now! https://im-mining.com/2019/06/06/anaconda-mining-ready-disrupt-narrow-vein-mining-sector/
Anaconda Mining Inc. ("Anaconda" or the "Company") (ANX: TSX) (OTCQX: ANXGF) is pleased to announce the results of an underground bulk sample program (the "Bulk Sample") undertaken at its 100%-owned Goldboro Gold Project ("Goldboro" or the "Project") located in Nova Scotia, Canada. The objectives of the Bulk Sample were to confirm the geological interpretation of the deposit, test for spatial and grade continuity of the mineralized structures, validate key assumptions of the updated Mineral Resource model, and test certain types of mining methods. Key Takeaways of the Bulk Sample Successfully tested a large area within the 2019 Mineral Resource Estimate1 with respect to continuity of gold grade and geological interpretation, confirming the position and continuity of mineralized zones; The average diluted mine grade based on grade control samples2 of 3.51 g/t gold reconciles well with the average undiluted grade of the Mineral Resource block model of 3.81 g/t gold in the area of the Bulk Sample (both capped at 80 g/t); The average head grade of 3.81 g/t gold from the Pine Cove Mill shows a positive reconciliation of 8.5% to the mine grade of 3.51 g/t gold, demonstrating an upside bias within an acceptable range; High gravity recovery of 51%, confirming metallurgical test work; and Demonstration of excellent ground conditions through test mining and successful testing of certain underground mining methods to optimally extract the Mineral Resource. Bulk Sample Shipped (Diluted) Head Grade Through Mill Variance (%) Tonnes (dry) g/t Au2 Ounces Tonnes (dry) g/t Au3 Contained Ounces 9,785 3.51 1,106 9,785 3.81 1,197 8.5% 1Refer to the Company's technical report entitled "Anaconda Mining Inc., Goldboro Gold Project Resource Update Phase 2, Guysborough County, NS" with an effective date of August 21, 2019 and report filing date of December 18, 2019. 2Mine grade was based on muck samples taken from every second truck during the mining process, estimated using metallic screening with an 80 g/t gold top cut. 3 Contained ounces and head grade calculated based on gold produced from the Pine Cove Mill plus gold contained in tailings. The delays in processing and completing the Bulk Sample were the result of shipping challenges experienced in the summer of 2019 (see Update on Statement of Claim section below) and the timing in receiving refining results on certain portions of the processed material. "Anaconda is pleased to announce the results of the Goldboro Bulk Sample, a key milestone in the advancement towards a construction decision. We are very encouraged with the excellent results of test mining where the average diluted mine grades reconciled well with the estimated undiluted block model grades, providing further confidence in the updated Mineral Resource. The underground component portion of the Measured and Indicated Mineral Resource grade for the entire Goldboro Deposit is 6.18 g/t gold at a 2.0 g/t gold cut-off grade. The positive Bulk Sample results demonstrate a slightly positive reconciliation to the mined grade, within acceptable limits, thereby giving further confidence in the Mineral Resource being used as the basis for the Feasibility Study, which is expected to be announced in Q1 2020. Furthermore, the processing of the bulk sample material demonstrated excellent gravity recovery of 51%, which confirms the gravity test work undertaken as part of the overall metallurgical test program." ~ Kevin Bullock, President and CEO, Anaconda Mining Inc. Geology and Test Mining The Bulk Sample was extracted from the Boston-Richardson Gold System within the Goldboro Deposit, leveraging existing decline and cross cuts developed in the late 1980's to minimize the development needed to access mineralized zones. The average underground NI 43-101 compliant Measured and Indicated Mineral Resource grade for the entire Goldboro Deposit is 6.18 g/t gold at a 2.0 g/t gold cut-off. The Mineral Resource for the specific mine areas targeted for the Bulk Sample predicted 11,274 tonnes of Mineral Resource at an average undiluted grade of 3.81 g/t gold, capped at 80 g/t. A total of 13,022 tonnes of mineralized material was mined and stockpiled on surface, at an average diluted grade of 3.21 g/t gold based on grade control samples capped at 80 g/t gold, out of which 9,785 tonnes at an average diluted grade of 3.51 g/t gold were shipped to the Pine Cove Mill in Newfoundland for processing. Five areas of development were completed on three levels (Exhibit A) at mine elevations of 4965 (Level 1), 4930 (Level 2 W, Level 2 E, Level 2 Ramp), and 4920 (Level 3 W and Level 3 E). New development, in excellent ground conditions, included three drifts off the existing cross cuts on Level 1 and Level 2 (Exhibit B) as well as the creation of a newly developed ramp to Level 3 (Exhibit C) with two additional drifts resulting in a total of 213 metres of new development. A total of 86 drift rounds were blasted which allowed for inspection, mapping, and sampling from the faces of the development headings. Information was also collected from the faces of 13 slot raise rounds during the development of the stopes. Drifting was advanced using a single boom jumbo, typically with one round blasted per 12-hour shift. Stoping was completed using a long-hole method using both up-holes and down-holes. Blasted rock was mucked using 1.5 and 2.0 cubic yard scoop trams, and then loaded into a 7.0 cubic yard truck to haul to surface. Development faces were geologically mapped, photographed, and sampled. Chip and muck sampling was completed systematically to determine average grade for each round. A total of 2,148 muck and 1,380 chip samples were collected, as well as drilling and sampling of 518 test holes, and 132 long holes, in addition to quality control samples. Processing, Grade Reconciliation, and Gold Recovery Anaconda shipped 9,785 tonnes of the mineralized material to the Pine Cove Mill in Newfoundland for processing, where the gold was extracted via a combination of gravity recovery followed by sulphide flotation and cyanide leaching. The mill recovered 610 ounces of gold from the gravity concentration circuit, with an additional 360 ounces being recovered through the flotation and leaching circuits, for a total of 970 ounces of gold recovered and an overall recovery of 81%. Concentrate from the gravity circuit was further cleaned through the use of a shaker table and additional gravity concentration processes to ultimately produce gold doré bars. The recovery results reflect the limitations of the Pine Cove Mill with respect to the processing of Goldboro material. The metallurgical test work reported on July 9, 2019, demonstrated high overall gold recoveries averaging 97% using gravity processing followed by whole-ore leaching. Composite samples taken from key sampling points in the process, including gold contained in tailings, were used in conjunction with the actual gold recovered and milled tonnage to calculate an average head grade of 3.81 g/t gold. The reconciled results from the processing of the Bulk Sample material are as follows: Tonnes Processed (dry) Head Grade Contained Ounces Gravity Concentrate Flotation Concentrate Leach Overall Recovery Recovered Ounces Au (g/t) Au Au Rec (%) Au Oz Au Rec (%) Au Oz (%) Au 9,785 3.81 1,197 51% 610 30% 360 81% 970 The calculated head grade from processing was 3.81 g/t gold, a positive reconciliation of 8.5% compared to the average mine grade of 3.51 g/t gold. The Bulk Sample results indicate that we have achieved good reconciliation of the diluted material mined compared to the block model, and the reconciliation of the calculated head grade to the average mine grade indicates that the capping of 80 g/t gold is appropriate, with upside bias. The gravity recovery compared well to bench scale testing completed in 2019, as part of metallurgical testing done by Base Metallurgical Laboratories Ltd., under supervision of Ausenco Engineering Canada Inc., which is leading the Goldboro mineral processing plant design (see news release dated July 9, 2019). Technical Information, Quality Control, and Reporting Protocols All underground chip, muck, and sludge samples were shipped daily to the contract assay lab at the Dufferin Mine, near Sheet Harbour, Nova Scotia, where they were analyzed for gold by fire assay. A total of 836 samples (coarse reject material) assaying greater than 1.50 g/t gold were shipped to Eastern Analytical Limited ("Eastern") in Springdale, NL for check analysis via metallic screen fire assay. Quality control samples were systematically inserted into each sample batch and consisted of two prepared powdered gold standards (Certified Reference Material) and a natural blank. Results were assessed for accuracy, precision, and contamination on an ongoing basis. Mill feed tonnages used in the sample processing reconciliation were provided daily. The Company collected 6-hour composite samples during the processing of the Bulk Sample, which were assayed by Eastern. Daily composite samples were taken on feed and tail streams for reconciliation purposes. Mill throughput for the Bulk Sample was estimated based on the feed belt scale which is calibrated monthly. All samples were sent out to an external independent lab for preparation and assaying for both gold and arsenic. Gold assays were obtained by screened metallics fire assay. For all the other samples, gold assay was obtained by fire assay AA finish or gravimetric finish. Bulk Sample Gold Sales and Update on Statement of Claim Of the 970 ounces of gold produced, the Company has sold 903 ounces for gross proceeds of $1,773,000, which will be recorded as a credit against the Goldboro exploration and evaluation asset in the Company's statement of financial position. The related processing costs at the Pine Cove Mill will also be capitalized to the Goldboro asset on a proportionate basis. The remaining ounces will be sold in 2020. As reported on July 23, 2019, the initial shipping company that Anaconda had engaged for the Bulk Sample, NIL Group Limited ("NIL"), has filed a Statement of Claim (the "Claim"), alleging that the Company is responsible for certain additional costs in relation to the shipment. As a result, NIL had served a warrant with respect to the approximately 1,000 tonnes which were yet to be discharged from the barge at the time of filing of the Claim. As disclosed as part of Anaconda's Q3 2019 financial reporting, the Company obtained a court order allowing it to process the tonnes subject to the warrant, on condition that it post the proportional gross revenue generated from said tonnes into an escrow account with the Court, pending further legal proceedings. The Company continues to consider the Claim to be without merit and on August 16, 2019, the Company filed its Statement of Defense and Counterclaim against NIL, Newman Investments Limited, a related company to NIL, as well as NIL's principals, alleging, among other things, contractual breach, negligent and/or fraudulent misrepresentation, and fraudulent deceit. Statements of Defense to the Company's counterclaim have not yet been filed.
Metals Creek Resources Receives $20,000 Option Payment From Anaconda Mining for Tilt Cove Option https://www.juniorminingnetwork.com...rom-anaconda-mining-for-tilt-cove-option.html TSX VENTURE: MEK www.metalscreek.com Mr. Alexander Stares reports: Toronto, Ontario--(Newsfile Corp. - February 10, 2020) - Metals Creek Resources Corp. (TSXV: MEK) (OTC: MCREF) ("Metals Creek" or the "Company") is pleased to announce that the Company has received a $20,000 option payment for the Tilt Cove option from Anaconda Mining Inc. on the 6th of February, 2020. Under the revised terms of the Tilt Cove Agreement, to maintain the Option with respect to the Licenses in full force, ANX shall pay to MCR the following amounts: On the Effective Date (November 7, 2016) - $20,000 in cash by wire transfer and 50,000 Consideration Shares (see definition below); (Paid) On the first anniversary of the Effective Date - $40,000 in cash by wire transfer and 100,000 Consideration Shares; (Paid) On the second anniversary of the Effective Date - $60,000 in cash by wire transfer and 150,000 Consideration Shares; (Paid) On the third anniversary of the Effective Date - $20,000 in cash and 100,000 Consideration Shares; (Paid) On or before February 6, 2020 - $20,000 in cash; (Paid) On or before May 6, 2020 - $20,000 in cash; and On or before August 6, 2020 - $20,000 in cash. To further maintain the Option in full force with respect to the Licenses, Anaconda shall fund Expenditures with respect to the Licenses aggregating a minimum of $150,000 at any time or times during the Option Period. All other terms of the agreement remain unchanged.
Great results from Q4 from Anaconda Mining https://www.anacondamining.com/prviewer/release_only/id/4247198 ANACONDA MINING REPORTS FOURTH QUARTER AND FULL YEAR 2019 FINANCIAL RESULTS; GENERATES $9.9 MILLION IN EBITDA FROM THE POINT ROUSSE COMPLEX TORONTO, ON / ACCESSWIRE / March 2, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to report its financial and operating results for the three months and year ended December 31, 2019 ("Q4 2019"). The Company's audited consolidated financial statements, management discussion & analysis, and annual information form 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. Highlights for the Year Ended December 31, 2019 Anaconda sold 16,362 ounces of gold in 2019 from production at the Point Rousse Complex, generating metal revenue of $29.5 million at an average sales price* of C$1,804 (US$1,360) per ounce of gold. The Company also sold 903 ounces from the processing of the Goldboro Bulk Sample at the Pine Cove Mill in Q4 2019, generating a further $1.8 million in proceeds. Anaconda produced 15,211 ounces of gold in 2019 at the Point Rousse Complex, below its revised guidance of 16,000 to 17,000 ounces due to increased throughput time for the Bulk Sample to maximize recovery, displacing Pine Cove ore, and lower grades in Q4 2019 due to changes in mine sequencing. Operating cash costs per ounce sold* at the Point Rousse Project in Q4 2019 were $1,371 (US$1,039), and $1,165 (US$878) for the year ended December 31, 2019, below the Company's revised annual guidance of $1,325 and $1,375 per ounce of gold sold as a result of better than planned throughput and grade in Q3 2019. All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was $1,693 (US$1,282) for Q4 2019, and $1,655 (US$1,247) for the full year. In 2019, the Company invested $10.9 million in its exploration and development projects, including $9.2 million on the Goldboro Gold Project in Nova Scotia relating to the feasibility study, permitting, the bulk sample, and ongoing diamond drilling programs. The Point Rousse Complex generated EBITDA* of $1.6 million in Q4 2019 and $9.9 million for the year ended December 31, 2019, compared with $2.9 million and $12.2 million for the respective 2018 periods. Net income for the year ended December 31, 2019 was $373,047, or $0.00 per share, compared to net loss of $1,693,413, or $0.01 per share, for the year ended December 31, 2018. The Company extended the amortization of its term loan with the Royal Bank of Canada, providing enhanced financial flexibility as the Company continues to advance the Goldboro Gold Project and Tilt Cove Project. As at December 31, 2019, the Company had a cash balance of $4.4 million, working capital* of $2.7 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility. *Refer to Non-IFRS Measures section below. A full reconciliation of Non-IFRS Measures can be found in the Management Discussion and Analysis as at and for the year ended December 31, 2019. "Anaconda is pleased to announce another solid financial year from mining operations at the Point Rousse Complex, achieving project-level EBITDA of $9.9 million and generating operating cash flows of over $4.3 million. We ended the year with a strong liquidity position including $4.4 million in cash, and 2020 is off to strong start with production at Point Rousse above plan and record Canadian dollar gold prices. Anaconda's strong financial position, continued cash flow, and operating infrastructure provide the platform for growth, as we target 150,000 ounces of gold production in the next three to five years. In 2020, we will advance towards our goal with continued gold production at the Point Rousse Complex, the advancement of the Goldboro Gold Project, and executing our drill programs at the exciting Tilt Cove Gold Project." ~Kevin Bullock, President and Chief Executive Officer, Anaconda Mining Inc. Consolidated Results Summary Financial Results Three months ended December 31, 2019 Three months ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2018 Revenue ($) 6,506,722 6,759,181 29,547,682 31,731,136 Cost of operations, including depletion and depreciation ($) 4,919,066 8,490,772 22,690,028 25,826,099 Mine operating income ($) 1,587,656 1,268,409 6,857,654 5,905,037 Net income (loss) ($) (229,778) (356,333 ) 373,047 (1,693,413 ) Net income (loss) per share ($/share) - basic and diluted ($) (0.00) (0.00 ) 0.00 (0.01 ) Cash generated from operating activities ($) (209,207) 3,385,823 4,372,224 8,894,347 Capital investment in property, mill and equipment ($) 133,609 284,911 2,181,896 2,023,857 Capital investment in exploration and evaluation assets ($) 1,451,810 4,057,912 10,943,829 8,024,095 Average realized gold price per ounce* US$1,489 US$1,207 US$1,360 US$1,265 Operating cash costs per ounce sold* US$1,039 US$805 US$878 US$755 All-in sustaining cash costs per ounce sold* US$1,282 US$1,014 US$1,247 US$1,074 December 31, 2019 December 31, 2018 63,757,965 57,942,367 6,903,274 5,290,646 *Refer to Non-IFRS Measures section for reconciliation During the fourth quarter of 2019, the Company processed the Goldboro Bulk Sample (the "Bulk Sample") at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis. Proceeds from gold recovered and sold from the Bulk Sample were recorded as a credit against the Goldboro exploration and evaluation asset, and the related processing costs at the Pine Cove Mill were also reallocated to the Goldboro asset on a proportionate basis. Operational Results Three months ended December 31, 2019 Three months ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2018 Ore milled (t) - including Bulk Sample 110,474 110,547 401,499 461,439 Grade (g/t Au) 1.49 1.93 1.52 1.56 Recovery (%) 83.1 89.1 82.3 86.7 Gold ounces recovered 4,411 6,125 16,181 20,149 Gold ounces sold 4,209 6,120 17,265 19,290 Excluding the operating results from the Bulk Sample, the Pine Cove Mill Statistics specifically for production from the Point Rousse Complex are as follows: Operational Results Three months ended December 31, 2019 Three months ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2018 Ore milled (t) 100,689 110,547 391,714 461,439 Grade (g/t Au) 1.27 1.93 1.46 1.56 Recovery (%) 84.0 89.1 82.8 86.7 Gold ounces produced 3,441 6,125 15,211 20,149 Gold ounces sold 3,306 6,120 16,362 19,290 2020 Guidance Anaconda is projecting to produce and sell between 18,000 and 19,000 ounces of gold in 2020. Mill feed in 2020 will be exclusively from mining in the Pine Cove Pit, as the Company has continued to successfully expand the mining operations at Pine Cove, which is well understood geologically and from a mining perspective, limiting technical risk. The Company continues to progress the Argyle Project, where infill drilling is ongoing, with development expected to commence towards the middle of 2020. The Company has now received a Mining Lease for Argyle and has submitted the development and rehabilitation plan for review by the Department of Natural Resources in Newfoundland. Operating cash costs per ounce for the full year are expected to be between $1,050 and $1,100 per ounce of gold sold (US$775 - US$825 at an approximate exchange rate of 0.75), which is consistent with historical levels for the Point Rousse Complex, although expected to be higher earlier in 2020 due to the grade profile of the mine plan. Review of the Year Ended December 31, 2019 Operational Overview The Point Rousse Complex produced 15,211 ounces of gold during 2019, coming in below the revised guidance of 16,000 to 17,000 ounces of gold, mainly due to a slower than planned throughput rate for the Bulk Sample to maximize recovery (which displaced Pine Cove ore) and lower grades during the fourth quarter as slope conditions required a change to mine sequencing. The Pine Cove Mill processed 401,499 tonnes during 2019, including 9,875 tonnes from the Bulk Sample, a decrease of 15.1% compared to 2018 largely due to the challenges in the second quarter, when unplanned maintenance of the regrind mill impacted mill availability, which in turn impacted throughput and recovery. Mill availability has returned to historical levels of 97% in the second half of the year, up significantly from 85.8% in Q2 2019. Average grade from production from the Point Rousse Complex in 2019 was 1.46 g/t, down 6.4% from 2018 when mill feed was predominantly from the higher grade Stog'er Tight Mine. The average grade in 2019 was also impacted by lower than planned grade in the fourth quarter due to a change in the mine sequence. The mill achieved an average recovery rate of 82.8% in 2019, excluding the impact of the Bulk Sample, a significant decrease from 2018 due to the challenges in Q2 2019 when the recovery rate was 74.7%. Mine operations moved 413,139 tonnes of ore during the year at an average grade of 1.54 g/t and a strip ratio of 4.3 waste tonnes to ore tonnes. In general, mined tonnes have increased in the third and fourth quarters of 2019 compared to the first half of the year, when mining activity was focused at Stog'er Tight and on the development of the Pine Cove Pit. Tonnes of ore produced increased 26% and total material moved increased 35% compared to 2018, when mining was focused on the lower-tonnage profile Stog'er Tight Mine. In 2020, mine production will remain focused on production from the south and southwest areas of the Pine Cove Pit, with the strip ratio expected to decrease over the year. Financial Results Anaconda sold 16,362 ounces of gold in 2019 from Point Rousse to generate metal revenue of $29.5 million at an average realized gold price of C$1,804 per ounce (US$1,360). Anaconda generated a further $1,773,091 in proceeds from the 903 ounces of gold recovered and sold from the Bulk Sample that was recorded as a credit against the Goldboro asset. As at December 31, 2019, the Company had over 420 ounces of gold doré inventory, which was sold in January. Operating expenses for the year ended December 31, 2019 were $18,648,582, compared to $18,626,974 in the year ended December 31, 2018. Operating expenses for 2019 included mining costs of $9,366,509, and increase from $7,005,663 in the previous year, as the Company moved 35% more material in 2019 while mining in the Pine Cove Pit. Processing costs in 2019 were $8,923,013, a decrease from $9,428,149 in 2018 mainly related to 15% less mill throughput. Operating expenses were also impacted by an inventory adjustment credit of $995,977 due to the build-up in inventory at December 31, 2019. Operating cash costs per ounce sold during 2019 were C$1,165 (US$878), below the Company's revised 2019 annual operating cash cost guidance of C$1,325-C$1,375 as a result of better than planned throughput and grade in the second half of 2019. The royalty expense for 2019 was $443,325, an increase over 2018 as a greater proportion of production was from Stog'er Tight, which carries a 3% net smelter royalty. Depletion and depreciation for the year ended December 31, 2019 was $3,608,121, a significant decrease from 2018 due to the continued expansion of the mine life at Pine Cove, which results in a higher denominator for depletion and depreciation on a units-of-production basis relative to the denominator used in the fourth quarter of 2018. Mine operating income for the year ended December 31, 2019 was $6,857,654, an increase from mine operating of $5,905,037 in 2018, mainly due to lower depletion and depreciation offsetting lower revenue due to the displacement of Point Rousse ore from the processing of the Bulk Sample. Corporate administration expenditures were $4,373,751 during 2019, an increase over 2018 as the result of one-time severance costs incurred as part of the Company's ongoing effort to streamline costs and renew its focus on increasing its production profile. The Company also recorded research and development costs of $592,942 in 2019 relating to the research and a potential field trial for the narrow vein mining research project, as well as other research initiatives such as tailings repurposing. Share-based compensation was $861,429 during the year ended December 31, 2019, compared to $544,560 in the comparative 2018 period. The increase reflects the higher fair value and vesting expense of the share units granted during the first half of 2019. Finance expense for the year ended December 31, 2019 was $417,072, significantly higher than 2018 as a result of the $5 million term loan entered into with the Royal Bank of Canada ("RBC") in March 2019, which carries an interest rate of 4.6%. Net comprehensive income for the year ended December 31, 2019, was $373,047, or $0.00 per share, compared to net comprehensive loss of $1,693,413, or $0.01 per share, in the comparative period of 2018. The improvement from the prior year was driven by higher mine operating in 2019 and a net income tax recovery of $41,000 as a result of the significantly higher gold price environment (2018 - net income tax expense of $1,624,445). Review of Fourth Quarter 2019 Results Operational Overview Gold production of 3,441 from the Point Rousse Complex in Q4 2019 was lower than plan, mainly the result of a slower than planned throughput rate for the Bulk Sample to maximize recovery (which displaced Pine Cove ore), and lower grades during the fourth quarter as slope conditions required a change to mine sequencing. The Pine Cove Mill has returned to consistent operations, milling a total of 110,474 tonnes during the fourth quarter, including 9,875 tonnes from the Bulk Sample. Mill throughput has continued to increase since the Company addressed second quarter challenges, achieving 1,318 tonnes per day in the fourth quarter for Pine Cove mill feed (noting that the mill throughput rate was purposely slowed for the processing of the bulk sample to maximize recoveries on Goldboro material). Average grade during the fourth quarter was 1.27 g/t from ore feed predominantly from Pine Cove, lower than planned due to a change in the mine sequence, and a decrease compared to the corresponding period of 2018 when mill feed was predominantly from the higher grade Stog'er Tight Mine. The mill achieved an average recovery rate for Point Rousse ore feed of 84.0% during the fourth quarter, a significant increase from 74.7% in Q2 2019, resulting in quarterly gold production of 3,441 ounces. Including the mill throughput from the Bulk Sample, the Pine Cove Mill recovered 4,411 ounces of gold at an overall average recovery rate of 83.1% during Q4 2019. The mine operation produced 123,302 tonnes of ore in Q4 2019 mainly from the Pine Cove Pit and some residual mining at Stog'er Tight, an 8% decrease from Q3 2019 as slope conditions on the western wall resulted in a change to mine sequencing, which also impacted the total material moved for the quarter. In general, mined tonnes have increased in the second half of 2019 compared to the first half of the year, when mining activity was focused at Stog'er Tight and on the development of the Pine Cove Pit. Financial Results During the fourth quarter, the Company sold 3,306 ounces of gold from production from the Point Rousse Complex, generating metal revenue of $6,506,722 at an average realized gold price of C$1,966 per ounce (US$1,489). Anaconda generated a further $1,773,091 in proceeds from gold recovered and sold from the Bulk Sample. Gold revenue was 33% lower compared to Q4 2018 due to 46% decrease in ounces sold from Point Rousse, which was partially offset by a 23% increase in the price of gold. Operating expenses were $4,498,317 during Q4 2019, a decrease from $6,215,098 in the fourth quarter of 2018. The higher operating expenses in the prior year were the result of higher relative haulage costs at Stog'er Tight, and higher mill throughput which resulted in higher processing costs. Furthermore, the operating expenses in Q4 2019 were impacted by an inventory adjustment credit of $995,977 due to the build-up in inventory at December 31, 2019. Operating cash costs per ounce sold in Q4 2019 were $1,371 (US$1,039), compared to $1,063 (US$805) in the prior period, primarily due to the decrease in ounces sold and higher strip ratio in the most recent quarter. The royalty expense of $42,825 during the fourth quarter was down significantly from Q4 2018, when production was predominantly from Stog'er Tight, which carries a 3% net smelter return royalty. Depletion and depreciation for Q4 2019 was $377,924, representing a significant decrease from Q4 2018 due to the continued expansion of the mine life at Pine Cove, which results in a higher denominator for depletion and depreciation on a units-of-production basis relative to the denominator used in the fourth quarter of 2018. Overall, mine operating income for the fourth quarter was $1,587,656, an increase from $1,268,409 in corresponding period of 2018, as lower gold revenue and higher operating expenses were offset by lower royalty expenses and a significant decrease in depletion and depreciation. Net loss for the three months ended December 31, 2019 was $229,778, or $0.00 per share, compared to net loss for the three months ended December 31, 2018 of $356,333, or $0.00 per share. Financial Position and Cash Flow Analysis As at December 31, 2019, the Company had working capital of $2,728,061, which included cash and cash equivalents of $4,351,588. Current loans increased in 2019 due to a $5 million term loan with the Royal Bank of Canada ("RBC"), entered into in March 2019, which carries a fixed interest rate of 4.6% and a performance guarantee fee by Export Development Canada ("EDC") of 1.85%, based on the proportional amount outstanding. In January 2020, the Company announced that it had extended the amortization period on the term loan to April 2022, providing enhanced financial flexibility in 2020 as it continues to advance the Goldboro Gold Project and the Tilt Cove Gold Project. The Company also maintains a $1,000,000 revolving credit facility as well as a $750,000 revolving equipment lease line of credit with RBC. As at December 31, 2019, the Company had not drawn against the revolving credit facility. Anaconda generated $4,3335,382 in operating cash flows during the year ended December 31, 2019, after accounting for corporate administration costs. Revenue less cash operating expenses and royalties from the Point Rousse Project was $10,465,775, based on gold sales of 16,362 ounces at an average gold price of C$1,804 per ounce sold and operating cash costs of C$1,165 per ounce sold. Corporate administration costs in 2019 were $4,457,000, which included one-time severance costs. During 2019, the Company continued to invest in its key growth projects in Newfoundland and Nova Scotia. The Company spent $10,943,829 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals at December 31, 2019), primarily on the continued advancement of the Goldboro Project ($9,136,476). The Company also invested $2,181,896 into the property, mill and equipment at the Point Rousse Project, with capital investment focused on development activity on pushbacks of the Pine Cove pit. Financing activities during the year ended December 31, 2019 included the net proceeds of $4,508,680 from a non-brokered private placement completed in July 2019, the $5 million term loan with RBC (and corresponding monthly repayments), and the repayment of other capital lease obligations and government loans. ABOUT ANACONDA Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company 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 ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study. 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, 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, 2019, 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. FOR ADDITIONAL INFORMATION CONTACT: Anaconda Mining Inc. Kevin Bullock President and CEO (647) 388-1842 [email protected] Reseau ProMarket Inc. Dany Cenac Robert Investor Relations (514) 722-2276 x456 [email protected] Anaconda Mining Inc. Lynn Hammond VP, Public Relations (709) 330-1260 [email protected] SOURCE: Anaconda Mining Inc. View source version on accesswire.com: https://www.accesswire.com/578553/A...llion-in-EBITDA-From-the-Point-Rousse-COMPLEX
https://www.anacondamining.com/prviewer/release_only/id/4350602 visit their website for more information TORONTO, ON / ACCESSWIRE / June 10, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce it has commenced a diamond drill program at its 100%-owned Goldboro Gold Project ("Goldboro" or the "Project") in Nova Scotia, Canada. The 5,500-metre drill program ("Drill Program") is designed to convert priority Inferred Mineral Resources, considered proximal to planned development under the ongoing Feasibility Study, into Indicated Mineral Resources. "We have identified significant opportunities to optimize the Goldboro Gold Project and in particular to increase the overall economics of the Project. The Company is well-funded to advance its growth strategy and take advantage of these opportunities. This robust Drill Program has the real potential to directly impact the Project's economics and key economic metrics, creating significant incremental value. We look forward to announcing the results of the Drill Program in the third quarter of 2020, which will be included in a Mineral Resource Update on the Project and will also be incorporated into the life of mine in the optimized Feasibility Study." ~ Kevin Bullock, President and CEO, Anaconda Mining Inc. The Drill Program will target existing Inferred Mineral Resources in four separate zones within the Boston-Richardson and East Goldbrook Gold Systems that combined contain 325,000 tonnes at an average grade of 16.10 grams per tonne ("g/t") gold containing 168,400 ounces of gold. Based on conversion rates observed to date in over 27,000 metres of drilling, the Company believes the Drill Program has the potential to add significant value by extending the life of mine and improving the Project's economics. The Drill Program is funded from existing flow-through funds. The Company has critically considered logistical matters given the ongoing COVID-19 pandemic, to ensure that this Drill Program and any other programs are executed in a way that ensures the absolute health and safety of our personnel, contractors, and the communities where we operate. This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects. A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days. GOLBORO MINERAL RESOURCE STATEMENT The technical report from which this Mineral Resource statement is quoted is entitled "Goldboro Gold Project: Resource Update Phase 2, Guysborough County, Nova Scotia" and which is dated December 18, 2019, and with an effective date of August 21, 2019, was authored by independent qualified persons Todd McCracken, P.Geo. of WSP Canada Inc. and Robert Raponi, P. Eng., of Ausenco Engineering Canada Inc. (see news release dated October 31, 2019)
