Company News – Thu 11 Oct, 2018

TORONTO, Oct. 11, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) (TSX: ANX) (OTCQX: ANXGF) is pleased to announce production results and certain financial information from the three and nine months ended September 30, 2018 (“Q3 2018”). All dollar amounts are in Canadian Dollars. The Company expects to file its third quarter financial statements and management discussion and analysis by November 8, 2018.

In 2017, the Company changed its fiscal year-end to December 31, from its previous fiscal year end of May 31. For comparative purposes, the results for the three and nine months ended September 30, 2018, have been compared to the three and nine months ended August 31, 2017.

Q3 2018 Highlights

• Anaconda produced a quarterly record of 5,099 ounces of gold during Q3 2018, an 11% increase over the three months ended August 31, 2017, and has produced 14,024 ounces year-to-date in 2018.
• Anaconda sold 4,314 ounces of gold in Q3 2018, generating metal revenue of $6.9 million at an average realized gold price¹ of $1,603 per ounce. As at September 30, 2018, the Company also had over 945 ounces in gold doré and bullion inventory, which was subsequently sold in early October.
• The Pine Cove Mill processed 120,374 tonnes during Q3 2018, just below the quarterly record of 121,299 tonnes achieved in the previous quarter of 2018. Throughput rates continue to be strong, achieving 1,332 tonnes per day (“tpd”) during the three months ended September 30, 2018.
• Mill feed during the quarter was comprised of 66,655 tonnes of ore mined from Stog’er Tight, supplemented by 53,719 tonnes of ore stockpiled from the Pine Cove Pit.
• Mining activity was focused at the Stog’er Tight West Pit in Q3 2018; ore produced from Stog’er Tight during the third quarter was 51,620 tonnes.
• The Company commenced the 10,000-tonne, underground bulk sample at its 100%-owned Goldboro Gold Project (“Goldboro”) in Nova Scotia in August, with mining activity expected to begin in late October following the completion of decline dewatering and rehabilitation.
• As at September 30, 2018, the Company had a cash balance of $7.6 million, preliminary working capital¹ of $7.2 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.

¹ Refer to Non-IFRS Measures Section below.

Anaconda is also pleased to welcome to its senior management team Rahim Kassim-Lakha in the role of Vice President, Corporate Development, where he will help drive the Company’s capital markets strategy. Mr. Lakha brings a wealth of knowledge from over 25 years of capital markets experience, having held senior-level positions at bank and non-bank brokerage firms.

“Anaconda continues to demonstrate operational excellence at its Point Rousse Project, achieving record quarterly gold production of 5,099 ounces during the third quarter of 2018. The team is maximizing ore throughput and achieving strong recovery rates. We’ve also transitioned smoothly from the Pine Cove Pit to Stog’er Tight where we are seeing better grade. Having already produced 14,024 ounces through the first nine months of the year, we remain firmly on track to meet our annual guidance of 18,000 ounces of gold production at operating cash costs¹ of under C$1,000 per ounce. With the operational foundation at the Point Rousse Project, a high-grade gold development project in Goldboro, a strong balance sheet and an experienced management team, Anaconda is well-positioned in a challenging gold market to continue to execute its business plan to become a high-growth gold producer in Atlantic Canada.”

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

Third Quarter Operating Statistics

Operations Overview for the Three Months Ended September 30, 2018

Anaconda sold 4,314 ounces of gold during the third quarter of 2018, generating gold and silver revenue of $6.9 million, and year-to-date has sold 13,170 ounces to generate revenue of $21.9 million at an average realized gold price¹ of C$1,659 per ounce. As at September 30, 2018, the Company also had over 945 ounces of gold doré and bullion inventory, which were sold in early October. The Company continues to be on track to meet its 2018 production guidance of 18,000 ounces at operating cash costs¹ of under $1,000per ounce and has now transitioned to processing ore produced at the Stog’er Tight Mine.

Point Rousse Mill Operations – The Pine Cove Mill processing facility remains a cornerstone asset of the Company, achieving quarterly throughput of 120,374 tonnes in Q3 2018, just 1% lower than the quarterly throughput achieved in the second quarter of 2018. Mill throughput was 1,332 tpd in Q3 2018, down slightly from the comparative three months ended August 31, 2017. Availability continues to be strong at 98.2%, and the Company continues to invest in the Pine Cove Mill, making upgrades to the regrind motor and jaw and cone crushers, while continuing to maintain consistent throughput from its crushed ore stockpiles.

Average grade during the third quarter of 2018 was 1.52 g/t, an increase of 10% over the second quarter of 2018 due to a greater proportion of mill feed from Stog’er Tight relative to ore stockpiled from the Pine Cove Pit. Grade performance also reflected a 13% improvement from the comparative three months ended August 31, 2017, reflecting the higher grade ore being mined from …read more

From:: The Korelin Economic Report