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Anaconda Mining Sells 5,251 Ounces of Gold In Q1 2019, Generating $8.8m in Revenue
TORONTO, April 11, 2019 /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 months ended March 31, 2019 ("Q1 2019"). All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by May 2, 2019.
First Quarter 2019 Highlights
• Anaconda sold 5,251 ounces of gold in Q1 2019, a 16% increase over Q1 2018, generating gold revenue of $8.8 million at an average realized gold price of $1,671 per ounce sold1. The Company also had 749 ounces in gold doré bars in inventory at March 31, 2019, which were sold in early April.
• The Company produced 77,367 tonnes of ore during the first quarter from mining at the Stog'er Tight Mine. Material moved also included 45,120 tonnes of waste development for a planned pushback of the Pine Cove Pit in anticipation of mining ore in the second quarter.
• The Company ended the first quarter with stockpile of over 30,600 tonnes of ore at an estimated average grade of 1.73 grams per tonne ("g/t").
• The Pine Cove Mill processed 79,758 tonnes during Q1 2019, a 27% reduction compared to Q1 2018 due to lower mill availability resulting from planned maintenance activities on the main ball mill, unplanned maintenance of the regrind mill, and the decision to accelerate other maintenance programs to minimize future down time. The regrind mill was back in operation during the first week of April and the Company expects normal mill operations for the remainder of the year.
• In February 2019, the Company announced the results of a 3,434-metre drill program that began in November 2018, which included drilling around the Pine Cove and Stog'er Tight mines, successfully infilling and extending mineralization near the margins of the existing pit outlines at both sites.
• The Company continues infill drilling at the Argyle Deposit, with the initial 525 metres in the western portion of the deposit intersecting approximately the same thickness of previous drilling in this area but with approximately 25% higher grades.
• In March 2019, the Company executed a $5 million term loan with the Royal Bank of Canada ("RBC") with a two-year term and 4.6% interest rate, to provide enhanced financial flexibility and to complete all pre-construction activity at its 100%-owned Goldboro Gold Project in Nova Scotia ("Goldboro").
• As at March 31, 2019, the Company had a cash balance of $10.7 million, preliminary working capital1 of $4.3 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 off to a good start in 2019 with over 5,200 ounces of gold sold and the mining operations at its Point Rousse Project achieving strong results at the Stog'er Tight Mine, where we achieved higher than planned ore tonnes and established a robust ore stockpile of over 30,000 tonnes to end the quarter. The delay in the shipment of trunnion liners and unplanned maintenance for the regrind mill at the Pine Cove Mill, combined with the planned maintenance on the primary ball mill, impacted mill availability in March, and the Company took the opportunity to advance various maintenance programs and make other mechanical improvements in the mill. While the resulting lower throughput rate marginally impacted quarterly gold production from a timing perspective we have greatly improved asset reliability and efficiency going forward. The Pine Cove Mill was back running during the first week of April and the Company continues on track to produce and sell between 19,000 and 20,000 ounces of gold from its Point Rousse Project in 2019."
~ Kevin Bullock, CEO, Anaconda Mining Inc.
First Quarter Operating Statistics
Three months ended
March 31, 2019 Three months ended
March 31, 2018
Ore production (tonnes) 77,367 143,840
Waste production (tonnes) 279,412 250,132
Total material moved (tonnes) 356,779 393,972
Waste: Ore ratio 3.6 1.7
Availability (%) 78.1 93.4
Dry tonnes processed 79,758 109,219
Tonnes per day 1,135 1,300
Grade (grams per tonne) 1.92 1.44
Recovery (%) 84.8 85.2
Gold Ounces Produced 4,176 4,293
Gold Ounces Sold 5,251 4,526