Anaconda Mining Produces Over 4,100 Ounces of Gold and Generates $5.8M in Revenue in Q2 FY 2018

TORONTO, Dec. 14, 2017 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) is pleased to announce production results and certain financial information from the three month period ended November 30, 2017 ("Q2 FY 2018") and the six months ended November 30, 2017 ("YTD FY 2018"). All dollar amounts are in Canadian Dollars.

The Company recently announced a change to its fiscal year end to December 31, from its previous fiscal year-end of May 31. Consequently, the Company will report audited financial results for a seven month transitional fiscal year from June 1, 2017 to December 31, 2017. The current and comparative reporting periods in this press release reflect the Company's former fiscal year-end of May 31.

Highlights for the three months ended November 30, 2017 (Q2 FY 2018)

• Anaconda produced 4,170 ounces of gold in Q2 FY 2018 and 8,751 ounces of gold for the six months ended November 30, 2017; year-to-date gold production has increased 20% compared to FY 2017 and is on track to exceed its fiscal 2018 guidance of 15,500 ounces
• The Company recorded revenue of $5.8 million in the second quarter of FY 2018 based on an average gold price of $1,621 per ounce and 3,560 ounces sold, and had 656 poured gold ounces in inventory as at November 30, 2017
• Anaconda mined 191,068 tonnes of ore during the quarter, a 48% increase over the corresponding period of FY 2017, at a low strip ratio of 1.4:1 waste tonnes to ore tonnes
• The Pine Cove Mill continues to maintain strong throughput of 118,539 tonnes, or 1,325 tonnes per day, representing a 10% increase over the second quarter of FY 2017
• The Company earned income of $295,000 from the sale of waste rock during Q2 FY 2018, for a total of $809,000 during the current fiscal year
• Anaconda has extended mining in the Pine Cove Pit into early 2018, and has commenced planning for the transition to the Stog'er Tight deposit
• With the completion of a $3 million non-brokered private placement, the Company has commenced extension drill programs at the Goldboro Project and the Point Rousse Project

President and CEO, Dustin Angelo, stated, "The Point Rousse Project has continued its solid performance, achieving increased ore mining rates, continued high mill throughput, and strong gold production. With 8,751 ounces of gold produced for the six months ended November 30, 2017, we are well placed to exceed our fiscal year guidance of 15,500 ounces. The continued performance of the Company's Point Rouse Project adds to an exciting period for Anaconda, as it plans to release a Preliminary Economic Assessment on the Company's high-grade Goldboro Project in Nova Scotia, and has commenced extension drill programs at both Goldboro and the Point Rousse Project."

FY Q2 2018 Operations Overview:

Point Rousse Mill Operations - The Pine Cove Mill operated for 89.5 days during the quarter, achieving an availability rate of 98%, continuing its consistent performance from the first quarter and marking a significant improvement over the prior fiscal year. The mill achieved an average run rate of 1,325 tonnes per operating day during the quarter and has maintained a similar throughput rate for YTD FY 2018, a marked increase from the 1,200 tonne per day rate achieved as recently as Q4 2017. On a year-to-date basis, mill throughput per day has increased 10% due to process improvements implemented in the Pine Cove Mill, which processed 118,539 tonnes of ore during the quarter compared to 108,045 tonnes in the comparative period of FY 2017. 

Overall mill recovery was 85% during the recent quarter, consistent with the prior year, although down from 87% in the first quarter of FY 2018. Average feed grade during the quarter was 1.29 g/t, lower than the second quarter of fiscal 2017. Gold production was 4,170 ounces during the second quarter, a slight increase over the prior year as the lower grade profile was offset by higher throughput.

Point Rousse Mine Operations - The mining operation at the Point Rousse Project operated for 57 days during the second quarter in the Pine Cove Pit, down from 66 days in the first quarter of FY 2018 due to constrained mining areas near the bottom of the pit. Ore produced from the Pine Cove Pit was 191,068 tonnes, up over 20% from the first quarter of FY 2018 due to the sequencing of the mine plan, which resulted in less waste mined in Q2 FY 2018.  Ore mined in the most recent quarter was also up 48% compared to the corresponding period of FY 2017, with the prior period impacted by a relatively higher strip ratio as the operation was completing rock placement during that quarter on the second tailings storage facility. The strip ratio in Q2 FY 2018 was 1.4:1 waste tonnes to ore tonnes, down from 2.3:1 in the first quarter of FY 2018.

Total material moved for the six months ended November 30, 2017, was 981,713 tonnes, a decrease of 43% compared to the corresponding period of FY 2017. This is reflective of the reduced mining rates as the operation approaches the planned base of the Pine Cove Pit, with the decrease in material wholly relating to lower waste material mined. 

Anaconda expects to complete mining in the main pit at Pine Cove in February 2018, and will commence planning for small pushbacks of the main pit in 2018. The mine operation has commenced the transition to the Stog'er Tight deposit, with mining from the West Pit expected to start in April 2018.

The Company has received approval from the Newfoundland and Labrador Department of Natural Resources to amend the Pine Cove Property Development Plan and Rehabilitation and Closure Plan to utilize the Pine Cove Pit as a 7 million-tonne in-pit tailings storage facility, which will allow for the deposition of tailings into the facility in early 2018 (refer to press release dated September 7, 2017).

Qualified Person

Gordana Slepcev, P. Eng., Chief Operating Officer, Anaconda Mining Inc., is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

ABOUT ANACONDA MINING INC.

Anaconda Mining is a TSX-listed gold mining, exploration and development company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland, comprised of the Pine Cove open pit mine, the fully-permitted Pine Cove Mill and tailings facility, the Stog'er Tight deposit, a new discovery called Argyle, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired Goldboro Project in Nova Scotia, a high-grade Mineral Resource, with the potential to leverage existing infrastructure at the Company's Point Rousse Project.

The Company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula. 

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, use of proceeds and TSX final acceptance of the Offering. 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 May 31, 2017, 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.

SOURCE Anaconda Mining Inc.