TORONTO , June 17, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the
Company") - (ANX.TO) announces certain financial and operating results
from the fiscal fourth quarter and full year ended May 31, 2014 . During
the fourth quarter, the Company sold 3,797 ounces of gold and generated
$5,278,887 in revenue at an average sales price of $1,390 per ounce.
The fourth quarter fiscal 2014 sales volume and revenue were
approximately 13% and 22% lower than the fourth quarter fiscal 2013
sales volume and revenue, respectively. For fiscal 2014, the Company
sold 14,577 ounces of gold and generated $20,175,326 in revenue at an
average sale price of $1,384 per ounce. Compared to fiscal 2013, sales
volume and revenue decreased by 2% and 17% respectively. Year-over-year
revenue decreased due to a decline in average sales price from $1,625
per ounce in fiscal 2013 to $1,384 in fiscal 2014. For fiscal 2014, the
mill processed approximately 305,000 tonnes of ore, nearly 17,000 more
tonnes than fiscal 2013. Year-over-year, mill availability and overall
recovery remained stable at 88% and 83% respectively. The Company
expects to file its full financial statements by August 27, 2014 .
President and CEO, Dustin Angelo , stated, "Fiscal fourth quarter
operating performance established an important record, achieving a run
rate of 995 tonnes per operating day. This milestone, accompanied by
the strong mill availability, highlights the recovery of operations
from the difficult winter conditions in the third quarter. Had we not
been impacted by such a harsh winter, Pine Cove would have sold over
15,000 ounces for the fiscal year. Management is encouraged by the
higher daily throughput achieved in the fourth quarter and believes it
can maintain these levels in fiscal 2015. Therefore, the Company
expects to exceed fiscal 2014 throughput and sales volume, and maintain
approximately the same grade and recovery in fiscal 2015."
FY Q4 2014 Mill Operations Overview:
The Pine Cove mill operated for 82 days during the fourth quarter of
fiscal 2014 at an availability rate of 89%. For the quarter, the mill
processed 81,569 dry tonnes of ore at an average head grade of 1.80
grams per tonne. Overall mill recovery was 82%, compared to 84% in Q4
2013, primarily due to lower than expected leach-circuit recovery.
Leach recovery in March was lower than target due to maintenance on
certain tanks, which reduced capacity and retention time. In May,
higher than normal grind size at the re-grind mill also negatively
impacted leach recovery. Procedural changes and increased monitoring
around the leach circuit has led to recoveries returning to expected
levels.
The mill's run rate for the quarter was 995 tonnes per operating day and
was the highest in the operation's history. Additional efforts
undertaken in the fourth quarter to create consistency between
operating teams, improve preventative maintenance activities and
achieve higher hourly run rates proved favourable.
FY Q4 2014 Mining Operations Overview:
Changes in the pit's ore body due to extreme faulting and folding caused
unpredicted dilution which was not forecasted from previous exploration
results. Efforts to reduce the dilution factor and improve feed grade
are ongoing. Some of the projects identified and started include
down-hole probing, blast movement monitoring, reverse circulation
drilling and mining ore in half benches. The team continues to work
diligently to reduce dilution and improve ore recovery in the pit.
The following table summarizes the key operating statistics by quarter
for the fiscal year ended May 31, 2014 :
OPERATING STATISTICS:
|
Q1 '14
|
Q2 '14
|
Q3 '14
|
Q4 '14
|
Total/Avg.
|
|
|
|
|
|
|
Mill
|
|
|
|
|
|
Operating days
|
85
|
79
|
76
|
82
|
322
|
Availability
|
93%
|
87%
|
84%
|
89%
|
88%
|
Dry tonnes processed
|
83,890
|
76,114
|
63,123
|
81,569
|
304,696
|
Tonnes per 24-hour period
|
987
|
956
|
834
|
995
|
946
|
Grade (grams per tonne)
|
1.92
|
1.80
|
1.79
|
1.80
|
1.83
|
Overall mill recovery
|
83%
|
83%
|
83%
|
82%
|
83%
|
|
|
|
|
|
|
Gold sales volume (troy oz.)
|
4,096
|
3,852
|
2,832
|
3,797
|
14,577
|
NOTE: Operating statistics exclude changes in in-circuit inventory.
ABOUT ANACONDA
Headquartered in Toronto, Canada , Anaconda is a growth-oriented, gold
mining and exploration company with a producing asset located on the
Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.
FORWARD-LOOKING STATEMENTS
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.