TORONTO, May 2 /CNW/ - Anaconda Mining Inc. ("Anaconda") - (TSX: ANX) is pleased to provide an operational update for its Pine Cove Gold Mine ("Pine Cove"). As reported in the press release dated April 15, 2011, recently completed modifications to the flotation circuit in the Pine Cove mill have resulted in the production of a higher grade flotation concentrate, which in turn, has delivered better performance in the back end of the mill, specifically in the leach, filtration and Merrill Crowe circuits. As a result, overall mill recovery has climbed to the low to mid 70% range, a significant improvement over the results achieved in the first three quarters of fiscal 2011. All assays have been conducted by an external, third-party analytical lab.
President and CEO, Dustin Angelo, stated, "Over the last few months, we have demonstrated that the Pine Cove mill can produce a high grade gold concentrate without sacrificing recovery in its flotation circuit. We have also been consistently running at an average rate of approximately 950 to 1,000 tonnes per day of ore throughput at grades around 2 grams per tonne, and we are confident we can continue to operate the front end of our mill at these levels. The concentrate product we now produce has availed ourselves to many opportunities. We can ship the concentrate off site or run it through the back half of our mill. We're currently evaluating a few off site options while operating our leach, filtration and Merrill Crowe circuits. Over the coming weeks and months, we plan to settle on the strategy that derives the greatest amount of cash flow relative to the execution risk."
Record Gold Production / Shipments:
During the month of April, Anaconda shipped approximately 1,300 dore ounces of gold (a combination of production from Pine Cove and Nugget Pond as further described below) to its third-party refiner. Applying a historical fineness of 82.5%, Anaconda estimates it will yield approximately 1,070 troy ounces. In addition, the Pine Cove mill had a circuit inventory of approximately 250 ounces at the time of the last pour done on April 24th, with 6 days of production remaining for the month.
President and CEO, Dustin Angelo, further stated, "Gold shipments from April have generated a sizable cash infusion and are a testament to the hard work and perseverance of our employees and service providers. Since starting up the back half of our mill after the Nugget Pond trial ended in mid April, we have experienced appreciably better recovery rates. We continue to see opportunities to improve overall recoveries in the Pine Cove mill and are currently undertaking a complete circuit reconciliation to thoroughly evaluate the various test programs to further optimize all circuits. With these initiatives and the increased throughput, we can significantly increase gold production."
Nugget Pond Trial:
On February 25, 2011, Anaconda and Rambler Metals and Mining Canada Limited ("Rambler") entered into a gold concentrate toll processing agreement (the "Agreement") where Rambler would process Anaconda's gold concentrate from Pine Cove at Rambler's Nugget Pond mill. The purpose of entering into the Agreement was to conduct a short trial to evaluate the efficacy of shipping concentrate off-site and processing it through Rambler's leach and carbon-in-pulp circuits.
Shipments of concentrate commenced in mid March after Anaconda relined its ball mill and made repairs to its crusher. The trial lasted for approximately four weeks with the final concentrate shipment occurring on April 13, 2011. During the trial period, fifty-five truck loads were processed, each with approximately 30 tonnes of slurry (approximately 16 dry tonnes of solids). The truck loading, unloading and transportation ran very smoothly.
The combined recovery between Pine Cove's flotation circuit and Rambler's leach circuit has been estimated to be in the low to mid 80% range. To date, Anaconda has shipped approximately 1,100 dore ounces of gold at an estimated fineness of 82.5% from the Nugget Pond mill. Final calculation of circuit inventory remaining at the Nugget Pond mill is in progress, which is needed to completely balance the circuit and ultimately determine the total gold output and recovery from the trial.
As of the date of this press release, there is no agreement between Anaconda and Rambler to resume the processing of gold concentrate from Pine Cove at Rambler's Nugget Pond mill.
Technical Overview of Mill Modifications:
To reduce tonnage to the leach and filtration circuits, a single water washed Staged Flotation Reactor ("SFR") was added to the flotation circuit as a cleaner stage. This unit upgraded the flotation concentrate from approximately 15 grams per tonne ("g/t") to grades ranging from 40 to 50 g/t. This resulted in a reduction in leach and filter feed tonnage from about 4.5 tonnes per day ("tpd") to 1.5 tpd. In addition, the fine clays that plagued the filtration and clarification circuits have been greatly reduced from the water washing. This has resulted in much improved filtration and clarification to the point where the filters can be operated in series, significantly improving wash efficiency. This enhanced filtration in turn has had a very positive effect on Merrill Crowe and refining operations.
ABOUT ANACONDA
Anaconda is a Toronto, Canada based mining and exploration company focused on operating the Pine Cove gold mine located near Baie Verte in Newfoundland, Canada and, with its joint venture partner, Inversiones SBX Limitada, advancing the development and exploration of its iron ore portfolio in Chile.
FORWARD LOOKING STATEMENTS
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding the proposed amendment to the expiry date of warrants, 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 approval of the amendment to the expiry date of warrants 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.
