Anaconda's Pine Cove gold mine generates over $500,000 in EBITDA in June and July 2011
Published : August 25, 2011
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Canada | Chile | Climatic | Debt | Gold | Gold Mine | Iron | Market | Merrill | Recovery |

TORONTO, Aug. 25, 2011 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to provide an update on the performance of the Pine Cove mine, located on the Baie Verte Peninsula, Newfoundland, for the months of June and July. Pine Cove sold nearly 1,900 ounces generating over $2.8 million in revenue and nearly $514,000 in EBITDA. The following table summarizes selected operating and financial results for the two-month period.

  June '11 July '11 Total/Avg
Calendar days 30 31 61
Operating days 28 29 57
Availability 94% 98% 96%
Dry tonnes processed 27,650 29,805 57,455
Tonnes per 24-hour day 980 1,046 1,014
Grade 1.30 1.52 1.41
Pine Cove only plant recovery 74% 75% 74%
Gold sales volume (troy oz.) 802 1,075 1,877
Revenue $1,185,265 $1,626,460 $2,811,725
Pine Cove EBITDA $358,712 $154,931 $513,643
Pine Cove + Corp. EBITDA $199,702 $36,865 $236,567
Revenue per oz. sold $1,479 $1,513 $1,498
Pine Cove cash cost per oz. sold $1,031 $1,369 $1,224
Pine Cove + Corp. cash cost per oz. sold $1,230 $1,478 $1,372

President and CEO, Dustin Angelo, stated, "The Pine Cove mine is generating cash on a consistent basis and the Company expects this trend to continue. For June and July, we have already sold nearly 1,900 ounces and we expect to have another record quarter for gold sales volume and revenue. The rising price of gold has been beneficial, especially in August where we have sold our production at $1,650 to $1,850 per ounce. Near term plans are in place to increase recovery, which will continue to drive down unit costs, further increasing cash flow. With operations now performing consistently, attention has been turned to exploration activities. Our recently announced drill program exceeded expectations. We have engaged a geophysical consultant and a structural geologist to advance the significant exploration potential that exists at Pine Cove in an effective and methodical manner."

The financial results above are not presented on a consolidated basis to include activities in the subsidiaries associated with the Chilean iron ore assets. The amounts only represent activities accounted for at the Pine Cove and corporate level.  All amounts are in Canadian dollars unless stated otherwise. The financial and operating results are unaudited and subject to adjustment.

Overall mill recovery:

During June and July, overall mill recovery was in the mid 70% range primarily due to mechanical difficulties with the No. 1 drum filter. In May, the Company ordered two new, refurbished drum filters from Tristar Ltd. in Buffalo, New York. The 2.5m X 3.0m rotary vacuum drum filters provide the first filtration step associated with the solids/solution separation that is required for the Merrill Crowe type gold processing. The current drums are wood over steel construction and have been used since Pine Cove began operating. During the past several months, the drum filters have been hampered by mechanical or operational availability. As a result, they have not been able to operate consistently in series to provide a re-wash for the slurry.  When operating in series, drum filtration can achieve recovery rates as high as 98% to 99%. Because the drum filter units had to be operated in single stage for periods of time during June and July, the average drum filter recovery was 91%.

Anaconda expects the new drum filters to be shipped by the end of August, 2011 and installed during the first two weeks of September. In addition to the drum replacements, the operations and maintenance staff are finalizing plans to use the one week, scheduled down-time to make other operational changes and maintenance repairs, which are not capital intensive, including;

  • Modifications to the leach tanks, which include larger baffles and up-comer piping.
  • Incorporate a fourth, existing leach tank into the leach circuit to allow for greater retention.
  • Fabricate and install new pregnant solution tank with internal baffles to help fines settling.
  • Replace liners and lifters in the primary grinding mill. These liners and lifters have been designed to serve a primary grind application versus the configuration currently in use, which is more suitable for a secondary grinding application.

The Company anticipates that the circuit changes and maintenance items will enable the Pine Cove mill to achieve recovery and throughput targets of 80% and 1,000 tonnes per 24-hour day, respectively, on a regular basis going forward.


The average feed grade through the mill for June and July was 1.41 grams per tonne ("g/t") versus a projected feed grade of 1.78g/t. The variance can be attributed, in part, to pit dewatering activities. Pine Cove experienced higher than average rain fall during the months of June and July exceeding pumping capacity. The pit design allows mining to take place in the upper areas of the deposit during these situations but, as was the case in these particular months, the grade that was mined was lower than plan due to the distribution of the grade within the blocks. The implementation of additional dewatering capacity was fast-tracked providing additional protection in the future. These items include larger pumps, portable mine MCC with additional capacity and large diameter de-watering lines.

During the first half of August, feed grade increased approximately 4% (1.58 g/t) compared to July, which was 1.52 g/t. The pit area described in the paragraph above has been dewatered and partially excavated. The most recent feed grades in the last few days have been recorded at slightly above and below 2.00 g/t.

In addition to implementing increased dewatering capacity, mine technical staff continues to evaluate improvements in excavation techniques to maximize grade delivered to the mill. The initiatives include:

  • A review of the actual mining sequence and geological structure control that may be present and identifiable.
  • A series of tests to monitor blast movement in an effort to predict actual ore displacement within a particular blast and to compensate for such displacement.
  • An evaluation of tools that can effectively determine actual ore location within a particular blast hole such as visual equipment and IP equipment.

The Company's budget for grade for fiscal year 2012 is 2.19 g/t and it was projected to rise steadily from 1.78 g/t at the beginning of the fiscal year to 2.64 g/t at the end. From June until October, it was budgeted to be no higher than 2.04 g/t at a weighted average of 1.95 g/t. Although Pine Cove is currently approximately 20% below planned feed grade for the first two months of the fiscal year, it expects to achieve its overall budget for the fiscal year.

Despite recent lower grades being realized, the Pine Cove mine has excavated more ore (confirmed by percussion blast hole assays) than its block model projected for the past seven months. For the period from January through July 2011, the blast hole assays suggest a 23% increase in gold content at a 7% less grade as compared to the block model.

Exploration update:

The Company continues to evaluate options to further its recent exploration success at the down dip extension to the north of Pine Cove's current operating pit. Because delineation of this new discovery requires a better understanding of the orientation of the zone (both its dip and strike) to plan additional drilling, geophysical and structural geologists have been engaged. The geophysical evaluation will include a review of archival data for this area of the mining lease followed by a plan to perform an IP survey. The structural geological evaluation, on the other hand, will focus on the existing deposit areas to look for and identify features that may help explain the physical location of this new zone and its likely orientation.

In addition, plans are being finalized to extract a sample from the other targeted gold zone in the area - Romeo & Juliet. The gold within this area is associated with quartz veining and has limited sulfide content so it is unlikely to need or benefit from flotation during processing.  Consequently, it requires metallurgical testing to determine the optimal processing methodology. The Company has initiated discussions with metallurgical consultants on a scope of sampling and testing required.


Headquartered in Toronto, Canada, Anaconda is a mining and exploration company focused on operating the Pine Cove gold mine located on the Baie Verte Peninsula in Newfoundland, Canada and advancing the exploration and development of its iron ore portfolio in Chile with its joint venture partner, Inversiones SBX Limitada.


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. 

For further information:
Anaconda Mining Inc. 
Dustin Angelo
President and CEO 
(647) 260-1248  
    Terre Partners
Joanna Longo
Investor Relations
(416) 775-8771

Company website:


Data and Statistics for these countries : Canada | Chile | All
Gold and Silver Prices for these countries : Canada | Chile | All

Anaconda Mining Inc.

ISIN : CA03240P1080
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Anaconda Min. is a gold development stage company based in Canada.

Anaconda Min. holds various exploration projects in Canada and in Chile.

Its main exploration properties are BORTHWICK LAKE, LINGMAN LAKE and DAMOTI in Canada and SAN GABRIEL FE and HORSE MOUNTAIN - ANACONDA GOLD in Chile.

Anaconda Min. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 106.8 millions as of today (US$ 85.4 millions, € 74.8 millions).

Its stock quote reached its highest recent level on February 09, 2012 at CA$ 2.01, and its lowest recent point on December 24, 2015 at CA$ 0.04.

Anaconda Min. has 209 330 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Financings of Anaconda Mining Inc.
6/3/2013Makes $1,754,580 Final Payment on Convertible Loan and Deben...
5/6/2013Announces Warrant Exercise
8/15/2011announces extension of Series III Debentures and propose...
Nominations of Anaconda Mining Inc.
7/7/2015Kevin Bullock Joins Board of Directors of Anaconda Mining
11/20/2014Announces Election of Directors
10/10/2013Tim Casgrain Joins Board of Directors of Anaconda Mining
Project news of Anaconda Mining Inc.
1/25/2016Anaconda Mining drills 2.68 g/t Au over 15.9 metres and 2.11...
12/17/2015Anaconda Mining reports 17.76 g/t gold over 11 metres and 4....
2/26/2015Anaconda Mining maximizing Pine Cove deposit potential throu...
12/23/2014Anaconda Mining commences new drilling program on the Pine C...
12/16/2014Anaconda Mining reports 10.52 g/t gold over 3.5 metres, 8.13...
11/6/2014Anaconda Mining reports 18.60 g/t gold over 3.5 meters and 4...
6/11/2014Anaconda Mining initiates 2,000-meter diamond drilling progr...
Corporate news of Anaconda Mining Inc.
1/21/2016Anaconda Mining reports 1.89 g/t gold over 10 metres and ext...
10/19/2015Anaconda frees up nearly $800,000 in restricted cash
10/15/2015Anaconda Mining sells 3,956 ounces and generates $1.5M of EB...
9/17/2015Anaconda's Point Rousse Project Sells Nearly 4,000 Ounces of...
8/27/2015Anaconda Mining sells 15,821 ounces and generates $4.8m of E...
8/13/2015Anaconda Intersects More Near-Surface Mineralization at Nort...
8/4/2015Anaconda Acquires Corkscrew Property; Doubles Land Position ...
7/29/2015Anaconda Mining Comments on Proposed "Take-Under" Bid Announ...
7/29/2015Plantro Venture Group Ltd. intends to make an offer for Anac...
7/29/2015Anaconda Mining Reports 12.83 g/t Gold Over 4.38 Metres and ...
7/29/2015Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Ov...
6/18/2015Anaconda Mining sets annual production records and sells nea...
4/9/2015sells 4,508 ounces and generates $1.9M of Point Rousse Proje...
4/9/2015Anaconda Mining sells 4,508 ounces and generates $1.9M of Po...
3/19/2015Point Rousse Project has record sales volume of over 4,500 o...
3/19/2015Anaconda's Point Rousse Project has record sales volume of o...
2/27/2015Anaconda Provides a Strategic and Exploration Update on the ...
2/26/2015maximizing Pine Cove deposit potential through recent drilli...
1/9/2015Anaconda Mining Sells 3,431 Ounces and Generates Over $600,0...
1/8/2015Anaconda makes new gold discovery near the Pine Cove mill
12/23/2014commences new drilling program on the Pine Cove deposit
12/15/2014Pine Cove Mine Sells Over 3,400 Ounces of Gold; Generates $4...
12/15/2014Anaconda's Pine Cove Mine Sells Over 3,400 Ounces of Gold; G...
12/3/2014Anaconda Mining makes final payment on Atlantic Canada oppor...
12/3/2014makes final payment on Atlantic Canada opportunities agency ...
11/20/2014Anaconda Mining Announces Election of Directors
11/6/2014reports 18.60 g/t gold over 3.5 meters and 4.94 g/t gold ove...
10/9/2014Anaconda Mining Sells Nearly 4,000 Ounces and Generates Over...
9/18/2014Anaconda's Pine Cove Mine sells over 3,900 ounces of gold; g...
9/15/2014initiates drill program on the Stog'er Tight project
9/15/2014Anaconda Mining initiates drill program on the Stog'er Tight...
8/28/2014Anaconda Mining posts $4.3 million, or $0.02 per share, in n...
6/18/2014Anaconda Mining Intersects Multiple Zones Grading up to 3.17...
6/17/2014Anaconda's Pine Cove Mine sells approximately 3,800 ounces o...
6/16/2014Mast Therapeutics Initiates Sub-Study Within Phase 3 EPIC Tr...
6/11/2014initiates 2,000-meter diamond drilling program at its Deer C...
5/7/2014reports 26.12 g/t over 3.6 meters and 22.74 g/t over 5.0 met...
10/18/2013Announces Date of Annual Meeting
9/16/2013Intersects New Gold Zone at Romeo and Juliet Prospect; Assay...
9/10/2013Receives First Commercial Production Payment of US$1 Million...
8/26/2013to Receive First Commercial Production Payment of US $1 Mill...
7/8/2013Initiates 2,000-Meter Diamond-Drill Program at Pine Cove's R...
6/18/2013Begins Regional Airborne Geophysical Survey of Its Pine Cove...
6/13/2013Pine Cove Mine has Record FY Q4 '13 Sales Volume of Nearly 4...
4/12/2013Generates $856,762, or $0.005 Per Share, in Net Income for F...
4/4/2013Reports Successful Romeo and Juliet Bulk Sample Assay Result...
3/25/2013Intersects 20 Metres of 2.15 g/t Gold in New Western Extensi...
3/19/2013Pine Cove Mine Sells Approximately 3,100 Ounces of Gold in F...
1/14/2013Initiates Diamond Drilling to Test Potential Down-Dip Extens...
1/14/2013Initiates Diamond Drilling to Test Potential Down-Dip Extens...
12/11/2012Options Strategic Property Near Its Pine Cove Mine; Identifi...
10/12/2012generates $1.5 Million in Net Income for FY Q1 2013
10/6/2011Pine Cove Gold Mine Generates Over $1.5 Million in EBITDA Du...
9/14/2011Pine Cove gold mine posts another record quarter; mill recov...
8/25/2011Pine Cove gold mine generates over $500,000 in EBITDA in Jun...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.510
05/16 16:57 -0.010
Prev close Open
0.520 0.520
Low High
0.510 0.520
Year l/h YTD var.
0.510 -  0.920 -21.54%
52 week l/h 52 week var.
0.510 -  1.03 -26.09%
Volume 1 month var.
21,993 -28.17%
24hGold TrendPower© : -6
Explores for Gold
Interactive chart Add to compare
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 8.32+2.78%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.97-0.34%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.84+0.13%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 0.51+1.79%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.70-2.08%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04+0.00%Trend Power :
Closes Bridge Loan Financing
CA$ 3.60+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 10.23+4.18%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.29+0.00%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.36+115.15%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.76+1.15%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 70.94+3.26%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.04+0.00%Trend Power :