Anaconda's Pine Cove Mine Sells Over 3,400 Ounces of Gold; Generates $4.8M in Revenue in Q2 FY2015

TORONTO, Dec. 15, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (News - Market indicators) announces certain financial and operating results from the three and six month period ended November 30, 2014 of fiscal 2015. During the second quarter of fiscal 2015, the Company sold 3,431 ounces of gold and generated $4,798,179 in revenue at an average sales price of $1,398 per ounce. Sales volume in the second quarter of fiscal 2015 was approximately 11% lower than the comparable period of fiscal 2014 when the Company sold 3,852 ounces. During the six months ended November 30, 2014, the Company sold 7,364 ounces of gold and generated $10,309,791 in revenue at an average sales price of $1,400 per ounce. Sales volume in the first half of fiscal 2015 was only approximately 7% lower than the comparable period of fiscal 2014 when the Company sold 7,948 ounces.

Lower sales volume was due to an expected decline in grade in the first half of fiscal 2015 and the timing of sales shipments. The Company has had an effective short term hedging strategy, particularly in the second quarter where it realized a gold sales price that was $28 above the London PM average market price of $1,370.

The Company expects to file its full financial statements on or before January 13, 2015. All dollar amounts are expressed in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, "In the second quarter, our ball mill reached a sustainable operating level never before achieved. During October and November, the mill operated at 96% availability and an average throughput of 1,101 tonnes per operating day which was 18% more than the run rate for the previous 12 months. This is a new paradigm for the Company, one which will enable us to produce more ounces of gold on the same milling fixed cost platform, thus generating more profits to the bottom line. Overall, the operating results of the Company for the quarter and the first six months of the fiscal year were what we expected, primarily due to planned lower grade. In the second half of the fiscal year, we expect financial and operating performance to be higher than the first half, particularly because of improvements in throughput and recovery, and a budgeted higher grade."

FY Q2 2015 Operations Overview:

The mill operated for 81 days during the second quarter of fiscal 2015 and processed 85,515 dry tonnes of ore resulting in a record average run rate of 1,056 tonnes per operating day. Tonnes processed in the second quarter of fiscal 2015 were 12% higher than the similar period in fiscal 2014. Mill availability was 88% and recovery was 85%, both improvements in comparison to 87% and 83%, respectively, in the second quarter of fiscal 2014. During the month of September, a preventative mill maintenance program was performed which included a liner and lifter change and repairs on the thickener tank, cyclone feed pump and floatation air compressor. On the crushing plant, the crusher enclosure was completed to mitigate previous winter weather effects and conveyor belts were vulcanized. As a result of these repairs and changes to certain operating procedures, the mill achieved new levels of production with October and November both having throughput levels in excess of 32,000 tonnes per month compared to the second quarter of fiscal 2014 average of 25,371 tonnes per month.

The pit operated for 63 days in the second quarter of fiscal 2015 and produced 77,489 tonnes of ore and 457,387 tonnes of waste. Mining production remained at elevated levels in the second quarter of fiscal 2015, as planned, to complete stacking of waste material for the tailings dam expansion project. Management is addressing issues related to grade by updating ore solids and the block model for the Pine Cove deposit and using pit mapping tools to provide more accurate mine planning and ore identification going forward. In addition, the Company has finished a series of blast movement monitoring tests and is currently evaluating the efficacy of incorporating this tool into its operating plans. Lastly, Anaconda has just begun a research project in partnership with the Industrial Research Assistance Program to install GPS on its primary excavator to improve accuracy of digging within ore limits and decreasing dilution.

The following table summarizes the key operating statistics for the three and six months ended November 30, 2014 and November 30, 2013:

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 mine 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.