The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Anaconda's Pine Cove mine has record fiscal Q4 2012: 3,677 ounces of gold sold and over $6.0M in revenue

Wednesday, June 13, 2012

Anaconda's Pine Cove mine has record fiscal Q4 2012: 3,677 ounces of gold sold and over $6.0M in revenue07:00 EDT Wednesday, June 13, 2012TORONTO, June 13, 2012 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to announce certain financial and operating results from the fiscal fourth quarter and full year ended May 31, 2012.  During the fourth quarter, the Company sold 3,677 ounces of gold and generated $6,035,734 in revenue at an average sales price of $1,642 per ounce. The fourth quarter sales volume and revenue were approximately 12% and 9% greater than the third quarter sales volume and revenue, respectively. For fiscal 2012, the Company sold 11,978 ounces of gold and generated $19,905,756 in revenue at an average sales price of $1,662 per ounce. Compared to fiscal 2011, sales volume and revenue increased 124% and 172%, respectively.President and CEO, Dustin Angelo, stated, "Fiscal 2012 ended very well with another record quarter for gold sales volume and revenue. It's a testament to the Pine Cove team and its ability to continuously improve the operation. For the second half of the fiscal year, we sold just under 7,000 ounces, which would be approximately 14,000 ounces on an annual run rate basis.  Heading into fiscal 2013, the operational pieces are in place to further optimize output. Consequently, we expect to produce and sell approximately 15,000 to 16,000 ounces in fiscal 2013."FY Q4 2012 Mill Operations Overview:Overall mill recovery averaged 85% for the fourth quarter, the highest recovery rate since operations restarted after the completion of the upgrade of the mill in the summer of 2010. The most significant contributor to the improved overall recovery has been in the leach and filtration circuits. Both have improved by 5% compared to a year ago. Current grind of P80 of 30 microns has improved leach recovery from 91% to 96%.  The addition of copper sulphate along with the new drum filters has resulted in a much improved filtration recovery, currently at 97%.The Pine Cove mill operated for approximately 82 days during the fourth quarter and processed 78,335 dry tonnes of ore (955 tonnes per operating day), approximately 6,000 more tonnes than the third quarter. Mill availability averaged 90% for the quarter, but was only 75% in March due to inclement weather and crusher maintenance. The downtime and slightly lower grade (discussed below) were the primary contributors to falling short of reaching 4,000 ounces for the quarter.Per the Company's block model, the grade for the fourth quarter was targeted to be 1.83 grams per tonne ("g/t"). However, actual average head grade was 1.75 g/t which reflects the complex ore geometry experienced in the pit. The Company has augmented its mining procedures to minimize dilution and maximize the potential to achieve expected grade. It is also evaluating additional techniques to provide better ore definition control.The following table summarizes the key operating statistics by quarter for the fiscal year ended May 31, 2012. Q1 '12Q2 '12Q3 '12Q4 '12Total/AvgOPERATING STATISTICS:     Availability92%72%87%90%85%Dry tonnes processed79,93555,36972,50078,335286,139Tonnes per 24-hour day963837912955925Grade (grams per tonne)1.512.042.011.751.81Overall mill recovery76%78%81%85%80%      Gold sales volume (troy oz.)2,8582,1663,2773,67711,978ABOUT ANACONDAHeadquartered 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 STATEMENTSThis 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 AngeloPresident and CEO (647) 260-1248  Email: dangelo@anacondamining.com or ProConsul Capital Ltd.Andreas CurkovicInvestor Relations (416) 577-9927Email: acurkovic@proconsulcapital.com Company website: www.anacondamining.com