The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Anaconda's Pine Cove Mine sells approximately 3,200 ounces of gold In FY Q2 2013; generates nearly $5.4M in revenue

Thursday, December 13, 2012

Anaconda's Pine Cove Mine sells approximately 3,200 ounces of gold In FY Q2 2013; generates nearly $5.4M in revenue07:00 EST Thursday, December 13, 2012TORONTO, Dec. 13, 2012 /CNW/ - December 13, 2012 - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to announce certain financial and operating results from the fiscal 2013 second quarter ended November 30, 2012. The Company sold 3,194 ounces of gold and generated $5,395,563 in revenue at an average sales price of $1,690 per ounce. The second quarter fiscal 2013 sales volume and revenue were approximately 47% and 42% greater than the same period in the previous fiscal year. For the first six months of fiscal 2013, the Company sold 7,411 ounces of gold and generated $12,255,862 in revenue at an average sales price of $1,654 per ounce. The Company expects to file its full financial statements by January 14, 2013.President and CEO, Dustin Angelo, stated, "Top line performance for the first half of the fiscal year has gone just about as planned. Revenue is 1.4% above budget while sales volume is 6.4% (or 500 ounces) below forecast due to the slow restart after Pine Cove's scheduled maintenance down time in late August. By November, we were back on track with our key operating parameters. In spite of the gradual ramp up to normal operating levels, the Company still generated enough cash to make its scheduled $600,000 principal payment at the end of the second quarter and continue investing in exploration and capital expenditures."FY Q2 2013 Mill Operations Overview:The Pine Cove mill operated for 86 days during the second quarter of fiscal 2013 at an availability rate of 94%. The mill processed 76,292 dry tonnes of ore (887 tonnes per operating day) at an average head grade of 1.76 grams per tonne, slightly lower than the 1.83 grams per tonne that was budgeted for the quarter. Although overall grade for the quarter came in slightly below forecast, the shortfall was mostly related to lower grades that were processed through the mill in September. There was a delay in establishing the 5018 bench due to scheduling constraints surrounding the expansion to the north for Phase II of the mine plan. The average grade for the final two months of the quarter was nearly on budget. Overall mill recovery averaged 83%, as expected.Actual throughput was off 8.5% for the second quarter compared to budget forecasts.  In August 2012, the last month of the first quarter, the ball mill liners were replaced as part of Pine Cove's scheduled maintenance shutdown.  The liner change had a negative impact on throughput in September (first month of the second quarter) as mill inside diameter was reduced slightly until the liners underwent a wear-in period (now complete). The Company has been working with the mill liner supplier to provide a modified configuration, for future installations, to minimize this effect. In addition, further testing around the ball mill revealed a significant change in the ore specific gravity.  New operating parameters were implemented during the quarter, which resulted in an improvement in productivity and throughput, particularly in November. Lastly, during November, a mechanical representative of the crusher manufacturer was brought on site to inspect and repair the cone crusher.  During this procedure, a portable crushing plant, operated by an independent contractor, provided mill feed for several days. The mill operated at a reduced tonnage as the portable crusher provided coarser feed material.The following table summarizes the key operating statistics by month for the second quarter ended November 30, 2012. Sep '12Oct '12Nov '12Total/AvgOPERATING STATISTICS:    Calendar days30313091Operating days28292986Availability91%93%98%94%Dry tonnes processed23,14526,58026,56776,292Tonnes per 24-hour day827920904887Grade (grams per tonne)1.661.851.751.76Overall mill recovery81%83%85%83%     Gold sales volume (troy oz.)7729491,4733,194ABOUT 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.Company website: www.anacondamining.com  SOURCE: Anaconda Mining Inc.For further information: Anaconda Mining Inc. Dustin AngeloPresident and CEO (647) 260-1248  Email: dangelo@anacondamining.com ProConsul Capital Ltd.Andreas CurkovicInvestor Relations (416) 577-9927Email:acurkovic@proconsulcapital.com