Anaconda Mining sells 2,166 ounces of gold in fiscal Q2 2012 at a record gold price
TORONTO, Dec. 21, 2011 /CNW/ - Anaconda Mining Inc. ('Anaconda' or 'the Company') -
is pleased to announce certain financial and operating results from the fiscal second quarter 2012 ended November 30, 2011. The Company sold 2,166 ounces of gold and generated $3,792,044 in revenue at an average sales price of $1,751 per ounce, the highest quarterly average in the Company's history. The second quarter average sales price was approximately 11% greater than the first quarter average sales price of $1,581 per ounce.President and CEO, Dustin Angelo, stated, 'During the second quarter, the Company made some important modifications in the mill and used this downtime to do routine maintenance. These modifications were made in order to enhance overall mill availability with the potential to improve gold recoveries. Despite only operating for 65 days during the quarter due to the mill modifications, the Company was still able to average approximately the same amount of daily gold sales as the first quarter at 33 ounces per operating day in the second quarter versus 34 ounces per operating day in the first quarter. Improvements in production in the recent quarter were largely impacted by improved grade mined during the period. We also saw that we can achieve an overall mill recovery greater than 80%. As we move into the third quarter, we expect all the key operating metrics of throughput, recovery and grade to align to maximize gold production and sales.'
FY Q2 2012 Mill Operations Overview:
The Pine Cove mill operated for 65 days during the second quarter primarily due to the scheduled shut down for the modifications that began in late September. The mill processed over 55,000 dry tonnes of ore at an average head grade of 2.04 grams per tonne. The head grade for the second quarter was approximately 0.50 grams per tonne greater than the first quarter (1.51 grams per tonne). The following table summarizes the key operating statistics by month for the second quarter of fiscal 2012 ended November 30, 2011.
______________________________________________________________
| |Sep '11|Oct '11|Nov '11|Total/Avg|
|____________________________|_______|_______|_______|_________|
|OPERATING STATISTICS: | | | | |
|____________________________|_______|_______|_______|_________|
|Calendar days | 30| 31| 30| 91|
|____________________________|_______|_______|_______|_________|
|Operating days | 22.5| 14.0| 28.5| 65|
|____________________________|_______|_______|_______|_________|
|Availability | 75%| 45%| 95%| 72%|
|____________________________|_______|_______|_______|_________|
|Dry tonnes processed | 19,941| 10,502| 24,926| 55,369|
|____________________________|_______|_______|_______|_________|
|Tonnes per 24-hour day | 886| 750| 875| 837|
|____________________________|_______|_______|_______|_________|
|Grade (grams per tonne) | 2.12| 2.06| 1.95| 2.04|
|____________________________|_______|_______|_______|_________|
|Overall mill recovery | 78%| 81%| 75%| 78%|
|____________________________|_______|_______|_______|_________|
| | | | | |
|____________________________|_______|_______|_______|_________|
|Gold sales volume (troy oz.)| 1,065| 493| 608| 2,166|
|____________________________|_______|_______|_______|_________|
As previously reported, Anaconda planned to make modifications to various areas of the mill, primarily as a result of the necessity to replace its two aged rotary drum filters. With time down for the drum filter replacement, the Pine Cove team also relined the primary ball mill, converted a pregnant solution tank to be a fourth leach tank, added a new pregnant solution tank, modified all leach tanks and performed other routine maintenance items. The scheduled upgrades and maintenance work included various items in both the front end (grinding/flotation) and back end (leaching/filtration) of the mill. As such, the modification program was divided into stages to minimize shutting down the entire mill and enable certain portions of the circuit to operate while work was done in other areas. On October 20, 2011, the Company reported that it had successfully completed the mill modification and maintenance program.
In October, the mill operated for 14 days, primarily because of the downtime associated with the modifications in the early and middle portion of the month. Pine Cove's mining and milling operations were also temporarily suspended at the end of October due to a power outage brought about by an early, yet severe winter storm. On the evening of October 26th, a severe snow and ice storm knocked out the electricity on the Baie Verte and Ming's Bight Peninsulas. The Pine Cove mine was without power for approximately four days until the night of October 30th. However, the emergency generating equipment incorporated into the plant's electrical distribution performed without incident enabling critical circuit operations and essential employee safety/service amenities to be maintained throughout the power outage.
Following the resumption of power and getting circuits fully operational, the mill ran for the entire month of November, the first full month of operation post modifications. During the beginning of the month, the mill had to build up circuit inventory to pre-modification levels, including the filling of the fourth leach tank. At the current concentrate grades, this represented approximately four days of production. The expanded circuit contained an additional 205 ounces at the end of the second quarter compared to the start of the quarter. Furthermore, the final week's worth of production in November was not sold until the first week of December.
ABOUT ANACONDA
Headquartered 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 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.
Anaconda Mining Inc.
CONTACT:
Anaconda Mining Inc. Terre Partners
Dustin Angelo or Joanna Longo
President and CEO Investor Relations
(647) 260-1248 (416) 775-8771
Email: dangelo@anacondamining.com Email: jlongo@terrepartners.com
Company website: www.anacondamining.com