Anaconda Mining Inc.

Anaconda Mining Inc.

March 19, 2013 07:00 ET

Anaconda's Pine Cove Mine Sells Approximately 3,100 Ounces of Gold in FY Q3 2013; Generates Over $5.1M in Revenue

TORONTO, ONTARIO--(Marketwire - March 19, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to announce certain financial and operating results from the fiscal 2013 third quarter ended February 28, 2013. The Company sold 3,101 ounces of gold and generated $5,137,269 in revenue at an average sales price of $1,657 per ounce. For the first nine months of fiscal 2013, the Company sold 10,512 ounces of gold and generated $17,393,131 in revenue at an average sales price of $1,655 per ounce. The nine-month year-to-date fiscal 2013 sales volume and revenue were approximately 21% and 20% higher than the same period in the previous fiscal year. The Company expects to file its full financial statements by April 12, 2013.

President and CEO, Dustin Angelo, stated, "Year over year top line performance at Pine Cove continues to improve. In the first nine months of fiscal 2013, our sales volume and revenue exceeded the results from fiscal 2012 and we expect that trend to continue for the full fiscal year. Even though sequential quarterly performance may vary, the long term trend is positive. Top line performance for the third quarter of the fiscal year was slightly lower than the second quarter, primarily due to weather related issues. Although our books are not completely closed, we expect to generate more profit in the third quarter than the second quarter when we sold approximately 3,200 ounces."

FY Q3 2013 Mill Operations Overview:

The Pine Cove mill operated for 77 days during the third quarter of fiscal 2013 at an availability rate of 85%. The mill processed 63,822 dry tonnes of ore (830 tonnes per operating day) at an average head grade of 2.17 grams per tonne, higher than the 1.94 grams per tonne that was budgeted for the quarter. Overall mill recovery averaged 83%, as expected.

Significant snowfall followed by extended periods of rain and freezing rain contributed to some mechanical failures and lower availability of the crushing plant. In addition, there were two weather related power outages/incidents during the quarter causing site shutdowns. Mill throughput, consequently, was affected. Subsequent mechanical improvements together with an extension in the crushing schedule have alleviated availability issues going into the final quarter of fiscal 2013. These improvements have allowed the site to achieve crushing capacity in excess of the mill capacity. Consequently, the site has now been able to maintain consistent feed to the ball mill and several days of crushed ore for unscheduled mechanical downtime.

The following table summarizes the key operating statistics for the third quarter and year-to-date ended February 28, 2013.

FY '13
Feb '13
Calendar days 90 273
Operating days 77 237
Availability 85 % 85 %
Dry tonnes processed 63,822 202,979
Tonnes per 24-hour day 830 857
Grade (grams per tonne) 2.17 1.91
Overall mill recovery 83 % 83 %
Gold sales volume (troy oz.) 3,101 10,512

NOTE: Operating statistics exclude changes in in-circuit inventory.


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.


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.

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