TORONTO - Anaconda Mining Inc. ('Anaconda' or the 'Company') (TSX: ANX) (OTCQX: ANXGF) is pleased to announce production results and certain financial information for the three months and year ended December 31, 2019.
All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2020.
During the fourth quarter of 2019, the Company processed the Goldboro Bulk Sample (the 'Bulk Sample') at its Pine Cove Mill. Fourth quarter and annual mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis. Proceeds from gold recovered and sold from the Bulk Sample will be recorded as a credit against the Goldboro exploration and evaluation asset, and the related processing costs at the Pine Cove Mill will also be reallocated to the Goldboro asset on a proportionate basis.
2019 Highlights
Anaconda sold 16,362 ounces of gold in 2019 from production at the Point Rousse Complex, generating metal revenue of $29.5 million at an average sales price1 of C$1,804 (US$1,360) per ounce of gold. As at December 31, the Company also had over 420 ounces in gold dore inventory, which was subsequently sold in January.
The Company also sold 903 ounces in 2019 from the processing of the Goldboro Bulk Sample at the Pine Cove Mill, generating a further $1.8 million in proceeds that will be recorded as a credit against the Goldboro asset.
Anaconda produced 15,211 ounces of gold in 2019 at the Point Rousse Complex, below its revised guidance of 16,000 to 17,000 ounces due to increased throughput time for the Bulk Sample to maximize recovery, displacing Pine Cove ore, and lower grades in Q4 2019 due to changes in mine sequencing.
The Pine Cove Mill achieved annual throughput of 401,499 tonnes during 2019, including 9,785 tonnes from the Bulk Sample, down from 2018 due to low mill availability in Q2 resulting from unplanned maintenance of the regrind mill and the decision to accelerate other maintenance programs to minimize future down time.
Mine operations moved 413,139 tonnes of ore during the year at an average grade of 1.54 g/t at a strip ratio of 4.3 waste tonnes to ore tonnes.
The Company extended the amortization of its term loan with the Royal Bank of Canada, providing enhanced financial flexibility as the Company continues to advance the Goldboro Gold Project and Tilt Cove Project.
As at December 31, 2019, the Company had a cash balance of $4.4 million, preliminary working capital1 of $2.7 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.
'While 2019 had its challenges at the Point Rousse Complex, Anaconda is pleased that the mine and mill operations are back on track and the Company was able to sell 16,362 ounces of gold during the year to generate $29.5 million in revenue. With the critical investments made in the mill, a strengthened operations management team, and improved preventative maintenance programs, Point Rousse is well positioned entering 2020 where we are guiding to produce 18,000 to 19,000 ounces of gold from continued mining in the Pine Cove Pit. We continue to advance the Argyle Project and plan to commence development in the middle of 2020, with production expected to start in early 2021. We are also pleased to have restructured our term loan with the Royal Bank of Canada, which, together with our cash position at the end of 2019 and ongoing cash flow generation from the Point Rousse Complex, position us to advance the high-grade Goldboro Gold Project to a shovel-ready state and to execute a robust exploration drill program at our prospective Tilt Cove Gold Project.'
ABOUT ANACONDA
Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as 11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs per Ounce of Gold - Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation and rehabilitation costs.
Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.
FORWARD-LOOKING STATEMENTS
This news release contains 'forward-looking information' within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects', or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'does not anticipate', or 'believes' or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might', or 'will be taken', 'occur', or 'be achieved'. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in the annual information form for the fiscal year ended December 31, 2018, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contact:
Kevin Bullock
Tel: (647) 388-1842
Email: kbullock@anacondamining.com
SIGNAL GOLD INC. 
