Anaconda Mining releases NI 43-101 feasibility study for Goldboro, Nova Scotia

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Anaconda Mining Inc. [ANX-TSX; ANXGF-OTCQX] has released the results of the phase I open-pit feasibility study prepared in accordance with NI 43-101 standards for its 100%-owned Goldboro gold project in Nova Scotia, Canada. All currency is presented in Canadian dollars (C$). unless otherwise stated. Mineral Resources, Mineral Reserves, and the financial analysis for the Project were completed using base case assumptions of US$1,600/oz of gold and an exchange rate of US$1.00 to C$1.25.

Highlights of the Feasibility Study are total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine (LOM) with average gold production of 100,000 ounces/year and an average diluted grade of 2.26 g/t gold. Pre-tax Net Present Value at a 5% discount rate is $484 million and a pre-tax Internal Rate of Return (IRR) of 31.2%, with a projected pre-tax payback of 2.7 years.

After-tax NPV 5% is $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years. The Maiden Open Pit Probable Mineral Reserves are 1,150,200 ounces of gold (15.8 Mt at 2.26 g/t gold). Open pit Measured and Indicated Mineral Resources are 1,422,000 ounces (15.7 Mt at 2.82 g/t gold) and Underground Measured and Indicated Mineral resources of 1,159,000 ounces (5.9 Mt at 6.09 g/t gold). Open Pit Inferred Mineral Resources are 66,000 (0.98 Mt at 2.11 g/t gold) and Underground Inferred Resources of 418,000 ounces (2.2 Mt at 5.89 g/t gold).

Initial capital cost (Capex) is $271 million and LOM sustaining capital of $63.1 million. Life-of-Mine Operating Cash Costs are $966 (US$773) per ounce and All-In Sustaining Costs (AISC) are $1,062 (US$849) per ounce.

There would be projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments. Mill capacity is 4,000 tonnes/day based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; andAt a gold price of $2,200 (~US$1,760). Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.

The Goldboro Deposit is open in all directions and the company believes there is further potential to expand the Goldboro Deposit along strike and at depth. Anaconda is planning a 50 line-km Induced Polarization geophysical survey over the area west and along strike of the Goldboro Deposit for approximately 1.5 km up to the past-producing Dolliver Mountain gold mine, which will guide future exploration drilling.

 


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