Anaconda Mining is an exploration and development company with a focus on the Atlantic Canada provinces of Newfoundland and Nova Scotia. The company operates the Point Rousse Project located in the Baie Verte Mining District. Point Rousse is comprised of the Pine Cove open pit mine, and fully-permitted Pine Cove Mill and tailings facility as well as the Stog’er Tight and Argyle deposits.
Anaconda said the Stog’er Tight estimate includes an indicated mineral resource of 642,000 tonnes at a grade of 3.02 g/ gold or 62,300 ounces and an inferred resource of 53,000 tonnes of grade 5.63 g/t gold, or 9,600 ounces. The company said these resources are constrained within three open pits as well as adjacent to the past producing Stog’er Tight Mine. The Stog’er Tight deposit is located three kilometres from the Pine Cove mill along existing roads and was previously processed at the Pine Cove mill from June 2018, to January, 2020, notching an average recovery rate of 87%.
“Given the relative high-grade nature of the mineral resource and its proximity to the Pine Cove mill and existing road networks, we have initiated development work required to enable us to convert these resources to reserves,’’ the company said in a press release.
“We believe the Stog’er Tight resource combined with the recently announced Argyle Mineral Reserve demonstrate potential for an expanded mine life at the Point Rousse operation for several years,’’ the company said.
“Given our history of discovery at Point Rousse and ongoing drill testing of additional targets at both the Point Rousse and Tilt Cove projects, we believe the Point Rousse Project has the potential for continued cash generation for several years and beyond.”
On Tuesday, Anaconda shares advanced on the news, rising 1.6% or $0.01 to 64 cents. The shares are currently trading in a 52-week range of $1.05 and 50 cents.
Anaconda is also developing the recently acquired Goldboro Project in Nova Scotia, a high-grade mineral resource with the potential to leverage existing infrastructure at the Point Rousse Project.
In addition, it has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.
Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000 to 19,000 ounces, with the processing of ore from the Argyle Gold Mine commencing in the fourth quarter of 2020.
All-in sustaining cash costs per ounce sold, including corporate administration and sustaining capital expenditures was US$1,576 in the fourth quarter of 2020 and US$1,220 for the full year. Net income for 2020 was $8.2 million or $0.06 per share, up form $373,047 or $0.00 per share in 2019.
The increase was due to the significantly higher gold price and increased gold sales.