In an industry as rigorously competitive as the gold production, Anaconda Mining Inc is a company of exploration that fundamentally strives for stability. The junior gold production company focuses its mergers and acquisitions target searches primarily on Canada and the United States, with a particular focus on Atlantic Canada. Anaconda correspondingly operates the Pine Cove open pit mine as well as controlling approximately 6,000 hectares of exploration property in the Baie Verte Mining District on the Ming’s Peninsula, Newfoundland, Canada. In recent years, the United States Geological Survey’s (USGS) provisional data estimated that global gold production increased from 2,800 tonnes in 2013, to 2,860 tonnes in 2014, showing a 2.1% increase. From the ten highest producing countries in the gold mining industry, Canada, along with only four others increased their personal output, whereas mining giants such as South Africa and the US saw a decline in production. Anaconda Mining contributed to Canada’s achievement of a record gold output in 2014, climbing the table by two positions, surpassing the likes of South Africa along the way.
A key strength to Anaconda Mining’s continued contribution to the growth of gold production within Canada is that it actively seeks progression. Currently debt free, the company aims to discover and develop further resources within its current project areas, doubling annual production from approximately 15,000 ounces to 30,000 ounces. These figures refer in main to the Point Rousse Project. Previously known as the ‘Pine Cove Project’, it produces varied deposit types with a cumulative twenty-kilometre strike length. Three primary gold trends are currently being explored within the project area; The Pine Cover, Stog’er Tight and Romeo & Juliet deposits. All deposits are within 8 kilometres of the Pine Cove Mill. Anaconda believes that 1,000,000 ounces of gold can be discovered and develop from multiple deposits. With all deposits in close proximity to the fully operational mill, Anaconda can afford to develop smaller deposits around the Pine Cove Mill; incremental analysis. The company boasts strong relationships with both the provincial and local governments, as well as universities, colleges and various funding agencies.
From a statistical standpoint, Anaconda Mining announced certain financial and operating results for fiscal 2015, recording sales of 15,821 ounces of gold, which not only improved dramatically from the previous year’s production by 9%, but also showed a significant increase in sales inclusively. The Point Rousse Project saw Anaconda generating $22,234,072 in revenue, with an average sale price of $1,405 per ounce; seeing a 10% increase in revenue from fiscal 2014. The rise in revenue was determined not only due to the average sale price rising from £1,384 per ounce in fiscal 2014, to $1,405 in 2015, but also due to the volume increase in sales; 1,200 ounces higher than the prior fiscal. The company’s mill processed over 343,000 tonnes of ore, 38,000 more than fiscal 2014. This is largely due to the mill availability and overall recovery increasing 92% and 84% respectively; up from 88% and 83%, respectively.
These steady and prominent increasing figures are a determining factor in Anaconda Mining’s progressive attitude as the company looks to acquire additional projects to raise its annual production to approximately 100,000 ounces. The company’s latest acquisition of Corkscrew gold property, with 100% undivided interest is a certain step to stable growth. The property consists of a 346.4-hectare mining lease contiguous to the current Point Rousse Project on the Ming’s Bight Peninsula. In addition to including five gold occurrences located within the Goldenville Trend on the Ming’s Bight Peninsula, Corkscrew is a 3.5-kilometre section of this trend immediately west of the portion already under the ownership of Anaconda. Under this new agreement with Seaside, Anaconda’s land share within this Goldenville Trend has doubled for a possible strike length of eight kilometres. The Goldenville Trend contains a rock already known to host gold deposits as seen in other parts of the Baie Verte Mining District; a prospective ironstone formation. Anyone in the Canadian mining industry will confirm that with Anaconda’s announcement of effectively controlling all areas of interest within the Point Rousse Project, as well as full control of these highly prospective group of rocks under the Corkscrew Seaside agreement, that the company’s future in the Canadian mining industry is looking increasingly golden. In a recent post on the company’s website, Anaconda President and CEO Dustin Angelo was quoted saying the following:
“Our business plan includes discovery and development of a source of high-grade gold which will be blended with the existing baseload feed at the Pine Cove Mill. The Goldenville Trend, now including Corkscrew, has the greatest potential to host high-grade deposits, as proven elsewhere within the Baie Verte Mining District.”
Anaconda Mining is a company committed to responsible resource development. The company strategizes, monitors and minimizes environmental impact, guided by a Corporate Environmental Policy that consequently assists the management of environmental risks and develops effective mitigation strategies aiming to protect all stakeholders; inclusive of the environment, local community and its employees. In regard to employees, Anaconda provides training that encourages active participation in dialogue pertaining to environmental and community concerns, as well as ensuring each and every employee and contractor adheres to the Corporate Environmental Policy. The company’s policies strive to develop, insinuate and operate facilities that are based on an efficient usage of energy as well as resources and materials, even after project closure.
A key strength and additional reason for Anaconda’s continued growth in output is how the company deals with difficulties such as climate intervention. Winter weather acted as an influential factor towards Anaconda improving its current production process. For example, the company modified its schedule and overall approach to crushing ore, introduced new reagents to control dust and prevent freezing, and thus managed to reduce the climates overall impact at the crusher and on stockpiles. Moreover, Anaconda improved the preventative maintenance program, which thus contributed to a reduction in maintenance costs and a significantly higher availability. Anaconda also improved the technology it uses when during the production process, as blast movement monitoring technology and a GPS system installed on the excavator have maximized head grade and reduced dilution from 20% to less than 10%. These technological improvements and climate considerations have aided Anaconda Mining to improve its overall production and move forward in a time of economic uncertainty.
Finally, the Argyle zone was discovered by Anaconda in the nine months ended February, 28, 2015, as a continued exploration project, subsequently resulting from the success of the Point Rousse Project. The new discovery is located approximately 5 kilometres from the Pine Cove Mill, and includes two areas of mineralization separated by only 200 metres. The significance of this discovery is both the extension of the Scrape Trend and the demonstration of the possibility of new discoveries being made near the Pine Cove Mill. It equally illustrates Anaconda’s clear geological understanding and strength of its exploration model. There is no denying that with the solidity of forward thinking, proven in the omission of waste and positive outlook to expansion, that Anaconda Mining Inc. is demonstrating safety, integrity and reliability.