Anaconda's Pine Cove Mine sells over 3,900 ounces of gold; generates $5.5M in revenue in Q1 FY2015

TORONTO, Sept. 18, 2014 /CNW/ - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) announces certain financial and operating results from the fiscal first quarter ended August 31, 2014. During the first quarter of fiscal 2015, the Company sold 3,933 ounces of gold and generated $5,511,612 in revenue at an average sales price of $1,401 per ounce. The first quarter of fiscal 2015 sales volume and revenue were both approximately 4% lower than the first quarter of fiscal 2014 when the Company sold 4,096 ounces at an average gold sales price of $1,399 per ounce and generated $5,731,783 in revenue. The Company expects to file its full financial statements by October 10, 2014.

President and CEO, Dustin Angelo, stated, "Year after year, we have been able to consistently sell approximately 4,000 ounces in the first quarter. The Company would have been able to exceed sales volume of 4,000 ounces in the first quarter of this fiscal year if it not for some mechanical problems incurred in August related to our crusher. Management continues to work on process improvements at the mill to mitigate downtime risks and prepare for the upcoming winter weather. We've seen signs of those improvements this quarter where we achieved 95% availability, 84% recovery and throughput of 963 tonnes per operating day, all on the high end of our operating metrics."

FY Q1 2015 Operations Overview:

The Pine Cove mill operated for 87 days during the first quarter of fiscal 2015 at an availability rate of 95% versus 93% in the same period in the previous fiscal year. For the quarter, the mill processed 83,782 dry tonnes of ore at an average head grade of 1.80 grams per tonne. Overall mill recovery was 84%, compared to 83% in Q1 of fiscal 2014, primarily due to operational changes leading to higher leach-circuit recovery. The mill's run rate for the quarter was 963 tonnes per operating day.

The mine operated for 64 days in the first quarter of fiscal 2015 producing 89,239 tonnes of ore and 492,040 tonnes of waste. Mining production increased in the first quarter of fiscal 2015 to provide waste material for the construction of the tailings dam expansion project, which remains on schedule for completion before the end of the calendar year. Blasting design and procedures have been standardized for fiscal 2015 to preserve pit-wall integrity and achieve required wall angles. New excavating procedures were also implemented for grade control to reduce dilution and improve recovery, which have proven effective.

The following table summarizes the key operating statistics for the first quarters ended August 31, 2014 and 2013:

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

ABOUT ANACONDA

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.

FORWARD-LOOKING STATEMENTS

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.

SOURCE Anaconda Mining Inc.