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Anaconda Mining files updated technical report on its Goldboro project

Published by
Global Mining Review,


Anaconda Mining Inc. (Anaconda) has filed the updated technical report prepared in accordance with National Instrument 43-101 regarding an update to the Mineral Resource Estimate (Mineral Resource) for its 100%-owned Goldboro gold project (Goldboro) in Nova Scotia (Canada).

"The filing of the technical report represents the culmination of significant milestones to date in the development of the Goldboro gold project. Just over a year and a half ago, we acquired the project at a compelling valuation and in a short period of time, we have produced a positive preliminary economic assessment, registered the project for environmental permitting, initiated a 10 000 t bulk sample, and drilled a further 12 000 m which increased the deposit to over 600 000 oz of Measured and Indicated Resources and over 450 000 oz of Inferred Resources. We look forward to further progress in 2019 as we begin a feasibility study and continue to advance all required permits with the aim of beginning construction in 2020," said Dustin Angelo, President and CEO of Anaconda.

The technical report, entitled ‘Anaconda Mining Inc., Goldboro Project Mineral Resource Update and Preliminary Economic Assessment’ and which is dated 25 October 2018, was authored by independent qualified persons Joanne Robinson, P.Eng., Garth Liukko, P.Eng., and Sebastian Bertelegni, P.Eng., all of WSP Canada Inc., J. Dean Thibault, P.Eng., of Thibault & Associates Inc., and non-independent qualified person Gordana Slepcev, P.Eng., of Anaconda. 

Goldboro preliminary economic assessment

Anaconda also reported updated after-tax economics with respect to the Preliminary Economic Assessment study (PEA) on Goldboro. The change in after-tax economics reflects the confirmation with the Nova Scotia Department of Natural Resources of the application of a mineral royalty tax of a 1% net smelter return on gold production, which supersedes the higher mineral tax applied in the previous report.

With the update to the mineral royalty tax and a gold price of CAN$1550/oz (US$1200/oz), after-tax NPV (5%) improved to CAN$88 million with an after-tax IRR of 29.3%, resulting in an after-tax payback period of 3.3 years; 

At a CAN$1600 gold price per ounce (US$1230/oz), the NPV (5%) increases to $99 million and an after-tax IRR of 32.0% and a payback period of 3.1 years; 

The project has pre-production capital expenditures of CAN$47 million to establish the proposed initial opencast operations prior to underground development and production; 

Life of mine (LOM) of 8.8 years with gold production of 375 900 oz and LOM average operating cash cost of CAN$654/oz (US$505/oz) and all-in sustaining cash cost of CAN$797/oz (US$615/oz).

The updated PEA only reflects the change in the mineral royalty tax and does not incorporate increases to the Mineral Resource as at 19 July 2018. The updated Mineral Resource does not affect the validity or currency of the PEA, which continues to use the Mineral Resource as reported in the previous report. With the increase in Mineral Resources announced on Monday, Anaconda believes there is the potential for increased project mine life and higher potential gold production due to the increase in grade, which will be assessed in future studies.

The PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. Thus, there is no certainty that the results stated in the PEA will be realised. Actual results may vary, perhaps materially. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Read the article online at: https://www.globalminingreview.com/finance-business/13122018/anaconda-mining-files-updated-technical-report-on-its-goldboro-project/

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