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Anaconda's Pine Cove Mine Sells Over 2,800 Ounces of Gold; Generates Nearly $4M in Revenue in Q3 FY2014

TORONTO, ONTARIO -- (Marketwired) -- 03/20/14 -- Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX: ANX) announces certain financial and operating results from the fiscal 2014 third quarter ended February 28, 2014 (the "Quarter"). The Company sold 2,832 ounces of gold and generated $3,865,210 in revenue at an average sales price of $1,365 per ounce. During the previous years' third quarter ended February 28, 2013, the Company sold 3,101 ounces of gold and generated $5,137,269 in revenue at an average sales price of $1,656 per ounce. The Quarter's sales volume and revenue were approximately 9% and 25% lower, respectively, than in the similar period in fiscal 2013. Volume was down because of an unusually harsh winter in Newfoundland, as well as power supply issues which affected crusher and ball mill performance. Revenue was lower because of the decreased volume and the nearly $300 unfavorable difference in average gold price. Despite a challenging Quarter, the Company has sold 10,780 ounces through the first nine months of fiscal 2014, which is nearly 300 ounces more than the same period in fiscal 2013. In addition to the revenue generated at Pine Cove, Anaconda received US$355,831 in royalty income from the Chile transaction during the Quarter. The Company expects to file its full financial statements by April 15, 2014.

President and CEO, Dustin Angelo, stated, "Pine Cove's operating performance in the third quarter was hampered by the extreme cold and excessive snowfall that began in late November and lasted into early March. The operating difficulties were compounded by the lack of adequate, consistent power supply, which caused the Pine Cove team to conservatively run the ball mill at a lower throughput rate for most of the Quarter to compensate for these external issues. By the end of January, the Company had made adjustments to overcome the power supply problems and, by mid March, with the softening of the weather, it was beginning to ramp up gold production to normal levels."

FY Q3 2014 Mill Operations Overview:

The Pine Cove mill operated for 76 days during the Quarter at an availability rate of 84%. The mill processed 63,123 dry tonnes of ore (834 tonnes per operating day) at an average head grade of 1.79 grams per tonne. Overall mill recovery averaged 83%.

On November 20, 2013, the Pine Cove site and other utility customers on the Baie Verte Peninsula experienced a power outage that lasted approximately 40 hours. Subsequent to power restoration, the Company's ball mill continued to trip out on overload protection. A detailed investigation concluded there was no internal damage but that the issues likely related to a reduced electricity supply from the power provider which also included province wide rotating outages that occurred later in the Quarter. The need for rolling outages was attributed to extreme cold temperatures and generating capacity issues with the provider. The Company continued to operate at a reduced mill capacity until the starting issues could be rectified.

The Company, along with its local and international engineering consultants, optimized the ball mill electrical circuit to compensate for the energy reduction, thereby enabling the plant to resume full production on January 28, 2014.

In addition to issues associated with starting the ball mill, winter weather has proven to be harsh, even for Newfoundland standards. The weather routinely alternated between periods of extreme cold and extreme snowfall. These conditions affected the crushing plant and caused ore to freeze in feed chutes, requiring more down time for maintenance and cleanup. Weather-related down time would have been far worse if not for configuration changes and improvements made to the crushing plant over the last year. More improvements are being considered to prepare for next winter.

The following table summarizes the key historical mill operating statistics by quarter for fiscal 2014 as well as a year-over-year comparison between the first nine months of fiscal 2014 and fiscal 2013.

                                                       9 Months    9 Months
                             Q1        Q2        Q3       Ended       Ended
                         FY '14    FY '14    FY '14  2014/02/28  2013/02/28
Calendar days                92        91        90         273         273
Operating days               85        80        76         240         237
Availability                 93%       87%       84%         88%         86%
Dry tonnes processed     83,890    76,114    63,123     223,127     202,979
Tonnes per 24-hour day      987       957       834         926         858
Grade (grams per
 tonne)                    1.91      1.80      1.79        1.83        1.93
Overall mill recovery        83%       83%       83%         83%         83%

Gold sales volume
 (troy oz.)               4,096     3,852     2,832      10,780      10,512

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


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.


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.

Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
[email protected]

ProConsul Capital Ltd.
Andreas Curkovic
Investor Relations
(416) 577-9927
[email protected]

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