Saturday 3rd December 2016

Resource Clips


New-found gold in Newfoundland

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While he sets this year’s guidance at roughly 14,000 gold ounces, “We need to demonstrate the ability to increase production and resources overall,” he says. “With Romeo and Juliet we’re trying to increase production in the near term. For the longer term, we’ve increased our property package around our Pine Cove mill seven-fold just in the last year. We’ve gone from 660 hectares to almost 4,800 right on the peninsula and they’re all properties that are adjacent to each other. Over time we’ll get to explore all that. The goal is to find more Pine Coves, more Romeo and Juliets across this peninsula. If we define a larger resource and get to a critical mass that can economically justify a mill expansion, we’d get production up even more. Those are long-term goals. And when you get to that size you’re in a position where other companies would want to take you out.”

We’ve increased our property package around our Pine Cove mill seven-fold just in the last year. We’ve gone from 660 hectares to almost 4,800 right on the peninsula and they’re all properties that are adjacent to each other.—Dustin Angelo, president/CEO
of Anaconda Mining

In 2011 Anaconda sold its share of two Chilean iron ore assets for up to $11 million in staged payments and a 0.5% to 0.8% gross sales royalty. The exact amounts depend on production and sales. Since then the company has paid off nearly $6.4 million of an $8.37-million debt that’s expected to be retired by February 2015.

“We’re profitable, we’re paying down debt, we’ve been growing production year-over-year for the last couple of years,” Angelo points out. “We also expect some money coming in from the sale of non-core assets in Chile so the company’s in a strong financial position. We’re looking to grow.”

Anaconda’s April 4 stock chart stayed flat at $0.09. With 176.82 million shares outstanding, the market cap came to $15.91 million. The 52-week high and low are $0.155 and $0.08.

In other gold news from Newfoundland, Marathon Gold TSX:MOZ released more assays on April 3 from its Valentine Lake project. Results from the Valentine East Hill area include:

  • 2.38 g/t gold over 25 metres
  • (including 11.62 g/t over 1 metre)
  • (and including 17.24 g/t over 1 metre)
  • 4.14 g/t over 11 metres
  • (including 25.01 g/t over 1 metre)
  • 11.71 g/t over 3 metres
  • (including 24.49 g/t over 1 metre)
  • 4.33 g/t over 3 metres
  • (including 11.04 g/t over 1 metre)
  • 1.34 g/t over 9 metres
  • (including 5.85 g/t over 1 metre).

No topcut was applied. Intercepts are estimated to be true widths. The top-most interval started at a down-hole depth of three metres, while the furthest stopped at 104 metres.

In a statement accompanying the results, Marathon president/CEO Phillip Walford said the assays represent “a significant advance in developing other open pit resources outside of the Leprechaun deposit, which contains all the resources discovered on the property to date. It is also significant that Valentine East Hill is 13 kilometres along strike from the Leprechaun deposit and there are additional gold targets located between Leprechaun and the Valentine East Hill zone.”

As of November 2012, Leprechaun’s open pit and underground resources showed:

  • a measured category of 3.03 million tonnes averaging 2.3 g/t gold for 224,000 gold ounces
  • an indicated category of 6.64 million tonnes averaging 2.2 g/t for 458,000 ounces
  • an inferred category of 1.96 million tonnes averaging 2.29 g/t for 145,000 ounces.

Marathon opened April 4 at its previous closing price of $0.50, then slipped to $0.47. The company had 59.94 million shares outstanding for a $28.17-million market cap. Marathon’s 52-week high reached $1.00 while its low was $0.45.

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