Minimize

Welcome!

Anaconda Mining – PEA Update and Share Rollback

Cory댊
January 22, 2018

Anaconda Mining came out with two significant news releases last week. First news out was an updated PEA at the Goldboro Gold Project followed by a share consolidation of 4:1. Dustin Angelo, President and CEO of Anaconda joins me to recap the PEA and the key numbers that he found most significant. We also touch on the share consolidation and what investors can expect in terms of news flow.

I will be chatting again with the Anaconda team for a high level overview of the strategy. If you have any further questions please comment or email me at Fleck@kereport.com.

Click here to visit the Anaconda Mining website.

Click download link to listen on this device: Download Show

Discussion
45 Comments
    Jan 22, 2018 22:38 PM

    Anaconda Sitting on a Gold Mine

    Streetwise Reports – Bob Moriarty for Streetwise Reports (1/19/18)

    “I haven’t been to Anaconda Mining Inc.’s (ANX:TSX; ANXGF:OTCBB) Goldboro Saddle Reef gold deposit in Nova Scotia. But I have been to the Dufferin Saddle Reef gold deposit on the same structure twice when it was owned by a predecessor company to the company who owns it now. Once you understand what a saddle reef is, they are all more or less the same. So knowing Dufferin means you understand Goldboro.”

    “In Newfoundland Anaconda owns a mill capable of processing 1280 tons a day and several different open pit mines. The mill is at Pine Cove and has done about 16,000 ounces a year historically. Management plans on using grade control to deliver more of the higher grade gold from the Point Rousse project consisting an open pit at Stog’er Tight and Argyle and increasing production to above 20,000 ounces. Stog’er Tight has a 43-101 resource of about 50,000 ounces of gold; Argyle has a resource of just under 70,000 ounces of gold. In addition, Anaconda plans a 5000-meter drill program at Argyle to add ounces.”

    “Within Newfoundland the company has an additional two exploration projects. One, named the Great Northern project has a historic resource of about 83,000 ounces. The other, the Tilt Cove project has gold in copper potential and an existing 30,000-ton stockpile of ore grade material.”

    “When I went to see the Dufferin mine and mill ten years ago, the company that owned it then had some wonderful pictures of what a saddle reef looks like. And the key is that you have reef after reef after reef. All a company has to do is drill down through the fold and they will keep hitting reefs. I think Anaconda shows some 26 reefs they have identified and the company who now owns Dufferin has identified 30 such reefs. The grades in such deposits can get stupid. Prior drilling at Goldboro had one intercept of 485 g/t gold over 2.6 meters in hole BR-17-04. Grade control is vital as the gold is very nuggety and hard to measure.

    Anaconda just released a PEA on Goldboro that was at least as interesting in what it didn’t say as what it did say. The PEA called for production of about 41,000 ounces climbing to 62,000 ounces in year five. All in sustaining costs are $797 CAD and $89 million CAD would be necessary for capital. The average grade would be 5.13 g/t and they guess a recovery of 93.6%.”

    “What they don’t say in the PEA is that once you have a mill in place, you can add as many high-grade ounces as you want. All you have to do is drill or drift down to more reefs. The PEA assumes an 8-year mine life. Knowing what I know about saddle reefs, they have a lot more like 50-year mine life but can’t say so.”

    “I’m not a big fan of companies selling for peanuts with hundreds of millions of shares outstanding. It’s just my feeling but I hate shares below $0.25. I was hoping the company would announce a roll back. The board approved it last spring. They just did announce a 4-1 roll back. I don’t see any reason the shares will fall back; the pie is still the same size. Only the number of slices has changed.”

    “Having been to Nova Scotia in the past and seeing the Dufferin and now knowing about Goldboro, I have fantasies about the two companies either merging or one buying the other out. With Goldboro going into production, Anaconda has 60,000 to 80,000 ounce a year gold potential when the mill is complete. But there is an existing mill at Dufferin. Anaconda could save probably $50 million in capital cost by buying Resource Capital Group (RCG-V) that only has a $13 million dollar total market cap today.”

    https://www.streetwisereports.com/pub/na/17975

      Jan 22, 2018 22:41 PM

      I thought that Bob M’s idea of $ANX utilizing the mill over at Dufferin from $RCG makes good sense, instead of raising the capital to build another one. The initial plan of barging it over to Point Rousse is still a nice option as well. The combined asset base, and mills and pipeline of projects would turn a combined $ANX / $RCG into a nice mid-tier in a great jurisdiction.

      I own both companies so would love to see a merger between the 2 entities.

      Ever Upward!

        Jan 22, 2018 22:43 PM

        (RCG) RESOURCE CAPITAL GOLD PROVIDES DUFFERIN PROJECT UPDATE
        January 18, 2018

        “Bulk sampling activities and the evaluation of over 2,300 underground face samples conducted at the Dufferin Mine have yielded significant conclusions that will guide and improve future grade control programs, especially with regards to the reduction of dilution.”

        “Milling operations continue to deliver positive results as the Company has now produced a total of 4,115 ounces from its bulk sampling operations at Dufferin since receiving its mining permit on June 12, 2017, with over 2,000 ounces produced from the current bulk sampling program initiated in the last quarter of 2017.”

        http://www.rcgcorp.ca/news/2018/resource-capital-gold-provides-dufferin-project-update

    Jan 22, 2018 22:48 PM

    Stories from Goldboro $ANX with The Unknown Geologist

    by @Newton on January 10, 2018

    https://ceo.ca/@newton/stories-from-goldboro-anx-with-the-unknown-geologist

      Jan 22, 2018 22:29 PM

      Nova Scotia must be salivating at the thought of having a gold mine in their jurisdiction, the area is very depressed and they could use any development. DT

        Jan 22, 2018 22:31 PM

        I can see their government embracing this company.

          Jan 22, 2018 22:05 PM

          Let the salivating in Nova Scotia begin. 🙂

        Jan 22, 2018 22:50 PM

        Nova Scotia has the potential for having half a dozen gold mines in production and yes, they could use the employment and the taxes.

      Jan 24, 2018 24:31 PM

      > Unknown Geologist: “And that’s just one example. They drilled one hole recently that was 485 grams over 2.6-meter core length.”

      >> Bob Moriarty: “I saw that.”

      > Unknown Geologist: “That is probably a two-meter-wide belt. It was 33 meters deep. I think they are planning to do a bulk sample and I said, “Take one drill, go 25 meters to the west, and drill a hole up dip — if you hit it again, then go 25 meters to the east and strip it off,” Fifteen and a half ounces per tonne over two meters would be nice. Even if it’s one ounce with dilution – 10,000 tons of that could go on one barge. Send it to the Anaconda mill and they could get most of last year’s production on that one barge! Then, you can finance further infill drilling.”

      “When you look at the PEA, there are 800,000 ounces defined at 5 grams at a 2-gram cutoff but if you look at the model then you will see that it’s not continuous. The high grade 10 to 12 gram per tonne belts in the PEA model aren’t continuous. And the reason being is because how it was drilled.”

      “When we hit anything 6 grams or better over a meter-and-a-half at Forest Hill, we moved the drill 25 meters east or west, depending on where you could move the drill, and tried to hit it again. At Goldboro, they never followed up ANY of the countless high-grade intersections. I think the reason is that they were looking for a big open pit. If you have a 250-meter-long-hole, then you’re probably going to hit two or three intersections of 6 grams per tonne over considerable widths. I want to just take the model and say look, “Here’s where you need holes – you don’t have them there because of how it was drilled before. Chase those high grades!” This could be a spectacular high-grade mine but no-one really knows about it yet.”

      “Again, that’s why I’m here. I just want to see it happen. It’s been 30 years and I’m still beating the drum. I know what I’ve seen and I’ve compared it to everything else in the Province and I call it a Beast. It’s an unknown beast and the infill drilling will probably prove that out. There are approximately 800,000 ounces under existing 43-101 technical reports, but if you look at how that was drilled then you will see just how non-contiguous those high-grade ore blocks are. If you poke a few holes in the right spots, then you can say they are continuous.”

    Jan 22, 2018 22:25 PM

    A little ANDY HOFFMAN……….Xgold man, now bitcoin genius or not…
    http://financialsurvivalnetwork.com/2018/01/crypto-audioblog-2-with-andy-hoffman/

      Jan 22, 2018 22:40 PM

      Opening Remarks at the Securities Regulation Institute

      Chairman Jay Clayton – Washington D.C. – Jan. 22, 2018

      “My first message is simple and a bit stern. Market professionals, especially gatekeepers, need to act responsibly and hold themselves to high standards. To be blunt, from what I have seen recently, particularly in the initial coin offering (“ICO”) space, they can do better.”

      “Our securities laws – and 80 plus years of practice – assume that securities lawyers, accountants, underwriters, and dealers will act responsibly. It is expected that they will bring expertise, judgment, and a healthy dose of skepticism to their work. Said another way, even when the issue presented is narrow, market professionals are relied upon to bring knowledge of the broad legal framework, accounting rules, and the markets to bear.”

      “Legal advice (or in the cases I will cite, the lack thereof) surrounding ICOs helps illustrate this point. Let me posit a few scenarios. First, and most disturbing to me, there are ICOs where the lawyers involved appear to be, on the one hand, assisting promoters in structuring offerings of products that have many of the key features of a securities offering, but call it an “ICO,” which sounds pretty close to an “IPO.” On the other hand, those lawyers claim the products are not securities, and the promoters proceed without compliance with the securities laws, which deprives investors of the substantive and procedural investor protection requirements of our securities laws.”

      “Second are ICOs where the lawyers appear to have taken a step back from the key issues – including whether the “coin” is a security and whether the offering qualifies for an exemption from registration – even in circumstances where registration would likely be warranted. These lawyers appear to provide the “it depends” equivocal advice, rather than counseling their clients that the product they are promoting likely is a security. Their clients then proceed with the ICO without complying with the securities laws because those clients are willing to take the risk.”

      “With respect to these two scenarios, I have instructed the SEC staff to be on high alert for approaches to ICOs that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities bar.”

      https://www.sec.gov/news/speech/speech-clayton-012218

        Jan 23, 2018 23:59 AM

        Bitcoin May Split 50 Times in 2018 as Forking Craze Accelerates

        By Olga Kharif – January 23, 2018

        “Some 19 Bitcoin forks came out last year — but up to 50 more could happen this year, according to Lex Sokolin, global director of fintech strategy at Autonomous Research. Ultimately, the number could run even higher now that Forkgen, a site enabling anyone with rudimentary programming skills to launch a clone, is in operation. In a Jan. 14 tweet, hedge fund manager Ari Paul predicted more than 10 percent of the current value of Bitcoin and Bitcoin Cash will reside in new offshoots.”

        “Motives behind the efforts vary. Some backers try to improve on Bitcoin. Others seek a quick profit. Developers typically score a cache of newly minted coins in a process called post-mining. Yet prices don’t necessarily hold up for long.”

        https://www.bloomberg.com/news/articles/2018-01-23/bitcoin-may-split-50-times-in-2018-as-forking-craze-accelerates

    Jan 22, 2018 22:30 PM

    Nova Scotia and all the mines in the world could use the new technology being developed for extracting the PM’s from ore. A process developed by Enviroleach technologies, C.ETI. Apparently, their new patented solution gets rid of the need for Cyanide, cost effectively. . This will keep environmentalists off their backs. I think Kereport should cover this company, it may transform the mining industry.

    Jan 22, 2018 22:16 PM

    This has got to be the picture of the day:

    @Newton – #BrentCook at $GGI booth:

    http://cdn.ceo.ca/1d6cshq-IMG_20180122_151208.jpg

    __________________________________________________

    @dirkdiggler – ” lol @Newton – Cook looks like someone stole his ice cream. $GGI “

      Jan 22, 2018 22:27 PM

      This was posted on ceo by DanO just yesterday so the timing is rich:

      @DanO – “Brent Cook was just asked if @GGI is a scam. He replied that is as close as possible to one. Asked who’s advising ES to invest in cos like $nvo and $ggi he replied ‘Not me’.”

      https://ceo.ca/@dano?97df1496213c

        Jan 22, 2018 22:39 PM

        Brent is pretty good!

          Jan 22, 2018 22:38 PM

          He definitely is Big Al. I enjoy Brent’s wisdom, but he had been asked about Garibaldi point blank from someone in the audience and wasn’t a big fan, and had mentioned so much when their stock really ran up to a nosebleed valuation BEFORE any drill results came back, so that picture of him at Vancouver Roundup was just perfect. 🙂

            Jan 22, 2018 22:44 PM

            Here – In fairness to “The Bearded One” this is a better shot of he and Joe at the Garibaldi booth:

            @Newton – “Another one $GGI”

            http://cdn.ceo.ca/1d6csju-IMG_20180122_151426.jpg

            Jan 22, 2018 22:43 PM

            I just personally like the guy.

            Jan 22, 2018 22:48 PM

            I do as well Big Al, but there are times where his point of view is given an extremely heavy weighting by the retail investors in the resource sector, and in certain sectors like Silver, Uranium, Battery Metals, I give it less credence.

            When it gets down to Gold & Copper Exploration and looking for fatal flaws, then I’m all ears.

            Jan 22, 2018 22:49 PM

            He and Joe are also pretty good at identifying takeover targets, and this seems to be their biggest strength.

            Jan 22, 2018 22:17 PM

            To Pick Miners, Look For Potential Buyouts – Brent Cook
            Jan 21, 2018

            “Brent Cook of Exploration Insights doesn’t prefer one metal over another as long as the company that mines it can be profitable.In an interview with Kitco News on the sidelines of the Vancouver Resource Investment Conference, the investor said that when it comes to mining picks, he is not metal-specific.“What we’re really looking for is high-margin, early-stage discoveries, in any metal that a company can make money on, that a major company will buy. So I don’t care if it’s lithium, zinc, copper, gold, it’s more about the upside potential.”Despite an aversion to favoring one specific metal, there are a few things Cook avoids, including cobalt, uranium, and cryptocurrencies.“I get the value there,” he added, referring to blockchain technologies, “but we’re not going to get into that bubble.”

            http://www.kitco.com/news/video/show/VRIC-2018/1822/2018-01-21/To-Pick-Miners-Look-For-Potential-Buyouts—Brent-Cook

        Jan 22, 2018 22:23 PM

        That dude is SUCH a B.S artist!!! He has supported Novo in the past and also trashed talked GGI so he could get in at a lower price because he missed the boat. So much double talk from that former geologist….I fine it extremely hard to believe much of what he spews. Like so many promo people, you really need to be able to read between the lines and never take anything at face value. Cook is also never afraid of throwing his subs under the bus either. Not a guy you can trust.

          Jan 22, 2018 22:30 PM

          You could be correct, Confused. But, I do trust Brent.

            Jan 23, 2018 23:07 AM

            Things That Make Me Go “Hmmm” – Novo-riche / Crypto Mining Edition

            by @Goldfinger on January 23, 2018

            “The first one which stands out to me took place on October 3rd, 2017 in Vancouver, Canada. I was attending the Subscriber Investment Summit at the Vancouver Convention Centre and literally from the moment I arrived to the moment I departed I was barraged with questions regarding Novo Resources (TSX-V:NVO, OTC:NSRPF). NVO shares had just risen ~1000% in the span of three months and I believe it was on this day that CEO.ca founder Tommy Humphreys coined the term “Novo-riche.”

            Roughly a dozen people asked me what I thought about Novo, “How high do you think it can go?” “How many million ounces do you think they have?” “Is it Wits 2.0? Or maybe even better?”

            “My trading intuition (I sometimes refer to this as my “spidey senses”) that Novo was reaching a bullish emotional climax, which would soon result in a correction, turned out to be spot on.”

            “The next event that had me stand up and take notice occurred in December when John McAfee posted a tweet stating that gold was “inherently worthless.” A few days later my friend who is heavily into cryptocurrencies called me up to ask how he could profit from a crash in gold. This is someone who has never traded gold and never expressed an interest in precious metals, suddenly he wants to know how to sell short gold:”

            “This unusual request had me do a double-take and I quickly pulled up the gold chart to explain that this probably wasn’t the best time to be thinking about shorting gold. However, he was adamant: “Gold will lose its place as a safe haven, people will flock to cryptos. Trillions could flow from gold to cryptos over the next couple of years.”

            “Trillions? Really?”

            “I was able to talk him out of shorting gold (which would have turned out to be almost at the exact low in December) by explaining that he should at least wait for a bounce back to resistance near $1270.”

            “It turned out that the phenomenon of people suddenly deciding it was time to short gold simply because Bitcoin was experiencing a parabolic rally was an excellent contrarian indicator that sentiment had reached a bearish extreme.”

            “Thousands of years of human history which has deemed gold to be an exceptional store of value suddenly tossed away because we have encryption technology which enables people to transfer numbers on a screen to one another from anywhere in the world. It’s not different this time. Gold isn’t going away and there is plenty of room for precious metals and cryptocurrencies to coexist and complement one another.”

            “The third and final event which made me double-take (actually a triple-take for this one) happened yesterday morning….”

            https://ceo.ca/@goldfinger/things-that-make-me-go-hmmm-novo-richecrypto-mining-edition

            Jan 23, 2018 23:37 PM

            Al, thats funny. For a more informed perspective I suggest you read Cooks ” reactionary-musings” on GGI’s geology over at CEO.ca. He went overboard with his obnoxious tone regarding the geology or lack there of in his case on GGI. I find in crass and unbecoming of a guy who is not a nickle geo. This is why I believe he has another agenda which is suspicious.

    Jan 22, 2018 22:48 PM

    Eric Coffin “Late Innings”

    January 2018, Metals Investor Forum: #VIDEO

    https://www.youtube.com/watch?v=u59xdNZvWj4

    Jan 22, 2018 22:49 PM

    Gwen Preston “The best outlook in years”

    January 2018, Metals Investor Forum: #VIDEO

    https://www.youtube.com/watch?v=IDOWvNxCPPE&t=1s

    Jan 22, 2018 22:50 PM

    Gwen Preston “Recap of My Picks”

    January 2018, Metals Investor Forum: #VIDEO

    https://www.youtube.com/watch?v=jRr6peejKxk

      Jan 22, 2018 22:37 PM

      I have to compliment Scotte Gibson for putting this forum together. Scott Gibson is a genius.

        Jan 22, 2018 22:45 PM

        Scotts a sharp guy, and the event has been running a few years now and does attract quality companies, but I never actually see him present anymore.

        Gwen & Eric are the public face these days, but I used to enjoy Scott’s “Beneath the Surface” videos on Kitco.

    Jan 22, 2018 22:51 PM

    Sean Brodrick “Generational Buying Opportunity in Commodities”

    January 2018, Metals Investor Forum: #VIDEO

    https://www.youtube.com/watch?v=yuglu84QDT4

    Jan 22, 2018 22:01 PM

    “Nobody Is Afraid Of Anything Right Now” – Rick Rule
    Jan 22, 2018

    “Gold will do well this year but is not on a verge of a breakout, says Rick Rule, CEO of Sprott U.S. Holdings.“Confidence in too many things is too high,” Rule told Kitco News on the sidelines of the Vancouver Resource Investment Conference, “gold does well when people are afraid of other stuff.”Rule is more upbeat on gold miners, despite miners having lagged physical gold last year.“Gold miners are going to surprise, particularly because of low expectations,” Rule said.”

    http://www.kitco.com/news/video/show/VRIC-2018/1824/2018-01-22/Nobody-Is-Afraid-Of-Anything-Right-Now—Rick-Rule

    Jan 22, 2018 22:37 PM

    (BBB) BRIXTON METALS PROVIDES UPDATE ON ITS HOG HEAVEN SILVER-GOLD PROJECT

    January 15, 2018

    * Highlights from the 722 holes historically drilled:

    – The Hog Heaven project represents a high-grade Ag-Au-Cu-Pb-Zn underground opportunity where gold and base metals add significant value on a silver equivalent basis

    – Hole AFR-79-5 returned 12.19m of 1,089 g/t Ag and/or 2,330 g/t AgEq for 114 percent increase when gold, copper, lead and zinc values are included as silver equivalent

    – Hole AFR-81-8 returned 54.86m of 254 g/t Ag and 411 g/t AgEq for a 62 percent increase when gold is included as silver equivalent and there is no assay data for copper, lead or zinc

    – Analysis of the intervals that were not assayed for base metals may provide additional metal value

    – Notable intercepts are 53.34m of 643 g/t AgEq including 9.15m of 2,226 g/t AgEq in Hole AFR-81-38A and 18.29m of 1,623 g/t AgEq from 106.68m including 9.15m of 2,951 g/t AgEq in Hole AFR-79-5

    http://brixtonmetals.com/brixton-metals-provides-update-on-its-hog-heaven-silver-gold-project/

      Jan 22, 2018 22:38 PM

      (BBB) BRIXTON METALS MOBILIZES CREWS FOR DRILLING ON ITS COBALT TARGETS IN ONTARIO
      January 9, 2018

      http://brixtonmetals.com/brixton-metals-mobilizes-crews-for-drilling-on-its-cobalt-targets-in-ontario/

        Ulf
        Jan 23, 2018 23:56 AM

        Excelsior. It appears Mexus is closer than ever to start production. Hope you are still in it. Well, at least if they can get things going for real. i think they have a test pour this week. So maybe next Monday could see some fireworks if it is a success. (Perhaps just a fool’s hope, lol.)

          Jan 23, 2018 23:03 AM

          Hi Ulf – Yes, I’m still in MXSG waiting for the next liftoff. 🙂

          They are about a year behind schedule from where I thought they would be, but 2018 should be a fantastic year for Mexus Gold as they finally start producing at commercial scale.

            Ulf
            Jan 23, 2018 23:56 AM

            It would be a life changer for the better if they finally do it. Sadly, a life changer for the worse if they don’t, ha ha. I wonder just what the heck is keeping them from succeeding? But I guess that is mining in a nut shell. It never goes smoothly. Will be buying again on Friday, Please, no more delays. best of luck to us both
            Ulf

            Jan 23, 2018 23:41 PM

            Yeah, I feel pretty good about Mexus this year, but the issue were that the equipment took longer to get on site than planned, then the testing leaching wasn’t working as they had too much clay in the mix and had to use a more intense filter, and ultimately they brought in a 3rd party consultant that recommended having a larger merrill crowe mill put in, which was customized, built and shipped later in 2017 and is now in place (so they actually have 2 merrill crow mills there now a little one and a bigger one).

            It seems like everything in place now for them to hit the ground running this year.

            Ever Upward!

      Jan 23, 2018 23:08 AM

      For anyone interested, Brixton is on sale today with Silver down and because a short piece was launched on them yesterday that believes that their high grade hog heaven mine will never be built in Montana or that they won’t find anything substantial on their upcoming Cobalt/Silver project.

      As a little refresher for those who may have missed it in 2017 when Brixton put out their last exploration work, they completely crushed the results of most other “Cobalt” companies out there and are in a previously producing Cobalt camp. (ding, ding, ding, ding…..)

      ___________________________________________________________

      BRIXTON METALS SAMPLES 16% COBALT AND 182,065 G/T SILVER AT LANGIS AND PROVIDES AN UPDATE ON ITS PROJECTS
      August 17, 2017 – Brixton Metals Corporation (TSXV: BBB)

      http://brixtonmetals.com/brixton-metals-samples-16-cobalt-and-182065-gt-silver-at-langis-and-provides-an-update-on-its-projects/

    Jan 23, 2018 23:36 AM

    PVG out to the woodshed

      Jan 23, 2018 23:38 PM

      Yep. Can’t say it is entirely unexpected, as the method for modeling the resource base, the mining method, and the continuity of the deposit have been in question for a while.