TORONTO, Nov. 15, 2018 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (GWA.V) is pleased to provide an update regarding the progress it is making with its development of the Company’s Bradshaw Gold Deposit (“Bradshaw”) in the Timmins Gold Camp.
As previously announced (see Gowest news release dated October 30, 2018), the Company has recently entered into a definitive Custom Milling Agreement (“the Agreement”) with QMX Gold Corporation (“QMX”) pursuant to which QMX will process material from Bradshaw at its Aurbel Mill located in Val d’Or, Quebec. In reaching this agreement, Gowest has achieved a critical milestone, one that had proven to be a major impediment in the Company’s efforts to raise the additional funds needed to continue Bradshaw’s development, let alone for conducting further work on the rest of its more than 100-square-kilometre North Timmins Gold Project.
With the Agreement in hand, Gowest is actively engaged in discussions with a number of parties to identify the best way to raise new funding. No details can be made available at this time; however, a number of options are being examined including private placement funding, some form of debt or royalty structure, as well as larger equity infusions. Further information on these opportunities will be provided as it becomes available.
The Company’s management also wishes to confirm that it is unaware of any material change in the Company’s operations that would account for the recent negative market activity.
Meanwhile, the Company would like to note the considerable progress that its team has achieved during the past two years.
ACCOMPLISHMENTS:
Gowest has completed over 2,098 metres of underground development, including commissioning a main ramp and portal of sufficient size for the future operating mine. This development was conducted at the 30, 45 and 60 metre levels. Silling has also been initiated as the first stopes are prepared for development. This underground work has revealed the gold structures, shown excellent continuity in the mineralization, and confirmed and enhanced the team’s geological model. Importantly, all of this has been completed with no injuries at the project to date, either at surface or underground.
At the same time, 28,567 tonnes of development material has been stockpiled on surface for sorting, milling, and sale as a concentrate.
Further, in preparation for future production, the water treatment plant has been made fully operational, and the discharge is environmentally compliant. The ore-sorter, which is now completely enclosed in a dome building facility, has been commissioned and proven to perform as expected. Initial tests have shown that it should be producing gold bearing material from the stockpiles grading 6 g/t to 10 g/t for trucking to the Aurbel facility for toll-milling. Previous milling and flotation test work showed 97% recoveries.
Additional work has demonstrated stable and competent ground conditions in the ore and waste areas, and a revised geological model has sharply expanded the potential of the mineralized area.
As previously announced (see news release dated February 14, 2018), the Company has completed an agreement to have the gold concentrate produced at the Aurbel mill sent for final processing and sale at Shandong Humon Smelting in China.
Overall, the past year has seen Gowest sharply enhance and de-risk its Bradshaw asset, including intersecting the highest gold values to date at 155 g/t gold in a new zone outside the resource (see news release dated November 29, 2017). The team has also identified 20 new gold zones in bulk sample area, as well as two new high-grade gold zones north and west of main deposit. A 30-hole, 3,871-metre underground infill drilling program has been completed that has significantly enhanced the Company’s understanding of the deposit. This included tightening drill spacing and increasing the technical team’s detailed knowledge of the mineralized structures. In addition to refining the deposit geometry to define stope limits and enhance grade control, this drilling clearly demonstrated the potential to add significant additional material to the resource.
Gowest President & CEO, Greg Romain said, “Despite the difficult market conditions, our team has much to be proud of. Meanwhile, we continue to work towards our plan of making Bradshaw a commercial mine. We are currently reviewing our financing options, and we are hopeful that we will be able to provide a further update in this regard before the end of the year. Meanwhile, on behalf of the Board and our management team, we appreciate the support we have received from our shareholders, and we look forward to providing them with the proof that their patience has not been in vain.”
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Jeremy Niemi, P.Geo., Gowest’s Director of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument 43‐101 standards.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation’s North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
Forward-Looking Statements
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
EMX Royalty Announces Third Quarter 2018 Results and Repayment of Sprott Loan
November 14, 2018 Vancouver, British Columbia, November 14, 2018 (TSX Venture: EMX; NYSE American: EMX) – EMX Royalty Corp. (the “Company” or “EMX”) is pleased to announce that the Company has made its interim filings for the quarter ended September 30, 2018, which are available on SEDAR at www.sedar.com, on the U.S. Securities and Exchange Commission’s website at www.sec.gov and on EMX’s website at www.EMXroyalty.com. Financial results are prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, and are expressed in Canadian dollars unless otherwise stated.
EMX shareholders wishing to obtain free printed copies of the interim financial statements may contact the Company via email at jharris@EMXroyalty.com or at Suite 501-543 Granville Street, Vancouver, BC, V6C 1X8. Sprott Loan Repayment. EMX has repaid the US $5 million senior secured credit facility loan from Sprott Private Resource Lending (Collector), LP (“Sprott”)1. EMX thanks Sprott for providing timely support of the Company’s royalty, royalty generation and strategic investment initiatives. About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX retaining royalty interests. EMX complements its generative business with strategic investment and third party royalty acquisition.
For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: Dave@EMXroyalty.com
Scott Close
Director of Investor Relations
Phone: (303) 973-8585
Email: SClose@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Statements This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metals, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause EMX’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2018 (the “MD&A”), and themost recently filed Form 20-F for the year ended December 31, 2017, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov. 1 See EMX news release dated May 4, 2018. View in PDF Format
EMX Royalty Corp. Suite 501 – 543 Granville Street Vancouver, BC V6C 1X8 Telephone +1 (604) 688-6390
TORONTO , Nov. 13, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company“) (ANX.TO) (ANXGF) is pleased to announce initial drill results from a 10,000-metre drill program that began in July 2018 (the “Drill Program“) at the Goldboro Gold Project in Nova Scotia (“ Goldboro “). Six drill holes (BR-18-44 to 49; 3,237 metres) successfully targeted a previously untested deeper area of the Boston Richardson Gold System (“BR Gold System“) over 350 metres of strike and to depths of 525 metres (Exhibit A and B). Drilling expanded two mineralized zones an additional 200 metres along strike and expanded five other zones over 350 metres along strike. The Company observed nineteen occurrences of visible gold in the six drill holes and the character of the mineralization in those holes is consistent with results seen throughout the BR Gold System to date. The BR Gold System remains open for further expansion at depth and down plunge.
Highlights from recent drill results include:
8.79 grams per tonne (“g/t”) gold over 8.0 metres (483.0 to 491.0 metres) in hole BR-18-44, including 64.40 g/t gold over 0.8 metres;
51.89 g/t gold over 1.0 metre (224.5 to 225.5 metres) in hole BR-18-46;
5.15 g/t gold over 4.0 metres (390.9 to 394.9 metres) including 10.08 g/t gold over 1.5 metres in hole BR-18-47;
21.06 g/t gold over 1.0 metre (200.1 to 201.1 metres) in hole BR-18-48; and
6.39 g/t gold over 2.0 metres (457.2 to 459.2 metres) and 3.35 g/t gold over 4.5 metres (539.0 to 543.5 metres) in hole BR-18-49, including 25.68 g/t gold over 0.4 metres.
The continuity of the BR Gold System is evident as the Company drills deeper. Below are select highlights from assays previously reported by the Company from mineralized zones discovered below the existing Mineral Resource and contiguous with mineralization intersected in this Drill Program. The continuity at depth is also illustrated in Exhibit B.
2.21 g/t gold over 25.5 metres (506.1 to 531.6 metres) including 12.39 g/t gold over 3.2 metres in hole BR-18-30;
4.13 g/t gold over 20.5 metres (324.5 to 345.0 metres) including 9.93 g/t over 7.5 metres in hole BR-18-23;
19.99 g/t gold over 1.7 metres (369.7 to 371.4 metres) in hole BR-18-23;
4.82 g/t gold over 3.6 metres (384.7 to 388.3 metres) including 9.90 g/t gold over 1.1 metres in hole BR-18-33;
63.88 g/t gold over 1.0 metre (378.0 to 379.0 metres) in hole BR-18-41;
6.05 g/t gold over 3.7 metres (472.0 to 475.7 metres) including 28.12 g/t gold over 0.7 metres in hole BR-18-42; and
9.29 g/t gold over 2.1 metres (420.6 to 422.7 metres) in hole BR-18-21.
A full table of composited assays from recent drilling is presented below.
“We have demonstrated further expansion of the Goldboro Deposit, particularly in the Boston Richardson Gold System, and discovered that mineralization continues to at least to 525 metres. These results demonstrate the growth potential of the Goldboro Deposit, coming on the heels of an updated Mineral Resource estimate that highlighted a 15% increase of Measured and Indicated Resources to over 600,000 ounces, and a 30% increase of Inferred Resources to 450,000 ounces. Having successfully completed our goal of expanding the Boston Richardson Gold System, we have recently begun drilling at West Goldbrook with the aim of infill drilling critical portions of this area to upgrade Inferred Resources and to test the expansion potential to depths of 400 metres. We have completed approximately 75% of our 10,000-metre drill program which we expect to wrap up by year end. The results of this Drill Program will be used to update the Mineral Resource estimate, and will be incorporated into a feasibility study for Goldboro .”
~ Dustin Angelo , President and CEO, Anaconda Mining Inc.
Expansion of the BR Gold System
Drill holes BR-18-30, -33, -41, and -42 intersected new zones of mineralization within the BR Gold System on Sections 9050E and 9000E as previously reported on July 5, 2018 . Diamond drill holes BR-18-44 to -49 of the current Drill Program were primarily designed to test the strike gap in drilling between the West Goldbrook Gold System and Section 9050E within the BR Gold System at total depth of 525 metres (Exhibit B). Holes BR-18-44 to -49 were drilled along sections 8600E, 8700E, 8800E, 8900E and 9100E and contained mineralization characteristic of the BR Gold System. Based on these results and those reported for section 9050E and 9100E, Anaconda believes there is continuity within these newly outlined mineralized zones over the entire 500 metres of strike (from Section 8600E to Section 9100E).
Assays for drill hole BR-18-43 will be reported with other holes drilled in the West Goldbrook Gold System.
Table of selected composited assays from drill holes reported in this press release:
Drillhole
From
(m)
To
(m)
Interval
(m)
Au (g/t)
Gold
System
Visible
Gold
Section
BR-18-44
217.5
218.5
1.0
6.13
EG
8900E
and
269.0
269.5
0.5
7.53
EG
vg
and
316.5
317.0
0.5
2.76
BR
vg
and
322.0
322.5
0.5
0.94
BR
vg
and
363.7
365.7
2.0
0.76
BR
vg
and
368.2
370.1
1.9
2.89
BR
and
399.2
400.7
1.5
4.02
BR
and
426.5
429.7
3.2
1.61
BR
vg
and
432.5
433.0
0.5
19.95
BR
vg
and
471.0
477.0
6.0
1.64
BR
vg
including
473.0
474.0
1.0
5.42
BR
and
483.0
491.0
8.0
8.79
BR
vg
including
485.9
486.6
0.7
18.63
BR
including
490.2
491.0
0.8
64.40
BR
vg
BR-18-45
264.0
265.0
1.0
0.65
EG
vg
8800E
and
424.9
427.0
2.1
2.34
BR
vg
and
461.0
461.9
0.9
6.02
BR
and
501.5
503.5
2.0
2.61
BR
BR-18-46
224.5
225.5
1.0
51.89
EG
8700E
and
334.0
340.5
6.5
1.89
BR
and
383.5
384.6
1.1
4.67
BR
and
459.0
460.0
1.0
7.55
BR
and
475.0
476.5
1.5
0.82
BR
vg
and
482.5
483.5
1.0
4.61
BR
BR-18-47
341.8
342.7
0.9
6.11
BR
vg
8600E
and
377.9
380.4
2.5
4.12
BR
incl.
378.9
379.4
0.5
14.65
BR
and
390.9
394.9
4.0
5.15
BR
vg
incl.
391.9
393.4
1.5
10.08
BR
BR-18-48
200.1
201.1
1.0
21.06
EG
9100E
and
291.7
292.2
0.5
6.07
EG
vg
and
395.4
401.0
5.6
0.83
BR
vg
and
476.0
478.4
2.4
4.20
BR
incl.
477.8
478.4
0.6
15.52
BR
BR-18-49
457.2
459.2
2.0
6.39
BR
8800E
and
476.5
480.9
4.4
2.86
BR
vg
and
502.5
504.9
2.4
0.97
BR
vg
and
539.0
543.6
4.6
3.35
BR
including
541.9
542.3
0.4
25.68
BR
and
550.0
551.5
1.5
6.51
BR
vg
and
561.2
563.0
1.8
2.93
BR
including
562.0
562.5
0.5
6.25
BR
and
597.7
598.2
0.5
1.83
BR
vg
This news release has been reviewed and approved by Paul McNeill , P. Geo., VP Exploration with Anaconda Mining Inc., a “Qualified Person”, under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
All samples and the resultant composites referred to in this release are collected using QA/QC protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, NL , for Au by fire assay (30 g) with an AA finish.
Samples analyzing greater than 0.5 g/t Au via 30 g fire assay were re-analyzed at Eastern via total pulp metallic. For the total pulp metallic analysis, the entire sample is crushed to -10mesh and pulverized to 95% -150mesh. The total sample is then weighed and screened to 150mesh. The +150mesh fraction is fire assayed for Au, and a 30 g subsample of the -150mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Anaconda considers total pulp metallic analysis to be more representative than 30 g fire assay in coarse gold systems such as the Goldboro Deposit.
Reported mineralized intervals are measured from core lengths. Intervals are estimated to be approximately 75-100% of true widths of the mineralized zones, except for drill intersections below 450 metres depth in hole BR-18-30, 49, 41, 44 where the drill of the host fold structure near the bottom of the hole. In these areas reported intervals may be as much as 50% of true width.
A version of this press release will be available in French on Anaconda’s website (www.anacondamining.com) in two to three business days.
ABOUT ANACONDA
Anaconda Mining is a TSX-listed gold mining, development, and exploration company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia . The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland , comprised of the Stog’er Tight open pit mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and 7-million tonne capacity tailings facility, and approximately 9,150 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Gold Project in Nova Scotia , a high-grade Mineral Resource, subject of a 2018 a preliminary economic assessment which demonstrates a strong project economics.
The Company also has a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick .
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in the annual information form for the fiscal year ended December 31, 2017 , available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
View photos
Exhibit A. A map of the Goldboro Deposit showing the location of drill holes reported in this press release, drill collar locations at West Goldbrook area where drilling has been initiated as well as historic collars. (CNW Group/Anaconda Mining Inc.)
View photos
Exhibit B. A partial long section through the Boston Richardson Gold System of the Goldboro Deposit (see corresponding section lines in map shown in Exhibit A) showing the pierce points and highlighted assays for intersections of mineralization discovered (orange) below the current resource model (red). (CNW Group/Anaconda Mining Inc.)
View photos
Exhibit C. A long section through the Goldboro Deposit showing the area highlighted in Exhibit B relative to the whole Goldboro Deposit Long Section. (CNW Group/Anaconda Mining Inc.)
Bob Moriarty Archives Nov 13, 2018
I am at the end of a four-day trip to see Novo Resources’ projects at Karratha and Egina. I am leaving for London in about 24 hours but won’t be home until Saturday night. As soon as I get home I will do a full report on what I have learned on this trip. As an interested shareholder or potential shareholder, you need to read what I have found out before voting or taking any action.
Novo has their Annual General Meeting on the 5th of December. They have sent out the voting Proxies and some shareholders have already started to vote. I highly encourage you to NOT VOTE until you read what I have to say.
A Toronto group is trying to take over the board with the intention of stripping off the assets into two other companies leaving Novo owners holding an empty shell. If you vote before you know all the facts you are cutting your own throat.
I know a lot of shareholders all the way to the top are angry at the decline in price from $8.80 to $1.97 and they would like to start seeing scalps hanging from their mantelpiece but Novo has made far more progress in a year than any company I have ever seen. You want to know about it and then make an intelligent vote.
Do not even think about letting the Toronto Mafia take over control of Novo just to carve it into small pieces. I was humping through the outback in 105.8-degree temperature yesterday to learn what the future for Novo was. I came within a couple of minutes of heat stroke just so I could see their progress. You want to know what I know and I will post it early next week.
Until then do not under any circumstances vote your Novo shares. Novo Resources
NVO-V $1.97 (Nov 12, 2018)
NSRPF $1.50 OTCQX 163.7 million shares
Novo Resources website ###
Nov 08, 2018 12:28 pm
By Tekoa Da Silva
I had the chance to sit down once again with Rick Rule, the president and CEO of Sprott U.S. Holdings, Inc. The topics of discussion covered what can often “go wrong” with general and administrative expenses, change of control provisions, changes in corporate strategy (referred to as “mission drift” in this context), and uniquely structured insider private placements.
“Many junior mining companies don’t regard shareholders as partners, they regard them as unsecured creditors,” explained Rule. “[So] anticipating outcomes based on the self-interest of the executives is the best way to understand [how] things are going to unfold.”
Commenting on general and administrative expense items, Rule noted that, “I have seen several circumstances where $10 million market cap companies with $800 thousand in the treasury were paying the CEO $450 thousand a year. In other words, the CEO’s salary alone was taking up 5% of market cap — on an annual basis. That means the CEO, him- or herself (if you assume they have $800 thousand left in the company), will bankrupt the company in [less than two years].”
Speaking toward change of control provisions, Rule recounted that, “Many people raise money from private parties with the view that they’re going to make a discovery and sell the discovery. And what you learn is that many management teams get paid twice. I have seen, in a number of circumstances, management teams [install] change of control provisions … where if the company is sold (which was their stated intention), they get compensation on sale equal to five years of their average salary and bonus expense, and five years of ancillary expenses — things such as rent and health benefits.”
“That’s one of the reasons why some management teams are willing to entertain merger and acquisition,” Rule added, “where their only participation in the company is as option holders. I’ve had a lot of bad experience, frankly, with change of control provisions, which is one of the reasons I study them.”
On the subject of oddly structured insider private placements, Rule explained that, “Private placements, where the company loans the executives the money to [buy] the private placement, … [are] the private placements … I really dislike. In other words … the private placement is just a recycle that allows the management team to sell the stock and strip the warrant — which is an artificial way of increasing their [own] options position. And that’s fairly common.”
When asked how one can protect themselves from the aforementioned (and more), Rule explained that, “One of the ways you can defend yourself … is by limiting your speculations (irrespective of apparent prospectivity or promotion) to companies that are headed by people who have been serially successful in the past … With a class-1 team at the helm [you’re] more likely to be successful.”
“As a speculator,” Rule concluded, “your gains are [usually] hard won. I’m reminded of the scientists’ observation that the harder they work, the luckier they get.”
To watch the full video interview with Rick Rule, the president and CEO of Sprott U.S. Holdings, Inc. click here. Read in browser »
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.
The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
In recent years, as precious metals analysts have attempted to reconcile the routinely counterintuitive price action in the gold and silver markets with the underlying fundamentals, rumors have swirled that J.P. Morgan’s trading desk has been manipulating the price. And this week, a former J.P. Morgan trader plead guilty to exactly that.
“A former precious metals trader (John Edmonds) at a United States bank (Bank) pleaded guilty in a proceeding unsealed yesterday to commodities fraud and a spoofing conspiracy in connection with his participation in fraudulent and deceptive trading activity in the precious metals futures contracts markets.
As part of his plea, Edmonds admitted that from approximately 2009 through 2015, he conspired with other precious metals traders at the Bank to manipulate the markets for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. ”
But given all of the attention in the precious metals community that has focused around J.P. Morgan, largely due to the incredible research by Ted Butler and others, the news of this latest case is worth taking note of.
Perhaps because one of the other items of note in the Department of Justice press release was that Edmonds also admitted “that he learned this deceptive trading strategy from more senior traders at the Bank, and he personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.”
Keep in mind, these are the words of the Department of Justice. Not mine.
And it seems clearly written to indicate that this was not some sort of random one-off event. But rather suggests that it was indeed common knowledge within the firm. And that there are people at higher levels within the bank that were aware of, if not actual participants in the illegal trading behavior.
Which is interesting, because in the Deutsche Bank case, the impression I got from the official release was that part of the agreement included cooperating and helping the regulators go after some of the other players involved. And again with this latest release, the Department of Justice mentioned that “the investigation of deceptive trading practices by others involved in this scheme is ongoing.”
So what does this actually mean to those invested in the silver market?
Perhaps it will turn out to be just the latest piece of evidence confirming that the market is indeed manipulated, to once again just get largely ignored. Yet it’s also possible that maybe there is some will to actually bring integrity to these markets. And that further cases are on the way.
Yet regardless of what the regulators do, the fact that what has long been viewed as conspiracy theory is now becoming more fully documented in a legal setting makes me wonder how much longer it will be before more investors take notice.
Hedge fund managers John Paulson, Ray Dalio, and Jeffrey Gundlach, as well as others have taken sizable positions in gold. And I often wonder how investors like these and others would react if they were simply aware of what’s actually been going on in the silver market.
Especially because the silver market is so small relative to gold, let alone to the stock and bond markets, that it wouldn’t take all that much additional buying power to bring this paper shorting scheme to a halt. And with this latest news, it seems like the once long held secret is becoming public knowledge at a rapidly accelerating pace.
So while it remains to be seen when the final knockout punch will occur, hopefully this news puts to rest any concern silver investors may have still held regarding whether the market was indeed being manipulated, or if people were just speculating on what they couldn’t understand.
My personal view is that this latest case is still just the tip of the iceberg. And if the regulators really are intent on getting to the heart of the matter (especially given that they can get access to the trading records), I don’t see how any legitimate investigation would have any trouble finding conclusive evidence.
Only time will tell whether the ultimate resolution is due to the regulators, or a market participant with deep pockets and a will to force a short squeeze. But this latest news once again confirms that all of the necessary conditions for a significantly higher silver price remain confirmed and in place.
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
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Vancouver, British Columbia–(Newsfile Corp. – November 8, 2018) – Maritime ResourcesCorp. (TSXV: MAE) (“Maritime”) On the completion of the recently closed $3.5 million financing with Dundee Resources Ltd. and Sprott Inc., Maritime is pleased to announce the appointment of three new independent board members to further enhance the team. The new appointees include Mr. John Hayes as Director who will also serve as Chair of the Board, Mr. Garett Macdonald and Mr. Mark Ashcroft as directors of the Company. The new directorships take effect immediately and will work with our existing team as the Company advances the high grade Hammerdown gold project and further develops its Whisker and Orion exploration projects. Brief biographies of the directors are highlighted below.
Mr. John Hayes, M.Sc., MBA, P.Geo – Chair of the Board, Director
John is a professional geologist with over 17 years of industry experience ranging from regional surveys to advanced exploration. In addition, John has many years of capital markets experience. John graduated from Memorial University of Newfoundland with an Honours Bachelor of Science in Geology (1989) and a Master of Science in Geology (1997). He also holds an MBA from Dalhousie University (2003). He is a member (P. Geo.) of the Professional Engineers and Geoscientists of Newfoundland and Labrador. John was a mining analyst and Managing Director for BMO Capital Markets from 2003 until his retirement in April 2014. In his role with BMO, John covered precious and base metal companies globally from exploration to production stages. John joined Osisko Mining Inc in June 2016, where he served as the Senior Vice President of Corporate Development until March 2018.
Mr.Garett Macdonald, MBA, P.Eng. – Director
Garett is a professional mining engineer with extensive experience in project development and mine operations with over 22 years of industry experience. He has managed large technical programs through the concept, feasibility and into construction stages and has senior management and board level experience with several public companies. Most recently as Vice President of Project Development for JDS Energy and Mining, Garett was responsible for leading the Curraghinalt Feasibility Study for Dalradian Resources, a high grade, narrow vein Curraghinalt gold project in Northern Ireland, recently acquired by Orion Mine Finance for $537M. Garett also held roles in mine operations and engineering earlier in his career with senior Canadian mining firms Suncor Energy, and Placer Dome Inc. From 2009 to 2013 he served as Vice President of Operations for Rainy River Resources prior to the $310M sale of Rainy River to New Gold Inc. Garett is currently the President & CEO of Tower Resources and a director of First Cobalt, Aurelius Minerals and Gungnir Resources. He holds a Master of Business Administration degree from Western University’s Ivey Business School and a Bachelor of Engineering (Mining) from Laurentian University in Sudbury.
Mr. Mark N.J. Ashcroft, P. Eng. – Director
Mark has been involved in various capacities in the global mining industry and the North American and European debt and equity markets since 1990. Mark is currently the President and Chief Executive Officer and a Director of Aurelius Minerals Inc. Previously, Mark served as President and Chief Executive Officer and a Director of Stonegate Agricom Ltd. from August 2008 to September 2014. From 2007 to 2008, Mark worked at Versant Partners, where he was responsible for successfully developing their mining finance business in sales, trading and corporate finance. Prior to joining Versant Partners, Mark had been employed since 2003 with Toll Cross Securities Inc., a boutique institutional firm in Toronto where he became Managing Director and Head of Investment Banking. From 2001 to 2003, Mark was a member of the Mining and Metals Team at Standard Bank’s New York office where he was responsible for providing metals trading and project financing solutions to mid-tier developers and producers in Canada and Latin America. From 1999 to 2000, he was a member of the Mining and Metals Team of Barclays Capital, a leading provider of project finance to the mining industry. From 1996 to 1998, he worked in Mines Technical Services at Inco Limited’s Ontario Division, where he qualified as a Professional Engineer in Ontario. various operating roles in North and South Mark holds his Bachelor of Engineering (Mining) from Laurentian University and a Master of Science (Finance, Regulation and Risk Management) from the ISMA Centre of the University of Reading.
Mr. Fulcher, President and CEO commented: “We are extremely pleased to be moving Maritime forward in such a positive way with both the financing for $3.5 million completed by two significant groups in Dundee and Sprott and the additions to our board. The three new members have board expertise in all aspects of the mining and financial industry and come with a proven track record of developing, financing and operating mining projects. With these new board members joining the Maritime team we will continue to diligently advance our 100% owned Green Bay Hammerdown gold project towards production.”
The Company would also like to announce that Mr. Alan Williams has resigned as Chairman and Director of the Company effective October 29th, 2018. Alan was one of the original founding directors of the Company in 2007 and became Chairman in 2017, he has remained active both on the board and as the Company’s Chairman since then. On behalf of the board and employees of the Company, we thank Alan for his years of dedication and wish him all the best on his future endeavors. Alan will continue to act as an advisor to the Company.
About Maritime Resources Corp:
Maritime Resources holds 100% of the Green Bay Property, located near Springdale, Newfoundland and Labrador, Canada. The property hosts the past producing Hammerdown gold mine and the nearby Orion gold deposit. As well the Lochinvar base metals/precious metals deposit sits to the north east end of the Rumbullion deposit.
Based on the scenario presented in the Company’s March 2017 PFS, the Hammerdown mine is expected to produce approximately 180,000 ounces over a 5 year life at a cash cost of $558 CDN with an all in cost (including capital, sustaining capital and operating cost) of $955 CDN per ounce of gold. Total estimated upfront capital is $35M CDN, and the project has a pre-tax NPV8% = $72M CDN with an IRR of 47% based on a toll milling arrangement at the nearby Nugget Pond Mill. The after tax NPV8% = $44M CDN with an IRR = 35% based on a $1250/oz gold price.
Further information on the Green Bay Gold Property can be found on our website along with the NI43-101 compliant Technical Report filed on SEDAR on July 11, 2013 at www.maritimeresourcescorp.com.
Bernard H. Kahlert, P.Eng. is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute “forward-looking statements”. Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable security law.
Dear Subscribers, we welcome you to visit Riverside Resources new website: www.rivres.com.
The logo has changed but the value proposition and commitment to increasing shareholders value remains.
Riverside Resources Inc.
Head Office – Vancouver
550 – 800 West Pender Street,
Vancouver BC,
V6C 2V6
Telephone: 778-327-6671
Fax: 778-327-6675
Toll Free: 1-877-RIV-RES1 (748-7371)
TORONTO , Nov. 8, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (ANX.TO) (ANXGF) is pleased to report its financial and operating results for the three and nine months ended September 30, 2018 (“Q3 2018”). The condensed interim consolidated financial statements and management discussion & analysis documents can be found at www.sedar.com and the Company’s website, www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.
In 2017, the Company changed its fiscal year-end to December 31 , from its previous fiscal year end of May 31 . For comparative purposes, the results for the three and nine months ended September 30, 2018 , have been compared to the three and nine months ended August 31 , 2017.
Third Quarter 2018 Highlights
Anaconda produced a quarterly record of 5,099 ounces of gold during Q3 2018 and has produced 14,024 ounces year-to-date in 2018. The Company is on track to exceedits 2018 production guidance of 18,000 ounces.
Anaconda sold 4,314 ounces of gold and generated metal revenue of $6.9 million in Q3 2018, at an average realized gold price* of $1,603 per ounce (US$1,227) . As at September 30, 2018 , the Company also had over 945 ounces in gold doré inventory, which were subsequently sold in early October.
Operating cash costs per ounce sold* at the Point Rousse Project in the three and nine months ended September 30, 2018 were $1,047 (US$801) and $938 (US$729) , respectively. The Company is on track to achieve its revised guidance for operating cash costs per ounce sold of less than $1,000 per ounce (~US$780) .
Strong revenue and lower costs enabled the Point Rousse Project to generate EBITDA* of $2.3 million for the third quarter of 2018, and $9.3 million for the first nine months of 2018.
On a consolidated basis, EBITDA* for the three and nine months ended September 30, 2018 was $1.2 million and $5.1 million , respectively, compared with $1.7 million and $5.3 million in the comparative periods.
All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, were $1,520 (US$1,163) and $1,418 (US$1,102) for the three and nine months ended September 30, 2018 , respectively.
In the first nine months of 2018, the Company invested $6.0 million in its exploration and development projects, including $4.6 million on the Goldboro Gold Project in Nova Scotia .
For the three months ended September 30, 2018 , net loss was $936,755 , or $0.01 per share, compared to $324,033 , or $0.00 per share for the comparative period.
Net loss for the nine months ended September 30, 2018 was $1,337,080 , or $0.01 per share, which included transaction costs related to the takeover bid for Maritime Resources Corp. (“Maritime”) of $854,131 , or $0.01 per share. Excluding transaction costs, net loss for the nine months ended September 30, 2018 was $482,949 , or $0.00 per share.
As at September 30, 2018 , the Company had a cash balance of $7.6 million , working capital* of $7.4 million , and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.
*Refer to Non-IFRS Measures section below. A full reconciliation of Non-IFRS Measures can be found in the Company’s Management
Discussion and Analysis for the three and nine months ended September 30, 2018
“Anaconda continues to achieve strong operational results during 2018, achieving record quarterly production of 5,099 ounces and generating a further $1.6 million in cash flow from operations, at operating cash costs of US$729 per ounce year-to-date. Continued free cash flow from the Point Rousse Project and a robust balance sheet with a cash balance of $7.6 million continues to allow the Company to progress its growth projects, particularly at the Goldboro Gold Project where we recently announced strong increases to its Mineral Resource and an improved preliminary economic assessment. We are well positioned in a challenging market to continue to execute our strategy as a growing gold producer in Atlantic Canada .”
~Dustin Angelo, President and CEO, Anaconda Mining Inc.
Consolidated Results Summary
Financial Results
Three months
ended
September 30,
2018
Three months
ended
August 31,
2017
Nine months
ended
September 30,
2018
Nine months
ended
August 31, 2017
(restated)
Revenue ($)
6,923,738
8,127,452
21,971,955
22,032,298
Cost of operations, including depletion and
depreciation ($)
6,237,829
7,309,870
17,335,327
20,249,983
Mine operating income ($)
685,909
817,582
4,636,628
1,782,315
Net loss ($)
(936,755)
(324,033)
(1,337,080)
(3,154,325)
Net loss per share ($/share) – basic and diluted
(0.01)
(0.00)
(0.01)
(0.05)
Cash generated from operating activities ($)
1,572,020
540,472
5,508,525
4,036,555
Capital investment in property, mill and
equipment ($)
357,834
179,471
1,738,946
966,420
Capital investment in exploration and evaluation
assets ($)
1,309,749
681,732
3,966,183
1,974,427
Average realized gold price per ounce *
US$1,227
US$1,251
US$1,289
US$1,207
Operating cash costs per ounce sold *
US$801
US$743
US$729
US$744
All-in sustaining cash costs per ounce sold *
US$1,163
US$1,017
US$1,102
US$1,034
*Refer to Non-IFRS Measures section below
Three months
ended
September 30,
2018
Three months
ended
August 31,
2017
Nine months
ended
September 30,
2018
Nine months
ended
August 31,
2017
Operational Results
Ore mined (t)
51,620
158,857
228,293
353,556
Waste mined (t)
380,580
364,380
987,354
1,075,843
Strip ratio
7.4
2.3
4.3
3.0
Ore milled (t)
120,374
119,401
350,892
335,119
Grade (g/t Au)
1.52
1.35
1.45
1.37
Recovery (%)
86.6
86.8
85.9
86.0
Gold ounces produced
5,099
4,581
14,024
12,729
Gold ounces sold
4,314
4,723
13,170
12,977
Third Quarter 2018 Review
Operational Overview
The Pine Cove Mill achieved throughput of 120,374 tonnes in Q3 2018, just 1% lower than the quarterly throughput achieved in the second quarter of 2018. Mill throughput was 1,332 tpd in Q3 2018, down slightly from the comparative three months ended August 31, 2017 . Average grade during the third quarter of 2018 was 1.52 g/t, an increase of 10% over the second quarter of 2018 due to a greater proportion of mill feed from Stog’er Tight relative to ore stockpiled from the Pine Cove Pit. The Company expects to maintain the increased grade profile through the second half of 2018, as ore feed continues to be predominantly sourced from Stog’er Tight. Higher grade combined with an average recovery rate of 86.6% during Q3 2018 resulted in record quarterly gold production of 5,099 ounces.
During Q3 2018, mine operations produced a total of 51,620 tonnes of ore from the Stog’er Tight Mine, in addition to moving 380,580 tonnes of waste for a strip ratio of 7.4 tonnes of waste tonnes to ore tonnes. The strip ratio has decreased significantly from the second quarter of 2018, when mining activity was focused on pre-production development activity, and is expected to decrease further over the life of the pit.
Mine activity in the Pine Cove Pit finished in the middle of March, and the Company has commenced planning for pushbacks to the pit, which are expected to contribute ore in 2019. The Company has now converted the Pine Cove Pit into a fully-permitted in-pit tailings storage facility, which has approximately 15 years of capacity based on a throughput rate of 1,350 tonnes per day.
Financial Results
Anaconda sold 4,314 ounces of gold during the third quarter of 2018, generating gold and silver revenue of $6.9 million , and year-to-date has sold 13,170 ounces to generate revenue of $21.9 million at an average realized gold price of C$1,659 per ounce (US$1,289) . As at September 30, 2018 , the Company also had over 945 ounces of gold doré inventory, which were sold in early October. The Company is now on track to exceedits 2018 production guidance of 18,000 ounces at operating cash costs of under $1,000 per ounce (~US$780) .
Operating expenses for the three and nine months ended September 30, 2018 were $4,472,273 and $12,411,876 , respectively, compared to $5,037,132 and $13,996,158 in the three and nine months ended August 31, 2017 , respectively. The decrease in operating costs was the result of lower mining costs as the operation moved 17% less material during the quarter and 15% less material in the first nine months of 2018. This was partially offset by higher processing costs, which were driven by a 5% increase in throughput during the first nine months of the year. The operating cash costs per ounce sold for the third quarter were $1,047 (US$801) compared to $956 (US$743) for the three months ended August 31, 2017 , due to higher processing costs for the quarter as well as lower ounces sold. For the nine months ended September 30, 2018 , operating cash costs were $938 (US$729) , a reduction of 2% compared to operating cash costs of $996 per ounce sold (US$744) in the nine months ended August 31, 2017 .
Depletion and depreciation expense for the three and nine months ended September 30, 2018 was $1,714,188 and $4,853,006 , respectively, a decrease from $2,272,738 and $6,250,873 during the comparative periods. The lower depletion and depreciation was the result of lower depletion of stripping costs for the Pine Cove Pit, where mining was completed in Q1 2018. Capitalized development costs for Stog’er Tight for 2018 of $993,502 are now being depreciated from May 1, 2018 , the beginning of production.
Mine operating income for the three months ended September 30, 2018 was $685,909 , compared to $817,582 in the comparative period of 2017. During the first nine months of 2018, the Company generated mine operating income of $4,636,628 , significantly higher than the $1,782,315 generated in the nine months ended August 31, 2017 , due to 22% lower cost of operations.
Corporate administration expenditures were $952,029 and $3,194,725 for the three and nine months ended September 30, 2018 , compared to $1,244,616 and $2,529,289 for the comparative periods ended August 31, 2017 . The higher expenditures in the nine months ended September 30, 2018 reflect the expanded senior management team to execute the Company’s growth plans, greater market presence and investor relations activity, and the timing of certain corporate costs as a result of the change in year-end to December 31 .
The drawdown of the deferred premium on flow-through shares resulted in a recovery of $253,535 in the nine months ended September 30, 2018 , as the remaining exploration commitments from the October 31, 2017 flow-through financing were incurred in the first half of 2018.
Net loss for the three months ended September 30, 2018 , was $936,755 , or $0.01 per share, compared to $324,033 , or $0.00 per share, in the comparative period, with the primary driver of the quarterly change being a net tax expense in Q3 2018 of $370,000 compared to a net tax recovery of $267,000 in the three months ended August 31, 2017 . For the first nine months of 2018, net loss was $1,337,080 , or $0.01 per share, compared to a net loss of $3,154,325 , or $0.05 per share, for the nine months ended August 31, 2017 . The improvement over the comparative period was the result of higher mine operating income, which was partially offset by higher corporate administration expenditures and share-based compensation. Net loss for the period was further impacted by the recognition of $854,131 in transaction costs related to the takeover bid of Maritime. The Company also recorded a current income tax expense of $813,445 relating to provincial mining tax and a deferred income tax expense of $660,000 during the nine months ended September 30, 2018 (nine months ended August 31, 2017 – $59,000 and $1,996,000 , respectively).
Financial Position and Cash Flow Analysis
As at September 30, 2018 , the Company continued to maintain a robust working capital position of $7,404,989 , which included cash and cash equivalents of $7,579,958 . In addition, the Company maintains a $1,000,000 revolving credit facility with the Royal Bank of Canada . As at September 30, 2018 , the Company had not drawn against the revolving credit facility.
During the three months ended September 30, 2018 , Anaconda generated cash flow from operations of $1,572,020 , after accounting for corporate administration costs. Revenue less operating expenses from the Point Rousse Project were $2,451,465 , based on quarterly gold sales of 4,314 ounces at an average price of C$1,603 per ounce sold and operating cash costs of C$1,047 per ounce sold. Corporate administration costs in the third quarter were $952,029 and there was a net increase in operating cash flows of $300,928 from changes in working capital.
During Q3 2018, the Company continued to invest in its key growth projects in Newfoundland and Nova Scotia . The Company spent $1,309,749 in Q3 2018 and $3,966,183 during the first nine months of 2018 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals at September 30, 2018 ), primarily on the continued advancement of the Goldboro Project, which included $1.5 million on the bulk sample program which commenced in August 2018 . The Company has also invested $1,738,946 year-to-date into the property, mill and equipment at the Point Rousse Project, which included capital development of $993,502 at Stog’er Tight.
Financing activities during Q3 2018 were primarily limited to the repayment of capital lease obligations and government loans. In June 2018 , the Company successfully completed a flow-through financing of $4,465,290 . The Company has also received cash proceeds of $116,000 from the exercise of stock options in fiscal 2018.
Restatement of Prior Period Financial Information
As part of the preparation of the audited consolidated financial statements for the year ended May 31, 2017 , the Company undertook a comprehensive review of the capitalization and units-of-production depletion calculations for its production stripping asset and property, mill infrastructure and equipment and deferred taxes and discovered that certain errors had been made. As a result, the Company amended the treatment of these balance sheet items resulting in a restatement of prior periods.
The amounts of each adjustment and a reconciliation between the previously published consolidated statement of comprehensive loss for the nine months ended September 30, 2017 , have been presented in Note 4 of the condensed interim consolidated financial statements.
ABOUT ANACONDA Anaconda Mining is a TSX-listed gold mining, development, and exploration company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia . The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland , comprised of the Stog’er Tight open pit mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and 7-million tonne capacity tailings facility, and approximately 9,150 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Gold Project in Nova Scotia , a high-grade Mineral Resource, subject of a 2018 a preliminary economic assessment which demonstrates a strong project economics.
The Company also has a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick .
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in the annual information form for the fiscal year ended December 31, 2017 , available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs per Ounce of Gold – Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales and aggregate sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation and rehabilitation costs.
All-In Sustaining Costs per Ounce of Gold – Anaconda has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013 . The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.
The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price, operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant and the Company uses the average foreign exchange rate for the period.
Average Realized Gold Price per Ounce Sold – In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.
Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) – EBITDA is earnings before finance expense, deferred income tax expense and depletion and depreciation.
Point Rousse Project EBITDA is EBITDA before corporate administration, transaction costs, write-down of exploration assets, share-based compensation, and all other expenses (income).
Working Capital – Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.
