Anaconda Completes Revised Feasibility Study For Pine Cove Gold Project.TORONTO -- Environmental Registration Filed for Site Development Anaconda Anaconda, city, United States Anaconda (ănəkŏn`də), city (1990 pop. 10,278), seat of Deer Lodge co., SW Mont.; inc. 1887. Gold Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ANX ANX Annex ANX Adventrx Pharmaceuticals (San Diego, CA) ANX Automotive Network Exchange (AIAG) ANX Advanced Network Exchange ANX Ascending Node Crossing (satellites) ) has completed a revised feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. for the Pine Cove gold project located 6 km northeast of Baie Verte Baie Verte may refer to:
Anaconda completed 943 m of additional drilling in 12 holes in January and February 2005 which were designed to test certain lenses for extensions at depth and to convert inferred resources in the optimized open pit to probable reserves. Both objectives were successfully met and the results of this drilling have been incorporated in a revised Feasibility Study completed by A.C.A Howe International Limited of Toronto (the" Howe Study"). The Howe Study incorporates an independent report on mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature and mineral reserves prepared by P & E Mining Consultants Inc. of Brampton, Ontario Brampton (IPA: ˈbræmptən, ˈbræmtən) is a city in the GTA of Ontario, Canada and the seat of Peel Region. As of the 2006 census, Brampton's population stood at 433,806. . The additional drilling completed in 2005 at the Pine Cove gold project has resulted in an upgrading of the inferred resources to probable reserves and an improvement in project economics. Revised mineral reserves at Pine Cove based on cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, grade 0.95 grams gold per tonne and using a 97% mining recovery factor are as follows:
Revised Pine Cove Reserve Estimate
March 18, 2005
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UNDILUTED
PROBABLE RESERVES
Au Price CUT-OFF ------------------- WASTE TOTAL W/O
$US/oz Au (g/t) TONNES Au (g/t) TONNES TONNES RATIO
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$400 0.95 2,091,148 3.08 12,081,290 14,172,438 5.78
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DILUTED
PROBABLE RESERVES
Au Price CUT-OFF ------------------- WASTE TOTAL W/O
$US/oz Au (g/t) TONNES Au (g/t) TONNES TONNES RATIO
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$400 0.95 2,332,676 2.76 11,839,762 14,172,438 5.08
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A revised economic analysis, based on the revised mineral reserves, has also been completed. Highlights of the revised economic analysis are as follows:
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2004 Howe Study 2005 Revised Study % Change (+/-)
LOM gold produced: 181,000 183,497 +1.4
Mine life: 6.0 6.7 +11.7
First year
production: 38,000 oz. 38,946 oz. +2.5
Pre-production
Capital: $11.39 $11.39
million million
IRR: 23.9% 25.1% +5.0
LOM Cash Cost/Oz: US$283 US$289 +2.4
First Year Cash
Cost/Oz: US$238 US$217 -8.8
Gold Price: US$400 US$400
NPV (5%): $7,643,000 $7,003,000 -8.4
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Included in the waste tonnage of 11,839,762 tonnes, are 66,700 tonnes of inferred resources grading 2.43 grams gold per tonne. Under NI 43-101 rules, inferred resources cannot be used in a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. economic analysis and as a result these inferred resources have been classified as waste. Anaconda also commissioned A.C.A Howe International to examine the potential economic impact of mining and processing the 66,700 tonnes of inferred resources grading 2.43 grams gold per tonne which are currently designated as waste tonnage in the optimized open pit model. These inferred resources represent 2.8% of mineral resources at Pine Cove. This assessment represents additional potential at Pine Cove to the revised base case scenario outlined above. Highlights of the Potential Economic Scenario including Inferred Resources are as follows:
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%Change From Base Case
LOM gold produced: 188,434 oz. +2.7
IRR: 26.3% +4.8
LOM cash cost/oz.: US$286 -1.0
NPV (5%): $7,967,000 +4.2
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As a result of the inclusion of inferred resources and the preliminary nature of the analysis, the potential quantities of gold in the inferred resources which are included within the open pit cannot be referred to as "ore" or as "mineral reserves". Due to the uncertainty which may attach to inferred resources, there is no assurance that inferred resources will be upgraded to measured and indicated resources or proven and probable reserves, as a result of continued drilling. The economic analysis contained herein is an assessment which is preliminary in nature and is based partly upon inferred resources that are too speculative geologically to have economic considerations applied to them to enable them to be categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as mineral reserves. Anaconda Gold has a 30% interest in the 2,816-hectare Pine Cove project and has the right to earn an additional 30% interest by arranging project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. and bringing the property to commercial production. New Island Resources Inc. (TSXV-NIS) is Anaconda's partner at Pine Cove. The terms of the underlying agreement also provide Anaconda with 100% of all project cash flow until capital payback is achieved, recovery of certain sunk costs Sunk costs Costs that have been incurred and cannot be reversed. and project management fees for acting as project operator. Anaconda filed an environmental registration and mine plan document with the Newfoundland provincial government on March 7, 2005 as part of its operating permit application. Pending receipt of governmental approvals and the completion of project financing, Anaconda will commence mine construction in 2005. "Pine Cove, which will be Anaconda's first mine, will differentiate Anaconda from its junior peer group by providing us with a sound financial base from which to grow over the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. years through acquisitions and exploration," Nick Tintor, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said. "The construction of Pine Cove is the next step in Anaconda's strategy of acquiring advanced stage projects and advancing them towards production. Additionally, cash flow from Pine Cove will allow for the advancement of our Damoti Lake gold project in the NWT NWT or N.W.T. abbr. Northwest Territories NWT Northwest Territories (of Canada) ," John Cook, Chairman of Anaconda Gold added. Defined exploration targets on the property host additional potential for reserve and mine life additions. These targets include the Romeo and Juliet Romeo and Juliet star-crossed lovers die as teenagers. [Br. Lit.: Romeo and Juliet] See : Death, Premature Romeo and Juliet archetypal star-crossed lovers. [Br. Lit. zone which hosts a high grade quartz vein which requires additional drilling in order to define a resource. Wayne Ewert, PhD, P.Geo. is the lead author of the revised Feasibility Study and is the Qualified Person as defined by NI-43-101, and has reviewed the contents of this press release. The statements made in this press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Anaconda Gold Corporation (TSX VENTURE:ANX) |
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