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Thursday, February 15, 2018 Derek Macpherson

ANX Expands Drilling at Goldboro

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Anaconda Mining Inc. (TSX:ANX) has expanded its drill program at Goldboro to 7,000m and initiated the second stage of the program, 4,500m of drilling targeting the East Goldbrook and Boston Richardson gold systems, underexplored portions of the deposit to increase resources. The company recently announced results from the first five holes, which suggest resource expansion is possible beyond the current resource and recent PEA. We expected continued drill success to support a higher NAVPS. If we were to incorporate a 10% resource increase at Goldboro our NAVPS estimate would increase from C$1.00/share (was C$1.01) to C$1.03/share. Based on our initial estimates, we believe Anaconda is trading at discount to peers (0.47x NAV, peers 0.62x). In our view upcoming catalysts include, ongoing exploration at Goldboro and Point Rousse, improved cash flow in H2 2018 and ongoing development work at Goldboro which all should help close the valuation gap to peers. read more


Tuesday, February 13, 2018 Derek Macpherson

RCKS Charts: LPK & ANX

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In this edition of RCKS Charts, Keith has evaluated Lupaka Gold Corp. (TSXV:LPK) and Anaconda Mining Inc. (TSX:ANX). After recently visiting Lupaka’s polymetallic Invicta project and reporting our initial estimates for Anaconda, we asked Keith to provide technical analysis on these names, that we have a fundamentally positive view. read more


Wednesday, February 07, 2018 Derek Macpherson

ANX Goldboro Drill Results Highlight Upside

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Anaconda Mining Inc. (TSX:ANX) reported initial 2018 results from the ongoing 6,000m drill program at its Goldboro project in Nova Scotia, showing multiple areas with visible gold. We view the results positively, as they suggest resource expansion is possible beyond the current resource and PEA. Resource expansion at Goldboro would represent upside to our recently released estimates.  read more


Tuesday, February 06, 2018 Derek Macpherson

Anaconda Mining: Squeezing Value Out of Atlantic Canada

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We recently took the time to dig deeper into Anaconda Mining Inc. (TSX:ANX, $0.395) and are publishing our initial estimates. We came to the conclusion that Anaconda is an undervalued Canadian producer with significant medium-term cash-flow growth on the horizon and near-term catalysts that should close the valuation gap to peers. A summary of our work can be found in this video or below, and our full report can be downloaded hereread more


Monday, January 29, 2018 Derek Macpherson

ANX Expands Great Northern Project

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Anaconda Mining Inc. (TSX:ANX) has acquired the Rattling Brook Deposit located in northwest Newfoundland from Kermode Resources Ltd, expanding its Great Northern Project to ~10,000 ha (Figure 1). The company has paid C$25,000 in cash and issued C$500,000 (1,113,218) worth of shares to Kermode, on February 26, 2018 the company will pay an additional C$25,000. The deposit hosts a historical inferred resource estimate of 495,000 oz Au (18.3 million tonnes at 0.84 g/t Au) and is adjacent to the company’s Thor Deposit (Indicated Resource of 83,000 oz Au and Inferred Resource of 31,000 oz Au). Anaconda remains focused on developing Goldboro and extending mine life at Point Rousse, however, believe upside exists at the under-explored Great Northern to expand resources. Based on our preliminary estimates and the recent Goldboro PEA, we believe that at its current market cap (C$47.7 million), investors are either paying for Point Rousse (~value of C$40-50 million based on our preliminary DCF) or Goldboro (~after-tax value of C$61 million, using US$1240/oz Au, and 7% discount rate). Upcoming catalyst include ongoing exploration as well as engineering and development work at Goldboro and increased production and cash flow later in 2018 as mining at Point Rousse moves to the higher-grade Stog’er Tight deposit. In our view, these ongoing catalysts have the ability to cause the market to ascribe a fair value to both projects and re-rate the stock. read more


Thursday, January 18, 2018 Derek Macpherson

ANX’s Goldboro PEA Returns Good Results While Being Somewhat Conservative

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Anaconda Mining Inc. (TSX:ANX) has announced the results for the Preliminary Economic Assessment (PEA) of its 100% owned Goldboro Gold Project in Nova Scotia, Canada. At a gold price of C$1,550/oz Au ($1,240/oz Au), the project has a pre-tax NPV7% of C$120M with an IRR of 38% and a post-tax NPV7% of C$61M with an IRR of 26%. A total of 375,900 oz Au is planned to be mined by open pit and underground methods over a mine life of 8.8 years with average annual production of 41,770 oz Au.  read more


Monday, January 15, 2018 Derek Macpherson

ANX Extends Argyle Strike by 85m

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Anaconda Mining Inc. (TSX:ANX) reported initial results from the previously announced 5,000m drill program conducted at Point Rousse, targeting Argyle, the Connector Zone, Anoroc and Corkscrew Road. Drilling east of the Argyle maiden resource expanded the deposit by at least 85m along strike at 40m from surface. Results included 12.47 g/t Au over 5.0m (AE-17-58), an early indication of higher grade mineralization as previously seen on the deposit. Notably, considering the previous strike of 600m, the addition of 85m of strike could add 8-12k oz Au to the current resource (1.1Mt at 2.01 g/t Au, containing 68,600 oz Au - Indicated + Inferred). The company plans to test the area with additional drilling, along with a ground magnetic and IP survey to better target mineralization, as the Argyle trend is interpreted to change from east-west to northeast-southwest (Figure 1). Based on our preliminary estimates, we believe that at its current market cap (C$48.6 million), investors are either paying for Point Rousse (~value of C$40-50 million based on our preliminary DCF) or Goldboro (~value of C$41.5 million based on C$50/oz) suggesting good value at current levels. In our view, the pending PEA for Goldboro, is likely to be an important catalyst for Anaconda as it should allow investors to better understand the potential of this asset. Following that, operations later in 2018 should see production and cash flow increase as mining at Point Rousse moves to the higher-grade Stog’er Tight deposit. In our view, both these catalysts have the ability to cause the market to ascribe a fair value to both projects.  read more


Friday, January 12, 2018 Derek Macpherson

ANX Reports Production Results for Transition Year

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Anaconda Mining Inc. (TSX:ANX) reported production and partial financial results for its seven month transition year ended December 31, 2017. Therefore, compared to the company’s operating results released in the middle of December, this most recent news release only contains one month of additional operating data that has not been previously released.  read more


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