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Sunday, July 30, 2017 Derek Macpherson

ANX’s Initial Results from Goldboro Highlight Projects Potential

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Anaconda Mining Inc. (TSX:ANX) reported initial results from its recently acquired Goldboro project in Nova Scotia. Drilling intersected visible gold and high grades in all five holes, as highlighted by hole BR-17-04 grading 2,513 g/t Au over 0.5m within 485 g/t Au over 2.6m (Figure 1). The program targeted the Boston Richardson and East Goldbrook gold systems, both demonstrating the higher-grade nature of this project and the potential for resources to grow materially both at depth and along strike. Ongoing exploration and engineering work should result in an updated resource and technical study later this year, which should provide investors a clear picture of Goldboro’s potential. We continue to believe the company's current valuation does not properly account for the project’s potential. read more


Thursday, July 13, 2017 Derek Macpherson

ANX Further Expands Argyle

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Anaconda Mining Inc. (TSX:ANX) reported 4 of 8 holes completed from the ~1,000m drill program at its Argyle discovery. Initial results continue to support our view that the resource at Argyle is ~40-45k oz Au. Results were highlighted by hole AE-17-46 intersected 3.36 g/t Au over 12m, 50m down-dip of previous results while hole AE-17-48 intersected 1.22 g/t Au over 4m, 100m down-dip of previous results. More results are pending and the company expects to release a maiden resource at Argyle later this year. Additionally, drilling and development work is underway at Goldboro which should result in an updated resource and technical study later this year. We believe the company's current valuation does not properly account for the recent transformational acquisition of the Goldboro project in Nova Scotia, providing Anaconda increased resource life and growth. read more


Tuesday, June 27, 2017 Derek Macpherson

ANX Initiates 2017 Exploration at Argyle

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Anaconda Mining Inc. (TSX:ANX) has initiated a ~1,000m drill program at its Argyle discovery near the company’s Point Rousse Project in Newfoundland (Figure 1). The drill program is the beginning of a larger 2017 program that will comprise of infill, expansion and exploration work, to begin later in the year. The company noted, planning and permitting are underway to add future production from Argyle. Based on past drill results from Argyle, we expect the resource for the deposit to be ~40-45k oz Au. Additionally, drilling and development work is underway at Goldboro which should result in an updated resource and technical study later this year. We believe the company's current valuation does not properly account for the recent transformational acquisition of the Goldboro project in Nova Scotia, providing Anaconda increased resource life and growth. read more


Thursday, June 15, 2017 Derek Macpherson

ANX Reports Strong End to 2017

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Anaconda Mining Inc. (TSX:ANX) reported financials and production results for FQ4 2017 and FYE 2017. During the quarter, although experiencing difficult weather conditions, the company sold a record amount of gold, 4,658 oz, marking a strong finish to the year. Revised guidance expectations were met, selling 15,562 oz Au for FYE 2017, generating C$25.7 million in revenue. In addition, the Orex Exploration Inc. acquisition was completed, creating significant value and growth opportunities for the company, which we believe is not reflected in the company’s current valuation. read more


Wednesday, January 18, 2017 Derek Macpherson

ANX Expands Argyle

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Anaconda Mining Inc (TSX:ANX) announced results from its ~2.2km (22 holes) Phase II drill program at the Argyle target at its Point Rousse project in Newfoundland. We view today’s results positively as the mineralization has potentially been extended to ~600m along strike, which represents a 50% increase, and ~225m down-dip (~100% increase). Although it is early days, based on these expanded potential deposit dimensions and the higher grades seen in these results we have increased our resource approximation for the deposit to ~40-45k oz Au (was ~25-30k oz Au). We highlight that Argyle remains open in all directions, suggesting further resource growth is possible. We highlight that Argyle appears likely to extend Anaconda’s short production life at higher grades than currently being processed. While this exploration success is important for Anaconda to re-rate to typical producer valuations; improved operations and cash flow in H2 2017 (YE May 31st) is critical to allow exploration, particularly at Argyle, to continue.  read more


Thursday, January 12, 2017 Derek Macpherson

ANX's Forward Sale Highlights Need for H2 Cash Flow

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Anaconda Mining Inc. (TSX:ANX) announced it has sold forward a portion of its production to raise C$551,000 as well as early-stage exploration results from the recently acquired Jackson Arm property. At the end of Q1 the cash balance was lower than expected and while operations started to improve in FQ2, ongoing improvements have been guided for in H2 2017 (YE May 31st). We believe continued improvements are crucial to not only shore-up the balance sheet but also to add ounces through exploration. The company also announced that preliminary geological work at its recently acquired Jackson’s Arm property has identified potential drill targets. While this exploration work is mildly positive, the company needs to generate meaningful cash flow from operations to complete a material exploration program. In our view, the mine-life extension via exploration is crucial for Anaconda to re-rate towards typical producer valuations. We note that FQ2 financial results are expected in the near-term which should give us an early indication on the financial impact of the operating improvements.  read more


Tuesday, December 13, 2016 Derek Macpherson

ANX's Exploration Continues; Cash Flow Key

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Anaconda Mining Inc. (TSX:ANX) provided an exploration update from its Argyle, Viking and Goldenville targets that we view as overall disappointing. Disappointingly, the company completed a Phase 1 program at Goldenville, which returned no significant results. Positively, the company has started a Phase II exploration program (~2,000m) at Argyle, where the company had success earlier this year and has completed another 6 holes from the Viking project. We view exploration as key for Anaconda to both extend and scale up the operation; however, weak FQ1 operations have reduced the funds available. While operations are expected to improve in FH2 2016 (Dec 2016 to May 2017), funding for the exploration program is likely constrained by mine cash flow. We now believe delivering positive cash flow from the mine in FH2 is key for Anaconda and FQ2 operating results were a positive indication of that occurring.  read more


Wednesday, December 07, 2016 Derek Macpherson

ANX's Operations Materially Improve in FQ2

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Anaconda Mining Inc. (TSX:ANX) released improved operating results for FQ2 2017. The company’s second quarter was significantly stronger than the first and was ahead of the company’s guidance for FQ2 (previous post). Operations improved on the back of a decreased strip ratio, higher grades and increased throughput as the company realized record quarterly throughput levels, averaging 1,302 tpd, up 15.2% QoQ and 10.3% YoY. We expect that these demonstrated production improvements are likely to result in cost reductions and increased operating cash flow for FQ2. Improving operations along with ongoing exploration success are likely to be positive catalysts for Anaconda.  read more


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