Anaconda Mining Inc. (TSX:ANX) is making money and is aiming for production of 150,000 gold ounces a year
Bob Moriarty | August 26, 2020 | SmallCapPower: Anaconda Mining Inc. (TSX:ANX) has started to get some appreciation from the market after being ignored for the past few years as their shares were on the bargain bin table. They keep on announcing results that would double the shares overnight with any other producer. They need to get production over 100,000 ounces a year to get some respect and they are getting closer.
(The following is an article originally published on 321gold.com on August 7, 2020)
Meanwhile their press releases continue to astound. Their latest shows both a mineral reserve at the Argyle Deposit in Newfoundland and an after tax IRR of 245% at CAD $1900 an ounce. Do I really need to point out that gold is a lot higher than that? What they have drilled off at Argyle is a small deposit but the numbers are indicative of how the increase in the POG can pole vault the shares of a junior mining company.
The company is actually making money, which is a switch for a junior mining company. They just completed a private placement for $5.5 million in flow through shares at a premium to the market and have embarked on a major 10,000-meter drill program at Tilt Cove.
Anaconda is aiming for production of 150,000 ounces a year in the next 3-5 years. That is going to require the Goldboro project with its 1.4 million ounces to be the main contribution to gold output. ANX anticipates the feasibility study to be completed by the end of 2020. Process plant construction will begin in 2021 with commercial production soon after. Dates are hard to determine at this point because of the COVID situation but the company is well cashed up and moving forward.
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