Anaconda Mining Sells Nearly 3,000 Ounces of Gold and Generates Over $4.9M in Revenue in Q1 FY2017

TORONTO, Sept. 21, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) announces certain financial and operating results from its fiscal first quarter ended August 31, 2016. During the first quarter of fiscal 2017, the Company sold 2,919 ounces of gold and generated $4,919,737 in revenue at an average sales price of $1,685 per ounce. Sales volume and revenue for the quarter were approximately 26% and 15% lower than the first quarter of fiscal 2016. The Company expects to file its full financial statements by October 14, 2016. All dollar amounts are in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, "The Pine Cove Mill continues to deliver consistently high throughput rates, availability and recovery. With the recent completion of our mill automation project, we can only expect to build on the consistency of the performance of our cornerstone asset at the Point Rousse Project. Quarterly gold sales were the lowest since fiscal 2014 largely due to very low average grade of 1.17 grams per tonne, which was expected based on our mine plan. We are forecasting gold grade in Q2 to be slightly higher than Q1 and then increase approximately 15% to 20% in the second half of the fiscal year. We see the grade issue as short-term and have mitigated it with higher throughput and the help from the Canadian dollar gold price. In the long-term, our exploration program is focused on identifying potential sources of higher-grade ore to substantially increase gold production without a material increase in throughput capacity. To that end, we are encouraged by the initial results of the Argyle Prospect, which were reported yesterday."

FY Q1 2017 Operations Overview:

The Pine Cove Mill operated for 88 days during the first quarter of fiscal 2017 at an availability rate of 96%, a 2% increase above the availability in the first quarter of fiscal 2016. The mill achieved an average run rate of 1,130 tonnes per operating day and processed 99,441 dry tonnes of ore during the quarter compared to 1,122 tonnes per operating day and 96,532 dry tonnes of ore in the first quarter of fiscal 2016. Average feed grade during the quarter was 1.17 grams per tonne, 28% less than the feed grade in the first quarter of fiscal 2016. The Company budgeted a decline in grade during the first half of fiscal 2017 and is projecting an improvement to the Pine Cove grade during the second half of the fiscal year. Overall mill recovery was 86%, compared to 87% in first quarter fiscal 2016.

The mining operation at the Point Rousse Project operated for 83 days in the first quarter in the Pine Cove Pit. Total production was 108,305 tonnes of ore and 890,120 tonnes of waste. Total tonnes mined at the Pine Cove Pit were 34% higher compared to the first quarter of fiscal 2016 due to a higher strip ratio and the need for waste rock to construct the first phase of Tailings Storage Facility II. The Company is forecasting a reduction of total tonnes mined to approximately 250,000 per month from September through December at an average strip ratio of approximately 5.6:1, waste to ore. From January through May, total tonnes mined are expected to reduce further to approximately 160,000 tonnes per month at an average strip ratio of 3.0:1, waste to ore.

The following table summarizes the key operating statistics by quarter for the first fiscal quarters ended August 31, 2016 and 2015:

NOTE: Operating statistics exclude changes in in-circuit inventory.

ABOUT ANACONDA

Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project in Newfoundland.

The Point Rousse Project is approximately 6,300 hectares of property on the Ming's Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to approximately 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove Mill.

Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The project contains the Thor Deposit and other gold prospects and showings. The Company's plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of approximately 16,000 ounces.

As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.

FORWARD-LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.

SOURCE Anaconda Mining Inc.