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Anaconda posts 49% gold output drop in Q1 2021, cuts annual guidance

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(Kitco News) - Anaconda Mining (TSX:ANX)(OTCQX:ANXGF) announced today that the company’s gold production of 2,540 ounces in Q1 2021 was 49% lower than in Q1 2020 (4,997 ounces), predominantly driven by lower mined grade from the initial benches at Argyle and lower mill throughput.

During Q1 2021, the mine operations moved 59,157 tonnes of ore which was higher than plan for the quarter, however a decrease of 43% compared to the comparable period of 2020 when Point Rousse was mining in the higher-tonnage Pine Cove Pit.

To improve production moving forward, the mine operations have doubled production drill sampling to provide better grade definition on each bench and increased delineation drilling where drill density is lower.

Anaconda sold 3,119 ounces of gold in Q1 2021, generating metal revenue of $7.4 million at an average realized gold price of $2,358 (US$1,862) per ounce sold.

Anaconda has revised its 2021 guidance downward to 16,000 to 17,000 ounces of gold, from 18,000 and 19,000 ounces of gold in 2021.

Anaconda Mining is a gold mining, development, and exploration company, focused on the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia.

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