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Anaconda delivers robust PEA for its Goldboro gold project in Nova Scotia

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(Kitco News) - Anaconda Mining (TSX:ANX) today reported positive results of the preliminary economic assessment ("PEA") prepared for its 100% owned Goldboro gold project, located in Nova Scotia, Canada.

According to a press-release, based on the significantly expanded mineral resource estimate with an effective date of February 7, 2021, the PEA demonstrates the potential for strong economics from both open pit and underground mine operations over an estimated 17.6-year life of mine, with continued opportunity for growth as the Goldboro deposit remains open in all directions.

Highlights of the PEA include an after-tax NPV at a 5% discount rate of $547 million and an after-tax IRR of 24.4%, with an after-tax payback of 3.2 years based on a gold price of $2,000 per ounce (US$1,550 at an exchange rate of 1.29 C$:US$). Life-of-mine operating cash cost is $862 (US$668) per ounce sold and all-in sustaining cost is $1,031 (US$799) per ounce sold.

Total gold recovered over a 17.6-year life of mine is 1,950,000 ounces, based on 15.0 Mt at 2.09 g/t gold from surface mining, 6.0 Mt at 4.89 g/t gold from underground mining, and 3.2 Mt at 0.63 g/t gold from a low-grade stockpile. Average gold production is over 89,500 ounces per year over the first 7 years of production from surface mining, increasing to average annual production of over 120,000 ounces in years 8 through 18.

The company said that Goldboro could generate an estimated $3.9 billion of gross revenue, approximately $ 1.6 billion in undiscounted pre-tax net cash flow, and over $481 million in federal and provincial tax payments.

Anaconda Mining is a gold mining, development, and exploration company, focused on the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The company is advancing the Goldboro gold project in Nova Scotia and also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland.

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