TORONTO, March 21, 2016 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company") - (TSX:ANX) announces certain financial and operating results from the three and nine month period ended February 29, 2016. The Company sold 3,266 ounces of gold during the third quarter of fiscal 2016 and generated $4,988,063 in gold sales at an average sales price of $1,527 per ounce. During the nine months ended February 29, 2016, the Company sold 11,827 ounces of gold and generated $17,571,939 in gold sales at an average sales price of $1,486 per ounce. Gold sales in the first nine months of fiscal 2016 were 6% higher than the comparable period of fiscal 2015. The Company expects to file its full financial statements on or before April 12, 2016. All financial results are denominated in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, "After completing three quarters of fiscal 2016, we have produced and sold similar amounts of gold as in fiscal 2015 but at higher prices. Over the long term, our operations continue to be consistent while building for the future. During the third quarter of fiscal 2016, we reached a milestone at the Stog'er Tight project where we processed over 15,000 tonnes of ore at the Pine Cove mill. The higher grade material helped with production during the quarter as the Pine Cove mill was running at lower than normal levels of throughput. Stepping out even farther, in February, we acquired, via option, the Viking Project on the Northern Peninsula, which gives us established historical resources and great potential to build another significant size project to feed the Pine Cove mill."

FY Q3 2016 Operations Overview:

The Pine Cove mill operated for 88 days during the third quarter of fiscal 2016 at an availability rate of 98% compared to 92% in the third quarter of fiscal 2015. For the quarter, the mill processed 91,370 dry tonnes of ore, an increase of 5% compared to the third quarter of fiscal 2015. Average head grade was 1.48 grams per tonne ("g/t") and overall mill recovery was 81%. The mill's run rate for the quarter was 1,038 tonnes per operating day.

The Company processed 15,167 tonnes of ore from the Stog'er Tight deposit at an average grade of 1.66 g/t, producing 638 ounces of gold. For this initial tonnage, the Company did not experience any material differences in processing the Stog'er Tight ore compared to the Pine Cove ore.

Mill throughput per operating day and recovery were lower than normal during the third quarter due to mechanical issues with the regrind mill, which ensures the proper feed size of the ore prior to leaching. In the early part of the quarter, throughput at the primary ball mill was reduced to get a finer grind than usual at that stage to compensate for the loss of the regrind mill. The Company then implemented a contingency plan where it replaced the regrind mill with a stirred media detritor ("SMD"). The commissioning of the SMD still required a slightly finer product from the primary ball mill (thus, hindering throughput) to manage the requisite product size from the SMD. Because of the inconsistent grind size going into the leaching circuit, recovery suffered during the quarter. By the end of the third quarter and the beginning of the fourth quarter, the Company began to optimize the new system and return to normal throughput and recovery levels. The Company expects the repairs to the regrind mill to be completed by the end of April, at which time it plans to switch from the SMD back to the original regrind mill.

During the third quarter of fiscal 2016, the mining operations at the Point Rousse Project included 62 days of production at the Pine Cove pit and 8 days of production at the Stog'er Tight deposit. Total production was 78,196 tonnes of ore and 584,345 tonnes of waste including 8,347 tonnes of ore and 19,513 tonnes of waste from Stog'er Tight. Mining production increased 47% in the third quarter of fiscal 2016 compared to the third quarter of fiscal 2015 to gain greater access to new areas of ore in the third phase of the Pine Cove pit. The Company has benefited from the use of the North Pit Waste Dump, which has reduced haul distance and per tonne cost of waste mined.

The following table summarizes the key operating statistics for the three and nine months ended February 29, 2016 and February 28, 2015:

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

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing project, called the Point Rousse Project, and approximately 6,300 hectares of exploration 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. It is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include three deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove mill. The Company's plan is to discover and develop more resources within the project area and double annual production from its current rate of approximately 15,000 ounces to 30,000 ounces. Anaconda also controls approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 180 km via road (100 km by barge) from the Pine Cove mill. The White Bay property contains the Thor-Trend gold deposit and other gold prospects and showings.

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 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.