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Anaconda Mining Inc. (TSX:ANX) reported the results of metallurgical testing on a 25kg sample of blended core samples with an average grade of 2.7 g/t Au from the Argyle discovery. The sample was able to achieve a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9%. The company’s objective was to determine the metallurgical characteristics of the Argyle mineralization and the company was successful in verifying its compatibility with the circuit at the Pine Cove Mill and confirms that the mill will not have to be modified in order to process Argyle ore. Based on our preliminary estimates, we believe that at its current market cap (C$24.8 million), investors are either paying for Point Rousse (~value of C$30-50 million based on our preliminary DCF) or Goldboro (~ value of C$41.5 million based on C$50/oz) suggesting good value at current levels. In our view, the upcoming PEA for Goldboro, is likely to be an important catalyst for Anaconda as it should allow investors to better understand the potential of this asset. Following that, operations later in F2018 (year-end May 31) should see production and cash flow increases as mining at Point Rousse moves to the higher-grade Stog’er Tight deposit. In our view, both these catalysts have the ability to cause the market to ascribe a fair value to both projects.
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.
Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.
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