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Wednesday, November 29, 2017 Derek Macpherson

ANX Initiates Drilling on Four Targets at Point Rousse

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Anaconda Mining Inc. (TSX:ANX) has initiated a 5,000m diamond drill program at its Point Rousse Project in Newfoundland, which will occur over the next four months costing ~C$800,000, funded from a recent flow-through financing. Drilling will focus on four main targets along and adjacent to the Scrape Trend, Argyle, Connector Zone, Anoroc and Corkscrew Road. The targets are located (Figure 1) within 5km from the Pine Cove Mill. We note that the maiden resource for Argyle is expected in the near-term, and should provide a meaningful mine-life extension at Point Rousse. Based on our preliminary estimates, we believe Anaconda is undervalued. At its current market cap (C$27.4 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 an important next catalyst which 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 increase 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. read more


Wednesday, November 22, 2017 Derek Macpherson

ANX Drills High-Grade Gold at Argyle

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Anaconda Mining Inc. (TSX:ANX) reported the assay results from its expansion drilling program at Argyle, located approximately 4.5km from the company’s fully-operational mill and tailings facility at Point Rousse, Newfoundland. The news release reported result from four of the eight holes in the 1,002m drilling program, which include intersections of 3.65 g/t Au over 12m in hole AE-17-46 and 3.22 g/t Au over 4m in hole AE-17-45 (Figure 1). These drill holes allowed the company to extend the Argyle mineralization from up to 100m down-dip in the northeast and demonstrated continuity of a higher-grade zone over a further 50m down-dip to the north than previously known. Based on our preliminary estimates, we believe that at its current market cap (C$26.7 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.  read more


Wednesday, November 08, 2017 Derek Macpherson

ANX Recovers 92% from Argyle Sample

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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.  read more


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