Creating an Emerging Gold Producer in Atlantic Canada - TSX: ANX OTCQX: ANXGF - Amazon S3
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TSX: ANX
OTCQX: TSX:ANX
ANXGF
Creating an Emerging Gold Producer in Atlantic Canada
FROM THE GROUND UP 1 Corporate Presentation |From
October 2018up
the ground
Cautionary Note Regarding Forward-Looking Information TSX: ANX
TSX:ANX
OTCQX: ANXGF
This presentation contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and
current expectations of Anaconda Mining Inc. with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”,
“should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include information regarding: (i) the amount of future production over any period; (ii) assumptions
relating to revenues, operating cash flow and other revenue metrics set out in the Company's disclosure materials; and (iii) future exploration and development plans.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect management’s expectations, estimates or projections concerning future results or events
based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Anaconda Mining believes that the expectations reflected in
such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors
could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those
projected in the forward looking information are the following: the requirement for additional funding for development and exploration; the fluctuating price of gold; success of exploration,
development and operations activities; health, safety and environmental risks and hazards; uncertainty in the estimation of mineral reserves and mineral resources; replacement of depleted mineral
reserves; the potential of production and cost overruns; obligations as a public company; risks relating to government and taxation regulation; volatility in the market price of the Company’s securities;
risks relating to title and First Nations; risks relating to the construction and development of new mines; risks relating to the dependence of the Company on outside parties and key management
personnel; and risks in the event of a potential conflict of interest.
This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Anaconda Mining Inc., including Anaconda Mining’s annual information form,
financial statements and related MD&A for the year ended December 31, 2017 and the interim financial reports and related MD&A for the three and six months ended June 30, 2018, all available at
www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Anaconda Mining does not intend,
and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
All dollar amounts in this presentation are expressed in Canadian Dollars (C$) unless otherwise noted.
Use of Non-IFRS Measures
This Presentation may from time to time refer operating cash costs per ounce sold, all-in sustaining costs per ounce of gold sold, and earnings before income taxes, depreciation and amortization
(“EBITDA”), because certain readers may use this information to assess the Company’s performance and also to determine the Company’s ability to generate cash flow. This data is furnished to
provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). These measures should not
be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs presented under IFRS. Refer to the
Company’s most recent MD&A for the definition and reconciliation of these measures.
2 From the ground up
Growing Atlantic Canada Gold Producer TSX: ANX
TSX:ANX
OTCQX: ANXGF
Baie Verte Mining District,
High Growth in next 3 to 5 Years Newfoundland
• Targeting production of ~50K to • Point Rousse Project (~16,000 ounces
~60K ounces by 2021 of annual production)
• Regional consolidation as a catalyst • Tilt Cove (Nugget Pond Horizon -
to reach 100,000 oz. of annual Historic high grade area)
production
ExploreCo
• Great Northern (Northern Peninsula, NL) Goldboro Gold Project, Nova Scotia
and Cape Spencer (New Brunswick) • PEA – Pre-tax NPV @5% C$137.0M; Avg
• Wholly owned subsidiary with sole focus 41K oz./yr over an 8.8-year mine life.
on exploration and mineral resource • M&I resources – 525,500 oz.; inferred
expansion resources – 347,300 oz.
• Considering strategic opportunities • Deposit is open in all directions
including spin out
3 From the ground up
Experienced Team TSX: ANX
TSX:ANX
OTCQX: ANXGF
Executive Management Team Board of Directors Technical Advisory Committee
Dustin Angelo Jonathan Fitzgerald (Chairman) Kevin Bullock
President, CEO & Director President of Stope Capital Advisors Inc. CEO of Golden Reign Resources / Director of B2
Gold (former ANX director)
Robert Dufour Michael Byron Keith Bullock, P. Eng.
Chief Financial Officer President & CEO of Nighthawk Gold Corp. Retired from Glencore (previously Falconbridge);
Mining Lead for Onaping Depth and Nickel Rim
Gordana Slepcev Jacques Levesque Depth projects
Chief Operating Officer Former CFO of Orex Exploration Inc.
Glenn Dobby, BEng and PhD metallurgical
Lewis Lawrick engineering
Rahim Kassim-Lakha
Managing Partner of Thorsen-Fordyce Merchant Co-owner of Woodgrove Technologies, a minerals
Vice President, Corporate Development
Capital Inc. technology company (former ANX director)
Paul McNeill Maruf Raza Jean-Pierre Landry
Vice President, Exploration Partner at MNP LLP Registered Civil Engineer in the province of Ontario.
Retired since 2015 Jean-Pierre is completing the
Allan Cramm feasibility study on the Authier project in Quebec.
Vice President, Innovation and Development
Lynn Hammond Executive team has over 100 years of cumulative experience in mining, with a track record of running safe,
Vice President, Public Relations profitable operations.
Experience in acquiring, developing, and operating mining projects in AtlanticCanada.
Board and Management collectively own 6.9% of Anaconda Mining.
4 From the ground up
Corporate Structure TSX: ANX
TSX:ANX
OTCQX: ANXGF
Symbol Share Price1 Major Shareholders
TSX: ANX $0.275 Institutional Investors 15.7%
Directors and Management 6.9%
Shares Outstanding 52 Week High/Low Public Float 77.4%
118.7M $0.23 - $0.56
Analyst Coverage
Options2 Market Capitalization Red Cloud KS
8.2M $32.6M MPartners
Warrants3 Cash Position4
16.4M $7.9M
1 – Closing price as at September 18, 2018
Fully Diluted Debt4 2 – Weighted average exercise price for the outstanding stock options
is $0.28.
143.3M $1.1M 3 – Weighted average exercise price for the outstanding warrants is
$0.40.
4 – As at June 30, 2018, Anaconda also had an unused line of credit of
$1.0M for total liquidity of $8.9M.
5 From the ground up
Anaconda Mining 2018 Priorities TSX: ANX
TSX:ANX
OTCQX: ANXGF
Operational Excellence Grow Project Pipeline Talent Development Alignment with
Innovation Leader
Shareholders
• H1 ‘18 gold sales of 8,856 • Positive PEA on • In-house continuing • Sale of waste rock as • Refine mechanisms to
oz at an operating cash Goldboro, education an aggregates product align interests of
cost of C$885 commencement of • Hire personnel for • R&D projects shareholders,
• Production guidance of Bulk Sample Goldboro • Waste repurposing management and
18,000 ounces at • Argyle Development in workforce
operating cash cost of process
TSX: ANX
2018 YTD Highlights TSX:ANX
OTCQX: ANXGF
Point Rousse Talent Development
• Sold 8,856 ounces of gold during H1 ‘18 • Building infrastructure for Anaconda University with plans
• Operating cash cost per ounce sold - $885 / AISC per to fully launch in 2019
ounce sold – $1,368 Innovation Leader
• Stog’er Tight - commercial production in May (grade • Announced in August a collaborative R&D project with the
expected to be higher in H2 ‘18) College of the North Atlantic to improve ore grade
• Pine Cove pit successfully converted to tailings facility determination and mining control
• Argyle environmental registration submitted in August • Testing ranging tool for narrow vein mining R&D project
Goldboro and procuring directional drilling equipment; bulk sample
• Announced PEA economics in January permit received
• Received bulk sample permit in July and registered project • Finished testing the potential to create an agriculture
in August product (fertilizer enhancer) from mill tailings; securing
• Bulk sample is underway (financed without equity capital) research funding
and Feasibility Study program is being prepared Shareholder / Management Alignment
Raised $4.5M in Flow-Through Financing ($0.41 per share) in June • Tied salaried personnel annual incentive program to share
• Drilling 10K metres at Goldboro and 5K metres at Point performance and free cash flow generation
Rousse by year end • Restructured hourly and salaried incentive programs to
more emphasize safety
7 From the ground up
TSX: ANX
Mineral Resource Plan
TSX:ANX
OTCQX: ANXGF
Mineral Resource Plan – Point Rousse and Goldboro Mineral Resources1
Category Tonnes Grade (g/t) Ounces (Au)
Goldboro2
Open Pit - M+I Resources 1,059,000 3.01 102,500
Underground - M+I Resources 2,586,000 5.09 422,900
Open Pit - Inferred Resources 45,000 2.54 3,700
Underground - Inferred
2,497,000 4.28 343,600
Resources
Point Rousse3
Indicated Resources 1,610,600 2.30 119,570
Inferred Resources 1,245,300 1.95 78,090
Total M+I Resources 644,970
Total Inferred Resources 425,390
* 2017 Reflects a seven-month stub year ending December 31, 2017
** Based on the Measured and Indicated Mineral Resources from the “NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the
Point Rousse project Baie Verte, Newfoundland and Labrador, Canada”. Effective Date: December 31, 2017.
*** Based on the NI 43-101 Report “Goldboro Project Preliminary Economic Assessment”. Effective Date: January 17, 2018.
8 From the ground up
Baie Verte Mining District Projects, Newfoundland TSX: ANX
TSX:ANX
OTCQX: ANXGF
9 From the ground up
Baie Verte Mining District TSX: ANX
TSX:ANX
OTCQX: ANXGF
Point Rousse
• Host to five known gold deposits - all within 50 km; Project
• Host to two high-grade (~11 g/t) gold mines
(Nugget Pond and Hammerdown); Tilt Cove
Project
• Three gold mines have produced more than
400,000 ounces of gold; Nugget Pond
• More than 100 km of prospective strike – similar
structural setting to other large NL gold projects
e.g. Marathon Gold (~3 million ounces);
• Key workforce and infrastructure in place – fast
Hammerdown
track to development;
• Pine Cove Mill is optimally located, off a paved
highway and on tide water.
10 From the ground upPoint Rousse Project TSX: ANX
TSX:ANX
OTCQX: ANXGF
Mineral Resource Plan
Track record of profitable production at Point Rousse
• Consistently generating positive cash flow from Argyle Expansion
operations
• ~$50M in EBITDA since 2011
• H1 2018
• Gold sales volume – 8,856 oz.
• EBITDA - $6.6M
• Cash operating cost per ounce - $885 (US$693)
• AISC per ounce - $1,368 (US$1,071)
2018 guidance
• Production of ~18,000 ounces
• Operating cash costs $1,000/oz (~US$770) Exploration
Potential
Significant infrastructure / Platform for growth on BV
Peninsula
• 1,300 tpd operating mill
• In-pit tailings facility (15+ years capacity)
• Deep water port (Capacity - Panamax size vessels) * 2017 reflects a seven-month stub year ending December 31, 2017
** Based on the Measured and Indicated Mineral Resources from the “NI 43-101 Technical
Report, Mineral Resource and Mineral Reserve Update on the Point Rousse project Baie Verte,
Newfoundland and Labrador, Canada” Effective Date: December 31, 2017.
view to the south
11 From the ground upPoint Rousse Project Exploration TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Point Rousse hosts three gold deposits and numerous
prospects - all located within the same belt of rocks and
adjacent to important gold bearing structures;
• Several other key areas with same associations with
faults are found within the Scrape and Deer Cove
Trends;
• Proven exploration model – discovery of three deposits;
• Currently exploring Anoroc, Deer Cove and Argyle with
the goal of identifying ~500,000 oz of gold;
• Recently initiated a 5,000-metre drill program to test
key targets – completion by end of 2018.
12 From the ground upPoint Rousse Project – Argyle Deposit Expansion TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Discovered in 2014 by testing gold-in-soil anomalies
– currently permitting for mining;
• 5,964 m in 75 holes reported to date;
• Open in all directions; Defining structural controls on New Drill
high-grade shoots within the deposit; Targets
• 543,000 tonnes of indicated resources grading 2.19
g/t (38,300 oz.) / 517,000 tonnes of inferred
resources grading 1.82 g/t (30,300 oz.);
• New gold-in-soil and IP anomalies along 1.5 km of
strike and a new trend identified;
• Currently conducting ground geophysical survey
with follow-up drilling to expand to the northeast;
• Targeting an additional 150,000 ounces.
Argyle Drill Highlights Argyle Deposit
Argyle Deposit
• 5.52 g/t over 15.0 m (AE-16-40)
• 9.31 g/t over 6.0 m (AE-16-39)
• 3.63 g/t over 12.0 m (AE-17-46)
• 12.47 g/t over 5.0 m (AE-17-58)
• 7.87 g/t over 7.0 m (AE-18-74)
13 Note: See related long section and cross section in the Appendices. From the ground upTilt Cove Project TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Nugget Pond Horizon is host to past
producing Nugget Pond mine which
produced 166,000 ounces at an average
grade of ~11 g/t gold;
• First systematic gold exploration across
the belt – previously explored for copper;
Nugget Pond
• Built in exploration advantage - same Horizon
geology as Point Rousse with 14 km of
prospective strike;
• ~30 km from Pine Cove Mill along existing
road networks;
• Key exploration targets
• Nugget Pond Horizon
• Venams Bight Formation
• West Pond
14 From the ground upTSX: ANX
The Goldboro Gold Project, Nova Scotia
TSX:ANX
OTCQX: ANXGF
15 From the ground upGoldboro Gold Project - Meguma Gold TSX: ANX
TSX:ANX
OTCQX: ANXGF
• More than 4.5 M ounces of gold in 11
deposits, within 150 km of Goldboro;
• Analog of the Victoria Gold Fields of
Australia which hosts the Fosterville
deposit (similar age and host rocks) –
these deposits can extend to more than a
kilometre at depth;
• Successful mining by Atlantic Gold in 2018
– Goldboro poised to be the next Meguma
Mine;
view to the south
16 From the ground upGoldboro Deposit TSX: ANX
TSX:ANX
OTCQX: ANXGF
• High-grade quartz veins and mineralized wall rock;
• 33 stacked and anticlinally folded mineralized zones;
• 1.7 km strike and mineralization confirmed at 550 metres depth;
• Open in all directions for expansion – continuing to expand the deposit;
• Currently focused on infill and expansion drilling.
view to the south
17 From the ground upTSX: ANX
Goldboro - Resource Growth
TSX:ANX
OTCQX: ANXGF
2.0 km
Section
West Goldbrook Boston-Richardson
9100E
East Goldbrook
gold system gold system Historic gold system
workings
BR-18-28
BR-18-16
OPEN BR-18-29
700 m
BR-17-13
Strategy For Growth BR-17-12
BR-17-07
• Completed 12,000 metres of drilling through May 2018;
• 10,000 additional metres of drilling by year end;
• Expand West Goldbrook and Boston Richardson at Depth;
• Expand East Goldbrook Eastward; Visible Gold
• Finalize new mineral resource calculation. Select Drillhole Pierce Point
(g/t Au / metres) Vertical Longitudinal
2017-2018 Pierce Point
Section Looking North
Resource blocks at
18 4 g/t cut off
From the ground upGoldboro PEA Highlights TSX: ANX
TSX:ANX
OTCQX: ANXGF
Life of Mine Gold
Pre-tax NPV @5% C$137.0M Average Operating Cash Cost
Production C$654/oz (~US$525)*
IRR 38.4% 375,931 oz All-in Sustaining Cost
Payback 2.9 years Over an 8.8 year mine life C$797/oz (~US$640)*
~41,000 ounces per year
Average LOM Grade
Up-front Capital Costs
After-tax NPV @5% C$72.0M 5.13 g/t
~C$89.0M
IRR 25.7% including average
(includes ~C$15.0M
Payback 3.4 years contingency) underground grade of
5.13 g/t $61.0 M
6.83 g/t
*Assume 0.80 USD: 1 CAD exchange rate
19 From the ground upGoldboro PEA – Leverage to Gold Price TSX: ANX
TSX:ANX
OTCQX: ANXGF
Gold Price Pre-Tax Post-Tax Pre-Tax Post-Tax
Pre-Tax IRR Post-Tax IRR
CAD$/oz NPV(5%) NPV(5%) NPV(7%) NPV(7%)
C$1,450 C$107 million 32% C$53 million 21% C$93 million C$44 million
C$1,500 C$122 million 35% C$63 million 23% C$107 million C$52 million
C$1,550 C$137 million 38% C$72 million 26% C$120 million C$61 million
C$1,600 C$152 million 41% C$81 million 28% C$134 million C$69 million
5.13 g/t $61.0 M
C$1,700 C$182 million 47% C$99 million 33% C$162 million C$86 million
25.7% $46.7 M 3.4 Years
20 From the ground upGoldboro - Development Milestones TSX: ANX
TSX:ANX
OTCQX: ANXGF
Underground
Development
Pit Production
Concentrator Commissioning
Commercial Production
Site Construction
Pit Pre-Production
Complete Feasibility Study
Permitting
Bulk Sample Concentrator/Mill Design
Expansion and Infill Drilling
Start Permitting – EA
Registration
Start Feasibility Study
2018 2019 2020 2021 2022
CapEx $ 9.0M $ 37.8M $ 22.4M $ 19.3M
21 From the ground upBaie Verte Mining District Projects, Newfoundland TSX: ANX
TSX:ANX
OTCQX: ANXGF
22 From the ground upBaie Verte Mining District TSX: ANX
TSX:ANX
OTCQX: ANXGF
Point Rousse
• Host to five known gold deposits - all within 50 km; Project
• Host to two high-grade (~11 g/t) gold mines
(Nugget Pond and Hammerdown); Tilt Cove
Project
• Three gold mines have produced more than
400,000 ounces of gold; Nugget Pond
• More than 100 km of prospective strike – similar
structural setting to other large NL gold projects
e.g. Marathon Gold (~3 million ounces);
• Key workforce and infrastructure in place – fast
Hammerdown
track to development;
• Pine Cove Mill is optimally located, off a paved
highway and on tide water.
23 From the ground upPoint Rousse Project TSX: ANX
TSX:ANX
OTCQX: ANXGF
Mineral Resource Plan
Track record of profitable production at Point Rousse
• Consistently generating positive cash flow from Argyle Expansion
operations
• ~$50M in EBITDA since 2011
• H1 2018
• Gold sales volume – 8,856 oz.
• EBITDA - $6.6M
• Cash operating cost per ounce - $885 (US$693)
• AISC per ounce - $1,368 (US$1,071)
2018 guidance
• Production of ~18,000 ounces
• Operating cash costs $1,000/oz (~US$770) Exploration
Potential
Significant infrastructure / Platform for growth on BV
Peninsula
• 1,300 tpd operating mill
• In-pit tailings facility (15+ years capacity)
• Deep water port (Capacity - Panamax size vessels) * 2017 reflects a seven-month stub year ending December 31, 2017
** Based on the Measured and Indicated Mineral Resources from the “NI 43-101 Technical
Report, Mineral Resource and Mineral Reserve Update on the Point Rousse project Baie Verte,
Newfoundland and Labrador, Canada” Effective Date: December 31, 2017.
view to the south
24 From the ground upPoint Rousse Project Exploration TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Point Rousse hosts three gold deposits and numerous
prospects - all located within the same belt of rocks and
adjacent to important gold bearing structures;
• Several other key areas with same associations with
faults are found within the Scrape and Deer Cove
Trends;
• Proven exploration model – discovery of three deposits;
• Currently exploring Anoroc, Deer Cove and Argyle with
the goal of identifying ~500,000 oz of gold;
• Recently initiated a 5,000-metre drill program to test
key targets – completion by end of 2018.
25 From the ground upPoint Rousse Project – Argyle Deposit Expansion TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Discovered in 2014 by testing gold-in-soil anomalies
– currently permitting for mining;
• 5,964 m in 75 holes reported to date;
• Open in all directions; Defining structural controls on New Drill
high-grade shoots within the deposit; Targets
• 543,000 tonnes of indicated resources grading 2.19
g/t (38,300 oz.) / 517,000 tonnes of inferred
resources grading 1.82 g/t (30,300 oz.);
• New gold-in-soil and IP anomalies along 1.5 km of
strike and a new trend identified;
• Currently conducting ground geophysical survey
with follow-up drilling to expand to the northeast;
• Targeting an additional 150,000 ounces.
Argyle Drill Highlights Argyle Deposit
Argyle Deposit
• 5.52 g/t over 15.0 m (AE-16-40)
• 9.31 g/t over 6.0 m (AE-16-39)
• 3.63 g/t over 12.0 m (AE-17-46)
• 12.47 g/t over 5.0 m (AE-17-58)
• 7.87 g/t over 7.0 m (AE-18-74)
26 Note: See related long section and cross section in the Appendices. From the ground upTilt Cove Project TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Nugget Pond Horizon is host to past
producing Nugget Pond mine which
produced 166,000 ounces at an average
grade of ~11 g/t gold;
• First systematic gold exploration across
the belt – previously explored for copper;
Nugget Pond
• Built in exploration advantage - same Horizon
geology as Point Rousse with 14 km of
prospective strike;
• ~30 km from Pine Cove Mill along existing
road networks;
• Key exploration targets
• Nugget Pond Horizon
• Venams Bight Formation
• West Pond
27 From the ground upExploration Projects TSX: ANX
TSX:ANX
OTCQX: ANXGF
28 From the ground upExploreCo TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Unlock value in non-core exploration assets
• Wholly owned subsidiary of ANX with two projects
• Great Northern (NL)
• Cape Spencer (NB)
• Investment thesis
• Capitalize on prospective, underexplored geology in the
Appalachian mountain belt (> 15M ounces of gold)
• Mining friendly jurisdictions
• Camp scale potential (e.g. Valentine Lake, Hope Brook)
• Regional exploration experience
• Low cost exploration
• Leverage available capacity within ANX
• Strategic direction
• Short-term: Mineral Resource Table
• Manage with ANX exploration team and back
office Deposits Category Tonnes Grade (g/t) Ounces
• Consider strategic options including spin out of Indicated 1,817,000 1.42 83,000
ExploreCo to shareholders Thor4
Inferred 847,000 1.15 31,000
• Long-term: Rattling Brook5
Inferred 18,310,000 0.84 495,000
• Build multi-million-ounce projects/camps (Historic Resource)
• Sell to mid-tier gold company
29 From the ground upAtlantic Canada Gold Market Dynamics TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Atlantic Canada gold market has been heating up
in the last 2 years
• Staking rushes
• NL – Sokomon Iron and Shawn Ryan
• NS – Meguma Gold and Atlantic Gold
• Several new entrants
• Matador Mining (Cape Ray)
• Osprey Gold (Goldenville)
• RCG (Dufferin)
• White Metals Resources (Gunners Cove)
• Torq Resource (Central NL)
• Atlantic Gold successfully launches production at
the Moose River Complex
30 From the ground upConsolidation in Atlantic Canada TSX: ANX
TSX:ANX
OTCQX: ANXGF
• Atlantic Canada contains significant gold assets
with some ripe for consolidation
• Projects with NI 43-101 resources
• Projects without catalyst to renew project
interest
• Approximately 16 projects of interest containing
greater than 11M ounces of gold in Newfoundland,
Nova Scotia, and New Brunswick
• Anaconda is in a strong position to be the
consolidator
• Consistent gold producer for 8 years
• Established infrastructure
• Experienced management team
• Credibility (completed first corporate
transaction)
• Focused on projects that have NI 43-101
resources below 1M ounces
31 From the ground upSignificant Valuation Upside TSX: ANX
TSX:ANX
OTCQX: ANXGF
Enterprise Value / M, I & Inferred Resources (C$/oz)(1)
[1] Source: Thomson Eikon, Company Documents. As of market closing price on September 5, 2018.
32 From the ground upKey Investment Takeaways TSX: ANX
TSX:ANX
OTCQX: ANXGF
Continued Positive Operating Performance
Point Rousse operations to produce 18,000 ounces of gold in 2018 at operating cash costs ofTSX: ANX
TSX:ANX
OTCQX: ANXGF
AppendicesTechnical References TSX: ANX
TSX:ANX
OTCQX: ANXGF
References with an asterisk (*) are footnotes and provided on the same slide.
The numbered references below apply throughout this presentation.
† - Grams per tonne
1 - Mineral Resources are not Mineral Reserves and do not imply the economic viability of the resource. The Pine Cove Resource statement
includes the Pine Cove Reserves.
2 - “Goldboro Project Preliminary Economic Assessment”. Effective date: January 17, 2018.
3 - “ NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse project Baie Verte, Newfoundland and
Labrador, Canada” Effective Date: December 31, 2017.
4 - “NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland and
Labrador, Canada”. Effective date: August 29, 2016.
5 - “Technical Report on mineral resources estimate Jacksons Arm Gold Project White Bay Newfoundland and Labrador, Canada” Effective
Date: April 20, 2009. This is a Historical Resource.
36 From the ground upTSX: ANX
Biographies
TSX:ANX
OTCQX: ANXGF
Dustin Angelo | President, CEO & Director
Dustin Angelo has extensive operating and financial experience in the mining industry, including gold, coal and aggregates, and is a Certified Public
Accountant, licensed in the United States. He has been President and CEO of Anaconda Mining, a Toronto Stock Exchange listed gold mining company,
since September 2010, and has been a director since November 2009. Under his leadership, Anaconda has grown its footprint in Newfoundland, expanded
its operations to Nova Scotia, cleaned up the balance sheet and built a sustainable, profitable company that is a responsible member of the community.
Prior to joining the Anaconda team, Mr. Angelo served as CFO of Elgin Mining Inc. (formerly known as Phoenix Coal Inc., a TSX-listed resource company)
where he was integral in the growth of the organization from a private enterprise to a publicly-listed company from August 2006 to November 2010; as
Vice President of MHI Energy Partners (an energy-focussed private equity fund) from 2005 to 2006, and; as a Principal at New York City’s Waller Capital
Corporation (a boutique investment bank focussed on mergers and acquisitions) from 1997 to 2005. He was also a founding member and director of North
American Limestone Corporation (a private developer and operator of limestone quarries in the United States).
Mr. Angelo earned a BSBA in Accounting and International Business from Georgetown University and a MBA from the Columbia Business School.
Robert Dufour | CFO & Corporate Secretary
Robert Dufour was appointed Chief Financial Officer of Anaconda Mining in May 2017. Mr. Dufour brings a strong track record in the mining sector with
deep experience in capital markets and finance, including debt structuring, royalty arrangements and financing, as well as extensive experience with
corporate governance and risk management. Most recently, Mr. Dufour was Chief Financial Officer of Newmarket Gold, a TSX-listed mid-tier Australian
gold producer which produced over 220,000 ounces of gold. Mr. Dufour was part of the team that executed the transformational merger between
Newmarket Gold and Kirkland Lake Gold, creating a new 500,000+ ounce gold producer in 2017. Prior to his appointment as Chief Financial Officer at
Newmarket Gold in 2015, Mr. Dufour was Chief Financial Officer of Crocodile Gold. In 2015, Mr. Dufour also led the merger between Newmarket Gold and
Crocodile Gold. Mr. Dufour joined Crocodile Gold in June 2012 as Director of Finance, and was appointed Chief Financial Officer in April 2013. Mr. Dufour is a
Chartered Professional Accountant with over 12 years of finance and accounting experience. He started his career with the Toronto office of
PricewaterhouseCoopers. He later joined Northgate Minerals Corporation as Corporate Controller and subsequently was promoted to Group Financial
Controller for Northgate's Australian subsidiaries, and was based out of Victoria, Australia until its acquisition by AuRico Gold.
37 From the ground upBiographies TSX: ANX
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Gordana Slepcev | Chief Operating Officer
Gordana Slepcev is the Chief Operating Officer of Anaconda Mining responsible for all current mining activities and the development of the Goldboro Project.
Prior to her promotion, she was the Vice President of Technical Services and was directly responsible for overseeing the mining and geology departments at
the Point Rousse Project in Newfoundland. In addition to a focus on delivering long- and short-term planning and geological support of the mining operation,
she is also heavily involved in strategic planning and project expansion evaluations. With a Master’s Degree in Science and a Bachelor’s Degree in Mining
Engineering from the Yugoslavia (Belgrade) Faculty of Mining and Geological Engineering, combined with more than twenty years of experience in mining
base metals, coal, and gold, Ms. Slepcev brings invaluable industry expertise to the project. In addition to Anaconda Mining, she has held senior roles at
Labrador Iron Mines Holdings, Agrium Inc., and Western Coal Corp. Ms. Slepcev is a registered professional engineer in the provinces of Ontario,
Newfoundland and Labrador, and Nova Scotia. She has been volunteering at CIM Toronto Education Committee, West Toronto Professional Engineers
Executive Committee, and at a board of the Nova Scotia Mining Association.
Rahim Kassim-Lakha | Vice President, Corporate Development
Rahim Kassim-Lakha is the Principal and Founder of Blue Sail Capital and has over 25 years of international capital markets experience across the
technology, healthcare, industrial, real estate, energy, and mining sectors.
With 16 years of U.S. and Canadian capital markets experience, Mr. Kassim-Lakha possesses a multidisciplinary skill set derived from research, sales,
trading, and banking. Leading up to the founding Blue Sail Capital Inc., Mr. Kassim-Lakha held senior-level positions at bank and non-bank brokerage firms.
During his extensive career, he aided in structuring and funding over U$5bn in capital for private and public companies. Most recently, he was a Managing
Director at a boutique brokerage firm in Toronto serving over 300 clients. Prior to moving to Canada, Mr. Kassim-Lakha spent six years on the buy-side
working with U.S. Global Investors where he and his team managed three top performing equity funds.
Mr. Kassim-Lakha is a graduate of Brown University where he was awarded a dual major in Business Economics and Organizational Management. He began
his career as a financial analyst in Boston with Fidelity Capital. He serves as Co-Chair of Brown University Interview Program for Ontario and a volunteer with
the Aga Khan Foundation.
38 From the ground upBiographies TSX: ANX
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Paul McNeill | Vice President, Exploration
Paul McNeill joined Anaconda in 2014 as Vice President, Exploration. Formerly, he served as Principal Geologist with Paladin Energy Ltd. from 2011 to 2013 and Vice
President – Exploration for Aurora Energy Resources Ltd. from 2009 until 2011 where he was focused on the development of the Michelin Project in Labrador, as
well as working on uranium projects in Australia and a gold project in Nevada. Prior to that, Mr. McNeill was Exploration Manager for Mega Uranium Ltd. and worked
as a consultant to a variety of gold and uranium exploration companies including Rubicon Minerals Inc. and Monster Copper Ltd. Mr. McNeill has an expertise in
structural controls on mineralization and project development. He also has experience in managing First Nations relationships and developing positive community
relations. Mr. McNeill is a Professional Geologist registered in the Provinces of Newfoundland and Labrador and Nova Scotia, is a Member of the Board of Mining
Industry NL, and is President of the CIM Newfoundland and Labrador.
Allan Cramm | Vice President, Innovation and Development
Allan Cramm is the Vice President, Innovation and Development focusing on key strategic projects to maximize the company’s assets. He also is part of the
development team for new mines and operations. Prior to his promotion, Allan was the General Manager of Anaconda’s Point Rousse Project in Baie Verte,
Newfoundland and Labrador. He was responsible for the overall operation of the project including permitting, construction, production, and special projects. Mr.
Cramm has been involved in various management and supervisory roles associated with mining for the past 25 years (both open pit and underground) including
Project Coordinator/General Manager of two underground mines in Newfoundland, Nugget Pond and Hammerdown, that used a central-processing facility. He has
a high regard for environmental protection with some associated projects having been recognized provincially and nationally for their attention to environmental
stewardship.
Lynn Hammond | Vice President, Public Relations
Lynn Hammond has been the Vice President, Public Relations for Anaconda Mining since December 2015, responsible for media, public, and government relations.
Her career experience consists of senior roles in public service including Director of Communications for Newfoundland and Labrador government departments of
Municipal Affairs, Fire and Emergency Services, Education and Post-Secondary Education. She also held senior positions in the Communications Branch of
Executive Council and the Office of the Premier. Through her career she has earned the reputation of a “fixer” often taking on some of government’s most
challenging communications activities.
39 From the ground upPoint Rousse Infrastructure – Pine Cove TSX: ANX
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40 From the ground upPoint Rousse - Argyle Development TSX: ANX
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Development Timeline:
Open
Environmental Baseline studies – Complete
Metallurgical and ARD test work – Complete
Submit EA application – Complete
Bulk sample – Fall 2018
Projected receipt of all requisite mining permits – Q1 2019
Site preparation and construction – Q2 2019 Open
Ore processing at Point Rousse facility – Q3 2019
Open
Open
Grade Distribution Block Model
and Conceptual Pit
41 From the ground upGoldboro Growth Potential TSX: ANX
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Plan Map of IP Chargeability N
Dolliver
Mtn. Zone
15.8 g/t over 1.5 m
23.6 g/t over 1.5 m
and 137.8 g/t over 1.5 m
31.3 g/t over 0.5 m
1570 g/t over 0.5 m
42 From the ground upGoldboro PEA – Highlights TSX: ANX
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PEA Highlights
Combination open pit and underground mining
Financial Highlights (@ US$1,250/oz gold price) After-tax Pre-tax
Start with open pit transitioning to underground in year 2 Internal rate of return (IRR) 25.7% 38.4%
600 tonnes per day of ore Net present value (NPV)
Stockpile marginal ore for processing during UG mining @ 5% discount $72.0M $137.0M
period @ 7% discount $61.0M $120.0M
Payback period 3.4 years 2.9 years
Gold processing
800 tonnes per day
PEA Highlights
On-site concentration (gravity and floatation)
Mine Plan Highlights
Leaching / gold recovery at Pine Cove Mill
Initial capital expenditures, including $7.8M contingency (20%) $46.7M
Other scenarios considered Average mined diluted grade (OP + UG) 5.13 g/t Au
Same as base case production (600 tpd) OP+UG Potentially Mineable Diluted Tonnes 2.4 M @ 5.13 g/t Au
Ship whole ore to Pine Cove Mill (600 tpd) Production Highlights
UG only at 600 tpd / concentrate at Goldboro
5.13 g/t $61.0 M
All-in sustaining cost $797/oz
UG only at 800 tpd / concentrate at Goldboro Cash costs Au $654/oz
Life of mine (LOM) gold production 375,931 oz
25.7% $46.7 M 3.4 Years
Average annual gold payable production 41,770 oz
43 From the ground upGreat Northern Project TSX: ANX
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• Includes 9,975 hectares coincident with approximately 20 kilometres of strike
along highly prospective geology of the Doucer’s Valley Fault, part of the Long
Range Fault System;
• Similar structural setting to numerous other gold deposits in NL including the
Valentine Lake Project (>3 M ounces);
• Two gold projects with a combined Inferred Mineral Resource of 526,000
ounces and an Indicated Mineral Resource of 83,000 ounces;
• Potential to upgrade the size and grade of the existing resource through
resource evaluation;
• Excellent infrastructure with road access to the key areas of interest;
• Immediate plans to refine and remodel the Rattling Brook resource to focus on
higher grade zones.
Deposits* Category Tonnes Grade (g/t) Ounces
Indicated 1,817,000 1.42 83,000
Thor4
Inferred 847,000 1.15 31,000
Rattling Brook5
Inferred 18,310,000 0.84 495,000
(Historic Resource)
*The Rattling Brook Resource is an Historic Estimate as defined by
NI 43-101 Standards of Disclosure for Mineral Projects. Anaconda is
not treating the historical estimate as a Current Mineral Resource. 44 From the ground upCape Spencer Project TSX: ANX
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• Includes 2,675 hectares coincident with approximately 8
kilometres of strike along highly prospective geology of the Millican
Lake Fault;
• Past production (1985-1989: 194,244 tonnes heap leach);
• Broad alteration system over 8 Km and numerous gold
occurrences;
• Excellent infrastructure in place – low cost access to the entire
project area;
• Immediate exploration plans include updating the historical
resource and evaluation of key drill targets.
Road Zone – 400 m long zone of gold-bearing alteration zone with an
average width of 20 m. Highlight assays include:
• 8.50 g/t gold over 5.5 metres within a zone grading 1.95 g/t gold over
56.0 m;
• 10.35 g/t gold over 1.0 metres within a zone grading 1.49 g/t gold over
20.7 m;
• 1.10 g/t gold over 24.0 metres;
• 1.20 g/t gold over 21.7 metres; and
• 5.50 g/t gold over 1.0 metres.
Birches Zone – Interpreted as the along-strike continuation of the Road
Zone
• 1.4 metres (chip) and 2.77 g/t gold over 3.0 metres (chip); and
• Surface grab samples up to 168.00 g/t gold .
45 From the ground upRepurposing Waste Rock TSX: ANX
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Supplied ~3M tonnes of mine waste rock as construction aggregates product
to project in South Carolina (Sept 2016 to Nov 2017)
Consortium involving Anaconda, Shoreline Aggregates, and Phoenix Bulk
Carriers
Environmentally friendly project
Anaconda generated ~$2 million in gross revenue; no capital required
Approximately 3M to 4M more tonnes of broken waste rock still available
2+ million tonnes of mill tailings
R&D project with the College of the North Atlantic to use
tailings as a mineral fertilizer (Rock Dust)
Also known as rock powder, rock minerals, rock flour,
contains minerals and trace elements widely used in
organic farming
Ability to potentially decommission tailings facilities and
generate economic return
46 From the ground upTSX: ANX
Narrow Vein Mining R&D Project
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Project FIP – Mining ore veins using a multi-pass drilling
• Fragmentation in Place (“FIP”) – Innovative New Mining Method system of pilot hole drilling and hole widening
• In conjunction with Memorial University of Newfoundland techniques.
• $3.5 million research project, with secured funding of over $2.0
million:
• ACOA - $1.5 million
• RDC - $500K
• IRAP - $50K
• Anaconda retains IP ownership
Advantages
• Most of the excavation in ore – accelerated cash flow
• Minimal waste development
• Remotely operated equipment
• Sustainable and green
47 From the ground upYou can also read
