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Anaconda Mining Update – Q1 Production Details, Maritime Takeover Offer, Goldboro Drilling

Cory
April 17, 2018

Anaconda Mining continues to be very busy on three fronts. The Company just released Q1 production numbers, formalized the takeover offer for Maritime Resources, and is continuing to explore on the Goldboro Project. Anaconda President and CEO Dustin Angelo joins me today to answer my questions on all three fronts.

Click here to listen to the investor call regarding the Maritime takeover offer if you missed it (click the links in the middle of the page).

Please comment or email me with your questions for Dustin and his team when I chat with him again when the next round of Goldboro drill results are released.

Click download link to listen on this device: Download Show

 

Discussion
36 Comments
    CFS
    Apr 17, 2018 17:19 AM
      Apr 17, 2018 17:28 PM
        Apr 17, 2018 17:32 PM

        Some good thoughts today from Peter Newton Bell:

        @Newton – “Oh. “To process Hammerdown ore, we would not be putting it through our flotation circuit since that recovery process is not necessary for Hammerdown ore. Instead, we would bypass flotation and employ a similar whole ore leach process at the Pine Cove Mill that was done at Nugget Pond.” – {transcript}
        “Well, that’s huge. $ANX has been trying to source some feed for that process for long time. Capacity in back end of their mill, I believe. Processing possible immediately. What about mining? $MAE needs tailings site, $ANX has old pit. That is a very good fit. Puts $MAE into production in 2019? 3 17 Apr 2018, 10:14

        @Newton – “$ANX and $MAE look like great fit operationally after reading that transcript. Points about pit and mill are huge. Difference in milling costs also very important. Capital costs/operational costs right there. And transportation — LOL! “Our mill is the closest operating mill to the Green Bay Property and is located approximately 50 kilometres closer than the Nugget Pond Mill when you consider it in terms of a round trip.” Amazing that ANX mill is closer than RAB one. And RAB not giving public support to MAE? Wow. ” — Newton

          Apr 18, 2018 18:15 AM

          “From an investor perspective, Anaconda has been able to significantly increase its market capitalization through prudent investment in mineral properties and capital expenditures. Since July 6, 2016, when it first submitted a formal letter of intent with a premium offer to Maritime, the Anaconda Shares issued and outstanding have increased approximately 138% while the Company’s market capitalization has risen
          over 225%. In contrast, the issued and outstanding Maritime Shares increased approximately 104% since July 2016 and the market capitalization of Maritime has only increased in value by approximately 85%, effectively generating a loss of shareholder value in real terms over nearly the past two years.”

          With a good sense of the team that would be the stewards of your investment, now, let’s discuss some of the other reasons why you should accept our offer.

          > Why accept the offer

          “We believe that the offer is compelling, and represents a superior alternative to continuing the course set by the current Maritime board and management for the following reasons:”

          “We are offering a significant premium to Maritime Shareholders. As mentioned before, our offer represents a price of $0.16 per Maritime Share and a premium of approximately 64%. It has been quite some time since Maritime shares traded at this level and you’ll have to ask yourself, if this deal does not go through, how does the stock get back to $0.16 and how does it go beyond that? Does management’s
          current course get you there? If so, how long will it take and at what cost? We can get you to $0.16 immediately and have a plan to add value from there as outlined earlier in my remarks.”

          “If our offer is not successful, it is unlikely that any competing transaction will be made and the only option that remains is status quo. Then, we believe the trading price of Maritime Shares may decline to pre-offer levels or even lower.”

            Apr 18, 2018 18:17 AM

            >> More to chew on regarding the $MAE takeover by $ANX from their transcript:

            “The Green Bay Property cannot be placed into production unless Maritime is first able to permit and construct a tailings facility, which would take additional capital that is not available to Maritime.”

            “Maritime’s pre-feasibility technical report dated March 2, 2017 provides for the transport of ore from the Green Bay Property to the Nugget Pond Mill for processing, which would require Maritime to enter into a toll milling agreement with Rambler Metals and Mining, thereby incurring additional costs and time. In addition, for the existing Nugget Pond Mill to be available to process ore from the Green Bay Property, Rambler would have to either divert its current processing operations to another mill, which we suggest is extremely unlikely, or build a new grinding circuit. Construction of a new grinding circuit would require capital that Rambler does not currently have available. By using our Pine Cove Mill, which is already operating and has available capacity to process additional ore, the Green Bay Property can reach production sooner than Maritime’s ability to construct a stand-alone facility or make use of the Nugget Pond Mill.”

            “Furthermore, our milling cost has averaged approximately $20 per tonne, which is approximately 40% lower than the processing cost of $32.89 per tonne quoted in the Green Bay Property Technical Report…”

            “We think that the development of Maritime’s Green Bay Property will be substantially accelerated with Anaconda’s involvement and significant capital and operating cost synergies can be achieved. Maritime Shareholders will benefit from our well trained workforce, disciplined management team, and proven infrastructure at the Point Rousse Project.”

          Apr 18, 2018 18:27 PM

          #Chart comparing the performance of $ANX and $MAE since the bottom of the miners in Jan 2016. It’s clear which company created shareholder value over this time period and which one lost shareholder value.

          http://www.stockcharts.com/freecharts/perf.php?ANX.TO,MAE.V&p=6&O=011000

    CFS
    Apr 17, 2018 17:29 AM

    Tesla looks a great short. Now suspended production of model 3.
    Burn rate on cash now approaching half a million dollars per hour!

    Problems with model X crash. Stopped cooperation with NTSB inspectors.

      Apr 17, 2018 17:38 AM

      Harvey , Illinois…….was mentioned yesterday…….

        Apr 17, 2018 17:39 AM

        Oregon was mentioned yesterday……with the outrageous …$76,000 per month the health director was getting.

      Apr 17, 2018 17:40 AM

      California is toast…….

        Apr 17, 2018 17:46 AM

        I thought the sheriff and police pension was bad a couple of years ago….when they were receiving $100k…….taxes are going to the moon, gas is out of sight…….good luck in the fruit and nut state………. 🙂

    CFS
    Apr 17, 2018 17:44 AM

    2018-04-17 07:15 ET – News Release

    Mr. John Burzynski reports

    OSISKO INTERSECTS 68.5 G/T AU OVER 2.9 METRES AT LYNX

    Osisko Mining Inc. has provided new results from the continuing drill program at its 100-per-cent-owned Windfall Lake gold project located in the Abitibi greenstone belt, Urban township, Eeyou Istchee James Bay, Quebec. The 800,000 metre drill program combines definition, expansion and exploration drilling in and around the main Windfall gold deposit and the adjacent Lynx deposit (located immediately NE of Windfall).

    CFS
    Apr 17, 2018 17:46 AM

    VANCOUVER, BC – April 17, 2018 – SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce drill results from the Luigi Vein on the Las Chispas Property (the “Property”) located in Sonora, Mexico. SilverCrest discovered the Luigi Vein in the footwall of the Las Chispas Vein in mid-2017 but it remained un-named until the Company completed enough drilling to delineate an actual mineral vein. Several of the announced holes in this release were previously disclosed as an un-named vein. There are 23 known epithermal veins on the Property. The Company has tested ten (10) of these 23 veins .

    CFS
    Apr 17, 2018 17:49 AM

    Gorsuch just joined the Liberals on Supreme Court nixing Trump’s deportation rules.

    A pity Scalia no longer around.

      Apr 17, 2018 17:51 AM

      All about vote…….

        Apr 17, 2018 17:51 AM

        votes…more than one illegal

      Apr 17, 2018 17:52 AM

      Supreme Court is a JOKE……….

        Apr 17, 2018 17:53 AM

        Ruth needs to be put out to pasture……..

        Apr 17, 2018 17:14 AM

        Seriously, the Supreme Court should be ignored. SCOTUS gives opinions, not commands.

      Apr 17, 2018 17:51 AM

      When Veterans Today tied the murder of Supreme Court Justice Anthony Scalia to a White House black mail plot and a strange tale involving the Keshe Foundation, it became clear that the highest and most powerful in Europe,the U.S and around the World were tied together in a web of ritual child abuse on a massive scale.

        b
        Apr 17, 2018 17:07 AM

        It looks that way JohnK, and Im willing to bet they all support Israel.
        Heck, I bet they fly over just to watch the Israelis shooting Palestinians.

        Makes for a great afternoon, extra points for the groin shots.

          Apr 17, 2018 17:18 AM

          Are there any Black Jews……….? Sam Davis was the last one I knew about….. lol

            Apr 17, 2018 17:19 AM

            Better check on Clarence….. 🙂

    Apr 17, 2018 17:50 AM

    Daily cup and handle on silver…..just broke out……lol

    Apr 17, 2018 17:08 AM

    novo stock price running ahead of pending results this month. I guess someone expects good news.

    CFS
    Apr 17, 2018 17:14 AM

    Sprott is buying heavily:

    Filing
    Date Transaction
    Date Insider Name Ownership
    Type Securities Nature of transaction Volume or Value Price
    Mar 7/18 Mar 5/18 Sprott, Eric S. Direct Ownership Common Shares 54 – Exercise of warrants 1,666,667 $0.850

    Mar 7/18 Mar 5/18 Sprott, Eric S. Direct Ownership Warrants 54 – Exercise of warrants -1,666,667 $0.850

    Feb 25/18 Feb 16/18 Karabelas, Leonidas Direct Ownership Common Shares 10 – Disposition in the public market -100,000

    Feb 25/18 Feb 16/18 Karabelas, Leonidas Direct Ownership Common Shares 51 – Exercise of options 100,000 $0.940

    Feb 25/18 Feb 16/18 Karabelas, Leonidas Direct Ownership Options 51 – Exercise of options -100,000 $0.940

    Nov 10/17 Nov 8/17 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 50,000 $8.34

    Nov 10/17 Nov 8/17 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 50,000 $8.34

    Nov 8/17 Nov 6/17 2176423 Ontario Ltd. Direct Ownership Common Shares 10 – Acquisition in the public market 50,000 $7.96

    Nov 8/17 Nov 6/17 Sprott, Eric S. Indirect Ownership Common Shares 10 – Acquisition in the public market 50,000 $7.96

    Nov 7/17 Nov 6/17 Sprott, Eric S. Direct Ownership Options 50 – Grant of options 400,000

      Apr 17, 2018 17:25 AM

      Looks like just exercising the warrants……at 85cents….price of stock….$4-5 (us/cn)

    Apr 17, 2018 17:37 AM

    Never read Mr. Hornberger before. Like what he says and how he says it: https://www.fff.org/2017/08/23/unlike-trump-jfk-didnt-bend-knee/

    Apr 17, 2018 17:00 AM

    GDX and $XAU are over their 200 DMAs. To prevent a negative cross of their 200 DMAs and their 600 DMAs they need to rally hard from here and never look back. Maybe there is still time for a retest of their 50 DMAs, but I imagine a ton of buyers would come in there for at least a bounce. For now, why not just buy above the 200 DMA and see if it holds?

    Question is, does Lucy pull the ball away yet again?