This technical report provides an update on mineral resources and reserves for the Point Rousse Project, including the producing Argyle Mine and the Stog’er Tight Deposit, based on work completed up to September 1, 2021.
Report context
The 2021 NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada, has an effective date of September 1, 2021 and was published on November 27, 2021. The report updates work conducted since the previous technical report dated August 4, 2020. The Point Rousse Project is located on the Baie Verte Peninsula, approximately 6 km northeast of the Town of Baie Verte, in north central Newfoundland. The project covers three prospective gold trends , the Scrape Trend, the Goldenville Trend and the Deer Cove Trend , with approximately 20 km of cumulative strike length, including three deposits and numerous prospects all within 8 km of the Pine Cove Mill. Anaconda has been mining and developing within the Scrape Trend since 2009, with commercial production reached on September 1, 2010.
Processing route
Pine Cove Mill description
The Pine Cove Mill is described in Section 17 of the technical report. Mill components are listed in Table 68 and include a primary crusher, a semi-autogenous grinding (SAG) mill, a ball mill, a leach circuit, and a carbon-in-pulp (CIP) circuit. The process flow sheet for the Pine Cove Milling Operation is shown in Figure 85, and the Mill Recovery Flow Sheet is shown in Figure 86.
Historical mill performance
Yearly mill statistics for fiscal years 2012 through 2020 are presented in Table 69 of the report. These data cover historical operating performance of the Pine Cove Mill during that period.
Metallurgical testwork on Argyle ore
Section 13.2 describes metallurgical testing performed on an Argyle sample. A head analysis of the Argyle sample is presented in Table 23. Liberation flotation test work was conducted, and the test workflow sheet is shown in Figure 48. Operating conditions for the liberation flotation tests are listed in Table 24. Cumulative results from the Argyle flotation test work per grind are shown in Table 25.
Processing of Argyle ore in the mill
Section 13.3 provides a summary of 12 months of processing Argyle ore up to September 1, 2021, as presented in Table 26.
Key reported parameters
| Parameter | Value | Unit | Basis |
|---|---|---|---|
| Argyle Probable Mineral Reserve | 529,100 tonnes at 1.99 g/t gold (33,850 ounces) | tonnes, g/t, oz | Design , from the Argyle Mine |
| Pine Cove Marginal Stockpile Probable Mineral Reserve | 147,855 tonnes at 0.55 g/t gold (2,615 ounces) | tonnes, g/t, oz | Historical , remaining stockpile |
| Total Probable Mineral Reserve | 676,955 tonnes containing 36,465 ounces | tonnes, oz | Design , combined |
| Argyle Indicated Mineral Resource | 436,800 tonnes at 2.53 g/t gold (35,530 ounces) | tonnes, g/t, oz | Estimate at 0.59 g/t gold cut-off |
| Argyle Inferred Mineral Resource | 500 tonnes at 2.77 g/t gold (50 ounces) | tonnes, g/t, oz | Estimate at 0.59 g/t gold cut-off |
| Stog'er Tight Indicated Mineral Resource | 642,000 tonnes at 3.02 g/t gold (62,300 ounces) | tonnes, g/t, oz | Estimate at 0.59 g/t gold cut-off |
| Stog'er Tight Inferred Mineral Resource | 53,000 tonnes at 5.63 g/t gold (9,600 ounces) | tonnes, g/t, oz | Estimate at 0.59 g/t gold cut-off |
| 2021 Pine Cove Stockpile Resource | Not stated as tonnage/grade in table , reported at 0.50 g/t gold cut-off | , | Historical , September 1, 2021 effective date |
| Mill throughput (historical range) | Data for Fiscal 2012 through 2020 | tonnes | Historical operating data (Table 69) |
| Head grade , Argyle test sample | Not reproduced here | g/t gold | Testwork , Table 23 |
| Flotation test results per grind | Not reproduced here | % recovery | Testwork , Table 25 |
| 12-month processing summary , Argyle | Not reproduced here | tonnes, g/t, % recovery | Historical operating data , Table 26 |
Project website: https://iaac-aeic.gc.ca/050/evaluations/proj/80135?culture=en-CA
Technical qualifications
The following limitations are stated within the technical report:
- The 2021 Technical Report was prepared by Independent Qualified Persons Glen Kuntz, P.Geo. and Joanne Robinson, P.Eng., of Nordmin Engineering Ltd., as well as non-independent Qualified Persons Paul McNeill, P.Geo., Kevin Bullock, P.Eng., and Chris Budgell, P.Eng., all of Anaconda Mining Inc.
- All measurement units used in this Technical Report are metric unless otherwise noted. All currencies are reported in Canadian dollars unless otherwise specified (US amounts are based on a foreign exchange rate of CAD$0.79/US$1.00).
- Mineral Resources and Mineral Reserves are reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (May 2014; the 2014 CIM Definition Standards) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2019; 2019 CIM Best Practice Guidelines).
- The report includes certain forward-looking statements and identifies risks including, but not limited to: failure to identify Mineral Resources and Mineral Reserves, failure to convert estimated Mineral Resources to Mineral Reserves, geotechnical challenges, delays in obtaining or failures to obtain required governmental, environmental, or other project approvals, political risks, uncertainties relating to availability and costs of financing, inflation, changes in foreign currency exchange rates, fluctuations in commodity prices, delays in the mine plan, and capital and operating costs varying significantly from estimates.
- The Argyle Mineral Reserve estimate uses key assumptions and costs detailed in Table 77 of the report, with after-tax Net Present Value at a 5% discount rate of $17.4M and an Internal Rate of Return of 1,631%, based on $2,000 gold.
- The report notes that the Company has not experienced any significant shutdowns or risks related to the ability to access Point Rousse and is not aware of any significant risk related to access, ability to conduct work, or environmental liabilities.
Source: 2021 NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada, effective date September 1, 2021, published November 27, 2021, Sections 1, 13, 14, 15, 17, 22, 25.
