This technical report provides a Mineral Resource and Mineral Reserve update for the Point Rousse Project, including the Pine Cove Mine, Stog’er Tight Deposit, and Argyle Deposit, with an effective date of August 4, 2020.
Report context
The Point Rousse Project is located within the Baie Verte Mining District, on the Point Rousse/Ming’s Bight Peninsula, approximately 6 km northeast of the town of Baie Verte, in north central Newfoundland, Canada. This NI 43-101 technical report, published September 18, 2020, with an effective date of August 4, 2020, provides a Mineral Resource and Mineral Reserve update for Anaconda Mining Inc.’s Point Rousse Project. All currencies in this report are reported in Canadian dollars unless otherwise specified. The project area includes six mining leases and seven mineral licences with a total of 5,552 hectares. All mining leases and mineral licences are in good standing with the Government of Newfoundland and Labrador.
Processing route
Pine Cove Mill and Processing
The Pine Cove mill is the central processing facility for the Point Rousse Project. The report includes a process flow sheet for the Pine Cove milling operation and a mill recovery flow sheet. Mill components are identified, and yearly mill statistics are reported for fiscal years 2012 through 2019.
Stog’er Tight Processing
The report provides a summary of Stog’er Tight processing for 2018 and 2019, representing historical operating data from that deposit.
Argyle Metallurgical Testwork
Metallurgical testing for the Argyle Deposit included head analysis on an Argyle sample and liberation flotation test work. The report documents a liberation flotation test workflow sheet, liberation flotation operating conditions, cumulative results for Argyle flotation test work per grind, and a summarized mass balance of the flotation test work from 2015. These are testwork results and do not represent confirmed operational performance.
Key reported parameters
| Parameter | Value | Unit | Basis |
|---|---|---|---|
| Probable Mineral Reserve (total) | 706,443 | tonnes | Design |
| Average diluted grade (total) | 1.90 | g/t Au | Design |
| Contained gold (total) | 43,183 | ounces | Design |
| Pine Cove Mine Pit & ROM stockpile Probable Reserve | 170,851 | tonnes | Design |
| Average diluted grade (Pine Cove) | 1.40 | g/t Au | Design |
| Argyle Deposit Probable Reserve | 535,592 | tonnes | Design |
| Average diluted grade (Argyle) | 2.06 | g/t Au | Design |
| Contained gold (Argyle) | 35,477 | ounces | Design |
| Combined Indicated Mineral Resource | 1,470,000 | tonnes | Estimate |
| Average grade (Indicated) | 2.34 | g/t Au | Estimate |
| Contained gold (Indicated) | 110,800 | ounces | Estimate |
| Combined Inferred Mineral Resource | 515,000 | tonnes | Estimate |
| Average grade (Inferred) | 3.33 | g/t Au | Estimate |
| Contained gold (Inferred) | 55,100 | ounces | Estimate |
| Yearly mill throughput (fiscal 2012–2019) | Reported | tonnes per year | Historical operating data |
| Argyle flotation test work | Per grind results | % recovery | Testwork |
| Gold price assumption (base case) | $1,900 (US$1,425) | CAD$/oz | Design |
Technical qualifications
The report contains forward-looking information based on opinions and estimates of management. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The report states that the Company does not anticipate paying on the Net Profits Interest in the next year. The report does not provide a confirmed flowsheet for the Argyle Deposit; metallurgical results are based on testwork only. Historical operating data for Stog’er Tight processing is presented for 2018 and 2019 only. The report does not specify whether the Pine Cove mill can process Argyle ore at design capacity without modification.
Source: NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada, effective date August 4, 2020, published September 18, 2020, Sections 1.0, 13.0, 14.0, 15.0, 17.0.
