View of the water from Baie Verte

The research I did on Newfoundland and Labrador as a destination for mineral exploration and production had me excited to see, in person, if the province would deliver. On October 23rd, I visited Rambler Metals and Mining, and specifically their Ming’s Mine site, which sits roughly 15 minutes from Baie Verte.

Before getting into my visit to Rambler, I want to give you a quick intro to the Baie Verte Peninsula’s mining history and, in particular, a story of how Canada’s smallest town came to be.

Tilt Cove

Tilt Cove is currently the smallest town in Canada; with a population of just 6 people, it sits just a few kilometers from Rambler’s Nugget Pond Mill.  The story of how Tilt Cove came to be varies depending on who you speak to, but here’s a brief summary of what I was told.

The story begins with a man named Issac Winser. Winser was a fisherman, who frequently fished the waters surrounding the Baie Verte Peninsula. In a chance encounter on the water between Winser and another man, Smith McKay, McKay noticed Winser was in possession of a large metallic rock, which he was using as an anchor for his boat.

Curiously, McKay took a closer look at the bluish green coloured rock and asked Winser where he had found it. Winser said he’d found it on the shores of the Tilt Cove area, and that there was a great deal more sticking out of the cliffs.

McKay, having a mining background, recognized the rock to be copper ore and later made his way to the Tilt Cove area to set up a mining operation, where he and his team mined the copper ore by hand. The Tilt Cove town was quickly established and grew from a town of 3 families in 1863 to a town of over 700 inhabitants by 1869.

In the Nugget Pond Mill offices, there is a copy of a very old Tilt Cove grocery store flyer advertising sale items. Additionally, the town’s prosperity even brought a movie theatre to the area and many other unexpected perks for such a small community in northwestern Newfoundland and Labrador.

For those interested in reading more about the history of Tilt Cove, here are a couple of links to check out: CBC – Tilt Cove, Canada’s smallest town, a big draw for tourists and Newfoundland Heritage – Once Upon A Mine.

Rambler Metals and Mining (RAB: TSX-V)

MCAP – 82.4 million (at the time of writing)

Shares – 549 million

Fully Diluted – 627 million

Cash – $2 million

Institutional Shareholders – CE Mining 72%, Lombard Odier 6%, CI Global Investments 5%, Tinma International 4%

Ming’s Mine and Nugget Pond Mill

Rambler Metals and Mining owns 100% of its 1640 ha property, which is home to the Ming Mine and Nugget Pond Mill. Rambler’s operation is expanding its underground operation by blending ores from the Lower Footwall Zone with the current mining from the massive sulphide zones to produce roughly 16 million pounds of copper annually, at a cost that’s below $2 USD per pound, giving the operation good upside potential against a rising copper price.

The Ming’s Mine has a total Proven and Probable Reserve of 8.7 million tonnes at 1.79% copper and 0.48 g/t gold, for a total of 341.2 million lbs of copper and 133.5 K oz of gold. All zones of the deposit remain open at depth.

Ming Mine – New portal cover installed as part of the ventilation upgrade project

Currently, the mine is targeting 1250 mtpd, which will help drive down costs and allow Rambler to maximize their profits in what appears to be a strong future market for copper prices. Rambler’s  corporate presentation gives us a glimpse of their sensitivity to a rising copper price – below is the graph.

Data Source NI43-101 2015 Technical Report – Financial KPIs @ 1,250 MTPD

Although the mine site is closer to Baie Verte, where I was staying, we started the site visit at the Nugget Pond Mill, which sits roughly 40km away from the mine site, near Canada’s smallest town, Tilt Cove.

The Nugget Pond Mill is located 10km off the 414, and is at about the 5km mark where the road breaks in two. On your left, you head to Snook’ Arm, and to your right, our destination, Nugget Pond.

Ming Mine – Truck being loaded with Copper Ore

Rambler purchased the Nugget Pond Mill in October of 2009 for $3.5 million CAD, which, at the time, was owned by Crew Gold Corporation. Crew was using the mill to process their gold ore, which was mined at their Nalunaq Gold Deposit in Greenland.

NOTE: The Nugget Pond Mill was originally built back in 1996 by Richmond Mines to mine the Nugget Pond deposit.  When that ore body was depleted, Richmond movedto the Hammerdown mine, near Springdale, and mined, trucked and milled the ore at the Nugget Pond mill.

Nugget Pond Mill – Truck dumping a load of Copper Ore for Processing

The bulk of my site visit was spent at the Nugget Pond Mill, where I was given a detailed overview of the operation by the Mill Superintendent, Dwight Goudie. I then toured the facility, where I met with a couple of operators, Chester and Andrew, who took me through their respective operations and explained to me how the process works and the key parameters that they monitor.

Nugget Pond Mill – Operator Andrew, holding a piece of Dry Copper Concentrate

I was very impressed at the level of knowledge which both operators displayed. Clearly, they are both fully engaged in the whole process and take great pride in what they’re doing. Speaking from experience, getting and maintaining this sort of engagement isn’t always easy, but pays huge dividends to a company that can sustain it.

Future Growth

Rambler is steering towards  a definitive engineering study with regards to an expansion of the mining process, in which their target is to achieve a production rate of 2,000 mtpd, Phase III. An increase to this level of production should lower costs, ergo giving even more potential protection against a falling copper price or upside potential in a rising copper price market.

Along with a longer term production goal of 2,000 mtpd, Rambler’s Chief Exploration Geologist, Larry Pilgrim, mentioned that they are targeting further exploration of the deposit, down plunge, as all zones remain open at depth. In particular, the Ming North Zone remains largely unexplored and will be the exploration focus of the future. A surface drill program is also underway targeting the down plunge extension of the Lower Footwall Zone.

This surface drilling has been successful in expanding the LFZ zone as well as expanding the massive sulphide zone (Ming South zone).  A September news release highlighted some of the results from the first hole.

• Ming Massive Sulphide (MMS) – Upper lens 1.02 m of 1.63% Cu and 1.23 g/t Au and Lower lens 6.30 m of 2.85% Cu and 2.99 g/t Au
• Lower Footwall Zone (LFZ) – 40.0 m of 1.42% Cu, including 6.0 m of 2.51% Cu and 7.57 m of 2.27% Cu

Results from the second hole are expected in the next couple of weeks.

NOTE: Pilgrim is a native Newfoundlander with a lot of experience in the mining industry. He mentioned that western Newfoundland, right up the Baie Verte Peninsula, had enough prospective geological targets to last him 3 lifetimes. I mention this because it appears we have only hit the tip of the iceberg in Newfoundland and Labrador’s exploration potential, which is great for the future of mining within the province.

Ming Deposit – Slide from Rambler Corporate Presentation

In a news release on June 27 of this year, Rambler reported some great drill results from the Ming North Zone, which aren’t included in the current resource or reserve calculation. Some highlights were: R17-675-04: 4.00m of 3.17% Cu with 6.56 g/t Au, R17-675-05: 21.00m of 3.1% Cu with 1.13 g/t Au and R17-675-07: 17.97m of 2.79% Cu with 1.73 g/t Au. At the very least, the drill results show the potential to help replace the depleted reserves and, on the upside, show the potential to expand the resource and/or reserves in the future.

Concluding Remarks

I think it’s undeniable that the world is moving away from the use of fossil fuels as an energy source. In the coming years, alternative non-carbon emitting energy sources, such as solar and wind, appear as though they will have a larger footprint in energy generation. With this movement will come the need to store and transmit electricity on a far larger scale than we are today.

Thus, in my opinion, a major disruption in the primary battery metals and copper markets is destined to come.  In saying this, positioning yourself in high quality companies such as Rambler Metals and Mining, could prove to be a good investment in the years ahead.

Don’t want to miss a new investment idea, interview or financial product review? Become a Junior Stock Review VIP now – it’s FREE!

Until next time,

Brian Leni  P.Eng

Founder – Junior Stock Review

Disclaimer: All statements in this report, other than statements of historical fact should be considered forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often, but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  Risks and uncertainties respecting mineral exploration companies are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this newsletter.

Brian Leni is an online financial newsletter writer. He is focused on researching and marketing resource and other public companies. Nothing in this article should be construed as a solicitation to buy or sell any securities mentioned anywhere in this newsletter. This article is intended for informational and entertainment purposes only!

Be advised, Brian Leni is not a registered broker-dealer or financial advisor. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer.

Never, ever, make an investment based solely on what you read in an online newsletter, including Brian Leni’s online newsletter, especially if the investment involves a small, thinly-traded company that isn’t well known.

Brian Leni’s past performance is not indicative of future results and should not be used as a reason to purchase any stocks mentioned in his newsletters or on this website.

In many cases Brian Leni owns shares in the companies he features. For those reasons, please be aware that Brian Leni can be considered extremely biased in regards to the companies he writes about and features in his newsletters.  You should conduct extensive due diligence as well as seek the advice of your financial advisor and a registered broker-dealer before investing in any securities. Brian Leni may buy or sell at any time without notice to anyone, including readers of this newsletter.

Brian Leni shall not be liable for any damages, losses, or costs of any kind or type arising out of or in any way connected with the use of this newsletter. You should independently investigate and fully understand all risks before investing. When investing in speculative stocks, it is possible to lose your entire investment.

Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction, and should only be made after such person has consulted a registered financial advisor and conducted thorough due diligence. Information in this report has been obtained from sources considered to be reliable, but we do not guarantee that they are accurate or complete. Our views and opinions in this newsletter are our own views and are based on information that we have received, which we assumed to be reliable. We do not guarantee that any of the companies mentioned in this newsletter will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.
Brian Leni does not undertake any obligation to publicly update or revise any statements made in this newsletter.

Brian Leni does not have a business relationship with Rambler Metals and Mining. Brian Leni does not own shares in Rambler Metals and Mining.

Day 3 of my Newfoundland trip started at the crack of dawn, when I was awakened before 4am by the alarm of the logger in the room next to me at the Lakeview Inn in Millertown.  I tossed and turned for the next hour and a half and then made my way downstairs, where I had a terrific breakfast with Antler Gold’s exploration team. After breakfast, we headed to the team’s exploration home base, a rented cabin a few blocks away from the Inn.

Millertown located on the Shores of Red Indian Lake

For the exploration team, each day starts here with a safety review and a delegation of assignments by  Exploration Manager, Dave Evans. By about 7 am, we were on the road headed south of Millertown, down a set of logging roads, to Antler’s Wilding Lake Gold Project.

Yours Truly standing in Antler’s Elm Zone Trench

Before getting any further into my site visit report, I’m going to share some interesting facts about the history of Millertown.

Millertown

Just south of Buchans junction, which sits at the north end of Red Indian Lake in central Newfoundland, is Millertown.  Millertown was established in about 1900 by Lewis Miller, a timber baron and merchant from Crieff, Scotland.

Having exhausted his timber lands in Sweden, Miller brought a team of Scots and 100 Swedish lumberman to the Red Indian Lake area, in an effort to establish a logging operation that could supply the British Empire with pine timber.

What is left of the old saw mill in Millertown

The town was created to house this team of lumbermen as they built 80 Swedish style, two-room cottages along the shores of the lake. Additionally, they constructed a school and a church on the hill overlooking the lake, which still stands today.

Millertown Church and homes along the shores of Red Indian Lake

During my visit, I asked about the logging industry in the area, and was told that since the closure of the pulp and paper mill in Grand Falls, logging in the area has really declined with only a small number of companies still in operation. Unfortunately, the industry’s decline has had a major effect on the town and many younger families have left.

Shores of Red Indian Lake

With the area’s great geology and the access provided by the logging roads, however, a mining renaissance could be coming to Millertown and the surrounding area. Companies such as Antler Gold, Marathon Gold and Torq Resources are exploring heavily in this general region. A large discovery and the development of a mine could bring much needed cash and jobs to this beautiful area in central Newfoundland.

The Wilding Lake Gold Project

After driving for about an hour on the rough logging roads, we arrived at the point of the original Wilding Lake gold mineralization discovery, which occurred just a few years ago. The gold was found in 2015 by prospectors, Brian Jones and Gary Rowsell, in quartz boulders alongside a new logging road. Grab samples from these boulders assayed up to 74.8 g/ton gold.

Approximate location of the first boulders discovered by Jones and Rowsell

Jones and Rowsell eventually sold the property to Altius Minerals, which is a large mining royalty company based in St. John’s, Newfoundland and Labrador. Altius then carried out further exploration activities in the fall of 2016, such as soil and basal till sampling, airborne and ground geophysics.

Fast-forwarding to today, Altius has since optioned the property to Antler Gold, who is currently conducting a systematic exploration program of the property with soil sampling, trenching and, most recently, a 2,500m drill program of some highly prospective targets.

To note, Antler’s Wilding Lake Project covers 215 sq. km and more than 50 km of strike length of the projected structural trend that is believed to control the regional gold mineralization. This trend is the same as Marathon Gold’s Valentine Lake Gold Camp, which currently boasts a total over 2 million ounces of 43-101 compliant gold resources in the Measured and Indicated, and Inferred Resource categories.

Wilding Lake Gold Project Geology Map

Text Book Example of Rogerson Lake Conglomerate

Gold Mineralization Zones

In 2016, 5 gold mineralization zones – Alder, Taz, Elm, Cedar and Dogberry – were found by Atlius’ exploration team. The gold showings mainly consist of quartz-tourmaline veins containing clots of coarse-grained chalcopyrite, hematite, malachite and visible gold is hosted by the Rogerson Lake Conglomerate.

Taz Zone Trench located in Close Proximity to Original Boulder Discovery

In the picture below, the purplish coloured rock is the Rogerson Lake Conglomerate. As the conglomerate nears the quartz veining, its colour changes to brownish. The Elm Zone was the most developed trench I saw, and the focus of drilling at the time of my visit.

Elm Zone Trench – Rogerson Lake Conglomerate, bottom left purplish colour

 

Elm Zone Trench – Site of drilling on the day of my visit

 

Taz Trench Rock

Systematic Exploration

The drive down the logging roads to Wilding Lake gave Exploration Manager Dave Evans and I a chance to talk about the project, and the systematic approach they are using to find gold mineralization on the property. In the mining industry, a systematic approach is paramount to conserving capital and making every dollar count.

Beginning in the summer, Evans and his team set out to explore as much of the property as possible, taking soil samples and mapping the property, in hopes of identifying further targets for this fall’s 2,500m drill program.

This systematic approach is particularly important for exploration in Central Newfoundland and Labrador because of the amount of overburden which masks most outcroppings. This overburden layer can vary in depth from 0.5m to 15m throughout Newfoundland and Labrador.

The layering of the soil can be seen when standing in the dug trenches, as the top thin layer of organics clearly sticks out on top, followed by an overburden blanket of varying thickness, which is followed by basal till along the top of the rock.

Evans pointed out that the key to proper soil sampling is to get a sample below the organics in the A horizon, down to the brownish soil, where there is the possibility for gold to be present. When high potential soil samples or boulders are found, the geologists identify the path of the glaciers, which would have worn the mineralized outcrops as they moved across, many years ago. The exploration team then moves up ice of the high gold in soil or boulder samples to (hopefully)  find the buried quartz vein outcrops.

By overlaying soil and till sampling data with the geophysical data, followed by trenching and channel sampling along the quartz veins in each zone, the team has identified high potential targets which, at the time of my visit, were the focus of the drilling.

Evans told me that, to date, they have collected over 6000 samples across the property. In the July 26^th, 2017 news release, Antler released the gold soil geochemistry diagram seen below.

2016 and 2017 Soil Geochemistry Wilding Lake Project – News Release July 26^th, 2017

Further in the August 30^th, 2017 news release, Antler announced the discovery of new mineralized zones, Red Ochre and Raven. The Red Ochre Zone is located roughly 900 meters to the southwest of the Alder Zone, while the Raven Zone is located 400m to the northeast of the Red Ochre Zone.

Antler’s systematic approach to exploration is clearly working and makes me confident that if there is more gold mineralization within their claim boundaries, they will find it!

Pointing out a Fleck of Gold at the Taz Trench Outcrop

 Trenching Work

I have included a few pictures from my visit and a few images produced by Antler depicting the Elm Zone, Alder Zone and Dogberry Zone trenches, which have channel sampling data included from the quartz veins. These were a part of a January 24, 2017 news release.

Elm Zone Trench – Quartz Vein Outcrop

Elm Zone Trench – Exploration Manager, Dave Evans

 

News Release Jan.24, 2017 – Alder Zone Trench

 

News Release Jan.24, 2017 – Elm Zone Trench

News Release Jan.24, 2017 – Dogberry Zone Trench

Newfoundland and Labrador – A New Frontier for Gold Exploration

Finally, for those who haven’t read my article on Newfoundland and Labrador as a mining jurisdiction, and/or don’t know much about this great province on Canada’s East Coast, you can find it here.

Concluding Remarks

Touring the property with Exploration Manager, Dave Evans, was an exciting and very insightful experience. In any mineral exploration endeavour, a systematic approach that ensures dollars are spent wisely is vital to the success of the operation. In the case of Antler, I had the chance to see, first hand, the dividends that are paid when you have a defined process that’s performed by an experienced team.

Secondly, having met Antler CEO, Dan Whittaker, this past summer in Toronto, I’m confident Antler shareholders, including myself, are in good hands moving forward. I am a buyer of Antler Gold and look forward to the first round of drill results in the coming weeks.

Don’t want to miss a new investment idea, interview or financial product review? Become a Junior Stock Review VIP now – it’s FREE!

Until next time,

Brian Leni  P.Eng

Founder – Junior Stock Review

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company(s) and sector that is best suited for your personal investment criteria. Junior Stock Review does not guarantee the accuracy of any of the analytics used in this report. I do own Antler Gold shares. I have NOT been compensated to write this article and have No business relationship with Antler Gold.

If you’re looking to take your due diligence process to the next level, you have to incorporate a site visit into your repertoire. All the analysis in the world can’t replace the effectiveness of seeing a project and meeting the people in person.

Not only can you confirm what the management team is telling you, but you can meet the people who are on the front lines, mining underground, driving loaders, collecting soil samples or simply answering the phone in the office. All of this can tell you a lot about the health of a company and how it treats its employees, which is paramount to the company’s success, in my opinion.

In October, I had the opportunity to visit Anaconda Mining’s Point Rousse Project, and was not surprised to see that Anaconda’s leadership makes it a priority to empower their workforce. For this, they’re paid back through a motivated workforce.

I returned from my visit to Newfoundland and Labrador very satisfied that Anaconda’s operational team has the right ingredients for success; they look set to put the Stog’er Tight Deposit into production, produce a maiden resource estimate for the Argyle Zone, and explore and develop the Goldboro Project toward production.

2018 looks to be a monumental year of growth for Anaconda, one that I look forward to as a shareholder!

Anaconda Mining – Site Visit October 2017

On the morning of October 22^nd, I flew out of Toronto’s Pearson International Airport on my way to Deer Lake, located in western Newfoundland and Labrador. While I was here, I had the opportunity to visit Anaconda Mining’s Point Rousee Project, located on the Baie Verte Peninsula in north western Newfoundland and Labrador.

Gros Morne National Park – Western Brook Trail

The western portion of the island of Newfoundland, while sparsly populated, possesses, in my opinion, some of  Canada’s most spectacular scenery and destinations. I landed in Deer Lake, an interesting town because it’s home to western Newfoundland and Labrador’s major airport, and compared to many of the other areas in this part of the island, it’s also well developed on a commerical level.

Most importantly, however, it’s the largest centre next to Gros Morne National Park, and acts as a jumping point for people looking to explore this UNESCO world heritage site.

On the last day of my trip, I spent the day hiking a few of the trails in Gros Morne and was amazed by the scenery – this is a place you will want to add to your bucket list, you won’t be disappointed!

Baie Verte, Newfoundland and Labrador

Baie Verte – HWY 410 thru the main part of town

Baie Verte – A view from Bistro on the Bay

Baie Verte is a small town located on the coast of the Baie Verte Peninsula. Baie Verte’s history as a town is rooted in the pulp and paper industry, but owes its major growth to the asbestos mine which was founded in 1955 by George McNaughton and Norman Peters.

Asbestos Open Pit Mine – 1963 to 1995

The open pit asbestos mining operation, which is located a short drive north of Baie Verte, employed 500 people at its peak. The mine was operated by a number of companies throughout its history, including  Advocate Mines Ltd., Baie Verte Mines Inc., and Teranova. The mine was closed permanently in 1995.

While there are other employers in this region of Newfoundland, I definitely got the feeling from speaking to a few of the residents that, outside of being employed by government, mining was the most desirable industry in which to work.

The mining operations that are closest to Baie Verte are Anaconda Mining’s Point Rousse Project and Rambler Metals and Mining’s Ming Mine and Nugget Pond Mill. The two companies, in total, employ roughly 400 people in the surrounding area.

Depending on your speed, it’s roughly a 2 hour drive from the Deer Lake airport to Baie Verte.  I spent two days in Baie Verte, staying at the Dorset Inn, which is right in the heart of town.  From here, Anaconda’s Point Rousse Project is about a 30 minute drive on the 418, which leads to the town of Ming’s Bight.

The Point Rousse Project

The Point Rousse Project is a collection of Anaconda’s Newfoundland assets, which include the Pine Cove Mine and Mill, the Stog’er Tight Deposit, the Aggregates Project and over 5,800 ha of prospective property.

The Point Rousse Project is located down a very well kept gravel road, about 5 km off the 418. The road makes its way through the forest, up and down hills, until reaching the site’s main offices to your left, and tailings pond to your right. Elevation-wise, the main offices, mill and tailings pond are set roughly 75 to 100 ft above the top of the Pine Cove open pit, and probably another 75 to 100 ft above the sea level at the Port Facility.

During my visit, I was accompanied by the Mine and Mill Superintendent, Tony Chislett. Chislett has been with Anaconda for 10 years, working in a few different roles before becoming Superintendent. In my experience, the best operation managers typically work their way up to the position after having extensive experience in the various jobs that they are going to manage. This not only gives them the much needed knowledge of the process, but also the respect of the workers.

Chislett and his team will be put to the test in the coming months with the conversion of the Pine Cove open pit mine to a long term tailings facility and the start up of the Stog’er Tight Mine, which should occur in early 2018. Not only this, but on the horizon there is the possible processing of the Goldboro ore, which will be an extra wrinkle for the team to deal with, as the Goldboro ore is different from what is mined along the Scrape Trend.

Pine Cove Mine and Mill Superintendent, Tony Chislett

As we drove around the property, Chislett gave me a break down of the operation, and how they have incorporated cutting-edge technology and their personnel’s input to improve the process. For instance, GPS targeting for blasting and on the company’s heavy equipment allows for precision mining and the ability to maximize efficiency with the flow of ore to and from the open pit to the mill. With the movement to Stog’er Tight getting closer, these technologies, I believe, will aid Anaconda in avoiding some of the pitfalls that could accompany the mining operation’s move.

Pine Cove Open Pit Mine– Dump Truck Driving Up the Ramp

Pine Cove Open Pit Mine – Mining of Gold Ore from the Bottom of the Pit

Stog’er Tight Deposit – Located in Close Proximity to the Pine Cove Mill

Scrape Trend

While the Stog’er Tight Deposit looks to become Anaconda’s next producing asset, there are many more prospective targets located in what is called the Scrape Trend.

Source: Anaconda Mining

In the image above, you can see the exploration targets listed from 1 to 4. Starting on the left-hand side of the image with #1, is Anaroc, which is located in close proximity to the Pine Cove open pit mine.  Next, #4 is Corkscrew Road, followed by the #2 Connector and, finally, #3 the most explored of the targets, the Argyle Zone.

Argyle Zone

Fifty-two holes have been drilled at the Argyle Zone, totalling 4,860 meters.  The strike length is over 600m and 225m down dip. To date, here are some of the drill highlights at the Argyle Zone: 6.09 g/t over 8.9m (AE-16-11), 9.31 g/t over 6.0m (AE-16-39) and 3.63 g/t over 12.0m (AE-17-46).

In a recent news release, Anaconda announced a flotation recovery of 97.3% and a leach recovery of 94.5% for a combined recovery of 91.9% of a 25 kg sample of blended core samples from Argyle, with an average grade of 2.69 g/ton gold.

Additionally, Anaconda’s geologists have identified other targets to the south and along strike using geophysical data.

Source: Anaconda Mining

PUSH:  A maiden resource estimation for the Argyle Zone is expected to be announced in December 2017. Additionally, Anaconda’s team is working on an environmental assessment application, conducting metallurgical and ARD testing and government consultations.

Aggregates Project

Deep Sea Port which Facilitates the Aggregate Shipments

While not a focus for Anaconda, the cash and the removal of waste rock that the Aggregates Project provides is a huge plus for the company. The Aggregates Project and the proposed use of some of the larger waste rock as armour stone is a testament to the innovation that Anaconda’s leadership has instilled in their workforce.

With the first Aggregates Project contract having just expired, Chislett mentioned that they intend to negotiate additional contracts in the future. In the last fiscal year ending on May 31 2017, the project generated $0.9 million.

The Goldboro Project

From the first time we met, Anaconda’s CEO, Dustin Angelo, has told me that Anaconda has lofty goals for expansion, as they intend on becoming a 50,000 ounce per year gold producer. To more than triple their current production rate, they will, without a doubt, lean heavily on their latest acquisition, the Goldboro Project, which is located a couple of hours northeast of Halifax, Nova Scotia.

In recent news, Anaconda was able to raise $3 million dollars in a non-brokered private placement. VP of Exploration, Paul McNeill, says roughly half will be put toward further exploration and development at Goldboro.

In a news release on November 1^st, Anaconda  announced a 6,000m diamond drill program, focusing on the Boston Richardson and East Goldbrook gold systems. The goal of the program is to expand the mineral resource along strike and down plunge, while also completing infill drilling in specific portions of the deposit as they look to move some of the Inferred resource up to the Measured and Indicated categories.

Goldboro IP Chargeability Map

In the same release, Anaconda reported that initial drill core observations support the thesis that the Goldboro Deposit continues at depth, as the first diamond drill hole (BR-17-06) intersected the geological structure hosting the Boston Richardson System between 400 to 475 meters, which is 75 meters below the current resource model.

Goldboro Deposit Vertical Longitudinal Section

PUSH: Drill results from the recently commenced 6,000m diamond drill program. Expansion of the resource at depth and along strike has the potential to do great things for the economics of this project.  Pay close attention to drill results coming in the weeks and months ahead.

PUSH: Additionally, a PEA is scheduled to be completed by the end of this year, the economics of which could be enhanced with further expansion of the Goldboro Deposit.

Anaconda possesses a proven team with a track record for success in mining. I believe that Goldboro will be the next feather in their cap, as they look to develop the Project into a producing mine. For a detailed look at Anaconda, check out my last article here.

Concluding Remarks

Before my visit, I felt the future was very bright for Anaconda. After seeing their Point Rousse Project in person, I’m convinced Anaconda is a company that is dedicated to empowering its people. It has not only survived the depths of the recent bear market, but has emerged in this new gold bull market as a premier gold producer, set to grow in the coming years.

I’m looking to add to my position in Anaconda in the weeks ahead, and see weakness in the share price as an opportunity. Putting it all together, there’s a lot of news flow to watch for in the coming weeks and months, which could provide some PUSH for the stock price:

• Results from the 6,000m diamond drill program at the Goldboro Project. They are looking to expand along strike and at depth.
• Completion of a PEA on the Goldboro Project by the end of 2017
• Stog’er Tight Deposit will begin production in early 2018
• Maiden Resource Estimation announcement on the Argyle Zone in December 2017

Don’t want to miss a new investment idea, interview or financial product review? Become a Junior Stock Review VIP now – it’s FREE!

Until next time,

Brian Leni  P.Eng

Founder – Junior Stock Review

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company(s) and sector that is best suited for your personal investment criteria. Junior Stock Review does not guarantee the accuracy of any of the analytics used in this report. I do own Anaconda Mining Inc. shares. Anaconda Mining Inc. is a Sponsor of Junior Stock Review.