Anaconda Mining Inc.

ANACONDA MINING, INC. DUSTIN ANGELO CEO year period in an open pit to underground mining scenario, at an underground grade of almost seven grams per tonne. It was very good economics with very good cash costs – about $650 Canadian per ounce for operating cash costs and just under $800 an ounce for all sustaining cash costs.There’s a lot more work that needs to be done, going forward, but at least at the first level, it’s showing that it’s a very positive economic analysis.” “We’ve done about 12,000 meters of drill- ing since last October,”Angelo continues. “The purpose of the drilling was twofold–one be- ing to infill in these areas where the deposit already existed and the areas that we expect- ed to mine per the PEA; and the other was to drill in other areas outside of the deposit area to demonstrate the fact that the deposit, itself, could get much larger.We were successful on both counts; we were able to demonstrate that the deposit does continue down-plunge; it does continue along strike, and then down the dip of the limbs.We were also able to achieve the same sort of grades and thick- nesses, which is pretty important. The deposit continues to be open in all directions and we continue to grow it. So, we had a pretty success- ful exploration program and, then, just a couple of weeks ago, we were successful in raising $4.5 million for more exploration work. Most of that money will go into Goldboro; some will go into our Newfoundland project, as well, but the dollar amount demonstrated people’s confidence in the fact that we were able to grow this deposit. “Now, we’re embarking on more drilling– about 15,000 meters - 10,000 to start at Goldboro and 5,000 at our Point Rousse project in Newfound- land.We’re going to move, eventually, into a feasibility stage. That will take about a year and will entail a lot more detail around the mining, the metallurgy, and more detail about the cost of all the capital that needs to go into it. So, we’re going to start working on that fairly soon.We are also, currently, doing a bulk sample at Goldboro – around 10,000 tonnes. The purpose of the bulk sample is to evaluate mining methods and met- allurgy. “Goldboro will probably take another two to three years to put into production. At that point, if we’re successful there, we’re looking at producing about 40,000 ounces a year out of that project. As we extend the mine life at our Point Rousse project, we’ll be producing somewhere around 50-60,000 ounces a year of gold, which is a sig- nificant step up for us. That’s the next level we’re trying to get to and then, from there, we want to We had a green initiative where we sold about three million tonnes of our mine waste rock as a construction aggregate product. We were able to remove waste from our sites and make a cost center into a profit center.