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VANCOUVER, BC, March 14, 2022 – Anacortes Mining Corp. (“Anacortes” or the “Company”) (TSXV:XYZ, OTCQB:XYZFF) is pleased to announce that the Preliminary Economic Assessment (PEA) for the Tres Cruces gold oxide project, has been filed on SEDAR and uploaded to the Company’s website.

PEA Highlights* – Tres Cruces Oxide Project

  • Pre-Tax Net Present Value (NPV) at a 5% discount rate (“NPV 5%”) of US$294.3 million.
  • After-Tax NPV 5% of US$165.9 million.
  • After-Tax Internal Rate of Return (“IRR”) of 33.0%; 2.1 year payback
  • Initial CAPEX of US$125.2 million.
  • Average gold production of 68,000 ounces annually over an initial oxide life of mine (LOM) of 7 years.  Peak gold production of 81,000 ounces in Year 2.
  • Average Daily Throughput: 5,800 tpd over LOM.
  • 588,000 ounces of gold mined, and 478,000 ounces recovered over LOM.

Jim Currie, CEO of Anacortes, states, “We are very pleased to share the PEA for the Tres Cruces Project with our investors and the market.  M3 has prepared a very solid and realistic analysis of the project, and the results indicate that the project is economically viable and should be advanced to the next development stage. While a gold price of US$1,700/oz was used for the economic analysis in the PEA, using the current spot price of approximately US$1,990/oz, the project shows a pre-tax and after-tax NPV 5% of US$403 million and US$230 million respectively, and a pre-tax and after-tax IRR of 61.5% and 41.3% respectively”.

As stated in the Company’s news release dated March 8, 2022, the PEA was prepared in accordance with National Instrument 43-101 (“NI 43-101”) and presents an economic analysis of the potential viability of mining the Tres Cruces Oxide Gold Deposit through conventional open pit mining and heap leach processing for gold recovery to doré. The study was prepared by M3 Engineering and Technology of Tucson Arizona and Lima Peru, in cooperation with Nilsson Mine Services of Pitt Meadows, BC, Transmin Ltd., of Lima, Peru, Advantage Geoservices Ltd. of Osoyoos, BC, and Jeffrey Rowe of Surrey, BC.

PEA ASSUMPTIONS AND RESULTS
DescriptionUnits 
Net Present Value (NPV 5%) Pre-TaxUS$ (million)$294.3
Net Present Value (NPV 5%) After-TaxUS$ (million)$165.9
After-Tax Internal Rate of Return (IRR)%33.0
Payback PeriodYears2.1
LOM Cumulative Cash FlowUS$ (million)$235.6
LOM All-In Sustaining Costs (AISC)US$/oz$734*
Pre-Production CAPEXUS$ (million)$125.2
Sustaining CAPEX (LOM)US$ (million)$5.2
Mine LifeYears7
Average Processing RateTonnes/day5,800
LOM Strip Ratio 2.89:1
Average Gold Recovery%81.7
Average Annual Gold ProductionOz/year68,000
Total LOM Gold ProductionOunces481,000

*AISC incorrectly reported as $786/oz in March 8, 2022, news release.

Disclosure

The PEA results are summarized for purposes of this press release. Further details on the PEA and technical report are available on SEDAR and the Company’s website.

The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative to be used in an economic analysis except as allowed for by Canadian Securities Administrators NI 43-101 in PEA studies. There is no guarantee that the inferred mineral resources can be converted to Indicated or Measured mineral resources, and as such, there is no guarantee the project economics described in this report will be achieved.

Qualified Person

The technical content of this news release has been reviewed and validated by James (“Jim”) Currie, P. Eng., a qualified person as that term is defined in National Instrument 43-101. Mr. Currie is the President and CEO of Anacortes Mining Corp.

For more information visit: www.anacortesmining.com

Twitter: @anacortesmining

LinkedIn: Anacortes Mining

On Behalf of the Board:

James A. (Jim) Currie
President & CEO

Investor Relations Contact:

Kin Communications Inc.
604-684-6730
XYZ@kincommunications.com

About Anacortes

Anacortes is a new growth-oriented gold company in the Americas, which owns a 100-per-cent interest in the Tres Cruces gold project located in Peru. Tres Cruces is one of the highest-grade oxide deposits globally and hosts oxide plus sulphide indicated resources of 2,474,000 oz at 1.65 g/t gold, inclusive of 630,000 oz of high-grade leachable gold at 1.28 g/t gold and inferred resources of 104,000 oz at 1.26 g/t gold. Anacortes is well capitalized and intends to aggressively advance Tres Cruces through feasibility and to production under a heap leach open-pit scenario. Additionally, Anacortes will continue to seek further growth opportunities in the Americas, with the goal of creating the next mid-tier multi asset gold producer.

Cautionary Statement on Forward-Looking Information

This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation (“Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements.

The Forward-looking Statements in this news release may include, without limitation, statements about the Company’s belief that the Tres Cruces project described in the PEA is economically viable, the design of that project as presented in the PEA and its intent to aggressively advance the project through feasibility and to production under a heap leach open-pit scenario. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “anticipated”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the ability of the Company to control or predict and which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements.  These risks include changes in general economic conditions and financial markets; political risks; risks relating to the current and potential adverse impacts of the COVID-19 pandemic on the economy, financial markets and the Company’s operations; and risks inherent in mineral exploration and development. Although Forward-looking Statements contained in this news release are based upon what each of the parties believe are reasonable assumptions at the time they were made, such statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that these Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place undue reliance on Forward-looking Statements.

The TSXV has in no way approved or disapproved of the contents of this press release.

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