TORONTO, July 10, 2018 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) (OTCQB:MNDJF) announced today its production and sales results for the second quarter of 2018.
Mandalay produced a consolidated 22,348 saleable ounces of gold equivalent and sold 22,052 ounces of gold equivalent in the second quarter of 2018.
Dominic Duffy, President and Chief Executive Officer of Mandalay, commented, "The second quarter of 2018 was a transitional production and sales quarter for Mandalay as the Company began to transition production into the Brunswick Lode at Costerfield. Over the next two quarters we expect to see production lift at both operations due to the initiation of mining operations at Brunswick, and mining anticipated higher grades at Björkdal. Consequently, the Company remains confident that it will reach its 2018 production guidance of 101,000 to 113,000 gold equivalent ounces."
Mr. Duffy continued, "Björkdal produced 14,017 ounces of gold in the second quarter of 2018. The Company is in the process of adding automation controls to the processing plant and we are beginning to see additional recovery improvements of approximately 1% as the circuit stabilizes. This is also expected to result in the removal of more gold in the gravity circuit, with the overall impact of improving our payables."
Mr. Duffy concluded, "Costerfield produced 8,331 gold equivalent ounces in the second quarter of 2018. Second quarter production was lower than in the previous year quarter due to a combination of expected lower mining grades and available ore in the current producing areas. The Company intercepted the Brunswick Lode during the second quarter and is currently dewatering this Lode. We expect a significant increase in production once dewatering is completed and mining initiated during the third quarter. Simultaneously, we are aggressively continuing our infill and extensional drilling program on the Youle lode."
Saleable production for the three months ended June 30, 2018:
Table 1 ? Second quarter and six month saleable production for 2018 and 2017
Metal | Source | Three months ended 30 June 2018 | Three months ended 30 June 2017 | Six months ended 30 June 2018 | Six months ended 30 June 2017 |
Gold (oz) | Björkdal | 14,017 | 16,112 | 26,733 | 26,760 |
Costerfield | 5,137 | 8,933 | 11,724 | 16,920 | |
Cerro Bayo | - | 3,174 | - | 5,909 | |
Total | 19,154 | 28,219 | 38,457 | 49,589 | |
Antimony (t) | Costerfield | 503 | 765 | 1,108 | 1,506 |
Silver (oz) | Cerro Bayo | - | 359,457 | - | 794,533 |
Average quarterly prices: | |||||
Gold US$/oz | 1,307 | 1,256 | |||
Antimony US$/t | 8,295 | 8,816 | |||
Silver US$/oz | 16.55 | 17.15 | |||
Au Eq. (oz)1 | Björkdal | 14,017 | 16,112 | 26,733 | 26,760 |
Costerfield | 8,331 | 14,300 | 18,787 | 27,191 | |
Cerro Bayo | - | 8,079 | - | 17,021 | |
Total | 22,348 | 38,491 | 45,520 | 70,972 |
1 Quarterly gold equivalent ounces ("Au Eq. oz") produced is calculated by multiplying the saleable quantities of gold ("Au"), silver ("Ag"), and antimony ("Sb") in the period by the respective average market prices of the commodities in the period, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the period. Average Au price in the period is calculated as the average of the daily LME PM fixes in the period, with price on weekend days and holidays taken of the last business day; average Sb price in the period is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the period, with price on weekend days and holidays taken from the last business day; average Ag price in the period is calculated as the average of the daily London Broker's silver spot price for all days in the period, with price on weekend days and holidays taken from the last business day. The source for all prices is www.metalbulletin.com.
Saleable production for the six months ended June 30, 2018:
Sales for the three months ended June 30, 2018:
Sales for the six months ended June 30, 2018:
Table 2 ? Second quarter and six month sales for 2018 and 2017
Metal | Source | Three months ended 30 June 2018 | Three months ended 30 June 2017 | Six months ended 30 June 2018 | Six months ended 30 June 2017 |
Gold (oz) | Björkdal | 12,428 | 12,752 | 30,105 | 25,873 |
Costerfield | 6,069 | 8,912 | 13,200 | 16,459 | |
Cerro Bayo | - | 3,232 | - | 6,232 | |
Total | 18,497 | 24,896 | 43,305 | 48,564 | |
Antimony (t) | Costerfield | 560 | 806 | 1,239 | 1,514 |
Silver (oz) | Cerro Bayo | - | 377,916 | - | 829,693 |
Average quarterly prices: | |||||
Gold US$/oz | 1,307 | 1,256 | |||
Antimony US$/t | 8,295 | 8,816 | |||
Silver US$/oz | 16.55 | 17.15 | |||
Au Eq. (oz)1 | Björkdal | 12,428 | 12,752 | 30,105 | 25,873 |
Costerfield | 9,624 | 14,568 | 21,098 | 26,803 | |
Cerro Bayo | - | 8,389 | - | 17,834 | |
Total | 22,052 | 35,709 | 51,203 | 70,150 |
1Quarterly Au Eq. oz sold is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au for the period. The source for all prices is www.metalbulletin.com with price on weekend days and holidays taken of the last business day.
For Further Information:
Dominic Duffy
President and Chief Executive Officer
Greg DiTomaso
Director of Investor Relations
Contact:
647.260.1566
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas and Europe to generate near-term cash flow and shareholder value.
Forward-Looking Statements:
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's production of gold, silver and antimony for the 2018 fiscal year. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 29, 2018, a copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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