Mandalay Resources Corporation Announces Production and Sales Results for the First Quarter of 2021
April 13 2021 - 4:35PM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) announced today its production and sales results
for the first quarter of 2021.
First Quarter 2021 Production
Highlights:
- Consolidated saleable gold
equivalent production and sales of 28,676 and 28,218 ounces
respectively;
- Consolidated 23,857 ounces of gold
sold, highest quarterly amount since Q1 2018;
- 15,458 ounces of saleable gold
equivalent production at Costerfield, highest quarterly production
result at Costerfield since Q2 2016; and
- Commenced trial processing of
mineralized waste dump material at Cerro Bayo, producing 43,699
ounces of silver and 724 ounces of gold.
Dominic Duffy, President and CEO of Mandalay,
commented:
“Mandalay Resources continued to build off the
strong momentum generated in 2020 and delivered its sixth
consecutive quarter of excellent operational results, further
demonstrating the sustainability of the Company’s operational
turnaround. Consolidated saleable production of 28,676 ounces of
gold equivalent was the Company’s highest since Q4 2017 and marked
a third consecutive quarter of increased production. Mandalay’s
production profile is stable and improving, and this solid start to
the year puts us firmly on track to meet our 2021 production
guidance.”
Mr. Duffy continued, “A large part of the strong
quarter was due to the continued high-quality ore from Costerfield,
which averaged grades of 11.0 g/t gold and 3.9% antimony processed
in the quarter. In Q1 2021, we saw a slight dip in grades compared
to Q4 2020 – mainly related to the site purposefully feeding lower
grade material into the plant while dealing with a lack of
processing reagents which impacted recoveries. The reagent sourcing
issue has been resolved and we expect to be feeding higher grade
into the plant going forward. The 15,458 ounces of gold equivalent
produced this quarter was the site’s best quarterly result since Q2
2016. Given the homogenous grade profile of the ore body, we expect
at least the same levels of performance from Costerfield for the
remaining quarters of 2021.
"Stemming from COVID-19 related shipment delays,
the commissioning of the cavitation tube flotation columns at
Costerfield has fallen behind its Q1 2021 schedule. The project is
now in its final stages of testing and we can expect a pass through
of a trial batch in the upcoming weeks. Once operational, we
anticipate an approximate 2-3% improvement in gold recoveries.”
Mr. Duffy continued, “At Björkdal, Q1 2021
production of 11,855 saleable gold ounces was in line with the
previous quarter as we mined similar areas. The slight drop in
production was related to inclement weather conditions in January
and February which adversely affected plant processing rates. Over
the first two months of the year the site averaged 3,390 tonnes per
day processing. With improving weather conditions in March, we saw
an uplift in processing rates to 3,520 tonnes per day. This
resulted in an excellent March with an approximate 4,500 gold
ounces produced – Björkdal’s best monthly result since July 2019.
For the remainder of the year, we will continue with the ramp up of
underground mining tonnage to 1.1 million tonnes and maximizing the
delivery of higher-margin ore to the mill.”
Mr. Duffy added, “Not included in the Company’s
2021 production guidance was the trial processing of mineralized
waste dump material at Cerro Bayo, which started on February 20.
Average grades of the material processed were 32.5 g/t silver and
0.5 g/t gold, which produced 43,699 ounces of silver and 724 ounces
of gold. This production is in line with our expectations and we
will continue with this processing in the foreseeable future. The
first concentrate sales are scheduled to occur in April.”
Mr. Duffy concluded, “With this strong start to
the year, Mandalay is excited to be growing from a solid, stable
operational base and are looking forward to establishing a
long-standing sustainable track record of performance.”
Saleable Production for the Quarter Ended March 31,
2021:
- In the first
quarter of 2021, the Company produced a total of 23,661 ounces of
gold, 832 tonnes of antimony and 43,699 ounces of silver
representing a total of 28,676 ounces of gold equivalent, versus
21,370 ounces of gold and 1,108 tonnes of antimony, representing a
total of 25,677 ounces of gold equivalent.
- Production at
Björkdal was 11,855 ounces of gold in the first quarter of 2021 as
compared to 10,750 ounces of gold in the first quarter of
2020.
- Production at Costerfield was
11,082 ounces of gold and 832 tonnes of antimony in the first
quarter of 2021 versus 10,620 ounces gold and 1,108 tonnes antimony
in the first quarter of 2020.
- Production at Cerro Bayo was 724
ounces of gold and 43,699 ounces of silver in the first quarter of
2021 versus no production in the first quarter of 2020.
Table 1 – First Quarter Saleable Production for 2021 and
2020, and Fourth Quarter of 2020
Metal |
Source |
Three months endedMarch
312021 |
Three months endedMarch
312020 |
Three months endedDecember
312020 |
Gold (oz) |
Björkdal |
11,855 |
10,750 |
12,252 |
|
Costerfield |
11,082 |
10,620 |
12,236 |
|
Cerro Bayo |
724 |
- |
- |
|
Total |
23,661 |
21,370 |
24,488 |
Antimony (t) |
Costerfield |
832 |
1,108 |
858 |
Silver (oz) |
Cerro Bayo |
43,699 |
- |
- |
Average quarterly prices: |
|
|
|
|
Gold US$/oz |
|
1,795 |
1,582 |
1,876 |
Antimony US$/t |
|
9,442 |
6,152 |
6,260 |
Silver US$/oz |
|
26.23 |
16.95 |
24.43 |
Total Gold Eq. (oz)(1) |
|
|
|
|
|
Björkdal |
11,855 |
10,750 |
12,252 |
|
Costerfield |
15,458 |
14,927 |
15,099 |
|
Cerro Bayo |
1,363 |
- |
- |
|
Total |
28,676 |
25,677 |
27,351 |
- 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 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 and Ag prices in the periods are 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. The source for Au and Ag prices is
www.transamine.com, and Sb price is www.metalbulletin.com.
Sales for the Quarter Ended March 31, 2021:
- In the first
quarter of 2021, the Company sold a total of 23,857 ounces of gold
and 829 tonnes of antimony, representing a total of 28,218 ounces
of gold equivalent, versus 20,932 ounces of gold and 860 tonnes of
antimony in the first quarter of 2020, representing a total of
24,276 ounces of gold equivalent.
- Björkdal sold
12,076 ounces of gold in the first quarter of 2021 versus 11,765
ounces of gold in the first quarter of 2020.
- Costerfield
sold 11,781 ounces of gold and 829 tonnes of antimony in the first
quarter of 2021 versus 9,167 ounces of gold and 860 tonnes of
antimony in the first quarter of 2020.
- There were no
sales at Cerro Bayo in the first quarter of 2021 or the first
quarter of 2020.
Table 2 – First Quarter Sales for 2021 and 2020, and
Fourth Quarter of 2020
Metal |
Source |
Three months endedMarch
312021 |
Three months endedMarch
312020 |
Three months endedDecember
312020 |
Gold (oz) |
Björkdal |
12,076 |
11,765 |
10,746 |
|
Costerfield |
11,781 |
9,167 |
10,943 |
|
Total |
23,857 |
20,932 |
21,689 |
Antimony (t) |
Costerfield |
829 |
860 |
915 |
Average quarterly prices: |
|
|
|
|
Gold US$/oz |
|
1,795 |
1,582 |
1,876 |
Antimony US$/t |
|
9,442 |
6,152 |
6,260 |
|
|
|
|
|
Total Gold Eq. (oz)1 |
|
|
|
|
|
Björkdal |
12,076 |
11,765 |
10,746 |
|
Costerfield |
16,142 |
12,511 |
13,996 |
|
Total |
28,218 |
24,276 |
24,742 |
- Quarterly Au
Eq. oz sold is calculated by multiplying the saleable quantities of
Au, and Sb in the period by the respective average market prices of
the commodities in the period, adding the 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 Au and Ag prices is www.transamine.com, and
Sb price is www.metalbulletin.com, with price on weekend days and
holidays taken of the last business day.
For Further Information:
Dominic DuffyPresident and Chief Executive
Officer
Edison NguyenManager, Analytics and Investor
Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural
resource company with producing assets in Australia and Sweden, and
care and maintenance and development projects in Chile. The Company
is focused on growing production at its gold and antimony operation
in Australia, and gold production from its operation in Sweden to
generate near-term cash flow.
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,
antimony and silver, c for the 2021 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 30, 2021, 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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