Mandalay Resources Corporation Announces Production and Sales Results for the First Quarter of 2022
April 14 2022 - 7:30AM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) announced today its production and sales results
for the first quarter of 2022.
First Quarter Production
Highlights:
- Consolidated saleable gold
equivalent production and sales of 29,631 and 28,280 ounces
respectively;
- 12,384 ounces of saleable gold
production at Björkdal, highest quarterly production result since
Q2 2019; and
- 12,134 ounces of gold sold at
Björkdal, highest quarterly sales result since Q3 2019.
Dominic Duffy, President and CEO of Mandalay,
commented:
“Mandalay’s solid start to the year puts us on
course to achieve our 2022 production guidance. The continued
excellent operational results demonstrate the sustainability and
incremental growth at both sites with a consolidated saleable
production of 29,631 ounces of gold equivalent in Q1 2022, which is
higher as compared to the same period last year.
“At Björkdal, the 12,384 saleable gold ounces of
production during the first quarter was our highest quarterly
production result since Q2 2019. Site production was at planned
levels and we expect it to continue to grow throughout the year as
we focus on higher grade production areas in the mine and continue
to implement dilution reduction measures.
“Costerfield achieved another solid quarter,
producing 17,247 ounces of saleable gold equivalent, 12% growth
compared to Q1 2021, this is mainly due to near-record gold grades
of 13.5 g/t during the current quarter. Metal produced in Q1 2022
decreased slightly compared to Q4 2021, as lower than average
tonnes were processed due to issues encountered with the
commissioning of the new crusher at the processing facility. Only
32,206 tonnes were processed in Q1 2022, against an average of
36,370 tonnes per quarter in 2021. The new crusher is now
functioning optimally, and we expect processed tonnes to remain at
budgeted rates for the remainder of the year. Towards the end of
the quarter, shipping delays were encountered due to COVID-19
related issues at the Shanghai port where our product travels
through – we expect these delays to be temporary.
“This strong start to the year solidifies the
stable operational base we have established over the past couple of
years. We are looking forward to further growth and establishing a
long-standing sustainable track record of performance.”
Saleable Production for the Quarter Ended March 31,
2022:
- In the first
quarter of 2022, the Company produced a total of 24,581 ounces of
gold and 683 tonnes of antimony representing a total of 29,631
ounces of gold equivalent, versus 23,661 ounces of gold and 832
tonnes of antimony in the first quarter of 2021, representing a
total of 28,676 ounces of gold equivalent.
- Production at
Björkdal was 12,384 ounces of gold in the first quarter of 2022 as
compared to 11,855 ounces of gold in the first quarter of
2021.
- Production at Costerfield was
12,197 ounces of gold and 683 tonnes of antimony in the first
quarter of 2022 versus 11,082 ounces gold and 832 tonnes antimony
in the first quarter of 2021.
Table 1 – Production for First Quarter 2022 and 2021 and
Fourth Quarter of 2021
Metal |
Source |
Three months endedMarch
312022 |
Three months endedMarch
312021 |
Three months endedDecember
312021 |
Gold (oz) |
Björkdal |
12,384 |
11,855 |
11,190 |
|
Costerfield |
12,197 |
11,082 |
13,397 |
|
Cerro Bayo |
- |
724 |
1,009 |
|
Total |
24,581 |
23,661 |
25,596 |
Antimony (t) |
Costerfield |
683 |
832 |
830 |
Silver (oz) |
Cerro Bayo |
- |
43,699 |
50,556 |
Average quarterly prices: |
|
|
|
|
Gold US$/oz |
|
1,874 |
1,795 |
1,796 |
Antimony US$/t |
|
13,856 |
9,442 |
13,221 |
Silver US$/oz |
|
- |
26.23 |
23.31 |
Total Gold Eq.
(oz)(1) |
|
|
|
|
|
Björkdal |
12,384 |
11,855 |
11,190 |
|
Costerfield |
17,247 |
15,458 |
19,507 |
|
Cerro Bayo |
- |
1,363 |
1,665 |
|
Total |
29,631 |
28,676 |
32,362 |
- 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, 2022:
- In the first
quarter of 2022, the Company sold a total of 24,383 ounces of gold
and 527 tonnes of antimony, representing a total of 28,280 ounces
of gold equivalent, versus 24,600 ounces of gold and 972 tonnes of
antimony in the first quarter of 2021, representing a total of
29,713 ounces of gold equivalent.
- Björkdal sold
12,134 ounces of gold in the first quarter of 2022 versus 12,076
ounces of gold in the first quarter of 2021.
- Costerfield
sold 12,249 ounces of gold and 527 tonnes of antimony in the first
quarter of 2022 versus 12,524 ounces of gold and 972 tonnes of
antimony in the first quarter of 2021.
Table 2 – Sales for First Quarter 2022 and 2021 and
Fourth Quarter of 2021
Metal |
Source |
Three months endedMarch
312022 |
Three months endedMarch
312021 |
Three months endedDecember
312021 |
Gold (oz) |
Björkdal |
12,134 |
12,076 |
10,749 |
|
Costerfield |
12,249 |
12,524 |
17,057 |
|
Cerro Bayo |
- |
- |
764 |
|
Total |
24,383 |
24,600 |
28,570 |
Antimony (t) |
Costerfield |
527 |
972 |
1,334 |
Silver (oz) |
Cerro Bayo |
- |
- |
39,614 |
Average quarterly prices: |
|
|
|
|
Gold US$/oz |
|
1,874 |
1,795 |
1,796 |
Antimony US$/t |
|
13,856 |
9,442 |
13,221 |
Silver US$/oz |
|
- |
26.23 |
23.31 |
Total Gold Eq. (oz)1 |
|
|
|
|
|
Björkdal |
12,134 |
12,076 |
10,749 |
|
Costerfield |
16,146 |
17,637 |
26,877 |
|
Cerro Bayo |
- |
- |
1,278 |
|
Total |
28,280 |
29,713 |
38,904 |
- Quarterly 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 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 NguyenDirector, Business Valuations and
Investor Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay is a Canadian-based natural resource
company with producing assets in Australia (Costerfield
gold-antimony mine) and Sweden (Björkdal gold mine). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay’s mission is to create shareholder
value through the profitable operation and continuing the regional
exploration program, at both its Costerfield and Björkdal mines.
Currently, the Company’s main objectives are to continue mining the
high-grade Youle vein at Costerfield, bring online the deeper
Shepherd veins, both of which will continue to supply high-grade
ore to the processing plant, and to extend Youle Mineral Reserves.
At Björkdal, the Company will aim to increase production from the
Aurora zone and other higher-grade areas in the coming years, in
order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "forward-looking
statements" within the meaning of applicable securities laws,
including statements regarding the Company’s expected production of
gold and antimony and costs for the 2022 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 31, 2022, 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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