Mandalay Resources Corporation Announces Production and Sales Results for the Second Quarter of 2019
July 09 2019 - 5:00PM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJD) announced today its production and sales results
for the second quarter of 2019.
In the second quarter of 2019, Mandalay produced
19,500 saleable ounces of gold equivalent and sold 20,259 ounces of
gold equivalent.
Dominic Duffy, President and Chief Executive
Officer of Mandalay, commented, “Mandalay’s production during the
second quarter highlights the continued strong performance at
Björkdal with 14,243 ounces of gold produced. This can be
attributed to delivery of constant tonnage from the underground
mine which is producing at a stabilized rate, and to the mining of
a small pocket of higher-grade skarn. We anticipate Björkdal’s
production will remain stable throughout the remainder of 2019 and
will focus on the Aurora zone, main zone and skarn ore development.
The open pit operation is scheduled to pause production at the end
of July, and this is not anticipated to have any effect on the year
end cost and production guidance at Björkdal for 2019.”
Mr. Duffy continued, “At Costerfield, we
maintained our capital development focus on reaching the
higher-grade Youle lode, which is expected to increase the grade of
material mined starting in the fourth quarter of 2019. Total gold
equivalent production during the quarter of 5,257 ounces was lower
than the previous quarter due to poor ground conditions in the
Brunswick lode slowing down production and lowering grades through
increased dilution. To improve mining in these conditions,
additional shotcrete capacity has been initiated on site to allow
for the increased production in the Brunswick lode going
forward.”
Mr. Duffy concluded, “Moving forward, the
Company’s main operational objectives for the second half of 2019
continue to be advancing development to the Youle lode at
Costerfield to achieve production from this deposit starting in the
fourth quarter and continuing the current strong underground
production rate at Björkdal. On the exploration side, the focus at
Costerfield is on the deep drilling program, initiated in June this
year, and extensional drilling on the Youle lode. At Björkdal,
explorational drilling is further expanding the Aurora zone, and
drilling of the higher-grade skarn deposits throughout the mine.”
Please see the press release dated June 18, 2019, for more
information on the Company’s exploration program, priorities and
results.
Saleable production for the quarter
ended June 30, 2019:
- In the second quarter of 2019, the Company produced a total of
17,544 ounces of gold and 371 tonnes of antimony, representing a
total of 19,500 ounces of gold equivalent, versus 19,154 ounces of
gold and 503 tonnes of antimony in the second quarter of 2018 and a
total of 22,348 ounces of gold equivalent in that
period.
- Production at Björkdal was 14,243 ounces of gold in the second
quarter of 2019, as compared to 14,017 ounces of gold in the second
quarter of 2018.
- Production at Costerfield was 3,301 ounces of gold and 371
tonnes of antimony in the second quarter of 2019, versus 5,137
ounces gold and 503 tonnes antimony in the second quarter of
2018.
Saleable production for the six
months ended June 30, 2019:
- The Company produced a total of 36,034 ounces gold and 946
tonnes antimony, representing a total of 41,440 ounces of gold
equivalent production, versus 38,457 ounces gold and 1,108 tonnes
of antimony in the corresponding six months of 2018 and a total of
45,520 ounces of gold equivalent in that period.
- Production at Björkdal was 28,628 ounces gold.
- Production at Costerfield was 7,406 ounces gold and 946 tonnes
antimony.
Table 1 – Second Quarter and Six Month
Saleable Production for 2019 and 2018
Metal |
Source |
Three monthsendedJune 30
2019 |
Three monthsendedJune 30
2018 |
Six monthsendedJune
302019 |
Six monthsendedJune
302018 |
Gold (oz) |
Björkdal |
14,243 |
14,017 |
28,628 |
26,733 |
|
Costerfield |
3,301 |
5,137 |
7,406 |
11,724 |
|
Total |
17,544 |
19,154 |
36,034 |
38,457 |
Antimony (t) |
Costerfield |
371 |
503 |
946 |
1,108 |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,309 |
1,307 |
|
|
Antimony US$/t |
|
6,894 |
8,295 |
|
|
Au Eq. (oz)1 |
Björkdal |
14,243 |
14,017 |
28,628 |
26,733 |
|
Costerfield |
5,257 |
8,331 |
12,812 |
18,787 |
|
Total |
19,500 |
22,348 |
41,440 |
45,520 |
1 Quarterly gold equivalent ounces (“Au Eq.
oz”) produced is calculated by multiplying the saleable quantities
of gold (“Au”), and antimony (“Sb”) in the period by the respective
average market prices of the commodities in the period, adding the
two 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. The source for all prices is
www.metalbulletin.com.
Sales for the second quarter ended June
30, 2019:
- In the second quarter of 2019, the Company sold a total of
18,026 ounces of gold and 424 tonnes of antimony, representing a
total of 20,259 ounces of gold equivalent, versus 18,497 ounces of
gold and 560 tonnes of antimony in the second quarter of 2018,
representing a total of 22,052 ounces of gold
equivalent.
- Björkdal sold 14,376 ounces of gold in the second quarter of
2019, versus 12,428 ounces of gold in the second quarter of
2018.
- Costerfield sold 3,650 ounces of gold and 424 tonnes of
antimony in the second quarter of 2019, versus 6,069 ounces of gold
and 560 tonnes of antimony in the second quarter of 2018.
Sales for the six months ended
June 30, 2019:
- The Company sold 37,883 ounces gold and 949 tonnes antimony,
representing a total of 43,266 ounces of gold equivalent, versus
43,305 ounces gold and 1,239 tonnes antimony in the second quarter
of 2018, representing a total of 51,203 ounces of gold
equivalent.
- Björkdal sold 30,154 ounces gold.
- Costerfield sold 7,729 ounces gold and 949 tonnes
antimony.
Table 2 – Second Quarter and Six Month
Sales for 2019 and 2018
Metal |
Source |
Three monthsendedJune
302019 |
Three monthsendedJune 30
2018 |
Six monthsendedJune
302019 |
Six monthsendedJune
302018 |
Gold (oz) |
Björkdal |
14,376 |
12,428 |
30,154 |
30,105 |
|
Costerfield |
3,650 |
6,069 |
7,729 |
13,200 |
|
Total |
18,026 |
18,497 |
37,883 |
43,305 |
Antimony (t) |
Costerfield |
424 |
560 |
949 |
1,239 |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,309 |
1,307 |
|
|
Antimony US$/t |
|
6,894 |
8,295 |
|
|
Au Eq. (oz)1 |
Björkdal |
14,376 |
12,428 |
30,154 |
30,105 |
|
Costerfield |
5,883 |
9,624 |
13,112 |
21,098 |
|
Total |
20,259 |
22,052 |
43,266 |
51,203 |
1Quarterly 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 two 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 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 and
antimony for the 2019 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
28, 2019, 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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