Mandalay Resources Corp (TSE:MND) released its production and sales results for the second quarter of 2019, showing production of 19,500 saleable ounces of gold equivalent, while selling 20,259 ounces of gold equivalent.
The firm cheered the news, noting strength from its underground mine.
"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," said CEO Dominic Duffy. "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."
The firm noted it had maintained its 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," said Duffy. "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."
The firm said moving foward its 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 Bjorkdal.
When it comes to exploration, the company noted its focus at Costerfield is on the deep drilling program, initiated in June this year, and extensional drilling on the Youle lode. At Bjorkdal, explorational drilling is further expanding the Aurora zone, and drilling of the higher-grade skarn deposits throughout the mine.
The firm noted saleable production for the quarter ended June 30, 2019. In 2Q, the firm 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, it said, 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.
In total, the firm 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.
Shares of Mandalay were at C$1.27 on Tuesday.
Contact Katie Lewis at [email protected]