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Mandalay Resources maintains 2020 production guidance as Costerfield delivers highest output since 2016

The Toronto-based miner produced a consolidated 25,677 saleable ounces of gold equivalent in its first quarter

Mandalay Resources Corp. -
The Toronto-based miner produced a consolidated 25,677 saleable ounces of gold equivalent in its first quarter

Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) CEO Dominic Duffy said the miner is off to a strong start to 2020 thanks to “significant” production figures from its Australian and Swedish gold operations.

The Toronto-based miner produced a consolidated 25,677 saleable ounces of gold equivalent in its first quarter, up from the 21,940 ounces produced during the same three-month period a year ago.

Overall, the production increase was propelled by the high-grade Youle vein at Costerfield in Australia, which saw gold production lift by 36% and antimony increase by 62% compared to the most recent quarter.

READ: Mandalay Resources says it's in a "very good" position heading into 2020

During the period ended March 31, Mandalay produced a total of 21,370 ounces of gold and 1,108 tons of antimony, representing a total of 25,677 ounces of gold equivalent. The numbers compare to 18,490 ounces of gold and 575 tons of antimony in the first quarter of 2019 for 21,940 ounces of gold equivalent.

Costerfield produced nearly 15,000 saleable equivalent ounces, the highest level of production since the second quarter of 2016 and including a record 1,108 tons of antimony.

“We are excited with the realized outcomes from the Youle vein as the mill processed an average head grade of 12.6 grams per ton and 5.4% of gold and antimony, respectively, over the quarter,” Duffy said in a statement Monday.

“These are considerable improvements versus the 2019 full year averages of 5.1 grams per ton gold and 2.5% antimony. We expect these production rates at Costerfield to be sustained as the Youle vein becomes the more prominent source of ore feed over the remainder of the 2020.”

At the company’s Swedish operation Björkdal, total production came in at 10,750 gold ounces. First quarter production was in line with the previous quarter but just below internal forecasts due to a change in the mine’s underground haulage contractor.

Duffy told shareholders that the company expects to maintain its production rates going forward for 2020 at the gold mine as it initiated the first production stope in the Aurora zone.

“These excellent first quarter production and sales results represent a strong start to 2020 for Mandalay,” Duffy said.

“While we currently expect this strong operating performance to continue, the COVID-19 pandemic creates potentially significant uncertainties and difficulties for everyone, and Mandalay is no exception.”

The company will continue to closely monitor the situation in both Australia and Sweden and will make necessary adjustments, Duffy said.

“We are continuing to manage the risks resulting from COVID-19 with the controls as outlined in our March 20, 2020 press release. Business continuity plans are in place with site-specific contingency considerations, should they be needed.”

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

Quick facts: Mandalay Resources Corp.

Price: 1.58 CAD

Market: TSX
Market Cap: $144.07 m

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Mandalay Resources expecting busy year on projects in Australia and Sweden

Mandalay Resources (TSX-MND) President and CEO Dominic Duffy joined Steve Darling from Proactive Investors Vancouver to discuss the latest progress on two of their projects. Duffy discussing Costerfield in Australia and Bjorkdal in Sweden. Duffy telling Proactive what work they have...

on 24/6/19

3 min read