TORONTO, Oct. 10, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) announced today its production and sales results for the third quarter of 2017.
Mandalay produced a consolidated 25,819 saleable ounces of gold equivalent and sold 27,310 ounces of gold equivalent in the third quarter of 2017. For the nine months ended September 2017, Mandalay produced 96,791 saleable ounces of gold equivalent and sold 97,820 ounces of gold equivalent.
Mark Sander, President and Chief Executive Officer of Mandalay, commented, "Björkdal and Costerfield both delivered strong production and sales in the third quarter of 2017, and we remain on track to deliver our revised guidance based on full-year production from these two assets."
Dr. Sander continued, "Björkdal produced 13,233 ounces of gold in the third quarter of 2017, which was a record third quarter performance at the mine under Mandalay ownership. The mine has produced at an annualized rate of almost 60,000 ounces of gold through the second and third quarters as a result of the combined impacts of our grade control and mine debottlenecking programs. Strong mining performance was augmented by the successful commissioning of the flotation expansion project, completed on budget and ahead of schedule, which increased gold recoveries in the latter part of the quarter. Björkdal has clearly moved beyond the step changes envisioned by Mandalay at the time of acquisition and has now embarked on a program of self-generated, continuous improvement."
Dr. Sander added, "Costerfield continued its solid performance with production of 12,586 gold equivalent ounces in the third quarter of 2017. While slightly lower than the third quarter production of the previous year, production remains consistent with the previous three quarters and the current grade profile of the mine.
"Operations at Cerro Bayo remained suspended for the third quarter of 2017 as previously disclosed in our prior news releases. Cerro Bayo will remain on care and maintenance for the rest of 2017 while safety investigations are completed and Life of Mine permitting is advanced."
Dr. Sander concluded, "Our producing assets continue to perform well, and we are confident that this strong performance will continue. With this solid operational underpinning, Mandalay looks forward to growing Mineral Resources and Reserves at our current operations, establishing a safe and sound basis for resumption of mining at Cerro Bayo, and capturing accretive acquisition opportunities to which we can add significant value."
Saleable Production for the Three Months Ended September 30, 2017:
Saleable Production for the Nine Months Ended September 30, 2017:
Table 1 - Third Quarter and Nine Month Saleable Production for 2017 and 2016
Metal | Source | Three months ended 30 September 2017 | Three months ended 30 September 2016 | Nine months ended 30 September 2017 | Nine months ended 30 September 2016 |
Gold (oz) | Costerfield | 7,370 | 9,102 | 24,290 | 33,787 |
Björkdal | 13,233 | 12,376 | 39,993 | 37,209 | |
Cerro Bayo | - | 2,831 | 5,909 | 10,985 | |
Total | 20,603 | 24,309 | 70,192 | 81,981 | |
Antimony (t) | Costerfield | 804 | 844 | 2,310 | 2,806 |
Silver (oz) | Cerro Bayo | - | 388,139 | 794,533 | 1,365,817 |
Average quarterly prices: | |||||
Gold US$/oz | 1,278 | 1,334 | |||
Antimony US$/t | 8,293 | 7,244 | |||
Silver US$/oz | 16.85 | 19.58 | |||
Au Eq. (oz)1 | Costerfield | 12,586 | 13,684 | 39,777 | 47,673 |
Björkdal | 13,233 | 12,376 | 39,993 | 37,209 | |
Cerro Bayo | - | 8,526 | 17,021 | 29,322 | |
Total | 25,819 | 34,586 | 96,791 | 114,204 |
1 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 three 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; average Ag price in the period is calculated as the average of the daily London Broker's silver spot price 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 Three Months Ended September 30, 2017:
Sales for the Nine Months Ended September 30, 2017:
Table 2 - Third Quarter and Nine Month Sales for 2017 and 2016
Metal | Source | Three months ended 30 September 2017 | Three months ended 30 September 2016 | Nine months ended 30 September 2017 | Nine months ended 30 September 2016 |
Gold (oz) | Costerfield | 7,500 | 8,865 | 23,959 | 32,121 |
Björkdal | 13,620 | 12,758 | 39,493 | 38,908 | |
Cerro Bayo | 629 | 3,265 | 6,861 | 12,993 | |
Total | 21,749 | 24,888 | 70,313 | 84,022 | |
Antimony (t) | Costerfield | 697 | 804 | 2,211 | 2,690 |
Silver (oz) | Cerro Bayo | 78,805 | 433,904 | 908,498 | 1,476,518 |
Average quarterly prices: | |||||
Gold US$/oz | 1,278 | 1,334 | |||
Antimony US$/t | 8,293 | 7,244 | |||
Silver US$/oz | 16.85 | 19.58 | |||
Au Eq. (oz)1 | Costerfield | 12,023 | 13,228 | 38,826 | 45,457 |
Björkdal | 13,620 | 12,758 | 39,493 | 38,908 | |
Cerro Bayo | 1,667 | 9,631 | 19,501 | 32,800 | |
Total | 27,310 | 35,617 | 97,820 | 117,165 |
1Quarterly 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 three 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:
Mark Sander
President and Chief Executive Officer
Greg DiTomaso
Director of 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 producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas and Europe to generate near-term cash flow and shareholder value.
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, silver and antimony for the 2017 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, 2017, 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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