Mandalay Resources Corporation Announces Production and Sales Results for the First Quarter of 2017
(Thomson Reuters ONE) -
TORONTO, April 12, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX:MND) announced today its production and sales
results for the first quarter of 2017. In the first quarter of 2017, Mandalay
produced 32,481 saleable ounces of gold equivalent and sold 34,801 ounces of
gold equivalent.
Mark Sander, President and Chief Executive Officer of Mandalay, commented,
"Mandalay's production and sales in the first quarter of 2017 show that the
Company is on track to delivering on our guidance range of 138,000 to 163,000
ounces of gold equivalent for 2017. First quarter sales were within the guidance
range given in the press release on February 16, 2017, and we expect improving
production at all sites in the balance of the year to support higher sales in
the coming quarters.
"Costerfield continued its dependable performance with production of 12,891 gold
equivalent ounces. Production is consistent with the previous two quarters and
the current grade profile of the mine. We expect to see output lift at
Costerfield in subsequent quarters because mining grades are forecast to
increase as we extract higher-grade stopes in the Cuffley and N lodes later in
the year.
"Björkdal produced 10,648 ounces of gold in the first quarter of 2017, down from
12,185 ounces in the same period of 2016, but very similar to the fourth quarter
of 2016 production of 10,934 ounces. Björkdal delivered strong, near-record
sales of 13,121 ounces in the first quarter of 2017 as the record monthly
production of December, 2016, was sold. During the first quarter, production of
higher-grade underground ore was limited due to a bottleneck with respect to
underground haulage. Additional underground loading and haulage capacity was
added at the end of March, which is expected to directly increase the stope
production and in turn increase the rate of delivery of high-grade underground
ore for the remainder of the year. As well, in the second quarter we are
increasing the length of our jumbo booms to permit longer cuts per blast and
therefore increase underground development rates, which is also expected to
contribute to increasing the delivery rates of underground ore. The Björkdal
flotation expansion project is progressing approximately on schedule. Upon
commissioning in the third quarter of 2017, we expect a 1.7% increase in gold
recoveries. All these improvements point toward lifting production rates through
the year."
Dr. Sander concluded, "Operationally, Cerro Bayo has implemented a number of
initiatives to generate cost reductions and improve operational efficiency. Mine
production during the first quarter of 435,076 ounces of silver and 2,735 ounces
of gold demonstrates significant quarter-over-quarter progress compared to
production of 365,214 ounces of silver and 2,807 ounces of gold in the previous
quarter. We expect to see production continue to grow over the remainder of
2017 as a greater number of development headings and production stopes become
available from the Coyita mine. As well, we have optimized plant shift schedules
to reduce costs and match the planned ore production of the mine."
Saleable production for the three months ended March 31, 2017:
* The Company produced a total of 21,370 ounces gold, 741 tonnes antimony and
435,076 ounces silver, representing a total of 32,481 ounces of gold
equivalent production, versus 28,954 ounces gold, 1,000 tonnes of antimony
and 515,216 ounces silver, representing a total of 39,965 ounces of gold
equivalent in the first quarter of 2016.
* Production at Costerfield (Australia) was 7,987 ounces gold and 741 tonnes
antimony, versus 12,433 ounces gold and 1,000 tonnes antimony in the first
quarter of 2016.
* Production at Cerro Bayo (Chile) was 2,735 ounces gold and 435,076 ounces
silver, versus 4,336 ounces gold and 515,216 ounces silver in the first
quarter of 2016.
* Production at Björkdal (Sweden) was 10,648 ounces gold as compared to
12,185 ounces gold in the first quarter of 2016.
Table 1 - Mandalay Quarterly Saleable Production
Three months Three months Three months
Metal Source ended ended ended
31 March 2017 31 December 2016 31 March 2016
Gold (oz) Costerfield 7,987 7,523 12,433
Cerro Bayo 2,735 2,807 4,336
Björkdal 10,648 10,934 12,185
Total 21,370 21,264 28,954
Antimony (t) Costerfield 741 792 1,000
Silver (oz) Cerro Bayo 435,076 365,214 515,216
Average quarterly
prices:
Gold US$/oz 1,217 1,218 1,181
Antimony US$/t 8,058 7,498 5,353
Silver US$/oz 17.36 17.17 14.85
Au Eq. (oz)(1) Costerfield 12,891 12,403 16,966
Cerro Bayo 8,942 7,956 10,814
Björkdal 10,648 10,934 12,185
Total 32,481 31,293 39,965
(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 March 31, 2017:
* The Company sold 23,668 ounces gold, 708 tonnes antimony, and 451,777 ounces
silver, representing a total of 34,801 ounces of gold equivalent, versus
29,183 ounces gold, 893 tonnes antimony, and 602,621 ounces silver,
representing a total of 40,808 ounces of gold equivalent in the first
quarter of 2016.
* Costerfield sold 7,547 ounces gold and 708 tonnes antimony, versus 10,816
ounces gold and 893 tonnes antimony in the first quarter of 2016.
* Cerro Bayo sold 3,000 ounces gold and 451,777 ounces silver, versus 6,030
ounces gold and 602,621 ounces silver in the first quarter of 2016.
* Björkdal sold 13,121 ounces gold, versus 12,337 ounces gold in the first
quarter of 2016.
Table 2 - Mandalay Quarterly Sales
Three months Three months Three months
Metal Source ended ended ended
31 March 2017 31 December 2016 31 March 2016
Gold (oz) Costerfield 7,547 8,040 10,816
Cerro Bayo 3,000 2,426 6,030
Björkdal 13,121 8,979 12,337
Total 23,668 19,445 29,183
Antimony (t) Costerfield 708 883 893
Silver (oz) Cerro Bayo 451,777 320,175 602,621
Average quarterly
prices:
Gold US$/oz 1,217 1,218 1,181
Antimony US$/t 8,058 7,498 5,353
Silver US$/oz 17.36 17.17 14.85
Au Eq. (oz)(1) Costerfield 12,235 13,480 14,864
Cerro Bayo 9,445 6,940 13,607
Björkdal 13,121 8,979 12,337
Total 34,801 29,399 40,808
(1)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 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.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing
assets in Australia, 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.
For Further Information:
Mark Sander
President and Chief Executive Officer
Greg DiTomaso
Director of Investor Relations
Contact:
647.260.1566
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mandalay Resources Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 12.04.2017 - 22:30 Uhr
Sprache: Deutsch
News-ID 536166
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contact information:
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Kategorie:
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