Mandalay Resources Corporation Provides Update on Flooding at Its Cerro Bayo Operation
(Thomson Reuters ONE) -
TORONTO, June 20, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX:MND) is providing an update and further
information on the flooding at the Cerro Bayo operation that was originally
announced on June 9, 2017, and updated on June 14, 2017.
On June 9, 2017, between 3:00 a.m. and 4:00 a.m. local time, a catastrophic
inundation event occurred in the Delia NW mine, one of three producing mines at
the operation. The Delia NW vein in the area of the event is situated
approximately 100 metres landward from the original shore of Laguna Verde. The
subsidence of the original lake shore created a new bay on the lake that
measures approximately 100 metres by 100 metres.
Immediately following the inundation, underground and surface operations at the
mine were curtailed in a safe, orderly way and they remain curtailed. On June
16, the Government of Chile declared a "State of Constitutional Exception" for
the commune of Chile Chico (in which Cerro Bayo is located), which allows the
government to control the site and coordinate the search efforts described
below. Mandalay supports and respects the State of Constitutional Exception as
it assists in ensuring the safety of the site as well as the search efforts.
Two miners remain missing in the Delia NW mine, Jorge Sanchez and Enrique Ojeda.
Efforts to search for them to date include:
* Pumping from the flooded ramp and escapeway. This has not achieved any water
level reduction due to hydraulic conductivity with the lake.
* Drilling multiple holes to the bottom level of the mine, approximately 200
metres below the surface.
* Two of these holes intersected the target mine workings on Saturday, June
17, finding them to contain water and mud, but no trapped air.
* Two more holes are being drilled to intersect the area of the mine with the
closest rescue chamber to where the miners were working. These holes are
expected to reach target on Wednesday morning, June 21. However, the rescue
chambers are designed to protect against contaminated air and not the
significant amount of water pressure that Mandalay now believes is present
in the area.
* In addition, construction of a berm began with the aim of isolating the new
bay of the lake from the main volume of the lake and perhaps enable pumping
of water out of the mine. Construction of this berm was halted for safety
reasons.
* Military expert divers and submarine drones from the Chilean government have
explored down the flooded ramp and in the new bay. Limited visibility in the
muddy water prevented useful information from being obtained.
Mandalay has been receiving abundant resources and support from various levels
of Chilean government, including the military, the police, Sernageomin and the
Minister of Mines. In addition, local mining companies, drilling companies, and
contractors have been engaged in the search efforts.
With respect to the possible impacts of this event on Cerro Bayo operations,
Mandalay notes that:
* Approximately 12,000 tonnes of ore remained on the bottom of the level at
the time of the event, or approximately 12 days of mill throughput at the
current 1,000 tonnes per day rate. Therefore, the immediate impact on
reserves and ultimate total production at the property is expected to be
small.
* The remaining two producing mines at the current time are Coyita and Delia
SE, both located close to and under Laguna Verde. These mines are planned to
supply a significant portion of the remaining life of mine plan and are
entirely unflooded and intact. The Company confirms that the reopening of
any mine at Cerro Bayo is dependent on the results of detailed
investigations into the root causes of the Delia NW event, resulting risk
analysis of the possibility of reopening and government permits to reopen.
This work is likely to take several months.
* The Marcela and the Raul mines, both mined in the past by a previous owner
and in the process of permitting at this time for future restart, are the
two other mines contained in the current Life of Mine plan. These are
located far from the lake, and are isolated from inundation risk. These
mines will not be operated until the investigation and risk analysis is
completed for the Life of Mine plan as a whole.
Once the intensive search phase is completed, Mandalay will begin consultations
with its unions and government on the future of the mine.
Dr. Mark Sander, President and Chief Executive Officer of Mandalay, commented
"Our thoughts and prayers are with Jorge's and Enrique's families, friends and
co-workers. We are continuing to do everything possible to locate them. The
Company is extremely grateful to all our employees, contractors, suppliers,
Ministry of Mining, Armed Forces, Government of Aysén, Sernageomin, Firemen of
Chile Chico, among other active participants, for all their effort, solidarity
and support."
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing
assets in Australia, Chile, and Sweden, and a development project 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:
+1.647.260.1566
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: 20.06.2017 - 06:00 Uhr
Sprache: Deutsch
News-ID 548705
Anzahl Zeichen: 8760
contact information:
Town:
Toronto
Kategorie:
Business News
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