Mandalay Resources Corporation Announces Production and Sales Results for the Second Quarter of 2017, Including Record Production at Björkdal
(Thomson Reuters ONE) -
TORONTO, July 12, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX:MND) announced today its production and sales
results for the second quarter of 2017. In the second quarter of 2017, Mandalay
produced a consolidated 38,491 saleable ounces of gold equivalent and sold
35,709 ounces of gold equivalent. This was the highest quarterly consolidated
gold equivalent production since the second quarter of 2016, with strong
performance at Björkdal and Costerfield offsetting the impact of curtailment at
Cerro Bayo as of June 9, in response to the flooding incident in the Delia NW
mine. For the six months ended June 2017, Mandalay produced 70,972 saleable
ounces of gold equivalent and sold 70,510 ounces of gold equivalent.
Mark Sander, President and Chief Executive Officer of Mandalay, commented,
"Mandalay's production during the second quarter was impacted by the tragic
accident at Cerro Bayo that caused the death of two employees and the loss of
the Delia NW mine due to inundation by lake waters. The loss of the Delia NW
mine by itself is not material with respect to permanently reduced production or
ore reserves. Our primary focus at Cerro Bayo is on completing a thorough root
cause and risk assessment of the inundation event. The outcome of these
investigations will inform the restart scenarios we are currently planning. We
expect that it will take between two and four months to complete the necessary
studies and confirm the new optimum life of mine plan at Cerro Bayo.
"Prior to the accident, the Cerro Bayo mine produced 359,457 ounces of silver
and 3,174 ounces of gold. We expect to provide a further, more detailed update
on restart plans for Cerro Bayo as well as the impact of the current suspension
of operations on our 2017 production guidance when we release our second quarter
2017 financial results in August."
Dr. Sander continued, "On a positive note, Mandalay's other operations performed
well during this stressful time for the Company. Björkdal produced 16,112 ounces
of gold in the second quarter of 2017, a record high production quarter under
Mandalay ownership and an annualized rate of approximately 64,000 oz/yr. With
the successful implementation of our grade control program, we shifted our
operational emphasis in the second quarter toward debottlenecking production
capacities in the open pit and underground mines to increase the rate of
delivery of highest-grade 'A'-quality ore to the plant. This has paid off with
excellent results. We expect that these mining rates will be generally
sustainable for the balance of the year. In addition, we are currently
commissioning the flotation expansion project, slightly ahead of schedule, which
we expect will result in a 1.7% increase in gold recoveries going forward.
"Costerfield continued its dependable performance with production of 14,300 gold
equivalent ounces, up from 12,891 gold equivalent ounces produced in the first
quarter of 2017. Production is consistent with the previous three quarters and
the current grade profile of the mine. We expect Costerfield to deliver within
its guidance ranges for the balance of the year."
Saleable production for the three months ended June 30, 2017:
* The Company produced a total of 28,219 ounces gold, 765 tonnes antimony and
359,457 ounces silver, representing a total of 38,491 ounces of gold
equivalent production, versus 21,370 ounces gold, 741 tonnes antimony and
435,076 ounces silver, representing a total of 32,481 ounces of gold
equivalent, in the first quarter of 2017 and 28,718 ounces gold, 962 tonnes
antimony and 462,462 ounces silver, representing a total of 39,653 ounces of
gold equivalent, in the second quarter of 2016.
* Production at Costerfield (Australia) was 8,933 ounces gold and 765 tonnes
antimony, versus 7,987 ounces gold and 741 tonnes antimony in the first
quarter of 2017 and 12,252 ounces gold and 962 tonnes antimony in the second
quarter of 2016.
* Production at Björkdal (Sweden) was 16,112 ounces gold, versus 10,648 ounces
of gold in the first quarter of 2017 and 12,648 ounces gold in the second
quarter of 2016.
* Production at Cerro Bayo (Chile) was 3,174 ounces gold and 359,457 ounces
silver, versus 2,735 ounces gold and 435,076 ounces silver in the first
quarter of 2017 and 3,818 ounces gold and 462,462 ounces silver in the
second quarter of 2016.
Table 1 - Second Quarter and Six Month Saleable Production for 2017 and 2016
Three Three Three Six Six
months months months months months
Metal Source ended 30 ended 31 ended 30 ended 30 ended 30
June March 2017 June 2016 June 2017 June 2016
2017
Gold (oz) Costerfield 8,933 7,987 12,252 16,920 24,685
Cerro Bayo 3,174 2,735 3,818 5,909 8,154
Björkdal 16,112 10,648 12,648 26,760 24,833
Total 28,219 21,370 28,718 49,589 57,672
Antimony (t) Costerfield 765 741 962 1,506 1,962
Silver (oz) Cerro Bayo 359,457 435,076 462,462 794,533 977,678
Average
quarterly
prices:
Gold US$/oz 1,256 1,217 1,259
Antimony 8,816 8,058 6,244
US$/t
Silver 17.15 17.36 16.78
US$/oz
Au Eq. Costerfield 14,300 12,891 17,023 27,191 33,989
(oz)(1)
Cerro Bayo 8,079 8,942 9,982 17,021 20,796
Björkdal 16,112 10,648 12,648 26,760 24,833
Total 38,491 32,481 39,653 70,972 79,618
(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.
Saleable production for the six months ended June 30, 2017:
* The Company produced a total of 49,589 ounces gold, 1,506 tonnes antimony
and 794,533 ounces silver, representing a total of 70,972 ounces of gold
equivalent production, versus 57,672 ounces gold, 1,962 tonnes antimony and
977,678 ounces silver, representing a total of 79,618 ounces of gold
equivalent in the corresponding six months of 2016.
* Production at Costerfield was 16,920 ounces gold and 1,506 tonnes antimony.
* Production at Björkdal was 26,760 ounces gold.
* Production at Cerro Bayo was 5,909 ounces gold and 794,533 ounces silver.
Sales for the three months ended June 30, 2017:
* The Company sold 24,896 ounces gold, 806 tonnes antimony, and 377,916 ounces
silver, representing a total of 35,709 ounces of gold equivalent, versus
23,668 ounces gold, 708 tonnes antimony and 451,777 ounces silver,
representing a total of 34,801 ounces gold equivalent, in the first quarter
of 2017 and 29,951 ounces gold, 993 tonnes antimony, and 439,993 ounces
silver, representing a total of 40,740 ounces of gold equivalent, in the
second quarter of 2016.
* Costerfield sold 8,912 ounces gold and 806 tonnes antimony, versus 7,547
ounces gold and 708 tonnes antimony in the first quarter of 2017 and 12,440
ounces gold and 993 tonnes antimony in the second quarter of 2016.
* Cerro Bayo sold 3,232 ounces gold and 377,916 ounces silver, versus 3,000
ounces gold and 451,777 ounces silver in the first quarter of 2017 and
3,698 ounces gold and 439,993 ounces silver in the second quarter of 2016.
* Björkdal sold 12,752 ounces gold, versus 13,121 ounces gold in the first
quarter of 2017 and 13,813 ounces gold in the second quarter of 2016.
Sales for the six months ended June 30, 2017:
* The Company sold 48,564 ounces gold, 1,514 tonnes antimony, and 829,693
ounces silver, representing a total of 70,510 ounces of gold equivalent,
versus 59,134 ounces gold, 1,886 tonnes antimony, and 1,042,614 ounces
silver, representing a total of 81,548 ounces of gold equivalent, in the six
months ended June 30, 2016.
* Costerfield sold 16,459 ounces gold and 1,514 tonnes antimony.
* Cerro Bayo sold 6,232 ounces gold and 829,693 ounces silver.
* Björkdal sold 25,873 ounces gold.
Table 2 - Second Quarter and Six Month Sales for 2017 and 2016
Three Three Three Six
months months months months Six months
Metal Source ended 30 ended 31 ended 30 ended 30 ended 30
June 2017 March 2017 June June 2017 June 2016
2016
Gold (oz) Costerfield 8,912 7,547 12,440 16,459 23,256
Cerro Bayo 3,232 3,000 3,698 6,232 9,728
Björkdal 12,752 13,121 13,813 25,873 26,150
Total 24,896 23,668 29,951 48,564 59,134
Antimony (t) Costerfield 806 708 993 1,514 1,886
Silver (oz) Cerro Bayo 377,916 451,777 439,993 829,693 1,042,614
Average
quarterly
prices:
Gold US$/oz 1,256 1,217 1,259
Antimony 8,816 8,058 6,244
US$/t
Silver 17.15 17.36 16.78
US$/oz
Au Eq. Costerfield 14,568 12,235 17,365 26,803 32,229
(oz)(1)
Cerro Bayo 8,389 9,445 9,562 17,834 23,169
Björkdal 12,752 13,121 13,813 25,873 26,150
Total 35,709 34,801 40,740 70,510 81,548
(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 and statements
regarding the potential impact of the current suspension of operations at the
Company's Cerro Bayo mine. 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: 12.07.2017 - 22:30 Uhr
Sprache: Deutsch
News-ID 552174
Anzahl Zeichen: 15738
contact information:
Town:
Toronto
Kategorie:
Business News
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