TORONTO, Oct. 13, 2023 /PRNewswire/ -- Mandalay Resources
Corporation ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF)
announces today its production and sales results for the third
quarter of 2023. The Company forecasts finishing 2023 on the low
end of its previously disclosed production guidance range of 88,000
– 100,000 gold equivalent ounces.
Third Quarter Production Highlights:
- Consolidated saleable gold equivalent production of 22,032
ounces; and
- Consolidated saleable gold equivalent sold of 20,568
ounces.
Frazer Bourchier, President and CEO, commented:
"During the third quarter of 2023, our operations performed
in-line with previous quarters. Costerfield is expecting stronger
production in the final quarter to achieve our year-end guidance
based on planned mining of higher-grade areas. On a consolidated
basis, the Company produced 22,032 and 62,868 saleable gold
equivalent ounces during Q3 2023 and the first nine months of this
year, respectively. Notably, Björkdal continues to show
improvements and achieved its highest quarterly rate since Q1 2022.
At Costerfield, processing of higher grade ore was delayed during
the quarter due to both slower stope progression and lower mill
throughput."
Ryan Austerberry, COO,
commented:
"Björkdal produced 11,224 saleable gold ounces in Q3 2023. We
are seeing encouraging signs of stable stoping tonnes from the
underground and improved grades as we start to process material
from the higher-grade Eastern Extension zone. We are looking
towards building upon this success and will continue to focus on
mining from the Eastern Extension while concentrating less on areas
that are of lower grade. Over the last quarter of 2023 and into
2024, we are anticipating higher grades due to the steady ramp-up
of the Eastern Extension zone's tonnage contribution to the overall
mill feed.
"Costerfield produced 10,808 saleable gold equivalent ounces in
Q3 2023, as it encountered a few challenges leading to deficits in
both milled tonnes and underground gold grades. As we progress more
of our production fronts into Shepherd, the processing plant was
temporarily challenged with the hardness of the ore encountered
transitioning into this zone. We are actively re-configuring the
circuit to optimize the throughput to get back to mill plan. The
lower grades can be attributed primarily to a delay in production
of high grade stopes in Youle, which we expect to mine in the
future. Although a month later than planned, the replacement loader
for the gear lost earlier in the year due to a fire was
commissioned in the quarter. We do expect to finish the year
strongly, with a third successive quarter-over-quarter
improvement."
Mr. Bourchier concluded, "In my first two quarters as CEO, we
shifted to continuously monitoring key metrics to better manage
challenges and mitigate operational risks. The Company remains
focused on establishing a sustainable track record of operational
results, further ramping up organic exploration spend and
capitalizing on any opportunities to underpin future success and
growth moving forward."
Saleable Production for the Quarter Ended September 30, 2023:
- In the third quarter of 2023, the Company produced a total of
19,601 ounces of gold and 395 tonnes of antimony representing a
total of 22,032 ounces of gold equivalent, versus 22,817 ounces of
gold and 582 tonnes of antimony in the third quarter of 2022,
representing a total of 27,287 ounces of gold equivalent.
- Production at Björkdal was 11,224 ounces of gold in the third
quarter of 2023 versus 10,291 ounces of gold in the third quarter
of 2022.
- Production at Costerfield was 8,377 ounces of gold and 395
tonnes of antimony in the third quarter of 2023 versus 12,526
ounces gold and 582 tonnes antimony in the third quarter of
2022.
Saleable Production for the Nine Months Ended September 30, 2023:
- The Company produced a total of 53,631 ounces gold and 1,456
tonnes antimony, representing a total of 62,868 ounces of gold
equivalent production, versus 66,793 ounces gold and 1,788 tonnes
of antimony in the corresponding nine months of 2022, representing
a total of 80,223 ounces of gold equivalent.
- Production at Björkdal was 30,590 ounces gold.
- Production at Costerfield was 23,041 ounces gold and 1,456
tonnes antimony.
Table 1 – Third Quarter and Nine Months Saleable Production
for 2023 and 2022
|
Metal
|
Source
|
Three months
ended
September
30
2023
|
Three months
ended
September
30
2022
|
Nine months
ended
September 30
2023
|
Nine
months
ended
September 30
2022
|
|
Gold (oz)
|
Björkdal
|
11,224
|
10,291
|
30,590
|
30,991
|
|
Costerfield
|
8,377
|
12,526
|
23,041
|
35,802
|
|
Total
|
19,601
|
22,817
|
53,631
|
66,793
|
|
Antimony (t)
|
Costerfield
|
395
|
582
|
1,456
|
1,788
|
|
|
Gold US$/oz
|
|
1,928
|
1,730
|
|
|
|
Antimony
US$/t
|
|
11,865
|
13,286
|
|
|
|
Total Gold Eq.
(oz)(1)
|
|
|
|
|
|
|
Björkdal
|
11,224
|
10,291
|
30,590
|
30,991
|
|
Costerfield
|
10,808
|
16,996
|
32,278
|
49,232
|
|
Total
|
22,032
|
27,287
|
62,868
|
80,223
|
|
1.
|
Quarterly gold
equivalent ounces ("Gold Eq. (oz)") produced is calculated by
multiplying the saleable quantities of gold ("Au"), and antimony
("Sb") in the period by the respective average market prices of the
commodities in the period, adding the 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 prices in the periods are 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. The source for Au price is
www.transamine.com, and Sb price is
www.metalbulletin.com.
|
Sales for the Quarter Ended September
30, 2023:
- In the third quarter of 2023, the Company sold a total of
18,106 ounces of gold and 400 tonnes of antimony, representing a
total of 20,568 ounces of gold equivalent, versus 22,273 ounces of
gold and 557 tonnes of antimony in the third quarter of 2022,
representing a total of 26,551 ounces of gold equivalent.
- Björkdal sold 10,751 ounces of gold in the third quarter of
2023 versus 10,001 ounces of gold in the third quarter of
2022.
- Costerfield sold 7,355 ounces of gold and 400 tonnes of
antimony in the third quarter of 2023 versus 12,272 ounces of gold
and 557 tonnes of antimony in the third quarter of 2022.
Sales for the Nine Months Ended September 30, 2023:
- The Company sold 53,326 ounces gold and 1,455 tonnes antimony,
representing a total of 62,566 ounces of gold equivalent, versus
67,845 ounces gold and 1,832 tonnes antimony in the first nine
months of 2022, representing a total of 81,612 ounces of gold
equivalent.
- Björkdal sold 30,211 ounces gold.
- Costerfield sold 23,115 ounces gold and 1,455 tonnes
antimony.
Table 2 – Third Quarter and Nine Months Sales for 2023 and
2022
|
Metal
|
Source
|
Three months
ended
September
30
2023
|
Three months
ended
September
30
2022
|
Nine months
ended
September 30
2023
|
Nine
months
ended
September 30
2022
|
|
Gold (oz)
|
Björkdal
|
10,751
|
10,001
|
30,211
|
31,111
|
|
Costerfield
|
7,355
|
12,272
|
23,115
|
36,734
|
|
Total
|
18,106
|
22,273
|
53,326
|
67,845
|
|
Antimony (t)
|
Costerfield
|
400
|
557
|
1,455
|
1,832
|
|
|
Gold US$/oz
|
|
1,928
|
1,730
|
|
|
|
Antimony
US$/t
|
|
11,865
|
13,286
|
|
|
|
Total Gold Eq.
(oz)1
|
|
|
|
|
|
|
Björkdal
|
10,751
|
10,001
|
30,211
|
31,111
|
|
Costerfield
|
9,817
|
16,550
|
32,355
|
50,501
|
|
Total
|
20,568
|
26,551
|
62,566
|
81,612
|
|
1.
|
Quarterly Gold Eq. (oz)
sold is calculated by multiplying the saleable quantities of Au and
Sb in the period by the respective average market prices of the
commodities in the period, adding the 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 Au price is www.transamine.com, and Sb price
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
(Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay's mission is to create shareholder value through the
profitable operation and continuing the regional exploration
program, at both its Costerfield and Björkdal mines. Currently, the
Company's main objectives are to continue mining the high-grade
Youle vein at Costerfield, bring online the deeper Shepherd veins,
both of which will continue to supply high-grade ore to the
processing plant, and to extend Youle Mineral Reserves. At
Björkdal, the Company will aim to increase production from the
Aurora zone and other higher-grade areas in the coming years, in
order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "forward-looking statements"
within the meaning of applicable securities laws, including
statements regarding the Company's expected production of gold and
antimony and costs for the 2023 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, 2023, 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.
CONTACT: Frazer Bourchier, President and Chief Executive
Officer; Edison Nguyen, Director,
Business Valuations and IR, Contact: 647.258.9722
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