Mandalay Resources Corporation Announces Production and Sales Results for the First Quarter, 2014
TORONTO, April 14, 2014 /PRNewswire/ --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today its production and sales results for the first quarter, 2014.
Brad Mills, Chief Executive Officer of Mandalay, commented: "Both of Mandalay's operations performed as planned in the first quarter. Costerfield delivered its first production from the Cuffley Lode. With Cuffley starting to contribute to production, we expect mined gold grades to rise over the next several quarters. Cerro Bayo completed substantially all of the mine development work necessary to increase production to 1,400 tonnes per day from the second quarter onward. These achievements give us confidence that we are on track to deliver on our 2014 production guidance. We expect the drilling program for the Challacollo feasibility study to commence in the second quarter."
Saleable production for the three months ended March 31, 2014:
- The Company produced a total of 13,195 ounces ("oz") gold ("Au"), 858 tonnes ("t") antimony ("Sb"), and 743,569 oz silver ("Ag"), representing a total of 31,449 oz of gold equivalent ("Au Eq.") production.
- Production at Costerfield (Australia) totalled 7,915 oz Au and 858 t Sb, greater volumes of both metals than in the first quarter of 2013. The production gain was due to increased plant throughput, higher gold grades and a full quarter of operation of the new gold room, which has increased the proportion of gold recovered to gravity concentrate.
- Production at Cerro Bayo (Chile) was 5,280 oz Au and 743,569 oz Ag, higher than the prior year quarter, due to higher tonnes mined and higher grades achieved. Capital development to support the planned 1,400 tonnes per day production rate is substantially complete and the plant flotation section has now been fully optimized to maximize recovery at the design concentrate silver grade using the automation equipment installed last year.
Table1 - Quarterly Saleable Production for 2014 and 2013
3 months to 3 months to
31 March 31 March
Metal Source 2014 2013
Costerfield 7,915 6,203
Gold (oz) Cerro Bayo 5,280 4,432
Total 13,195 10,635
Antimony (t) Costerfield 858 766
Silver (oz) Cerro Bayo 743,569 611,441
Average quarterly prices:
Gold US$/oz 1,292 1,630
Antimony US$/tonne 9,758 11,128
Silver US$/oz 20.47 30.03
Costerfield 14,391 11,432
Au Eq. (oz)[1] Cerro Bayo 17,058 15,696
Total 31,449 27,128
[1] Quarterly Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the period. Average Au price in the period is calculated as the average of the daily LME PM fixes in the period, with price on weekend days and holidays taken of the last business day; average Sb price in the period is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the period, with price on weekend days and holidays taken from the last business day; average Ag price in the period is calculated as the average of the daily London Broker's silver spot price for all days in the period, with price on weekend days and holidays taken from the last business day. The source for all prices is http://www.metalbulletin.com.
Sales for the three months ended March 31, 2014:
- The Company sold 11,850 oz Au, 624 t Sb, and 772,116 oz Ag, representing a total of 28,869 oz Au Eq.
- Costerfield sold 7,046 oz Au and 624 t Sb; timing of shipments caused a temporary increase in concentrate inventory by the end of the quarter, which will be sold in the second quarter.
- Cerro Bayo sold 4,804 oz Au and 772,116 oz Ag, with shipments fully caught up from minor delays due to Chilean port strikes early in the quarter and since resolved.
Table 2 - Quarterly Quantities Sold for 2014 and 2013
3 months to 3 months to
31 March 31 March
Metal Source 2014 2013
Costerfield 7,046 5,881
Gold (oz) Cerro Bayo 4,804 4,115
Total 11,850 9,996
Antimony (t) Costerfield 624 755
Silver (oz) Cerro Bayo 772,116 631,736
Average quarterly prices:
Gold US$/oz 1,292 1,630
Antimony US$/tonne 9,758 11,128
Silver US$/oz 20.47 30.03
Costerfield 11,757 11,033
Au Eq. (oz) [2] Cerro Bayo 17,033 15,753
Total 28,790 26,786
[2] 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 http://www.metalbulletin.com with price on weekend days and holidays taken of the last business day.
Mandalay reiterates its 2014 production guidance released previously:
Total Cerro Bayo Costerfield
3.0 - 3.2 million 3.0 - 3.2 million
Saleable silver production oz oz
Saleable gold production 60,000 - 70,000 oz 23,000 - 27,000 oz 37,000 - 43,000 oz
Saleable antimony
production 3,000 - 3,300 t 3,000 - 3,300 t
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia 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 and the Americas 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 2014 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 28, 2014, a copy of which is available under Mandalay's profile at http://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:
Bradford Mills
Chief Executive Officer
Greg DiTomaso
Investor Relations
Contact:
+1-647-260-1566
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