TORONTO, April 18, 2013 /PRNewswire/ --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today its production and sales results for the first quarter, 2013.
Brad Mills, Chief Executive Officer of Mandalay, commented: "Mandalay's production and sales for the first quarter were in line with our expectations. Costerfield delivered another strong performance, continuing the trend of improvement of the last few quarters by achieving record gold production and near-record antimony production. This high level of production is expected to continue as the operation continues to ramp up production on N-Lode and begins development of the Cuffley Lode. As planned and previously announced, Cerro Bayo delivered lower production than the prior quarter as plant operating time was restricted due to the installation and commissioning of flotation automation equipment that is designed to improve recoveries of both gold and silver. In addition, lower grade ore was fed through the plant as part of the commissioning program for this new equipment. We expect ore grades to improve, along with recoveries, in the next three quarters and we expect to deliver the full 2013 production guidance over the course of the year."
Saleable Production for the three months ended March 31, 2013:
- The Company produced a total of 10,635 ounces ("oz") gold ("Au"), 766 tonnes ("t") antimony ("Sb") and 611,441 oz silver ("Ag"), representing a total of 27,128 oz of gold equivalent ("Au Eq.").
- Production at Costerfield (Australia) was 6,203 oz Au and 766 t Sb, significantly greater volumes of both metals than in the first quarter of 2012. The production increase was due to substantially higher mine output resulting from refinements to the cemented rock fill long-hole stoping mining method and plant throughput improvement enabled by the installation of a mobile crusher in the third quarter of last year.
- Production at Cerro Bayo (Chile) was 4,432 oz Au and 611,441 oz Ag, significantly greater than in the first quarter of 2012 due to higher grades and tonnes mined and processed as the mine completed its ramp-up to 1,200 tonnes per day as planned.
Table 1. Quarterly Saleable Mine Production for 2013 and 2012
3 months to 3 months to 31 March 31 March Metal Source 2013 2012 Gold (oz) Costerfield 6,203 3,690 Cerro Bayo 4,432 2,190 Total 10,635 5,880 Antimony (t) Costerfield 766 489 Silver (oz) Cerro Bayo 611,441 396,624 Average quarterly prices: Gold US$/oz 1,630 1,694 Antimony US$/tonne 11,128 12,692 Silver US$/oz 30.03 31.78 Au Eq. (oz) Costerfield 11,432 7,356 Cerro Bayo 15,696 9,631 Total 27,128 16,987
Quarterly Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the quarter by the respective average market prices of the commodities in the quarter, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the quarter. Average Au price in the quarter is calculated as the average of the daily LME PM fixes in the quarter, with price on weekend days and holidays taken of the last business day; average Sb price in the quarter is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the quarter, with price on weekend days and holidays taken from the last business day; average Ag price in the quarter is calculated as the average of the daily London Broker's silver spot price for all days in the quarter, with price on weekend days and holidays taken from the last business day. The source for all prices is http://www.metalbulletin.com.
The Company's sales quantities of all three metals closely matched production quantities, reflecting steady states of the Company's concentrate shipping processes.
Table 2. Quarterly Quantities Sold for 2013 and 2012
3 months to 3 months to 31 March 31 March Metal Source 2013 2012 Gold (oz) Costerfield 5,881 3,384 Cerro Bayo 4,115 1,284 Total 9,996 4,668 Antimony (t) Costerfield 755 450 Silver (oz) Cerro Bayo 631,736 218,060 Average quarterly prices: Gold US$/oz 1,630 1,694 Antimony US$/tonne 11,128 12,692 Silver US$/oz 30.03 31.78 Au Eq. (oz) Costerfield 11,033 6,754 Cerro Bayo 15,753 5,374 Total 26,786 12,128
Quarterly Au Eq. oz sold is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the quarter by the respective average market prices of the commodities in the quarter, 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 quarter. Au Eq values for 2012 have been recalculated according to the above reporting policy. The source for all prices is http://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 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.
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 2013 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 27, 2013, 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.
SOURCE: Mandalay Resources Corporation
For further information:
Chief Executive Officer