Mandalay Resources Corporation Announces Record Production and Sales Results for the Fourth Quarter and Full Year 2012 and Reiterates 2013 Production Guidance
TORONTO, Jan. 14, 2013 /CNW/ – Mandalay Resources Corporation
(“Mandalay” or the “Company”) (TSX: MND) announced today record
production and sales results for the fourth quarter and year-end, 2012.
The Company is also re-affirming its production guidance for 2013.
Brad Mills, Chief Executive Officer of Mandalay, commented: “Our record
fourth quarter and full year production and sales results builds on our
strong history of delivering planned performance. We look forward to
continuing this trend in 2013 as we expect to expand our Cerro Bayo
operations to 1,400 tonnes per day mined by the first quarter of 2014
and initiate development of the Cuffley Lode at our Costerfield mine in
the third quarter of 2013. I wish to thank all Mandalay personnel for
helping us deliver on our promises in 2012 and building a highly
profitable, dividend-paying, growing mining company.”
Saleable Production for the three months ended December 31, 2012:
-- The Company produced a total of 10,927 ounces ("oz") gold
("Au"), 785 tonnes ("t") antimony ("Sb") and 895,222 oz silver
("Ag"), representing a total of 33,537 oz of gold equivalent
("Au Eq.").
-- Production at Costerfield (Australia) was 5,907 oz Au and 785 t
Sb, significantly greater volumes of both metals than in the
fourth quarter of 2011. The production increase was due to
substantially higher mine output resulting from the Company
refining its mining method (blast hole stoping with cemented
rock fill). Processing throughput rose to an average of 10,639
tonnes per month in the fourth quarter of 2012 versus 5,448
tonnes per month in the fourth quarter of 2011.
-- Production at Cerro Bayo (Chile) was 5,020 oz Au and 895,222 oz
Ag, significantly greater than in the fourth quarter of 2011
due to higher grades and tonnes mined and processed as the mine
achieved planned design performance.
Saleable Production for the year ended December 31, 2012:
-- For the full year of 2012, the Company produced a total of
35,125 oz Au, 2,481 t Sb and 2,911,595 oz Ag, (107,941 oz Au
Eq.), achieving or exceeding the Company's previous guidance.
-- Production at Costerfield (Australia) reached 18,036 oz Au and
2,481 t Sb, resulting in significantly greater volumes of both
metals compared to 2011 as both mine output and plant
throughput exceeded design levels and the impact of lower
dilution from the new stoping method improved plant head grade.
-- Production at Cerro Bayo (Chile) was 17,089 oz Au and 2,911,595
oz Ag, significantly greater than in 2011 due to the completion
of the ramp-up plan.
Table 1. Quarterly and Annual Saleable Mine Production for 2011 and
2012
3 months 3 months Year Year ended
to to ended 31 December
Metal Source 31 31 31 2011
December December December
2012 2011 2012
Gold (oz) Costerfield 5,907 2,803 18,036 12,244
Cerro Bayo 5,020 2,109 17,089 6,678
Total 10,927 4,912 35,125 18,922
Antimony Costerfield 785 346 2,481 1,576
(t)
Silver Cerro Bayo 895,222 395,296 2,911,595 1,318,665
(oz)
Average
quarterly
prices:
Gold 1,717 1,685
US$/oz
Antimony 12,317 13,890
US$/tonne
Silver 32.57 31.81
US$/oz
Au Eq. Costerfield 11,539 5,655 37,075 27,343
(oz)1
Cerro Bayo 21,998 9,572 70,866 36,008
Total 33,537 15,227 107,941 63,351
(1 )Quarterly Au Eq. oz produced is calculated by multiplying the saleable
quantities of Au, Ag, and Sb in the quarter by the respective average
market prices of the commodities in the quarter, adding the three
amounts to get a “total contained value based on market price”, and
then dividing that total contained value by the average market price of
Au in the quarter. Average Au price in the quarter is calculated as the
average of the daily LME PM fixes in the quarter, with price on weekend
days and holidays taken from the last business day; average Sb price in
the quarter is calculated as the average of the daily average of the
high and low Rotterdam warehouse prices for all days in the quarter,
with price on weekend days and holidays taken from the last business
day; average Ag price in the quarter is calculated as the average of
the daily London Broker’s silver spot price for all days in the
quarter, with price on weekend days and holidays taken from the last
business day. The source for all prices is www.metalbulletin.com.Year-end Au Eq. oz is the total of the quarterly oz derived as above.
Table 2. Quarterly and Annual Quantities Sold for 2011 and 2012
3 months 3 months Year ended Year ended
to to 31 31
Metal Source 31 31 December December
December December 2012 2011
2012 2011
Gold (oz) Costerfield 6,146 2,837 17,489 12,915
Cerro Bayo 5,068 2,347 16,216 5,538
Total 11,214 5,184 33,705 18,453
Antimony Costerfield 809 352 2,395 1,540
(t)
Silver Cerro Bayo 891,145 396,150 2,766,380 1,112,000
(oz)
Average
quarterly
prices:
Gold 1,717 1,685
US$/oz
Antimony 12,317 13,890
US$/tonne
Silver 32.57 31.81
US$/oz
Au Eq. Costerfield 11,951 5,739 35,858 27,681
(oz)2
Cerro Bayo 21,969 9,826 67,247 30,100
Total 33,920 15,565 103,105 57,781
(2 )Quarterly Au Eq. oz sold is calculated by multiplying the saleable
quantities of Au, Ag, and Sb in the quarter by the respective quarter
end market prices of the commodities, 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. Year-end Au Eq. oz is the total of the quarterly oz derived as
above. Au Eq. values for 2011 have been re-calculated according to the
above reporting policy. The source for all prices is www.metalbulletin.com with price on weekend days and holidays taken from the last business
day.
The Company’s sales quantities of all three metals closely matched
production quantities in the fourth quarter, reflecting steady state of
the Company’s concentrate shipping process. The small difference
between production and sales for the full year represents growth in
finished product inventory as production has increased.
Reiteration of 2013 Production Guidance
The Company is pleased to reiterate its full year production for 2013.
This guidance assumes a previously anticipated 15% decline in grade at
Cerro Bayo in the first quarter of 2013 relative to the grades
delivered in the fourth quarter of 2012.
____________________________________________________________________
| | Total | Cerro Bayo | Costerfield |
|________________|_________________|_________________|_______________|
|Saleable Ag |2.8 - 3.1 million|2.8 - 3.1 million| - |
|Production | oz| oz| |
|________________|_________________|_________________|_______________|
|Saleable Au | 36,000 - 42,000| 18,000 - 21,000|18,000 - 21,000|
|Production | oz| oz| oz|
|________________|_________________|_________________|_______________|
|Saleable Sb | 2,800 - 3,000 t| - |2,800 - 3,000 t|
|Production | | | |
|________________|_________________|_________________|_______________|
|Au Eq Production|112,000 - 123,000| | |
| | oz| | |
|________________|_________________|_________________|_______________|
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 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 30, 2012, 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.
SOURCE Mandalay Resources Corporation
