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Last updated on April 18, 2014 at 1:21 EDT

Mandalay Resources Corporation reports production and sales for the second quarter of 2013 and improves 2013 full-year guidance

July 10, 2013

TORONTO, July 10, 2013 /CNW/ – Mandalay Resources Corporation
(“Mandalay” or the “Company”) (TSX: MND) announced today its production
and sales results for the second quarter of 2013.

Brad Mills, Chief Executive Officer of Mandalay, commented, “Mandalay
delivered strong operating performance in the second quarter of 2013.
Both Costerfield and Cerro Bayo produced and sold record amounts of
gold during the period, and Cerro Bayo produced record amounts of
silver. Costerfield generated its third highest antimony production
quarter ever. As expected, Cerro Bayo’s record second quarter
performance made up for lower production in the first quarter, which
was related to the planned curtailment of plant operations during
installation and commissioning of flotation automation equipment.”

Mr. Mills continued, “Our performance in the first two quarters of 2013
and operating commitments for the balance of the year allow us
confidence that full-year production will be at the upper end of our
previously announced production guidance ranges of 16,000 – 21,000
ounces gold and 2.8 – 3.1 million ounces silver from Cerro Bayo and
2,800 – 3,000 tonnes antimony from Costerfield.  At this time, we are
pleased to raise our guidance for gold production from Costerfield from
the previous 18,000 – 21,000 ounces to 20,000 – 25,000 ounces for the
full year 2013. This is based on our experience with higher than
planned mill feed gold grade and our growing confidence at being able
to extract and sell a significant amount of coarse gold in gravity
concentrate while maintaining high gold grades in our flotation
concentrate. We expect to complete a Preliminary Economic Analysis on a
new Life of Mine Plan for Costerfield, including the Cuffley lode, in
the third quarter of 2013 and will make a development decision
regarding Cuffley based on that analysis. We also anticipate releasing
exploration updates from Costerfield and Cerro Bayo during the third
quarter of 2013.”

Saleable production for the three months ended June 30, 2013:

        --  The Company's saleable production totaled 13,046 ounces ("oz")
            gold ("Au"), 738 tonnes ("t") antimony ("Sb"), and 921,895 oz
            silver ("Ag"), representing a total of 33,558 oz gold
            equivalent ("Au Eq.") production. Au, Ag, and Au Eq. production
            amounts set new quarterly records for Mandalay.
        --  Saleable production at Costerfield (Australia) was 6,879 oz Au
            and 738 t Sb.
        --  Saleable production at Cerro Bayo (Chile) was 6,167 oz Au and
            921,895 oz Ag.

Saleable production for the six months ended June 30, 2013:

        --  The Company's saleable production totaled 23,681 oz Au, 1,504 t
            Sb, and 1,533,336 oz Ag, representing a total of 60,686 oz Au
            Eq.
        --  Saleable production at Costerfield was 13,082 oz Au and 1,504 t
            Sb.
        --  Saleable production at Cerro Bayo was 10,599 oz Au and
            1,533,336 oz Ag.

Table 1. Second Quarter and Six Month Saleable Production for 2013 and
2012


                                        3           3      6 months      6 months
                                   months      months            to            to
       Metal         Source            to          to       30 June       30 June
                                  30 June     30 June          2013          2012
                                     2013        2012

    Gold (oz)     Costerfield       6,879       4,122        13,082         7,812

                  Cerro Bayo        6,167       5,093        10,599         7,283

                  Total            13,046       9,215        23,681        15,095

    Antimony      Costerfield         738         612         1,504         1,101
    (t)

    Silver        Cerro Bayo      921,895     814,970     1,533,336     1,211,594
    (oz)

    Average
    quarterly
    prices:

    Gold                            1,415       1,614
    US$/oz

    Antimony                       10,365      13,574
    US$/tonne

    Silver                          23.19       29.39
    US$/oz

    Au Eq.
    (oz)1         Costerfield      12,283       9,273        23,715        16,629

                  Cerro Bayo       21,275      19,936        36,971        29,567

                  Total            33,558      29,209        60,686        46,196

(1 )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
www.metalbulletin.com

Table 2. Second Quarter and Six Month Sales for 2013 and 2012


                                        3           3      6 months      6 months
                                   months      months            to            to
       Metal         Source            to          to       30 June       30 June
                                  30 June     30 June          2013          2012
                                     2013        2012

    Gold (oz)     Costerfield       6,850       4,063        12,731         7,447

                  Cerro Bayo        5,449       4,960         9,564         6,244

                  Total            12,299       9,023        22,295        13,691

    Antimony      Costerfield         763         608         1,518         1,058
    (t)

    Silver        Cerro Bayo      774,923     853,364     1,406,659     1,071,424
    (oz)

    Average
    quarterly
    prices:

    Gold                            1,415       1,614
    US$/oz

    Antimony                       10,365      13,574
    US$/tonne

    Silver                          23.19       29.39
    US$/oz

    Au Eq.
    (oz)2         Costerfield      12,441       9,173        23,474        15,927

                  Cerro Bayo       18,149      20,503        33,902        25,877

                  Total            30,590      29,676        57,376        41,804

(2)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.  Au
Eq values for 2012 have been recalculated according to the above
reporting policy. 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 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, the anticipated completion of a new Preliminary Economic
Analysis for its Costerfield mine and the release of exploration
updates for Costerfield and Cerro Bayo. 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
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


Source: PR Newswire