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Mandalay Resources Corporation Announces Production and Sales Results for the First Quarter, 2014

April 14, 2014

TORONTO, April 14, 2014 /CNW/ – 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|
    |Metal                    |Source     |   31 March|   31 March|
    |                         |           |       2014|       2013|
    |_________________________|___________|___________|___________|
    |Gold (oz)                |Costerfield|      7,915|      6,203|
    |                         |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|
    |_________________________|___________|___________|___________|
    |Au Eq. (oz)1             |Costerfield|     14,391|     11,432|
    |                         |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 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|
    |Metal                    |Source     |   31 March|   31 March|
    |                         |           |       2014|       2013|
    |_________________________|___________|___________|___________|
    |Gold (oz)                |Costerfield|      7,046|      5,881|
    |                         |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|
    |_________________________|___________|___________|___________|
    |Au Eq. (oz)2             |Costerfield|     11,757|     11,033|
    |                         |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 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|
    |_________________|_________________|_________________|_______________|
    |Saleable silver  |3.0 - 3.2 million|3.0 - 3.2 million|               |
    |production       |               oz|               oz|               |
    |_________________|_________________|_________________|_______________|
    |Saleable gold    |  60,000 - 70,000|  23,000 - 27,000|37,000 - 43,000|
    |production       |               oz|               oz|             oz|
    |_________________|_________________|_________________|_______________|
    |Saleable antimony|  3,000 - 3,300 t|                 |3,000 - 3,300 t|
    |production       |                 |                 |               |
    |_________________|_________________|_________________|_______________|

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 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



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