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Mandalay Resources Corporation Announces Production and Sales Results for the Second Quarter of 2016
TORONTO, July 12, 2016 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) announced today its production and sales results for the second quarter of 2016. During the second quarter of 2016, Mandalay produced 39,653 saleable ounces of gold equivalent ("Au Eq. oz") and sold 40,740 Au Eq. oz.
Mark Sander, President and Chief Executive Officer of Mandalay, commented, "Mandalay delivered another strong production and sales quarter, which we expect to lead to strong financial performance when combined with improvements in the prices of all our metals that we have experienced during the quarter. I am particularly pleased that this strong production quarter was achieved without a single lost time injury anywhere in the Company, and our rolling 12-month Lost Time Injury Frequency Rate has declined to a record low since the Company became a producer under the current management team in late 2009. Likewise, the quarter, and indeed the entire first half of the year, is marked Company-wide by zero government reportable environmental incidents or instances of non-compliance with environmental and operating permits. These superb non-financial results demonstrate that mining and metallurgical processes are steadily improving and that our employees and contractors around the world are increasingly making every-day decisions about how they accomplish their daily work that are aligned with our corporate values.
Dr. Sander continued, "Costerfield continued its trend of excellent performance in the second quarter of 2016 by producing 12,252 ounces ("oz") saleable gold ("Au") and 962 tonnes ("t") saleable antimony ("Sb"). We expect Costerfield to produce at or near these levels for the remainder of the year.
"Production at Björkdal in the second quarter of 2016 was 12,648 oz saleable Au, which is a new record for the mine under Mandalay ownership. Since the third quarter of 2015, production has increased in every succeeding quarter as a result of steady improvement in our underground and open pit grade control practices. In addition, early indications from processing optically-sorted material from low-grade stockpiles in our on-site commercial-scale pilot test suggest that we can successfully upgrade the low-grade stockpile material. More details will become available as the test is completed later in the third quarter."
Dr. Sander concluded, "Cerro Bayo production during the quarter was 3,818 oz Au and 462,462 oz silver ("Ag"). We continued developing the new Delia SE and Coyita mines and stoping has begun in both. We have mobilized an underground development contractor to the Coyita mine, where the goal is to accelerate capital development with the objectives of 1) opening up more working faces faster as the ramp descends in the northwest end of the vein; and 2) tunneling under Laguna Verde to access the high-grade Coyita SE reserves as quickly as possible. These efforts are expected to result in improved production performance in the fourth quarter of this year and on into 2017."
Mandalay reaffirms its previously stated total Company 2016 production guidance of 165,000 to 180,000 salable Au Eq. oz at an average cash production cost of $690-$810 per Au Eq. oz (see press release of November 5, 2015). This reaffirmation includes the impact of overperformance at Costerfield, which is expected to offset underperformance at Cerro Bayo. Au production at Björkdal is expected to perform in line with the original guidance amount.
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden 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, the Americas and Europe to generate near-term cash flow and shareholder value.
For Further Information:
Mark Sander
President and Chief Executive Officer
Greg DiTomaso
Director of Investor Relations
Contact:
647.260.1566
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