The Prospector News

Mandalay Resources Corporation Announces Strong Production Results and Growing Cash Balance for First Quarter 2024

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Mandalay Resources Corporation Announces Strong Production Results and Growing Cash Balance for First Quarter 2024

 

 

 

 

 

Mandalay Resources Corporation (TSX: MND) (OTCQB: MNDJF) announces strong first quarter production results marked by a notable increase in cash balance. All currency references in this press release are in U.S. dollars except as otherwise indicated.

 

First Quarter Highlights:

  • Mandalay’s quarter-end cash balance was $47.1 million, a significant increase of $20.2 million as compared to year-end 2023;
  • Consolidated gold equivalent production of 24,936 ounces;
    • Costerfield production increased to 14,566 gold equivalent ounces, 32% higher than Q1 2023;
    • Björkdal production increased to 10,370 gold ounces, 16% higher than Q1 2023; and
  • Consolidated gold equivalent sold was 25,277 ounces.

 

Frazer Bourchier, President and CEO, commented:

 

“We are pleased to report Mandalay’s continued operational success in the latest quarter, achieving a solid production result of nearly 25,000 gold equivalent ounces across both operations. This achievement positions the Company on a stable trajectory towards meeting our annual production target of 90,000 – 100,000 gold equivalent ounces. Of significant note, Mandalay bolstered its cash reserves substantially, increasing its cash balance by over $20 million in the quarter, culminating in a closing quarter cash balance of $47 million.”

 

Ryan Austerberry, COO, commented:

 

“At Costerfield, we produced 14,566 gold equivalent ounces during Q1 2024, with an average processed head grade of 12.4 g/t and 2.2%, for gold and antimony, respectively. This is despite encountering challenges impacting operations due to two distinct adverse rain weather events, leading to temporary site access restrictions and power disruptions in January 2024. We anticipate maintaining similar metal grades as we mine comparable sections within our high-grade Youle and Shepherd deposits in the upcoming quarter.

 

“At Björkdal, we achieved gold production of 10,370 gold ounces. Throughout the quarter, underground mining rates remained healthy and consistent notwithstanding some geotechnical challenges causing adjustments to the mine sequencing schedule. While the processed gold grades were lower than anticipated in the quarter, this large gold system with sufficient underground capital development provides us flexibility to pivot as required when these issues might occur. Site continues to explore opportunities to even further improve planning flexibility, enabling better management of potential impacts from future sequencing changes. One notable achievement we are very pleased with was the steady ramp up in mill throughput rates during the quarter. The commissioning of the mill expansion conversion project is progressing as scheduled and is expected to be completed in Q2 2024. This step change will increase the plant’s feed to a run-rate of 1.45 million tonnes per annum.”

 

Mr. Bourchier concluded, “With this continued solid foundation of two great assets in excellent jurisdictions coupled with the ongoing execution of Mandalay’s new corporate strategy, we are poised to capitalize on future opportunities and look towards achieving our vision of building a premier mid-tier essential metal producer over the next few years.”

 

Production for the Quarter Ended March 31, 2024:

  • The Company produced a total of 22,346 ounces of gold and 404 tonnes of antimony representing a total of 24,936 ounces of gold equivalent, versus 16,337 ounces of gold and 544 tonnes of antimony in the first quarter of 2023, representing a total of 19,986 ounces of gold equivalent.
  • Production at Björkdal was 10,370 ounces of gold versus 8,969 ounces of gold in the first quarter of 2023.
  • Production at Costerfield was 11,976 ounces of gold and 404 tonnes of antimony versus 7,368 ounces gold and 544 tonnes antimony in the first quarter of 2023.

 

Table 1 – First Quarter Production for 2024 and 2023 and Fourth Quarter of 2023

 

Metal Source Three months

 ended

March 31

2024

Three months

ended

March 31

2023

Three months

ended

December 31

2023

Gold produced (oz) Björkdal 10,370 8,969 11,558
Costerfield 11,976 7,368 13,016
Total 22,346 16,337 24,574
Antimony produced (t) Costerfield 404 544 404
Gold US$/oz 2,074 1,887 1,980
Antimony US$/t 13,298 12,656 11,603
Total Gold Eq. (oz) (1) Produced
Björkdal 10,370 8,969 11,558
Costerfield 14,566 11,017 15,383
Total 24,936 19,986 26,941
1. Quarterly gold equivalent ounces (“Gold Eq. (oz)”) produced is calculated by multiplying the production quantities of gold (“Au”), antimony (“Sb”) in the period by the respective average market prices of the commodities in the period, adding the 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 prices in the periods are 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. The source for Au price is www.transamine.com, and Sb price is www.metalbulletin.com.

 

Sales for the Quarter Ended March 31, 2024:

  • The Company sold a total of 23,187 ounces of gold and 326 tonnes of antimony, representing a total of 25,277 ounces of gold equivalent, versus 18,020 ounces of gold and 559 tonnes of antimony in the first quarter of 2023, representing a total of 21,769 ounces of gold equivalent.
  • Björkdal sold 10,761 ounces of gold versus 9,521 ounces of gold in the first quarter of 2023.
  • Costerfield sold 12,426 ounces of gold and 326 tonnes of antimony versus 8,499 ounces of gold and 559 tonnes of antimony in the first quarter of 2023.

 

Table 2 – First Quarter Sales for 2024 and 2023 and Fourth Quarter of 2023

 

Metal Source Three months

ended

March 31

2024

Three months

ended

March 31

2023

Three months

ended

December 31

2023

Gold sold (oz) Björkdal 10,761 9,521 11,458
Costerfield 12,426 8,499 11,743
Total 23,187 18,020 23,201
Antimony sold (t) Costerfield 326 559 454
Gold US$/oz 2,074 1,887 1,980
Antimony US$/t 13,298 12,656 11,603
Total Gold Eq. (oz)1 Sold
Björkdal 10,761 9,521 11,458
Costerfield 14,516 12,248 14,403
Total 25,277 21,769 25,861
1. Quarterly Gold Eq. (oz) sold is calculated by multiplying the sale quantities of Au and Sb in the period by the respective average market prices of the commodities in the period, adding the 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 Au price is www.transamine.com, and Sb price 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 (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is focused on growing its production and reducing costs to generate significant positive cashflow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.

 

Mandalay’s mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Björkdal mines. Currently, the Company’s main objectives are to continue mining the high-grade Youle vein at Costerfield, ramping up production from deeper Shepherd veins, both of which will continue to supply high-quality ore to the processing plant, and to extend Mineral Reserves. At Björkdal, the Company will continue to produce from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.

 

Posted April 9, 2024

Share this news article

MORE or "UNCATEGORIZED"


ExGen: Phoenix Reports Drill Assays for the Navarre Creek Target of the Empire Mine, Idaho

ExGen Resources Inc. (TSX-V: EXG; OTC: BXXRF) is pleased to provi... READ MORE

May 29, 2024

Lithium Ionic Announces Feasibility Study Results for the Bandeira Lithium Project, Minas Gerais, Brazil

178,000tpa of spodumene concentrate production (5.5% Li2O) 14-yea... READ MORE

May 29, 2024

NexGen Announces Additional Mineralization Discovered at Patterson Corridor East, Assays from RK-24-183 and Commencement of Expanded Summer Exploration Program

NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased ... READ MORE

May 29, 2024

Red Pine Intercepts Significant Mineralization at the Wawa Gold Project, including 5.58 g/t gold over 18.44 m including 72.20 g/t gold over 0.88 m

Red Pine Exploration Inc. (TSX-V: RPX) (OTCQB: RDEXF) is pleased ... READ MORE

May 29, 2024

Copper Lake Resources Reports Results of Drilling at Marshall Lake Copper-Zinc-Silver VMS Property

Copper Lake Resources Ltd. (TSX-V: CPL) (Frankfurt: WOI) (OTC: WTCZF) is... READ MORE

May 29, 2024

Copyright 2024 The Prospector News