TORONTO, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, OTCQB: MNDJF) announced today its production and sales results for the third quarter of 2021.
Third Quarter 2021 Production Highlights:
- Consolidated saleable gold equivalent production of 33,121 ounces – highest quarterly result since Q4 2017;
- Consolidated 29,752 ounces of gold equivalent sold – highest quarterly amount in four years;
- Costerfield’s highest ever quarterly saleable gold equivalent production of 18,946 ounces; and
- Cerro Bayo produced 2,925 ounces of gold equivalent. The Company expects Cerro Bayo’s overall contribution to be 9,000 – 10,000 ounces of gold equivalent by year end.
Based on year-to-date production results, Mandalay anticipates that consolidated 2021 saleable production (not including production from Cerro Bayo) will be at the higher end of the previously provided production guidance range of the 105,000 – 117,000 ounces of gold equivalent.
Dominic Duffy, President and CEO of Mandalay, commented:
“Mandalay continued to deliver strong operational results during the third quarter. The 33,121 saleable ounces of gold equivalent produced was the Company’s best result since Q4 2017 and marked our fifth consecutive quarter of increased production. The consolidated 90,640 ounces of gold equivalent produced during the first nine months not only demonstrates stability in our operations, but also positions the Company to achieve the upper limits of our 2021 combined production guidance from Costerfield and Bjrkdal. The main reasons for this are the overperformance at Costerfield and the increased antimony price.”
Mr. Duffy continued, “Costerfield achieved another outstanding quarter, producing 18,946 ounces of saleable gold equivalent – the highest in Company history. However, due to the current global logistics challenges, September’s floatation concentration shipment was delayed until the start of October, resulting in a delay in the recognition of revenue from this portion of production until the fourth quarter.”
“Looking forward, we will continue with the scheduled stoping of the higher-grade upper levels of the Youle deposit. We also expect to enter the Shepherd zone during the fourth quarter 2021, as the lowest level currently being developed will enter the Shepherd zone on the southern extent.”
Mr. Duffy added, “At Bjrkdal, third quarter production of 11,250 saleable gold ounces was a slight improvement upon the previous quarter, however, it is still below the planned production rates. The positive for the quarter was that we began to see improved grades in September as the underground operation was able to decrease the excessive dilution in key stopes. We are currently testing bolting of the upper sections of the stopes to better control the dilution and the initial results have been favorable. This adjustment along with other dilution controls being implemented should see mining grades continue to lift for the remainder of 2021.”
Mr. Duffy concluded, “Cerro Bayo continued with its processing of the low-grade mineralized waste material throughout the third quarter and produced 2,925 ounces of saleable gold equivalent. Due to economic uncertainties surrounding this process, no production guidance was provided for Cerro Bayo at the start of this year. However, with slightly higher than expected grades coupled with the support from a strong silver price, it has allowed for the project to be profitable since its initiation in March 2021. Processing will continue through to December 1, 2021, when Equus Mining will acquire ownership of the operation.”
Saleable Production for the Quarter Ended September 30, 2021:
- In the third quarter of 2021, the Company produced a total of 26,328 ounces of gold, 860 tonnes of antimony and 85,279 ounces of silver representing a total of 33,121 ounces of gold equivalent, versus 22,793 ounces of gold and 991 tonnes of antimony in the third quarter of 2020, representing a total of 25,664 ounces of gold equivalent.
- Production at Bjrkdal was 11,250 ounces of gold in the third quarter of 2021 as compared to 11,044 ounces of gold in the third quarter of 2020.
- Production at Costerfield was 13,315 ounces of gold and 860 tonnes of antimony in the third quarter of 2021 versus 11,749 ounces gold and 991 tonnes antimony in the third quarter of 2020.
- Production at Cerro Bayo was 1,763 ounces of gold and 85,279 ounces of silver in the third quarter of 2021 versus no production in the third quarter of 2020.
Saleable Production for the Nine Months Ended September 30, 2021:
- The Company produced a total of 72,696 ounces gold, 2,550 tonnes antimony and 216,040 ounces of silver, representing a total of 90,640 ounces of gold equivalent production, versus 65,766 ounces gold and 3,045 tonnes of antimony in the corresponding nine months of 2020, representing a total of 76,093 ounces of gold equivalent.
- Production at Bjrkdal was 34,046 ounces gold.
- Production at Costerfield was 34,356 ounces gold and 2,550 tonnes antimony.
- Production at Cerro Bayo was 4,294 ounces of gold and 216,040 ounces of silver.
https://www.globenewswire.com/news-release/2021/10/19/2316377/37460/en/Mandalay-Resources-Corporation-Announces-Production-and-Sales-Results-for-the-Third-Quarter-of-2021.html