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Mandalay Resources Corp. T.MND

Alternate Symbol(s):  MNDJF

Mandalay Resources Corporation is a Canada-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The Costerfield operation is located in Victoria, Australia, within the Costerfield mining district, approximately 10 km northeast of the town of Heathcote, Victoria. Youle and Shepherd are the main source of material for Costerfield. The Costerfield operation has a land package of approximately 1,219 hectares. The Bjorkdal operation is located within the Boliden mining district, approximately 28 km northwest of the municipality of Skelleftea and approximately 750 km north of Stockholm. The Bjorkdal mine produces ore from the Aurora zone underground mine, as well as from a stockpile of low-grade material accumulated over the course of its life of mine. The Bjorkdal operation has a land package of around 12,949 hectares. Its non-core properties include Lupin mines (Canada) and La Quebrada (Chile).


TSX:MND - Post by User

Bullboard Posts
Comment by Sherry35on Apr 11, 2019 5:53pm
59 Views
Post# 29615681

RE:RE:Q1 production

RE:RE:Q1 productionAlbertan22 - I'm wondering if the Costerfield production shortfall was planned. In other words, I'm wondering if money was diverted away from milling to continue with the deep hole exploration.

It is my understanding that drilling costs $200/m. To drill 4 more deep holes would cost approx. $1M. This does not include the assay analysis and report  as well as the DH geophysics and report.

Using a 2018 average production cost of $1148 US per AuEq oz sourced from the investor presentation, the 2800 oz shortfall on the Costerfield milling equates to $3.2M US ore process savings. It buys alot of drilling, assay analysis and DH geophysics. Todays volume on the CDN and US exchnages speaks volumes.

So, until the financing closed at the end of March/19, MND cut back on milling in order to push through on exploration on deep hole exploration. More smoke'n'mirrors exploration at the expense of the 1Q19 milling. Walks like a duck, quacks like a duck, it's stogie smoking duck looking in a 2H18 mirror. Running the same game plan.

The following questions need asking:

1) Can the Costerfield mine make up for the 30% Costerfield milling (production) shortfall over  the next three quarters?
2) Will MND meet their 2019E guideance for both operations?
Bullboard Posts