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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 Sep 19, 2019 9:50pm
106 Views
Post# 30146006

RE:2019 Denver Gold Forum Presentation

RE:2019 Denver Gold Forum Presentationganndolp - Thank you for posting the Denver Gold Forum presentation.

I was wondering if you could publish some Bjorkdal 2020 Au production numbers using various underground grades of 1.5, 2.34, 3.37 and 4 g/t, and 0.7 g/t stockpile. Duffy indicated in the video that 2020 mill feeds would be 1M tonnes of underground ore and 300K low grade stockpile ore from above ground operations. I would use a spot price of $1500 USD per oz. I think the readers can extrapoliate revenue at higher Au prices.

I did a quick 2020 calculation using just 1M tons of underground ore at 4 g/t - I ignored the stockpile. The 2020 mill production would be 137,931 Au ozs or $206,896,551 USD. At 3 g/t, mill production would be 103,448 Au ozs or $155,172,413 USD.

What is the effect on the mining costs when more mill feed is coming from underground? Extra $25 USD/oz?
 
In the June investor forum video, Duffy mentioned concentrating on debt repayment is 2020. I remember calculating Gold Bond repayment to be approx. 419 Au oz /month over the remaining three years. Its about 5% of Bjorkdal annual production using 103,448 Au ozs/yr (estimate from above).

To conclude, Bjorkdal has an amazing story with a 10+ year LOM.

Bullboard Posts