Industria
Mandalay Resources Corporation Announces Strong Production Results and Growing Cash Balance for First Quarter 2024
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."
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.
Frazer Bourchier, President and Chief Executive Officer; Edison Nguyen , Director, Business Valuations and IR; Contact: 647.258.9722
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