Mandalay Resources Corp (MNDJF)

[NYBob]

Mandalay Resources lifts full-year consolidated gold-equivalent
output guidance after strong 3Q in Australia
In the three months to end-September, the miner produced 22,793
consolidated saleable gold ounces, which was the best quarterly result
since the fourth quarter of 2017


At the Costerfield mine, the Youle vein continues to deliver excellent
results, the firm said

Mandalay Resources Corp. -

At the Costerfield mine, the Youle vein continues to deliver excellent
results, the firm said
Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) (FRA:R7X2) has
raised its guidance for full-year gold-equivalent ounce production
across its mines, thanks to a very strong performance from its
Australian operation in the third quarter.

In the three months to end-September, the miner produced 22,793
saleable
gold ounces from Costerfield in Australia, together with
Björkdal in Sweden, which was the best quarterly consolidated result
since the fourth quarter of 2017.

READ: Mandalay Resources reports "excellent" financial performance in
second quarter amid rising gold price
It was also the fourth consecutive quarter-over-quarter improvement in
consolidated saleable gold production.

"Mandalay continues to build upon the momentum generated during the
first half of the year by delivering another strong production and
sales quarter. We expect to fulfil or outperform our consolidated 2020
production guidance on a gold equivalent ounces basis ...," said
Dominic Duffy, the CEO of the metals miner.

Based on revised metals prices (namely, not those used for the forecast
in January this year), the firm now expects consolidated gold-
equivalent ounces to be between 100,000 and 109,000 ounces for the year
to December 31 - up from between 93,000 and 106,000 ounces.

At the Costerfield Gold & Antimony Mine,
the Youle vein continues to deliver excellent results, with the head
grades averaging 11.54 grams per ton (g/t) and
4.1% for gold and
antimony processed, respectively, the firm noted.

Overall, the mine produced 14,620 sale able gold equivalent ounces,
comprising 11,749 saleable gold ounces and 991 tonnes of saleable
antimony.
The 1,036 tonnes of antimony sold during the quarter was Mandalay's
highest quarterly level since the first quarter of 2014.

Over in Sweden and Björkdal Gold Mine,
Mandalay highlighted that third-quarter production of
11,044 saleable gold ounces was in-line with the previous quarter, but
due to "dilution challenges" that the firm is "addressing", the site
was tracking below forecast production levels in the year-to-date.

But Duffy added: "Production for the remainder of the year is expected
to see some improvements and the focus will remain on capital
development to advance further down into
the Aurora zone’s higher-grades lower levels.
Aurora’s capital development and definition drilling highlighting
multiple vein structures parallel to Aurora sets up
Björkdal for a significantly stronger 2021."

In the third quarter, Björkdal sold 11,511 ounces of gold, compared to
13,006 ounces in the same quarter of 2019, while Costerfield sold
11,489 ounces of gold and 1,036 tonnes of antimony.

That compares to 3,126 ounces of gold and 412 tonnes of antimony in the
same period last year.

Metals producer Mandalay has producing assets in Australia and Sweden,
and care and maintenance and development projects in Chile.

It aims to grow output at its gold and antimony operation in Australia,
and gold production from its mine in Sweden to generate near-term cash
flow.

Shares in Toronto advanced almost 6.9% to C$1.71 each.

---Updates for share price---

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Price: 1.72 CAD

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2020-04-13
2020-10-13
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