Mandalay Resources Corporation Announces Strong Production Results and Growing Cash Balance for First Quarter 2024
Press Release
TORONTO, ON, April 08, 2024 — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) announces strong first quarter production results marked by a notable increase in cash balance. All currency references in this press release are in U.S. dollars except as otherwise indicated.
First Quarter Highlights:
- Mandalay’s quarter-end cash balance was $47.1 million, a significant increase of $20.2 million as compared to year-end 2023;
- Consolidated gold equivalent production of 24,936 ounces;
- Costerfield production increased to 14,566 gold equivalent ounces, 32% higher than Q1 2023;
- Björkdal production increased to 10,370 gold ounces, 16% higher than Q1 2023; and
- Consolidated gold equivalent sold was 25,277 ounces.
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.”
Production for the Quarter Ended March 31, 2024:
- The Company produced a total of 22,346 ounces of gold and 404 tonnes of antimony representing a total of 24,936 ounces of gold equivalent, versus 16,337 ounces of gold and 544 tonnes of antimony in the first quarter of 2023, representing a total of 19,986 ounces of gold equivalent.
- Production at Björkdal was 10,370 ounces of gold versus 8,969 ounces of gold in the first quarter of 2023.
- Production at Costerfield was 11,976 ounces of gold and 404 tonnes of antimony versus 7,368 ounces gold and 544 tonnes antimony in the first quarter of 2023.
IBF4
