Proactiveinvestors Australia Mandalay Resources Corp. https://www.proactiveinvestors.com.au Proactiveinvestors Australia Mandalay Resources Corp. RSS feed en Thu, 18 Jul 2019 02:53:16 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Mandalay Resources expecting busy year on projects in Australia and Sweden ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13848/mandalay-resources-expecting-busy-year-on--projects-in-australia-and-sweden-13848.html Mon, 24 Jun 2019 11:15:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13848/mandalay-resources-expecting-busy-year-on--projects-in-australia-and-sweden-13848.html <![CDATA[News - Mandalay Resources making headway as Australian mine shows continued promise ]]> https://www.proactiveinvestors.com.au/companies/news/200983/mandalay-resources-making-headway-as-australian-mine-shows-continued-promise-200983.html Metals miner Mandalay Resources Corp (TSE:MND) has made steady progress in 2018 and is confident it will reach its production guidance of between 101,000 and 113,000 gold equivalent ounces for the full year.

No mean feat for the company after a challenges of 2017, and against a backdrop of a firming gold price environment.

Not that this company is all about gold. This is no one trick pony as it also produces silver and antimony from its two mines, which are in Sweden and Australia.

Keep your eyes on Costerfield..

Recent excitement has centered around potential future output at its Australian mine.  It purchased Costerfield in Victoria in 2009 and quickly ramped up to a planned production rate of 5,000 tpm (tonnes per month) by the end of 2010. Output has remained steady since 2013 of 10 -12,000 tonnes per month.

After exploiting the Cuffley and Augusta lodes, it now has the Youle vein in its sights, where recent drilling has shown that mineralization continues at depth.

The known strike of the Youle vein extends 600 metres and has a vertical depth of 150 metres.

"The high grades, along with the fact that the Youle vein is in relatively close proximity to where we are currently mining, provides good potential for it to be the next viable ore source for Mandalay at Costerfield," Dominic Duffy, president and chief executive of Mandalay recently told investors.

He was formerly the group's chief operating officer Dominic Duffy and took the helm  when Dr Mark Sander resigned.

Duffy highlighted that Youle had the "strong potential" to continue Mandalay's trend of continuous mineral reserve replacement at Costerfield over the past eight years.

WATCH: Mandalay Resources delivers consistent, high-grade drill results from Costerfield project in Australia A transitional production and sales quarter..

On July 11, the miner posted its results for the second quarter, which saw it produce 22,348 saleable ounces of gold equivalent and sold 22,052 ounces of gold equivalent.

Mandalay began to transition production into the Brunswick lode at Costerfield and over the next two quarters, it expects to see production lift at both Bjorkdal in Sweden and Costerfield in Australia, the latter due to higher grades.

Bjorkdal produced 14,017 ounces of gold and Mandalay is in the process of adding automation controls to the processing plant, and the company said it was beginning to see additional recovery improvements of around 1% as the circuit stabilizes.

At the Costerfield mine, 8,331 gold equivalent ounces were generated in the second quarter.

So what are the assets?

The company bought the  Björkdal gold mine in Sweden in 2014, and has operated the Costerfield gold-antimony mine in Victoria, Australia, since 2009.

Its other main production asset is the Cerro Bayo silver gold mine in Chile, which is currently on care and maintenance after production was suspended last June 9 after flooding beset the Delia NW mine area.

Mandalay shares are unchanged at C$0.19 on the day.

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Tue, 17 Jul 2018 14:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200983/mandalay-resources-making-headway-as-australian-mine-shows-continued-promise-200983.html
<![CDATA[News - Mandalay Resources confident on reaching production guidance for 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/200619/mandalay-resources-confident-on-reaching-production-guidance-for-2018-200619.html Mandalay Resources Corp (TSE:MND) is confident it will reach its production guidance of between 101,000 and 113,000 gold equivalent ounces for 2018, it said, posting second-quarter results.

For the three months, the firm produced 22,348 saleable ounces of gold equivalent and sold 22,052 ounces of gold equivalent.

READ: Mandalay Resources' Youle vein at Costerfield set to provide potential reserve boost

The metals miner has producing assets in Australia (Costerfield) and Sweden (Bjorkdal)  as well as producing and exploration projects in Chile.

"The second quarter of 2018 was a transitional production and sales quarter for Mandalay as the company began to transition production into the Brunswick lode at Costerfield," said Dominic Duffy, Mandalay's president and chief executive.

"Over the next two quarters, we expect to see production lift at both operations due to the initiation of mining operations at Brunswick and mining anticipated higher grades at Bjorkdal.

He added: "Bjorkdal produced 14,017 ounces of gold in the second quarter of 2018. The company is in the process of adding automation controls to the processing plant, and we are beginning to see additional recovery improvements of approximately 1 per cent as the circuit stabilizes.

"This is also expected to result in the removal of more gold in the gravity circuit, with the overall impact of improving our payables."

At the Costerfield mine, 8,331 gold equivalent ounces were generated in the second quarter.

"Second quarter production was lower than in the previous-year quarter due to a combination of expected lower mining grades and available ore in the current producing areas, said Duffy.

"The company intercepted the Brunswick lode during the second quarter and is currently dewatering this lode. We expect a significant increase in production once dewatering is completed and mining initiated during the third quarter.

Simultaneously, we are aggressively continuing our infill and extensional drilling programme on the Youle lode."

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Wed, 11 Jul 2018 15:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200619/mandalay-resources-confident-on-reaching-production-guidance-for-2018-200619.html
<![CDATA[Media files - Mandalay Resources delivers consistent, high-grade drill results from Costerfield project in Australia ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9803/mandalay-resources-delivers-consistent-high-grade-drill-results-from-costerfield-project-in-australia-9803.html Mon, 09 Jul 2018 12:24:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9803/mandalay-resources-delivers-consistent-high-grade-drill-results-from-costerfield-project-in-australia-9803.html <![CDATA[News - Mandalay Resources' Youle vein at Costerfield set to provide potential reserve boost ]]> https://www.proactiveinvestors.com.au/companies/news/199798/mandalay-resources-youle-vein-at-costerfield-set-to-provide-potential-reserve-boost-199798.html Metals miner Mandalay Resources Corp (TSE:MND) said the Youle vein at its  Costerfield project in Australia has the potential to be the next viable source for mining.

Updating on exploration, Mandalay said that the most recent drilling results further demonstrates that the mineralisation continues at depth.

The known strike of the Youle vein extends 600 metres and has a vertical depth of 150 metres.

Extremely exciting

"The Youle discovery is extremely exciting for Mandalay as our drilling campaign continues to demonstrate consistent, high-grade results that share a similar structural setting to the previously mined Augusta and Cuffley lodes," said Dominic Duffy, president and chief executive at Mandalay.

"Mandalay's current infill drilling programme and related studies are being undertaken with the intention of delivering mineral reserve additions from Youle in our 2018 year-end mineral resources and reserves update.

"The high grades, along with the fact that the Youle vein is in relatively close proximity to where we are currently mining, provides good potential for it to be the next viable ore source for Mandalay at Costerfield."

Duffy highlighted that Youle has the "strong potential" to continue Mandalay's trend of continuous mineral reserve replacement at Costerfield over the past eight years and demonstrates the remarkable prospectivity of the district.

"Mandalay will be looking to increase its brownfields exploration spending in 2019, with the aim of making further discoveries."

Highlight assays include 0.27 metre at 165.1 grams per tonne (g/t) gold and 20.7% antimony (30.2 g/t gold equivalent at 1.8 m mining width) in one hole.

Another hole showed 0.16  meters at 551 g/t gold and 25.6% antimony, at a 54.3 g/t AuEq (gold-equivalent) at 1.8 m mining width.

More drilling at Youle eyed

Looking ahead at Youle, Mandalay plans infill drilling over the next six months at the central portion of the vein, via drilling with hole spacings of around 40 metres.

The company also expects to carry out extension drilling along strike and at depth (with the goal of extending mineralization to a depth of 700 RL). This program is expected to comprise 37 holes.

Mandalay added 1.32% to stahd at C$0.19 in Toronto.

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Thu, 28 Jun 2018 08:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199798/mandalay-resources-youle-vein-at-costerfield-set-to-provide-potential-reserve-boost-199798.html
<![CDATA[News - Mandalay Resources names COO Duffy as new CEO after Sander resigns ]]> https://www.proactiveinvestors.com.au/companies/news/197016/mandalay-resources-names-coo-duffy-as-new-ceo-after-sander-resigns-197016.html Metals miner Mandalay Resources Corp (TSE:MND) said chief operating officer Dominic Duffy has become the group's chief executive, after Dr Mark Sander resigned.

Duffy has 20 years' technical and operational management experience, having worked at numerous operations throughout Australia and Latin America.

READ: Mandalay Resources Corp expects to return to cash flow positive in 2018

Before joining Mandalay, he most recently worked for Coeur d'Alene Mines and Hecla Mining Company in South America.

Producer Mandalay, which has mines in Australia and Sweden, also noted that Sander was withdrawing his nomination for election to the board at the firm's AGM on May 16 this year.

"I want to thank Dr. Sander for his many years of service to Mandalay and his critical role as a founder of the company," Bradford Mills, Mandalay's chairman told investors.

"Mark has helped the company weather the operational crisis triggered by the Cerro Bayo accident and positioned the company to grow from its base of existing operations.

"I am very pleased to welcome Dominic Duffy to the role of president and chief executive.

"Dominic has demonstrated his commitment to delivering efficient, low-cost operations, which I believe is a critical next step for Mandalay and a key objective for the company."

Duffy successfully restarted Cerro Bayo after its acquisition from Coeur d'Alene Mines in 2010 and has been the group's chief operating officer since 2013.

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Tue, 15 May 2018 08:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197016/mandalay-resources-names-coo-duffy-as-new-ceo-after-sander-resigns-197016.html
<![CDATA[News - Mandalay Resources Corp expects to return to cash flow positive in 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/196750/mandalay-resources-corp-expects-to-return-to-cash-flow-positive-in-2018-196750.html Metals miner Mandalay Resources Corp (TSE:MND) has confirmed that it expects to return to cash flow positive in 2018, as it posted first quarter financials, which showed its loss had narrowed.

In the three months, Mandalay generated C$12.1mln in adjusted EBITDA (underlying earnings) in the current quarter, which was C$2.3mln lower than in the previous quarter, which meant a net loss of C$1.2mln for the three months versus a loss of C$2.3mln in the same period of 2017. Revenue was down to C$39.7mln versus C$45.3mln in 2017.

READ: Mandalay Resources' first quarter output places it 'firmly' on track for 2018 guidance

Mandalay generated a net cash inflow of C$6.5mln compared to a net cash outflow of C$8.1mln in the first quarter of last year, largely due to the sales from the record fourth quarter 2017 production at its Swedish mine -  Bjorkdal.

Significantly, Mandalay grew its cash balance by 38% quarter-over-quarter, increasing it to $23.4mln on March 31 this year, from C$16.9mln as at year end 2017.

The miner has producing mines in Australia and Sweden, and care and maintenance and development projects in Chile.

"The first quarter of 2018 was distinguished by record quarterly revenue at Bjorkdal under Mandalay ownership, resulting from sales of the record fourth quarter 2017 production," said Dr Mark Sander, the president and chief executive.

"We are pleased that the grade control program continues to function well, that the sustained metallurgical performance of the plant continues, and that the debottlenecking carried out during 2017 in the open pit and underground mines keeps performing as planned.

"As all of these operational improvements have taken hold, we expect continued strong performance from Bjorkdal into the remainder of 2018.

WATCH: Mandalay Resources CEO says drill results in Australia signal a 'potential mineable' ore body

"In the coming months, we plan to introduce new loading and haulage contractors to the open pit and underground mine in a campaign to improve safety, control costs, and bring new capacity to bear on our goal of increasing the mining rate of highest-grade A-quality ore."

Sander went on to say that in Australia, at Costerfield, the mine continued to deliver "dependable" performance in the first quarter, producing 10,456 gold equivalent ounces at a cash cost of $869 per ounce.

"We expect continued performance at these levels for the upcoming year as development of the new Brunswick lode is completed and production transitions from Cuffley to Brunswick.

"We believe the emerging, high-grade Youle vein discovery close to Brunswick holds the potential for adding significant Mineral Reserves by year-end 2018, which could support a low-cost mine life extension. We continue drilling with three rigs on Youle."

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Thu, 10 May 2018 09:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196750/mandalay-resources-corp-expects-to-return-to-cash-flow-positive-in-2018-196750.html
<![CDATA[News - Mandalay Resources' first quarter output places it 'firmly' on track for 2018 guidance ]]> https://www.proactiveinvestors.com.au/companies/news/194881/mandalay-resources-first-quarter-output-places-it-firmly-on-track-for-2018-guidance-194881.html Miner Mandalay Resources Corp (TSE:MND) said first quarter production and sales results put it firmly on track to reach its 2018 output guidance, with its Bjorkman mine in Sweden once again a standout performer.

The group is targeting between 101,000 and 113,000 gold equivalent ounces for 2018.

The company has producing mines in Australia and Sweden, and care and maintenance and development projects in Chile.

"Bjorkdal produced 12,716 ounces of gold in the first quarter of 2018, about 20% higher than the comparative year-ago quarter," said Mark Sander, president and chief executive of Mandalay.

"Also, in the current quarter, Bjorkdal recorded the second highest sales under Mandalay ownership at 17,677 gold ounces.

"This occurred as inventory from the record fourth quarter 2017 production was sold.

"Follow-on revenue due to the high sales volume in the first quarter will strengthen our cash position."

The Costerfield mine in Australia, said Sander, produced 10,456 gold equivalent ounces in the first quarter, which was comparatively lower than in the previous year quarter due to expected lower mining grades.

"We are on track with respect to the capital development program, announced in November 2017, to reach the Brunswick Lode, which we expect will open up additional production fronts and extend mine life," he added.

Simultaneously, Mandalay is continuing infill and extensional drilling in the recently announced Youle vein target, where it unveiled some very encouraging high-grade intercepts earlier this April.

Overall, in terms of production, the group produced a total of 23,172 ounces of gold equivalent in the first quarter of 2018, compared to 32,481 ounces of gold equivalent in the same period of 2017 when Cerro Bayo in Chile was operating.

For sales, Mandalay sold 29,151 ounces of gold equivalent in the first quarter of 2018 versus 34,801 ounces of gold equivalent in the first quarter of 2017 when the Chile mine was operating.

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Thu, 12 Apr 2018 10:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194881/mandalay-resources-first-quarter-output-places-it-firmly-on-track-for-2018-guidance-194881.html
<![CDATA[Media files - Mandalay Resources CEO says drill results in Australia signal a 'potential mineable' ore body ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9000/mandalay-resources-ceo-says-drill-results-in-australia-signal-a-potential-mineable-ore-body-9000.html Thu, 05 Apr 2018 12:32:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9000/mandalay-resources-ceo-says-drill-results-in-australia-signal-a-potential-mineable-ore-body-9000.html <![CDATA[News - Mandalay Resources encouraged by high grade assays from beneath historic Costerfield mine ]]> https://www.proactiveinvestors.com.au/companies/news/194182/mandalay-resources-encouraged-by-high-grade-assays-from-beneath-historic-costerfield-mine-194182.html Precious metals miner Mandalay Resources Corp (TSE:MND) has unveiled  encouraging high grade drill results from exploration under the historic Costerfield mine in Australia.

The firm has sunk 27 diamond holes into what's called the  Youle vein in three campaigns spanning 2011, 2014 and the latest from last year to this.

The firm is targeting projections of veins beneath the historic Kendall and Costerfield mine, which was the largest historical producer in the district from 1864 to 1938.

"We are encouraged by the high-grade cluster of drill intercepts defining the core of the emerging Youle vein beneath the historic Costerfield mine," said Mark Sander, president and chief executive of Mandalay.

"This setting is similar to the locations of the Augusta lodes, the Cuffley lode and the Brunswick lode beneath other historic mines of the district, all of which Mandalay has converted to mineral reserves and has either mined or is preparing to mine."

The strike length (400 to 600 m) and depth extent (150 to 200 m) of the intercepts are also consistent with the dimensions of orebodies the firm have found beneath the other historic mines in the district that have proved very profitable for Mandalay, he noted.

Highlight assays included 0.37m width at 120.9 g/t gold  and 11.1% antimony. Another width showed 0.58m at 272.1 g/t gold and 13.3% antimony.

Sander added: "There is room to grow this discovery along strike and downdip.

"The fact that Youle lies just several hundred metres to one kilometre from the Brunswick lode, to which capital development access will be created later this quarter, suggests that there is potential to access the shoot quickly and for limited development capital.

"We plan to add additional surface rigs to the Youle drilling program to expand and infill high-grade mineralization as quickly as possible, with the goal of adding significantly to the company's mineral resources and reserves by the end of 2018."

Mandalay shares shed 2.50% to C$0.20.

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Tue, 03 Apr 2018 13:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194182/mandalay-resources-encouraged-by-high-grade-assays-from-beneath-historic-costerfield-mine-194182.html
<![CDATA[News - Mandalay Resources reports on "challenging" 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/192075/mandalay-resources-reports-on-challenging-2017-192075.html Precious metals group Mandalay Resources Corp (TSE:MND) said 2017 was a "challenging" year for the group, which saw production suspended at its Chile mine after flooding.

Lack of production however from the Cerro Bayo mine was offset by record production, as previously reported,  at Bjorkdal in Sweden, which continues to demonstrate operational improvements.

For the year to December 31, Mandalay generated revenue of US$163mln and adjusted EBITDA (underlying earnings) of US48.6mln million and adjusted net loss before special items of US$10.4mln.

After special items of US $32.6mln, of which US$19.8mln was for Cerro Bayo write-off of assets and US$12.8mln of Cerro Bayo incident related expenses, the firm reported a consolidated net loss for the year of US$43.0 million and $0.09 loss per share. That compares to a loss of US$20.23mln in 2016.

"Mandalay generated 12% lower revenue in 2017 than in 2016 due to suspension of production at Cerro Bayo after the inundation on June 9, 2017," said Dr Mark Sander, the chief executive of Mandalay.

"Mandalay cost of sales decreased by 15% year-on-year as relatively high-cost Cerro Bayo left the mix and Bjorkdal unit costs declined significantly.

"With the impact of lower revenue, the company generated only 4% less adjusted EBITDA and follow-on reduced net income before special items in the current quarter."

On Costerfield in Australia, Sander said the mine continued to deliver a dependable performance in the fourth quarter, producing 12,360 gold equivalent ounces at a "very sound" cash cost of $707 per ounce, and at an all-in cost of $902 per ounce.

"We expect continued performance at these levels for the upcoming year as development of the new Brunswick lode is completed and production transitions from Cuffley to Brunswick."

Mandalay also noted on Thursday that it expects the benefit of the cash inflow from the record fourth quarter production at Bjorkdal to be reflected in its first quarter results.

Mandalay shares in Toronto eased 3.92% to C$0.24.

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Thu, 22 Feb 2018 10:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192075/mandalay-resources-reports-on-challenging-2017-192075.html
<![CDATA[News - Mandalay Resources maintains reserves over course of 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/191929/mandalay-resources-maintains-reserves-over-course-of-2017-191929.html Precious metals group Mandalay Resources Corp (TSE:MND) said it had maintained its reserves over 2017 despite mining from its three principle assets.

In a reserve and resource update, the miner said that expressed as total ounces of contained gold equivalent calculated at year-end 2017 metals prices, the group maintained its mineral reserves position of just over 1mln contained ounces.

"These reserves were added to our position for an exploration cost of $29.67 per gold equivalent ounce, significantly lower than in the previous year," noted Mark Sander, the president and chief executive of Mandalay.

Reserves are contained at the firm's Costerfield mine in Australia, Cerro Bayo in Chile and the Bjorkdal mine in Sweden.

In the proven and probable reserves, contained gold was approximately the same as the year prior, while contained silver decreased by 12% and contained antimony decreased by 1%.

In the measured and indicated category, contained gold increased by around 6%, contained silver decreased by 3%, and contained antimony increased by 13%.

Last month, Mandalay hailed a 'superb' performance by the Björkdal mine the fourth quarter, which meant the firm exceeded its annual consolidated revised output guidance for 2017.

On an annual basis, the mine produced 62,028 ounces of gold, which was not only 30% greater than in the previous year, but is also the highest production from the mine since 1998, the metals miner said.

This was due partly to continued grade control and the ability of the mine to deliver larger quantities of the highest quality “A” ore to the plant.

In the fourth quarter to end December, output at Björkdal was 22,035 ounces gold compared to 10,934 ounces gold in the same period of 2016.

Meanwhile, the firm's Costerfield mine in Australia produced 12,360 gold equivalent ounces in the fourth quarter and 52,137 gold equivalent ounces for the full year.

Production at the Cerro Bayo mine in Chile was suspended since June 9 last year due to the flooding incident, so there was no production in the fourth quarter.

Over the year, output at Cerro Bayo was 5,909 ounces gold and 794,533 ounces silver.

Mandalay shares in Toronto shed 1.96% to C$0.25.

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Tue, 20 Feb 2018 08:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191929/mandalay-resources-maintains-reserves-over-course-of-2017-191929.html
<![CDATA[News - Björkdal is a standout but miner Mandalay’s resilience underlined by this year’s production stats ]]> https://www.proactiveinvestors.com.au/companies/news/190327/bjrkdal-is-a-standout-but-miner-mandalays-resilience-underlined-by-this-years-production-stats-190327.html Precious metals group Mandalay Resources Corp (TSE:MND) has faced challenges in 2017 but its recent production and sales update underlined the resilience of its core mining business.

Mandalay is a multi-mine firm, not reliant on one project. It bought the  Björkdal gold mine in Sweden in 2014, and it has operated the Costerfield gold-antimony mine in Victoria, Australia, since 2009.

Production suspended..

Its other main production asset is the Cerro Bayo silver gold mine in Chile, which is currently on care and maintenance after production was suspended last June 9 after flooding beset the Delia NW mine.

The firm had conducted a search for two missing miners, but, said on June 27, the hunt had been unsuccessful. The Chilean Office of Exception State had ruled out the possibility of finding the two miners alive.

On June 30 it said it had declared force majeure in respect of the Cerro Bayo mine - suspending its obligations under contracts with various parties, such as suppliers and customers.

It also started an independent technical investigation into the flooding.

Mark Sander, chief executive, told investors in the recent update that "a diligent and committed permitting process" was now underway at Cerro Bayo to work with regulators to receive the outstanding permits necessary to restart the mine and complete its life of mine plan.

Brilliant Björkdal ..

The highlight of the latest operational update was the Swedish mine Björkdal , which in the fourth quarter, exceeded Mandalay's annual consolidated revised output guidance for 2017.

On an annual basis, the mine produced 62,028 ounces of gold, which was not only 30% greater than in the previous year, but was also the highest production from the mine since 1998.

Output for the three months at Björkdal was 22,035 ounces gold compared to 10,934 ounces gold in the same period of 2016.

Meanwhile, Costerfield produced 12,360 gold equivalent ounces in the fourth quarter and 52,137 gold equivalent ounces for the full year.

Fourth quarter production at the Australian mine was similar to that of the same period in the previous year and Mandalay is on track with respect to the capital development program announced in November last year, to reach the Brunswick vein and extend mine life, it said.

Meanwhile, over the year (there was no production in the third and fourth quarters), output at Cerro Bayo in Chile was 5,909 ounces gold and 794,533 ounces silver.

Consolidated output for the year was 131,186 ounces of gold equivalent in 2017 compared to 145,497 gold equivalent ounces in 2016.

In terms of sales over the whole year, Mandalay sold 127,367 ounces of gold equivalent in 2017 versus 146,564 ounces of gold equivalent in 2016.

For full year 2018, Mandalay is guiding for 101,000 to 113,000 gold equivalent ounces to be produced at an all in cost of between $1,155 and $1,280 per gold equivalent ounce.

Mark Sander, president and chief executive of Mandalay told investors: "I am delighted to note that Mandalay’s consolidated production from our two currently producing assets during the fourth quarter of 2017 was higher than in the fourth quarter of 2016, when all three mines were operating.

Resiliency..

"This resiliency is characteristic of our multi-mine company and, more importantly, of our people."

Looking ahead, Mandalay envisages that Cerro Bayo will remain on care and maintenance through 2018 but will restart in the first quarter of 2019.

At Björkdal, capital will be spent on underground development, and tailings dam improvements, and Costerfield will see  the Brunswick orebody developed and a tailings dam expansion.

In terms of exploration, $3.4mln will be spent at Björkdal in a bid for more reserves and $2.9mln at Costerfield mostly on drilling the emerging Costerfield Deeps and Kendall high-grade targets.

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Fri, 19 Jan 2018 10:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190327/bjrkdal-is-a-standout-but-miner-mandalays-resilience-underlined-by-this-years-production-stats-190327.html
<![CDATA[News - Mandalay Resources hails 'superb' performance from Swedish gold mine ]]> https://www.proactiveinvestors.com.au/companies/news/190038/mandalay-resources-hails-superb-performance-from-swedish-gold-mine-190038.html A 'superb' performance by the firm's Björkdal mine in Sweden in the fourth quarter meant Mandalay Resources Corp (TSE:MND) exceeded its annual consolidated revised output guidance for 2017.

On an annual basis, the mine produced 62,028 ounces of gold, which was not only 30% greater than in the previous year, but is also the highest production from the mine since 1998, the metals miner said.

READ: Mandalay Resources reveals WPC Resources set to buy Ulu gold property Grade control and quality ...

This was due partly to continued grade control and the ability of the mine to deliver larger quantities of the highest quality “A” ore to the plant.

In the fourth quarter to end December, output at Björkdal was 22,035 ounces gold compared to 10,934 ounces gold in the same period of 2016.

Meanwhile, the firm's Costerfield mine in Australia produced 12,360 gold equivalent ounces in the fourth quarter and 52,137 gold equivalent ounces for the full year.

Fourth quarter production was similar to that of the same period in the previous year and Mandalay is on track with respect to the capital development program announced in November last year, to reach the Brunswick vein and extend mine life.

Cerro Bayo suspended ...

Production at the Cerro Bayo mine in Chile was suspended since June 9 last year due to the flooding incident, so there was no production in the fourth quarter.

Over the year, output at Cerro Bayo was 5,909 ounces gold and 794,533 ounces silver.

Consolidated output for the year was 131,186 ounces of gold equivalent in 2017 compared to 145,497 gold equivalent ounces in 2016.

In terms of sales over the whole year, Mandalay sold 127,367 ounces of gold equivalent in 2017 versus 146,564 ounces of gold equivalent in 2016.

For full year 2018, Mandalay is guiding for 101,000 to 113,000 gold equivalent ounces to be produced at an all in cost of between $1,155 and $1,280 per gold equivalent ounce.

Mark Sander, president and chief executive of Mandalay added on Monday: "I am delighted to note that Mandalay’s consolidated production from our two currently producing assets during the fourth quarter of 2017 was higher than in the fourth quarter of 2016, when all three mines were operating.

"This resiliency is characteristic of our multi-mine company and, more importantly, of our people."

Shares surged 11.32% to C$0.30 each.

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Mon, 15 Jan 2018 09:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190038/mandalay-resources-hails-superb-performance-from-swedish-gold-mine-190038.html
<![CDATA[News - Mandalay Resources reveals WPC Resources set to buy Ulu gold property ]]> https://www.proactiveinvestors.com.au/companies/news/189907/mandalay-resources-reveals-wpc-resources-set-to-buy-ulu-gold-property-189907.html Mandalay Resources Corp (TSE:MND)  revealed that Vancouver based explorer WPC Resources Inc is set to buy its Ulu gold property located in Nunavut, Canada after inking an option deal.

The Ulu lease covers around 947 hectares contiguous to the Hood River property in the High Lake greenstone belt.

A 5% net proceeds of production royalty is payable to Royal Gold on production from Ulu in excess of 675,000 ounces and mining major BHP Billiton (LON:BLT) retains the Ulu diamond rights.

A previous mineral estimate put the total measured and indicated resource at 605,000 contained ounces of gold at 7.53 g/t (grams per ton) from 2.5mln tonnes.

Among the terms is that WPC must pay Mandalay  C$200,000 within five business days of the receipt of regulatory approval and pay a further C$200,000 on or before May 31 this year.

It will also issue Mandalay with 15 mln shares.

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Thu, 11 Jan 2018 14:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189907/mandalay-resources-reveals-wpc-resources-set-to-buy-ulu-gold-property-189907.html
<![CDATA[News - Mandalay Resources announces new deal with WPC for Lupin mine ]]> https://www.proactiveinvestors.com.au/companies/news/186690/mandalay-resources-announces-new-deal-with-wpc-for-lupin-mine-186690.html Mandalay Resources Corp (TSE:MND) said it had entered a letter of intent with WPC Resources Inc, under which the latter may acquire Mandalay's subsidiary Lupin Mines Inc.

The LOI replaces the purchase agreement with Mandalay from October last year and the amendment to purchase agreement dated February 28 this year to acquire Lupin.

The letter agreement calls for both firms to enter into a Lupin option agreement which will provide for WPC to buy Lupin, on or before the end of 2018.

"Based on our due diligence, we believe the project offers an exciting mix of known mineralization and near-surface exploration targets with a potential opportunity to leverage existing infrastructure to re-establish the Lupin mine," said WPC's president and chief executive Stephen Wilkinson.

Among the many terms of  the option, WPC must make a non-refundable payment of $400,000 to Mandalay for the use of the Lupin camp within 10 business days of execution of the definitive Lupin option agreement;

It must also grant to Mandalay a conditional total cash payment equal to the equivalent of 10,000 ounces of refined gold, payable in 12 quarterly instalments equal to the cash equivalent of 833-1/3rd ounces of refined gold per quarter, based on the average gold price for each such quarter, beginning with the second quarter immediately following the full quarter after the commencement of commercial production on the property.

The historic Lupin gold mine lies around 400 kilometres north of Yellowknife within the Kitikmeot region of Nunavut.

It hosts five contiguous mining leases covering 6,758 hectares and is subject to a 1% net smelter return royalty payable to Kinross Gold Corp.

The on-site infrastructure includes a 2,300-ton-per-day gold mill, shops, warehouse, fuel farm, tailings facilities, residences, shaft and hoist, power generation, 1.6-kilometre all-season air strip, and permits, including a Type A water licence.

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Thu, 02 Nov 2017 14:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186690/mandalay-resources-announces-new-deal-with-wpc-for-lupin-mine-186690.html
<![CDATA[News - Mandalay Resources shares up as Björkdal and Costerfield mines continue to perform well ]]> https://www.proactiveinvestors.com.au/companies/news/185366/mandalay-resources-shares-up-as-bjrkdal-and-costerfield-mines-continue-to-perform-well-185366.html Shares in Mandalay Resources Corp (TSE:MND) nudged higher late on Tuesday as it unveiled its production and sales stats for the third quarter and said it was on track to meet its full year revised output guidance.

The miner said its producing mines -  Björkdal in Sweden and Costerfield in Australia - continued to perform well.

Production at Costerfield in the three months was 7,370 ounces gold and 804 tonnes antimony, versus 9,102 ounces gold and 844 tonnes antimony in the same period of last year.

Björkdal's output was 13,233 ounces gold compared to 12,376 ounces gold in the third quarter of 2016.

There was no production from Cerro Bayo in Chile this quarter, due to the flood at the Delia NW mine. A safety investigation is ongoing while permitting activities continue.

Mandalay chief executive Mark Sander noted that Björkdal saw a record third quarter under Mandalay ownership.

"The mine has produced at an annualized rate of almost 60,000 ounces of gold through the second and third quarters as a result of the combined impacts of our grade control and mine debottlenecking programs," he said.

"Strong mining performance was augmented by the successful commissioning of the flotation expansion project, completed on budget and ahead of schedule, which increased gold recoveries in the latter part of the quarter.

"Björkdal has clearly moved beyond the step changes envisioned by Mandalay at the time of acquisition and has now embarked on a program of self-generated, continuous improvement.”

Dr. Sander said Costerfield's was a solid performance with production of 12,586 gold equivalent ounces.

"While slightly lower than the third quarter production of the previous year, production remains consistent with the previous three quarters and the current grade profile of the mine."

In all, Mandalay produced 25,819 saleable ounces of gold equivalent and sold 27,310 ounces of gold equivalent in the third quarter.

Shares gained 0.79% to 32 Canadian cents.

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Tue, 10 Oct 2017 16:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185366/mandalay-resources-shares-up-as-bjrkdal-and-costerfield-mines-continue-to-perform-well-185366.html
<![CDATA[News - Mandalay Resources committed to safe mining at Cerro Bayo; moves it to care and maintenance ]]> https://www.proactiveinvestors.com.au/companies/news/184920/mandalay-resources-committed-to-safe-mining-at-cerro-bayo-moves-it-to-care-and-maintenance-184920.html Mandalay Resources Corp (TSE:MND) told investors it has put its Cerro Bayo mine in Chile on care and maintenance.

Output there has been suspended since June 9 this year when the Delia NW mine was flooded.

The firm conducted a search for two missing miners, but, said on June 27, the hunt had been unsuccessful.

The workforce at the mine is now being substantially reduced to preserve its financial capacity to invest in restarting operations once it is confident that this can be done safely and all permits are obtained.

The technical investigation and risk assessment to support safe future mining in the Laguna Verde area will be completed in the fourth quarter of 2017, Mandalay said.

"We are committed to safe mining at Cerro Bayo and delivering the value this operation can create for employees through well-paid jobs; for the community through the purchase of goods and services from local businesses; for Chilean local and national governments through the payment of taxes on future operations; and for our shareholders," said Mark Sander, Mandalay's chief executive.

"While we regret the impact this situation has on our employees and the community, in order to deliver this future value, we must take steps now to ensure we have the financial capacity to invest in the restart once all permits are received.

"We look forward to working with the various Chilean governmental agencies to expeditiously complete all of the life of mine permits incorporating the recommendations of the technical studies."

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Mon, 02 Oct 2017 08:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/184920/mandalay-resources-committed-to-safe-mining-at-cerro-bayo-moves-it-to-care-and-maintenance-184920.html
<![CDATA[News - Mandalay Resources to sell Ulu property to WPC Resources ]]> https://www.proactiveinvestors.com.au/companies/news/182752/mandalay-resources-to-sell-ulu-property-to-wpc-resources-182752.html Mandalay Resources Corp (TSE:MND) has agreed to offer WPC Resources Inc (CVE:WPQ) a new option to acquire a 100% interest in the Ulu gold property.

The new option agreement will supersede the Ulu option agreement dated May 30, 2014 and the Lupin Mines Inc purchase agreement dated October 31, 2016 with respect to Ulu.

The latest letter agreement calls for Mandalay to complete permanent reclamation of historic surface mining and infrastructure disturbances that are beyond the needs of the exploration-stage project, after which WPC can acquire the property, which is located in Nunavut Territory, Canada.

To acquire the property WPC would need to pay Mandalay C$200,000 upfront on the signing of the new Ulu option agreement, then C$200,000 on or before 31 May, 2018, and issue Mandalay 15mln shares in WPC.

WPC would also need to post all future security required by the Kitikmeot Inuit Association (KIA) and the Nunavut Water Board (NWB) relating to future exploration-stage activities on Mining Lease #3563 and related water license in order to transfer the mining lease, and assume all future reclamation and site monitoring expenses and liabilities associated with the Ulu property in a manner reasonably satisfactory to Mandalay, the KIA and the NWB.

Mandalay believes it can accomplish the necessary reclamation to permanently reduce the historic disturbances on the site to only those needed to support future exploration for the amount of the current C$1.6 million security and is preparing to apply for permits to accomplish this permanent reclamation.

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Mon, 21 Aug 2017 12:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182752/mandalay-resources-to-sell-ulu-property-to-wpc-resources-182752.html
<![CDATA[News - Mandalay Resources sees record quarterly production at its Björkdal asset ]]> https://www.proactiveinvestors.com.au/companies/news/182331/mandalay-resources-sees-record-quarterly-production-at-its-bjrkdal-asset-182331.html The second quarter for Mandalay Resources Corp (TSE:MND) was dominated by the tragic events at the Delia NW mine at its Cerra Bayo asset in Chile.

Flooding at the mine on 9 June resulted in the death of two miners and the suspension of mining activities while the company and the authorities attempted extensive rescue efforts.

Operations remain suspended at Cerro Bayo, the mining company said in its second quarter results statement, and are expected to remain so for the rest of this year.

Suspension of operations caused reduced silver and gold production, and therefore revenue, at a higher cost per ounce than envisaged.

Elsewhere, the company's Björkdal asset in Sweden delivered record gold production during the quarter while the Costerfield project in Australia continued to deliver solid output.

In the three months to the end of June, Costerfield produced 14,300 ounces of gold equivalent, down from 17,023 ounces in the same period of 2016.

The all-in cost per gold equivalent ounce produced rose to US$962 from US$772 the year before.

At Björkdal, 16,112 ounces of gold were produced, compared to 12,648 in the same quarter of 2016. The all-in cost fell to US$1,081 an ounce from US$1,212 a year earlier.

At Cerra Bayo, 359,457 ounces of silver was produced, compares to 462,462 ounces the year before. Gold production declined to 3,174 ounces from 3,818 ounces the previous year.

The all-in cost per silver ounce rose to US$24.05 from US$16.54 previously.

Aggregating the output from all three mines, Mandalay produced 38,491 gold equivalent ounces, versus 39,653 ounces the year before. The average all-in cost per gold equivalent ounce rose to US$1,173 from US$1,095.

Group revenue declined to US$44.12mln from US$54.17mln, reflecting suspension of mining activities at Cerra Bayo.

Adjusted underlying earnings (EBITDA) more than halved to US$12.13mln from US$22.13mln a year earlier. The bottom line turned negative, with a consolidated net loss of US$10.11mln versus net income the previous year of US$3.61mln.

Second quarter results were adversely affected by the expenses of search efforts related to the flooding incident at Cerro Bayo and accrual of estimated future costs stemming from the event. Non-cash adjustments include the write-off of the remaining carrying value of mining interests associated with the Delia NW mine, a loss of $0.5 million of property, plant and equipment, and certain other costs.

“Operations at Cerro Bayo remain suspended pending completion of the investigation of the cause of the event and the risk assessment of restarting mining in the vicinity of Laguna Verde,” said Dr Mark Sander, president and chief executive of Mandalay.

“In addition, the Chilean regulator, Sernageomin, has issued a decree that it must approve a request to reopen based on the results of the risk assessment. This process is likely to add an additional one to two months to the one to two months months needed to complete the risk assessment, making it unlikely that we will be in a position to restart mine development and production this year; therefore, we are providing revised guidance for 2017 assuming no Cerro Bayo production or capital spending for the rest of the year while maintaining guidance for Björkdal and Costerfield,” Dr Sander revealed.

Turning to the company’s operations at Björkdal, Dr Sander said the company is pleased that the grade control program continues to function well and that the actions taken to remove bottlenecks in the open pit and underground mines at the end of the first quarter performed exactly as planned.

“Second quarter results reflected higher than planned mill feed grades as well as higher mining rates and we expect continued good performance from Björkdal for the rest of the year,” Dr Sander said.

“Costerfield continued to deliver dependable performance in the second quarter of 2017, producing 14,300 gold equivalent ounces at a very sound cash cost of $648 per ounce, and at an all-in cost of $962 per ounce. We expect continued performance at these levels for the balance of the year,” he added.

The company recently completed a debt restructuring leaving the balance sheet in “a strong position” according to Dr Sander.

“We have ample funding to maintain our capital investment program in our existing mines, restart Cerro Bayo, and maintain working capital. We also have the ability to act quickly on attractive acquisition opportunities that may arise, which remains a core strategic objective for the company,” Dr Sander concluded.

Shares in Mandalay were down 1.5 cents at C$0.36 in early deals.

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Fri, 11 Aug 2017 10:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182331/mandalay-resources-sees-record-quarterly-production-at-its-bjrkdal-asset-182331.html
<![CDATA[News - Mandalay Resources completes debt restructuring with new US$40mln HSBC facility ]]> https://www.proactiveinvestors.com.au/companies/news/181431/mandalay-resources-completes-debt-restructuring-with-new-us40mln-hsbc-facility-181431.html Mandalay Resources Corp (TSE:MND) has now completed restructuring its debt - as it struck a senior secured revolving credit facility with HSBC Bank Canada for up to US$40mln.

The proceeds will be used for working capital, capital expenditures, permitted acquisitions and other corporate purposes, it told investors.

Amounts drawn on the loan will bear interest at LIBO plus between  3.5% and 4.5%  a year or at HSBC’s “base rate” plus 2.5% to 3.5%, depending on the firm's  leverage ratio.

"This new revolving credit facility completes the planned restructuring of Mandalay’s debt, which began with the repurchase of $30 million of the 5.875% secured exchangeable bonds issued by Gold Exchange Limited and an amendment of the terms of the remaining $30mln that included an extension of the maturity date to May 2022," said Mark Sander, Mandalay's chief executive.

"The combination of the re-set of the exchangeable bonds and the new revolver increases our financial flexibility, leaving the company well-funded to maintain its capital investment program in its existing mines and to provide excess working capital. It also will allow the company to act quickly on attractive acquisition opportunities that may arise.”

Notably, the loan does includes a number of customary positive and negative covenants, including a prohibition on the payment of dividends by Mandalay without HSBC’s consent.

Mandalay has agreed to suspend its dividend until it has greater clarity on its future cash flows, including the cost, timing and financial impact of restarting its Cerro Bayo operations, it added.

Yesterday, shares in the junior miner rose as it provided investors with an upbeat assessment of future reserves at its Bjorkdal mine in Sweden and Costerfield mine in Australia.

It follows exploration at both locations, the miner had said.

Shares eased 3.9% to C$0.37.

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Tue, 25 Jul 2017 11:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181431/mandalay-resources-completes-debt-restructuring-with-new-us40mln-hsbc-facility-181431.html
<![CDATA[News - Mandalay's exploration in Sweden and Australia bodes well for reserve uplifts ]]> https://www.proactiveinvestors.com.au/companies/news/181370/mandalay-s-exploration-in-sweden-and-australia-bodes-well-for-reserve-uplifts-181370.html Mandalay Resources Corp (TSE:MND) shares rose as it provided investors with an upbeat assessment of future reserves at its Bjorkdal mine in Sweden and Costerfield project in Australia.

It follows exploration at both locations, the miner said, revealing also that at its development project Challacollo in Chile, sufficient water had been discovered to support an operation.

READ - Mandalay Resources' Bjorkdal and Costerfield bolster production in second quarter READ - Mandalay declares force majeure at Cerro Bayo

Mandalay shares rose over 6% to 39 cents in Toronto on the back of the news.

At Bjorkdal, drilling to the northeast and north of the existing mine demonstrated that the gold system extends several hundred meters and is not yet closed off, the firm said.

There is the potential to increase mineral reserves at lake zone underground and west pit at surface.

Three gold-bearing, skarn-like bodies have been defined though drilling - two in the vicinity of the underground mine and a single in the open-pit mine.

Intercepts in the skarn-like area included 12.2 metres (true width) at 26.99 grams per tonne gold in one hole.

Follow-up drilling is planned, said Mandalay.

Meanwhile, at Costerfield, drilling has improved the outlook for mine life extensions at different scales, said Dr Mark Sander, president and chief executive. 

"At Brunswick, new holes have delivered high-grade, deep intersections that are expected to make a positive impact on the updated mineral resource and reserve model anticipated in the fourth quarter.

"As previously reported, we anticipate the new model will significantly extend mine life based on our expectation that Brunswick will prove to be economic," he said.

Sander also explained that the potential next major new mineralized shoot after Brunswick had begun to emerge in new drilling below the historic workings on the main Costerfield lode.

"These intercepts contain extraordinary gold and antimony grades scattered along a 400-metre strike length and 100-metre vertical interval," he said.

At Challacollo, he said activities to permit and complete a production well, followed by transfer of existing water rights to the new location are under way.

"We now have the option to launch a project to optimize previously estimated capital and operating costs for a mine and plant at Challacollo."

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Mon, 24 Jul 2017 12:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181370/mandalay-s-exploration-in-sweden-and-australia-bodes-well-for-reserve-uplifts-181370.html
<![CDATA[News - Mandalay Resources' Bjorkdal and Costerfield bolster production in second quarter ]]> https://www.proactiveinvestors.com.au/companies/news/180858/mandalay-resources-bjorkdal-and-costerfield-bolster-production-in-second-quarter-180858.html Strong performances at the  Bjorkdal and Costerfield mines helped metals miner Mandalay Resources Corp (TSE:MND) report higher production in the second quarter.

But production in the  three months was impacted by the flood at the Delia NW mine at Cerro Bayo In Chile, which occurred in June 9 and caused the death of two miners.

Notably, Mandalay produced in the three months a consolidated 38,491 saleable ounces of gold equivalent and sold 35,709 ounces of gold equivalent.

This was the highest quarterly consolidated gold equivalent production since the second quarter of 2016.

Costerfield, Cerro Bayo and Bjorkdal...

Gold equivalent ounces produced were 14,300 at Costerfield, 8,079 at Cerro Bayo and 16,112 at Bjorkdal versus 17,023 ounces, 9,982, and 12,648 respectively in the same quarter of 2016.

"Our primary focus at Cerro Bayo is on completing a thorough root cause and risk assessment of the inundation event," said Mark Sander, Mandalay's president and chief executive.

"The outcome of these investigations will inform the restart scenarios we are currently planning. We expect that it will take between two and four months to complete the necessary studies and confirm the new optimum life of mine plan at Cerro Bayo.

"Prior to the accident, the Cerro Bayo mine produced 359,457 ounces of silver and 3,174 ounces of gold. We expect to provide a further, more detailed update on restart plans for Cerro Bayo as well as the impact of the current suspension of operations on our 2017 production guidance when we release our second quarter 2017 financial results in August."

Sanders noted that Mandalay's other operations performed well during this stressful time.

Bjorkdal in record quarter

Bjorkdal produced 16,112 ounces of gold in the second quarter - a record high production quarter under the firm's ownership.

The group is currently commissioning the flotation expansion project at the Swedish mine, slightly ahead of schedule, which is expected to lead to a 1.7% increase in gold recoveries going forward.

"Costerfield continued its dependable performance with production of 14,300 gold equivalent ounces, up from 12,891 gold equivalent ounces produced in the first quarter of 2017. Production is consistent with the previous three quarters and the current grade profile of the mine.

"We expect Costerfield to deliver within its guidance ranges for the balance of the year," he added.

Shars ticked 1.49% higher in Toronto to 34 cents.

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Thu, 13 Jul 2017 10:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180858/mandalay-resources-bjorkdal-and-costerfield-bolster-production-in-second-quarter-180858.html
<![CDATA[News - Mandalay declares force majeure at Cerro Bayo ]]> https://www.proactiveinvestors.com.au/companies/news/180156/mandalay-declares-force-majeure-at-cerro-bayo-180156.html Mandalay Resources Corp (TSE:MND) has declared force majeure in respect of its Cerro Bayo mine, which was flooded earlier this month.

The declaration to the mine’s primary customers, suppliers and contractors suspends the obligations of Mandalay subsidiary Compania Minera Cerro Bayo under contracts with these parties.

Mandalay is also initiating consultations with its unions about the potential effects on employees during this period of suspended production.

Earlier this week the company confirmed the search for two employees who were trapped in the mine when it flooded on 9 June had been called off.

The Chilean Office of Exception State had ruled out the possibility of finding the two miners - Jorge Sanchez and Enrique Ojeda - alive.

Mandalay has initiated an independent technical investigation into the flooding of the Delia NW mine, as well as risk assessments for restarting operations of the Coyita, Delia SE, Marcela and Raul mines, which form the basis for Cerro Bayo's current life-of-mine plan.

The company is reviewing several alternatives for the future of mining at Cerro Bayo and is consulting with all stakeholders in this review process, including employees, unions and government officials.

The company expects to be in a position to provide a more detailed update on its plans for Cerro Bayo and the impact of the suspension of operations on the company's 2017 production guidance in conjunction with its disclosure of second quarter 2017 financial results, which is currently expected to occur after market close on Aug. 10, 2017.

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Fri, 30 Jun 2017 10:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180156/mandalay-declares-force-majeure-at-cerro-bayo-180156.html
<![CDATA[News - Mandalay Resources' search for Cerro Bayo miners unsuccessful ]]> https://www.proactiveinvestors.com.au/companies/news/179926/mandalay-resources-search-for-cerro-bayo-miners-unsuccessful-179926.html Mandalay Resources Corp (TSE:MND) is continuing activity after the flood at the Delia NW mine at Cerro Bayo in Chile but says the search for the two missing miners has been unsuccessful.

As previously reported a flood hit the site on June 9.

The Chilean Office of Exception State has ruled out the possibility of finding the two miners -  Jorge Sanchez and Enrique Ojeda -  alive, Mandalay said.

"We deeply regret the loss of two members of our team at Cerro Bayo," said Dr Mark Sander, the firm's president and chief executive.

"The company offers its condolences and support to the families, friends and crew of the deceased.

"We will continue to work with the Chilean government on next steps and the future of the mine. The company is extremely grateful for the intense efforts put forth in the search and recovery efforts by our employees, contractors, suppliers, Ministry of Mining, armed forces, government of Aysen, Sernageomin and firemen of Chile Chico, among other active participants. Mandalay thanks you all for your effort, solidarity and support,"

Mandalay continues to work jointly with national and regional authorities, and a team of experts. Activities include drilling at different levels of the mine to determine the current state, pumping water to lower the water level in Laguna Verde, maintaining the diversion of La Tina Creek (which is a tributary of Laguna Verde) and carrying out technical evaluations of the subsidence area.

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Tue, 27 Jun 2017 15:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179926/mandalay-resources-search-for-cerro-bayo-miners-unsuccessful-179926.html
<![CDATA[News - Mandalay continues hunt for missing Cerro Bayo miners ]]> https://www.proactiveinvestors.com.au/companies/news/179550/mandalay-continues-hunt-for-missing-cerro-bayo-miners-179550.html Metals miner Mandalay Resources Corp (TSE:MND) updated on its search for two missing miners at the Delia NW mine at Cerro Bayo in Chile, which has included the assistance of military divers and submarine drones.

It comes after a flood hit the site on June 9.

Efforts also include drilling  multiple holes to the bottom level of the mine, around 200 metres below the surface. Two holes hit the target workings on June 17, but found them to contain water and no trapped air.

Two further holes are expected to reach target of near a rescue chamber on Wednesday,  June 21.

However, the firm noted these chambers are designed to protect against contaminated air and not the significant amount of water Mandalay now believes is present.

Mandalay noted that around 12,000 tonnes of ore remained on the bottom of the level, or around 12 days of throughput at the current 1,000 tonnes per day rate.

Therefore, the immediate impact on reserves and total production  is expected to be small.

The miner also confirmed that the reopening of any mine at Cerro Bayo is dependent on the results of detailed investigations into the root causes of the Delia NW flood - work which is likely to take several months.

Shares closed yesterday unchanged at $0.385.

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Tue, 20 Jun 2017 09:21:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179550/mandalay-continues-hunt-for-missing-cerro-bayo-miners-179550.html
<![CDATA[News - Mandalay Resources continuing search for miners after Delia NW flood ]]> https://www.proactiveinvestors.com.au/companies/news/179344/mandalay-resources-continuing-search-for-miners-after-delia-nw-flood-179344.html Metals miner Mandalay Resources Corp (TSE:MND) is continuing the search for two missing miners after a flood at the Delia NW mine at Cerro Bayo in Chile on June 9.

The efforts are focused on drilling to around 200 metres below surface (where the miners were working), to test the extent to which inundation of that level has occurred.

Meanwhile, all surface and underground haul trucks on site are engaged with several excavators and loaders in constructing a containment berm across a bay of Laguna Verde in an attempt to isolate the zone from the larger lake and manage possible further water inflows.

Dr Mark Sander said Mandalay was doing everything possible to locate the pair.

"The presence of water and disturbed material makes this effort extremely complicated," he said.

"We will continue to deploy our own resources, as well as the resources coming from suppliers, contractors, other mining companies and government, while taking extraordinary care to proceed safely during these unprecedented efforts.

"We are working diligently to keep the families, employees, local community and the wider Chilean population informed of our efforts in a timely way."

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Thu, 15 Jun 2017 10:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179344/mandalay-resources-continuing-search-for-miners-after-delia-nw-flood-179344.html
<![CDATA[News - Revised debt repurchase deal increases Mandalay's capacity to fund growth ]]> https://www.proactiveinvestors.com.au/companies/news/178338/revised-debt-repurchase-deal-increases-mandalay-s-capacity-to-fund-growth-178338.html Metals miner Mandalay Resources Corp (TSE:MND) says a revised plan for a lender to buy back up to US$30mln worth of exchangeable bonds in Mandalay has now been completed.

Special purpose vehicle Gold Exchange Ltd issued the bonds, worth US$60mln at 5.875% interest, to holders in 2014 and loaned the proceeds to a Mandalay subsidiary.

After talks with bondholders, GEL has now agreed to purchase US$29.95mln of the bonds from the holders at a price of 105% of their principal amount, plus accrued and unpaid interest at 6.875% per year for the period from, and including  May 13 this year to, but not including May 26, 2017.

The repurchase is expected to be completed tomorrow (May 26).

Mark Sander, Mandalay's chief executive, said the revised repurchase agreement lowered Mandalay's overall cost of debt service, while also reducing its leverage and maintaining its debt net of cash position of nearly zero.

He added: "The updated agreement extends the maturity for the balance of the loan out an additional three years, to 2022.

"With the repurchase completed, we have increased our capacity to fund growth through acquisitions or internal capital projects with an optimized mix of cash, debt, or equity."

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Thu, 25 May 2017 07:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178338/revised-debt-repurchase-deal-increases-mandalay-s-capacity-to-fund-growth-178338.html
<![CDATA[News - Mandalay Resources sees quarter-on-quarter pick-up ]]> https://www.proactiveinvestors.com.au/companies/news/177670/mandalay-resources-sees-quarter-on-quarter-pick-up-177670.html Dividend paying precious metal junior Mandalay Resources Corp (TSE:MND) rose in early deals in Toronto as it reported a sharp improvement on the previous quarter.

Investors had already been tipped the wink last month that first quarter production were down year-on-year, so it was little surprise that first quarter revenue of US$45.37mln was down from US$50.44mln in the corresponding period of 2016.

The decline was primarily due to lower volume of metal sold in the 2017 period than in the 2016 period, partially offset by higher average market prices this time round.

DETAILS OF THE FOURTH QUARTER RESULTS can be found here READ Mandalay Resources confident on output and sales increase in 2017

The lower revenue filtered through to softer adjusted earnings (EBITDA) of US$11.4mln versus US$17.3mln  the year before.

The post-tax net loss of US$2.35mln contrasted with a profit of US$1.15mln in the same period a year earlier, but did not stop the company paying out a dividend of 5.7 cents a share.

Total cash capital expenditure during the first quarter of 2017 was US$12.1 million compared to US$9.1 million in the year-ago quarter.

At March 31, 2017, the company had US$58.9 million of cash and cash equivalents compared to US$66.9 million three months earlier.

“Mandalay’s financial performance in the first quarter of 2017 was a marked improvement over performance in the fourth quarter of 2016,” noted Dr Mark Sander, president and chief executive officer of Mandalay.

“These improved results reflect a combination of continued strengthening of our operations and improving metal prices. We expect to see production continuing to increase throughout 2017, with a consequent improvement in unit costs going forward,” Dr Sander continued.  

The company revised its full-year production guidance in February and stuck by those numbers in its first quarter results statement.

“Looking at the company’s operations, at Björkdal, we are pleased that the grade control program continues to function well and we are implementing several incremental operational improvements to increase the rate at which our higher-grade ore is mined and delivered to the plant.

“These improvements are expected to increase the average grade of processed material going forward, increasing production of saleable gold and reducing cash cost per ounce of saleable gold,” Dr Sander declared.

“Costerfield continued to deliver dependable performance in the first quarter of 2017, producing 12,891 gold equivalent ounces at a very sound cash cost of $719 per ounce, and an all-in cost of $1,033 per ounce,” the Mandalay boss observed..

“At Cerro Bayo, the operation has noticeably stabilized after the difficult third and fourth quarters of 2016. Safety has shown a marked improvement and the ore reserve model on which the revised guidance of February 16, 2017 was based is performing well,” Dr Sander said.

“Grades began to lift towards the end of the first quarter as more stopes became available in Coyita North. We expect grades to continue to lift the remainder of the year as production from Coyita North grows,” he added.

The shares were up 2.8% at C$0.545 in late morning trading.

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Thu, 11 May 2017 09:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177670/mandalay-resources-sees-quarter-on-quarter-pick-up-177670.html
<![CDATA[News - Mandalay Resources rated 'buy' by Desjardins analyst ]]> https://www.proactiveinvestors.com.au/companies/news/176677/mandalay-resources-rated-buy-by-desjardins-analyst-176677.html Precious metal junior Mandalay Resources Corp (TSE:MND) has received a 'buy' rating from Desjardins analyst Michael Parkin, who has upgraded the junior miner's shares from a 'hold'.

The Globe and Mail in its 'Eye On Equities' column has reported Parkin saying in a note that Mandalay announced first quarter production of 32,500 ounces of gold equivalent ounces (GEO), which missed Desjardins previous estimate of 37,700 GEO.

"The 1Q production result represents 22 per cent of the mid-point of the company's annual guidance of 138–163,000 GEO; however, we expect higher production results in subsequent quarters this year, as does management," says Parkin.

He reckons Mandalay will achieve its guidance with Desjardins estimate of 150,400 gold equivalent ounces (GEO) at total cash costs of  U$757 per gold equivalent ounce.

Mr Parkin lowered his target price to 85 cents from 95 cents, while consensus is for 83 cents.

Last week, Mandalay said that in the three months to end March it produced 32,481 ounces of gold equivalent from the three mines  - Cerro Bayo, Bjorkdal and Costerfield - down from 39,965 ounces in the same three months in 2016.

In the previous quarter (to end December), it produced  31,293 ounces.

Sales of gold equivalent ounces came in at 34,801 ounces in the latest quarter, down from 40,808 ounces in the first quarter of 2016.

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Thu, 20 Apr 2017 09:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176677/mandalay-resources-rated-buy-by-desjardins-analyst-176677.html
<![CDATA[News - Mandalay Resources says debt amendment plan has advantages ]]> https://www.proactiveinvestors.com.au/companies/news/176611/mandalay-resources-says-debt-amendment-plan-has-advantages-176611.html Metals miner Mandalay Resources Corp (TSE:MND) says it can benefit from a plan from a lender to buy back up to US$30mln worth of exchangeable bonds in the miner.

Special purpose vehicle Gold Exchange Ltd issued the bonds (US$60mln at 5.875%) holders in 2014 and loaned the proceeds to a Mandalay subsidiary.

GEL is now offering to buy up to US$30mln of the principal amount from the holders at US$52,500 for each US$50,000 in principal.

It will also seek bondholder approval for a number of amendments to their terms, including increasing the interest rate payable from 5.875% a year to 6.375% a year.

It also wants to extend the maturity date by three years to May 13, 2022.

Mandalay's chief executive Mark Sander said: "The proposed amendments to bonds (and in turn to the loan) provide a number of advantages to Mandalay including eliminating the requirement for Mandalay to deploy capital in a non-productive manner to purchase gold shares for escrow in advance of the maturity of the bonds and extending the maturity of the bonds by three years."

He added that any  repurchase of the bonds, which will further de-lever the group's lightly levered balance sheet, will be funded from existing cash balances.

"Our strong balance sheet should allow us to raise additional debt as and when required to fund our capital investment program and for potential acquisitions," he said.

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Wed, 19 Apr 2017 10:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176611/mandalay-resources-says-debt-amendment-plan-has-advantages-176611.html
<![CDATA[News - Mandalay Resources keeps on trucking; expects to lift output in 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/176465/mandalay-resources-keeps-on-trucking-expects-to-lift-output-in-2017-176465.html There was recently a raft of executive changes announced by Canada - listed gold, silver and antimony producer Mandalay Resources Corp (TSE:MND) but the firm's goal is arguably timeless.

Chief executive Mark Sander said it was all aimed at boosting "new acquisition opportunities" and produce results from a "growing" number of operations.

Recent first quarter sales and production numbers from the miner with projects in Australia, Chile and Sweden showed the journey is progressing.

In the three months to March 31 this year, Mandalay produced 32,481 ounces of gold equivalent from the three mines  - Cerro Bayo, Bjorkdal and Costerfield - down from 39,965 ounces in the same three months in 2016.

Sales of gold equivalent ounces came in at 34,801 ounces in the latest quarter, down from 40,808 ounces in the first quarter of 2016.

On track to reach output guidance...

But Mandalay confirmed it was on track to reach its production guidance of between 138,000 and 163,000 ounces of gold equivalent for 2017.

So what comes next? Mandalay shares are well off the highs seen in the middle of last year and it has admitted the fiscal year was a "challenging" one.

It generated 5% lower revenue in 2016 than in 2015 due to expected grade-related lower production at Costerfield, offset by expected higher production at the Bjorkdal mine.

For 2016 as a whole, Mandalay generated revenue of $185.5 mln (2015: $194mln) and a loss before tax of $15.1mln (2015: $22.4mln profit).

Higher metals prices help....

Production for 2016 overall was 145,500 compared to 166,700 ounces a year earlier. What bolstered the group was higher metals prices, which were seen last year.

Total output was made up of 103,245 saleable ounces of gold, the second highest ever produced by the company, 3,598 tonnes of antimony and 1,731,031 ounces of silver.

The fact it wants to boost acquisition opportunities suggests  the miner wants to grow the portfolio with new mines, to enhance output.

And it has already had success recently in growing potential resources it already has, via exploration.

In January this year Sander said:  "In the second half of 2016, exploration yielded generally favourable results. Our drilling generated significant new drill intersections that are expected to support short-term and eventual long-term mineral resource and reserve additions for the company as a whole."

Potential to expand production..

Notably, at Bjorkdal, Mandalay has now received the mining licence to extend its mining concession to include the Lake zone and the eastern extension of Central Zone.

Near-mine surface drilling has focused on extending shallow gold resources adjacent to the Bjorkdal East pit as well as in and around the newly defined Nylunds mineral reserve extending approximately 750m southeast of the current pit limits. The Nylunds deposit remains open to the east, southeast and to depth.

In the first quarter at Bjorkdal, production of higher-grade underground ore at the mine was limited due to a bottleneck  of underground haulage.

"Additional underground loading and haulage capacity was added at the end of March, which is expected to directly increase the stope production and in turn increase the rate of delivery of high-grade underground ore for the remainder of the year," said Mandalay.

At Costerfield in Australia, in coming quarters, output is seen by management to increase as the miner extracts higher-grade stopes in the Cuffley and N lodes later in the year.

At Cerro Bayo in Chile production  continues to grow in 2017 as a greater number of development headings and production stopes become available from the Coyita mine.

"As well, we have optimized plant shift schedules to reduce costs and match the planned ore production of the mine," said Sander.

In exploration, infill drilling at Cerro Bayo has continued in and around the Laguna Verde area, with target testing drilling in Laguna Verde, the Brillantes sector and the Cerro Bayo sector.

In terms of reserves, Mandalay has 1,024,000 ounces of gold equivalent in proven and probable reserves and 2,229,000 ounces of gold equivalent in measured and indicated resources inclusive of reserves.

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Thu, 13 Apr 2017 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176465/mandalay-resources-keeps-on-trucking-expects-to-lift-output-in-2017-176465.html
<![CDATA[News - Mandalay Resources confident on output and sales increase in 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/176453/mandalay-resources-confident-on-output-and-sales-increase-in-2017-176453.html Precious metal junior Mandalay Resources (TSE:MND) said it's on track to reach production guidance of between 138,000 and 163,000 ounces of gold equivalent for 2017 after it posted first quarter stats.

The miner, which produces gold, antimony and silver in Australia, Chile and Sweden, expects production to ramp up in coming months along with sales.

READ - Mandalay drills 7.78m of 65.55 g/t Au at Bjorkdal, provides six months update READ - Mandalay Resources Corp sees gold production at upper end of guidance

In the three months to end March it produced 32,481 ounces of gold equivalent from the three mines  - Cerro Bayo, Bjorkdal and Costerfield - down from 39,965 ounces in the same three months in 2016.

In the previous quarter (to end December), it produced  31,293 ounces.

Sales of gold equivalent ounces came in at 34,801 ounces in the latest quarter, down from 40,808 ounces in the first quarter of 2016.

Expecting improvements..

Mark Sander, president and chief executive of Mandalay, told investors: "First quarter sales were within the guidance range given in the press release on Feb. 16, 2017, and we expect improving production at all sites in the balance of the year to support higher sales in the coming quarters."

At Costerfield in Australia, in subsequent quarters, output is seen to lift as grades are forecast to increase as it extracts higher-grade stopes in the Cuffley and N lodes later in the year, he said.

At the Swedish Bjorkdal mine, in the first quarter, production of higher-grade underground ore was limited due to a bottleneck  of underground haulage.

"Additional underground loading and haulage capacity was added at the end of March, which is expected to directly increase the stope production and in turn increase the rate of delivery of high-grade underground ore for the remainder of the year," said Sander.

Initiatives at Cerro Bayo...

He went on: "Operationally, Cerro Bayo has implemented a number of initiatives to generate cost reductions and improve operational efficiency.

"Mine production during the first quarter of 435,076 ounces of silver and 2,735 ounces of gold demonstrates significant quarter-over-quarter progress compared to production of 365,214 ounces of silver and 2,807 ounces of gold in the previous quarter."

Sander said he expected to see Cerro Bayo production in Chile continue to grow in 2017 as a greater number of development headings and production stopes become available from the Coyita mine.

"As well, we have optimized plant shift schedules to reduce costs and match the planned ore production of the mine," he added.

Shares in Toronto were unchnaged at $0.59.

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Thu, 13 Apr 2017 09:09:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176453/mandalay-resources-confident-on-output-and-sales-increase-in-2017-176453.html
<![CDATA[News - Mills takes back seat at Mandalay Resources ]]> https://www.proactiveinvestors.com.au/companies/news/176297/mills-takes-back-seat-at-mandalay-resources-176297.html Mandalay Resources Corp’s (TSE:MND) veteran chairman Brad Mills is to hand over the executive reins of the gold, silver and antimony producer

He will stay on as chair of the board of the Canada-based miner but no longer in an executive capacity.

Mark Sander thanked Mills for his efforts over the past twelve months. Sander took over as chief executive from Mills in March last year.

Mandalay also announced a raft of other executive level changes.

Belinda Labatte becomes Chief Development Officer;  Chris Gregory VP Operational Geology and Exploration; Andre Booyzen VP Leadership Development, Performance & Sustainability; Melanie McCarthy becomes  General Manager of the Costerfield mine  and Par Goting is now the General Manager of the Bjorkdal mine.

Jasmine Virk also adds the company secretary role to her existing post of Director Corporate Affairs.

Sander said the changes would boost its ability to  discover, evaluate and capture new acquisition opportunities and produce results from a growing number of operations going forward. 

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Tue, 11 Apr 2017 12:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176297/mills-takes-back-seat-at-mandalay-resources-176297.html
<![CDATA[News - Mandalay Resources boosts gold reserves ]]> https://www.proactiveinvestors.com.au/companies/news/173621/mandalay-resources-boosts-gold-reserves-173621.html Total reserves of gold held by Mandalay Resources Corporation (TSE: MND) across its international portfolio increased by approximately 10% over the past 12 months, according to new data released by the company.

Reserves of contained silver decreased by 40%, and those of contained antimony by 7%.

In the measured and indicated resource categories, contained gold increased by approximately 15%, contained silver decreased by 14%, and contained antimony decreased by 16%.

“I am pleased to report that Mandalay’s aggregate consolidated resources and reserves position, expressed as ounces of gold equivalent calculated at year-end 2016 resource and reserve reporting metal prices remained nearly unchanged from the year before, calculated at the same metal prices,” said Mandalay chief executive Mark Sander.

“We currently have 1,024,000 ounces of gold equivalent in proven and probable reserves and 2,229,000 ounces of gold equivalent in measured and indicated resources inclusive of reserves.”

The totals include significant additions at Björkdal following exploration success, offset by reductions at Cerro Bayo due to reductions in estimated reserves along Delia SE vein in light of recent development sampling.

The financial impact of the reserve reduction at Cerro Bayo has already been taken into account in the US$10 million impairment charge announced earlier this month. 

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Thu, 23 Feb 2017 13:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173621/mandalay-resources-boosts-gold-reserves-173621.html
<![CDATA[News - Mandalay toughs out lower grades at Cerro Bayo ]]> https://www.proactiveinvestors.com.au/companies/news/173349/mandalay-toughs-out-lower-grades-at-cerro-bayo-173349.html Mandalay Resources Corporation (TSE: MND) delivered revenues of C$32.4 mln, adjusted EBITDA of negative C$2.3 mln and a consolidated net loss before special items of C$10.8 mln for the fourth quarter of 2016.

For the full year 2016, Mandalay generated revenue of C$185.5 mln, adjusted EBITDA of C$50.9 mln and an adjusted net loss before special items of $2.5 mln.

Mandalay ended the year with $66.9 million in cash and cash equivalents.

The quarterly dividend was set at C$1.9 mln, or 6% of the trailing quarter’s gross revenue. 

Costerfield generated almost US$25 mln in free cash. 

“2016 was a challenging year for the company,” said chief executive Mark Sander. “Mandalay generated 5% lower revenue in 2016 than in 2015 due to expected grade-related lower production at Costerfield, offset by expected higher production at Bjorkdal.̈

 

 

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Fri, 17 Feb 2017 15:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173349/mandalay-toughs-out-lower-grades-at-cerro-bayo-173349.html
<![CDATA[News - Mandalay drills 7.78 m of 65.55 g/t Au at Bjorkdal, provides six months update ]]> https://www.proactiveinvestors.com.au/companies/news/172312/mandalay-drills-778-m-of-6555-gt-au-at-bjorkdal-provides-six-months-update-172312.html Mandalay Resources Corp. (TSE:MND) on Friday provided an exploration update for the second half of 2016 at all four of its properties: the three producing properties, Bjorkdal (Sweden), Costerfield (Australia) and Cerro Bayo (Chile) as well as the Challacollo (Chile) development project.

"In the second half of 2016, exploration yielded generally favourable results. Our drilling generated significant new drill intersections that are expected to support short-term and eventual long-term mineral resource and reserve additions for the company as a whole,” said Dr. Mark Sander, president and chief executive officer of Mandalay.

 

Bjorkdal exploration

The company has now received the mining licence to extend its mining concession to include the Lake zone and the eastern extension of Central Zone, allowing it to begin development and stoping there to improve near-term operational results.

 

Drilling, sampling and assaying

During the period from July 1, 2016, to Dec. 31, 2016, 151 exploration drill holes totalling 24,518 metres were completed at Bjorkdal. This total includes 32 surface core holes for 5,178 m, 44 underground core holes for 10,170 m and 75 RC holes for 9,170 m. All drill hole collars were surveyed and downhole surveys were completed in order to record hole azimuth and plunge variations.

All surface and underground exploration drilling was conducted by third party contractors, with both core (WL66, 50-millimetre diameter, and HQ, 63.5 mm diameter) as well as reverse circulation (5.5-inch diameter) methods.

 

Underground drilling results

Underground diamond drilling at Bjorkdal generated many new, well-mineralized intercepts in both already known and newly discovered gold-bearing quartz veins. Most underground drilling at Bjorkdal over the past six months was focused on infilling previously reported intercepts from initial extensional drilling and extending known mineralized veins immediately adjacent to currently mined areas. Particular areas of focus for these drilling programs were the eastern extensions of the Main and Central zones and the northern margin of the Lake zone.

Drilling results from the Main and Central zones indicate strong mineralization continues eastward of the current limits of underground development for at least 100 to 200 m and that the mineralization remains open in that direction.

Drilling results from the Lake zone, intended to infill previously inferred mineral resource, succeeded in generating closely spaced mineralized intercepts the company expects to support an upgrade to the indicated resource category at the next mineral reserve update.

Two holes, each approximately 600 m in length, were drilled northward from the current northern extremity of the underground workings. They intersected many new gold-bearing quartz veins up to 500 m north of previously known limits of the Bjorkdal deposit.

 

Open-pit drilling results

Near-mine surface drilling during the period focused on infilling and extending shallow gold resources adjacent to the Bjorkdal East pit as well as in and around the newly defined Nylunds mineral reserve extending approximately 750 m southeast of the current pit limits. The Nylunds deposit remains open to the east, southeast and to depth.

 

Ronnberget drilling results

The Ronnberget deposit lies four kilometres east-southeast of the current Bjorkdal open pit. The deposit was originally discovered by drilling in the late 1990s. The purpose of the 2016 drill program was to infill and extend the limited historic drilling. Drilling results show that elevated gold mineralization is stratabound, hosted within albite- and actinolite-altered intermediate volcaniclastic sedimentary rocks and tuffs. This is a distinctly different setting than at Bjorkdal and Nylunds, where mineralization occurs in sheeted, steeply dipping quartz-gold veins. As well, the average grade of the intercepts at Ronnberget is much higher than in Bjorkdal and Nylunds. The mineralized zone at Ronnberget is subparallel to regional bedding and dips approximately 25 degrees toward the northeast. The deposit remains open along strike, and downdip, and based on the drilling results reported here, the company is applying for a mining concession.

 

Storheden drilling results

The Storheden area is located between 500 m and 700 m to the east of the existing Bjorkdal mining area. The area contains shallow mineralization in the Storheden deposit, defined by historic drilling and hosted in a series of northeast-dipping quartz veins. During 2016, three diamond drill holes were drilled to confirm the presence of both the shallow Storheden gold-bearing veins and the hypothesized deeper strike extensions of the Bjorkdal sheeted vein system. Both targets were successfully intersected in their predicted locations; several significant gold-bearing veins were discovered in each of these drill holes. Two assayed intervals in hole ME6-029 assayed a 2.23-metre true width at 9.84 grams per tonne gold (containing an interval of 0.24 m true width, assaying 77.7 g/t Au) and 0.19 m true width at 91.1 g/t Au. Both of these high-grade intervals are interpreted to represent the depth and eastward extension of the Bjorkdal veins in the current underground mine, as do the lower-grade intervals obtained in hole MU6-030. Evidently, the Bjorkdal veins extend at least 300 to 400 m farther east than previously demonstrated. Shallow, elevated gold intercepts obtained from MU6-028 confirm previous reports of potential surface minable mineralization based on historic drilling.

 

Morbacken drilling results

The Morbacken area lies approximately 1.8 kilometres east of the current Bjorkdal open-pit mine and approximately one km from the eastern known limits of the Nylunds deposit. Nine diamond drill holes were drilled in this area during late 2016 using HQ-sized drilling equipment; assays on only two of these holes were returned before Dec. 31 and are included in this report. While detailed understanding of the geological setting of this prospect is not yet in hand, preliminary investigations suggest that significant gold assay intervals are encountered within strongly albite-actinolite-epidote-altered horizons of a volcanogenic succession similar to that at the Ronnberget prospect. At Morbacken, elevated gold concentrations are commonly accompanied by elevated copper concentrations contained within the minerals bornite and chalcopyrite.

 

Costerfield exploration Drilling, sampling and assaying

During the second half of 2016, Mandalay drilled 17,147 m of diamond core at its Costerfield gold-antimony mine in 89 holes (including wedges) drilled on Sub King Cobra, Cuffley Deeps, Cuffley South/M lode and Brunswick lodes. In addition, the company completed 2367.5 m of on-vein operating development and associated sampling of N lode and Cuffley lode.

 

Exploration results Brunswick lode

Drilling was completed in order to extend and convert the existing inferred resource along Brunswick lode to an indicated resource. Significant assays containing greater than 10.0 g/t gold equivalent over a minimum 1.8 m true mining width were obtained in seven holes. Continuity of mineralization has been demonstrated down to the Penguin fault; conversion of inferred to indicated resource above this fault is expected with the resource and reserve update to be completed and announced later in the first quarter of 2017. Furthermore, high-grade mineralization has been demonstrated to continue at least 50 m farther down to the Kiwi fault and below. Further infill and extensional drilling is planned to extend the mineral resource downward to these levels.

 

Cuffley Deeps and Cuffley Deeps West

Infill drill holes in the Cuffley Deeps lode and extending to the Cuffley Deeps West lode generated four intercepts greater than 10 g/t AuEq over at least the minimum 1.8 m true mining width. Mandalay expects to convert part of Cuffley Deeps to indicated resource at the coming resource update and is encouraged by the emerging set of intercepts on Cuffley Deeps West.

 

Sub King Cobra

The Central zone was found to be the most continuous of the mineralized vein sets in the Sub King Cobra domain. Drilling in the second half of 2016 targeted this Central zone with the intent of increasing confidence in the continuity of grade and in developing the structural model. New drill intercepts suggest mineralization to extend over approximately 300 metres of strike length.

The Central zone is situated on the eastern limb of an anticlinal structure and consists of four discreet mineralized veins over a 70-metre-wide zone. The westernmost of these subvertical veins is referred to as the Central Main, which, based on results to date, contains higher grades.

 

M lode

A stibnite-gold vein in between Cuffley and N lode called M lode was intercepted in three holes. M lode is subparallel to the two major Cuffley and N lode orebodies.

 

Cerro Bayo exploration Drilling, sampling and assaying

A total of 18,685 m of NX and HQ diamond drill core were produced from 52 holes in the Cerro Bayo district during the second half of the year, with three holes in progress at year's end. Infill drilling has continued in and around the Laguna Verde area, with target testing drilling in Laguna Verde, the Brillantes sector and the Cerro Bayo sector.

 

Exploration results Sector Laguna Verde Delia SE, Coyita SE and Branca veins

During the second half of 2016, 15 infill holes were completed on the Branca vein and one hole was in progress at year-end. Most of these holes also intercepted the Coyita vein, as it was necessary to drill through the latter fissure in order to reach the Branca system. Assays of the Branca intercepts define a mineralized shoot approximately 300 m long by 100 m high, with a gentle plunge toward the southeast.

 

Delia SE vein

During the second half of 2016, nine holes were completed on the Delia SE vein for infill and ore control coverage. Four of these holes contained high gold and silver assays where they intersected the vein, two did not intersect the vein and three contained only low grades.

 

Laguna Verde Norte

Follow-up drilling in the Laguna Norte area on the northeast corner of the lake failed to substantiate the presence of well-mineralized veins suggested by a previous round of drilling.

 

Sector Brillantes

In the second half of the year 12 drill holes were completed in the Brillantes sector, with one drill hole in progress at year-end. Robust fissure systems up to a few kilometres long and a few metres wide crop out in this zone. No significant gold or silver assays were obtained in the drill holes.

 

Cerro Bayo sector

In the Cerro Bayo sector, the Nina vein was the only target tested during the second half of 2016. The Nina vein is located 600 metres west of the Marcela system and was probed with two drill holes during August and September. No significant gold or silver assays were obtained.

 

Challacollo exploration

Permission was received in January, 2017, to drill prospective water holes on two high-potential concessions at the bottom of the groundwater basin approximately 30 kilometres to the southwest of Challacollo. If this drilling is successful in encountering sufficient water, an application will be lodged for transferring the catchment point of the company's existing water rights to this new source.

 

Drilling, sampling and assaying

In 2016, Mandalay drilled approximately 3,535 m of HQ core at Challacollo in 13 drill holes. These holes were designed to test geophysical (self potential) anomalies detected and reported earlier in 2016, the deep extension of the main Lolon fissure, and several new targets on the Lolon and other veins generated by continuing detailed mapping, trenching and surface sampling.

All drill holes were surveyed by standard techniques with downhole instruments and logged by Mandalay geologists. Sample preparation was undertaken by ALS at its facilities in Antofagasta, with analysis performed by ALS labs in Lima, Peru. This analytic program was performed with industry-standard QA/QC protocols including checks, blanks and duplicate samples.

 

Exploration results

No significant grade intercepts were obtained in holes testing prominent self-potential anomalies under cover north or south of the outcrops in the Challacollo range. Sources of the anomalies proved to be pyritic black shales in DCN-01 at the north end of the range and pyritic rhyolites with minor base metal veinlets in DCS-04 and DCS-05 south of the range.

Drill holes DPA 1, 2, 3 and 4 demonstrated that the Palermo Norte vein is a robust structure with continuity at depth and strongly mineralized with lead and zinc. Silver and gold values in the drill holes, however, failed to reach the high levels seen in several surface trenches.

The deep intercept over 100 m below the deepest high-grade intercept in a previous metallurgical hole on the main Lolon central vein demonstrated a robust vein structure 2.3 m in true width but with low gold and silver values. Test holes on the Lolon Norte, Gladys IV and Lolon Sur/San Francisco veins also returned disappointing assay results and/or mediocre vein widths at depth.

Additional detailed mapping and trenching to reveal vein subcrops beneath the colluvium indicate that the Palermo Norte vein extends a few hundred metres farther north than previously mapped. In the northern area, the vein is hosted by calcareous marine sedimentary rocks and is associated with a solution-collapse breccia zone that extends a few hundred metres away from the vein to the west. This breccia zone is parallel to bedding, strongly silicified and ranges up to 2.5 m thick. It is erratically mineralized with galena and copper oxides; surface samples assay up to 50 parts per million silver. This feature is currently being evaluated as a possible setting for manto-style replacement sulphide mineralization that could be associated with the Palermo Norte vein system.

New vein splays recognized through structural reinterpretation on the main Lolon vein and drilling gaps on the Lolon Sur extension suggest that additional silver-gold resources could possibly be defined by additional drilling in some areas adjacent to the presently delineated grade blocks. These possibilities include small, high-grade splay veins in the western wall of Lolon Central, mineralized zones lying in gaps of drilling coverage due to poor vein correlation along Lolon Sur and/or along a new vein in the south area, detected beneath colluvium east of the Lolon trend.

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Fri, 27 Jan 2017 13:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172312/mandalay-drills-778-m-of-6555-gt-au-at-bjorkdal-provides-six-months-update-172312.html
<![CDATA[News - Mandalay helped by higher prices as output slips ]]> https://www.proactiveinvestors.com.au/companies/news/171678/mandalay-helped-by-higher-prices-as-output-slips-171678.html Mandalay Resources Corp (TSX:MND) saw production slip in 2016 due to lower grades at Costerfield in Australia and an outage at Cerro Bayo in Chile.

Fourth quarter output totalled 31.300oz gold equivalent compared to 43,400oz, while production for 2016 overall was 145,500 compared to 166,700 oz.

There was also lower production at Bjorkdal in Sweden, but Mandalay was aided by sharply higher prices for all three of the metals it mines - gold, silver and antimony - compared to the final quarter of 2015.

The total for the year was made up of 103,245 saleable ounces of gold, the second highest ever produced by Mandalay, 3,598 tonnes of antimony and 1,731,031 ounces of silver.

Shares rose 2% to 0.93c.

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Mon, 16 Jan 2017 14:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171678/mandalay-helped-by-higher-prices-as-output-slips-171678.html
<![CDATA[News - Mandalay Resources sees big jump in reserves at Bjorkdal in Sweden ]]> https://www.proactiveinvestors.com.au/companies/news/170548/mandalay-resources-sees-big-jump-in-reserves-at-bjorkdal-in-sweden-170548.html Mandalay Resources Corp (TSX:MND) has boosted the highest category resources and reserves at its Bjorkdal gold mine in Sweden by over 50% after an extensive exploration programme.

Measured and Indicated Resources rose to 911,000 ounces, while the proven and probable reserves, the highest confidence category, rose 40% to 586,000oz.

Mark Sander, Mandalay’s chief executive, said exploration at Bjorkdal had significantly increased since it acquired the mine in 2014, a result of which was that its life had risen to ten years from eight.

The new resources had also been acquired at a cost of exploration of just US$28 per ounce of contained gold, he added.

“As well, the methodology for conversion of Mineral Resources to Mineral Reserves has improved to more closely match the actual mining practices we are implementing.

“We believe that the Mineral Resources and Reserves will continue to grow significantly with future exploration efforts." 

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Thu, 15 Dec 2016 14:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170548/mandalay-resources-sees-big-jump-in-reserves-at-bjorkdal-in-sweden-170548.html
<![CDATA[News - Mandalay sees revenues grow in third quarter despite lower output ]]> https://www.proactiveinvestors.com.au/companies/news/168488/mandalay-sees-revenues-grow-in-third-quarter-despite-lower-output-168488.html Increased metals prices pushed up revenues at Mandalay Resources Corp (TSE:MND) in its third quarter but taxes and write-offs meant net income was lower.

The firm produces gold, antimony and silver in Australia, Chile and Sweden and in the three months to September 30 and posted revenue of  $48.5 mln (million) compared to $43.3mln in the same period last year.

Adjusted EBITDA (underlying earnings) rose to $13.8mln from $11.5mln last year, while net income decreased to $0.5mln from $1.6mln last year.

This loss was due to a combination of higher taxes at the Costerfield mine in Australia, which has exhausted its tax-loss carryforwards, and the write-off of $1.2 million for mineral properties and exploration.

The board has declared a quarterly dividend of $2.9 million, or $0.0065 per share, payable on November 24.

Total production was 34,586 ounces of gold equivalent (2015: 40,293 ounces) - lower due to the previously reported operational suspension at Cerro Bayo.

Cash costs were also higher in the current quarter than the same period in 2015 ($970 per ounce gold equivalent compared to $783 per ounce gold equivalent in the year ago period).

Mandalay ended the quarter $74.6 million in cash and cash equivalents, up from $45.7 million at the beginning of the quarter, it added.

For the year as a whole, Mandalay expects to deliver its original guidance range for gold, exceed original guidance for antimony, and fall short of the original guidance for silver.

The overall effect, including metal price changes, is to reduce the gold equivalent production guidance from between 165,000 and 180,000 ounces to now 149,000-152,000 ounces.

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Thu, 03 Nov 2016 10:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168488/mandalay-sees-revenues-grow-in-third-quarter-despite-lower-output-168488.html
<![CDATA[News - WPC to buy Lupin Gold Mine and Ulu Gold Property from Mandalay ]]> https://www.proactiveinvestors.com.au/companies/news/168427/wpc-to-buy-lupin-gold-mine-and-ulu-gold-property-from-mandalay-168427.html WPC Resources Inc. (CVE:WPQ) said it has signed a definitive agreement with Mandalay Resources Corporation (TSE:MND) to buy Mandalay's 100%-owned subsidiary, Lupin Mines Incorporated (LMI).

LMI owns 100% interests in the Lupin Gold Mine and the Ulu Gold Property.

The Lupin Gold Mine was in production from 1982 to December 2004.

Lupin was placed into care and maintenance in February 2005. To date over 3.4mln ounces of gold have been mined and recovered from Lupin with an average mill-head grade of 8.9 grams per tonne (0.259 ounces per ton).

Currently, Lupin holds all permits required to maintain its present good standing including a Type "A" water licence which allows for the transition from care and maintenance to the restart of operations and ultimately to commercial production.

LMI also holds, in restricted cash accounts approximately $27.5mln, which have been pledged through letters of credit to cover future estimated environmental reclamation costs on the Ulu Gold Properties.

The transaction, which is expected to be completed prior to December 31, is subject to the satisfaction or waiver of certain conditions, including WPC completing a private placement or other financing for gross proceeds of not less than $5mln and the receipt of all necessary regulatory approvals.

Upon completion of the transaction, Mandalay will own 20mln common shares of WPC and will have the right to acquire up to an additional 16mln common shares of WPC upon conversion of the convertible note.

WPC shares rose 15.8% to C$0.11 while Mandalay shares were up 3.1% at C$1.00 on Wednesday.

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Wed, 02 Nov 2016 14:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168427/wpc-to-buy-lupin-gold-mine-and-ulu-gold-property-from-mandalay-168427.html
<![CDATA[News - Cerro Bayo closure affects production at Mandalay ]]> https://www.proactiveinvestors.com.au/companies/news/167306/cerro-bayo-closure-affects-production-at-mandalay-167306.html Mandalay Resources’ (TSE:MND) production dipped slightly in its latest quarter as silver output from Cerro Bayo in Chile was affected by a death at the mine.

Overall, the miner produced 34,500 ounces (40,300) of gold equivalent in the three months to September.

Costerfield in Australia and Bjorkdal in Sweden both performed well but Cerro Bayo was completely shut for eight days after the fatality and the area where it occurred was closed for almost a month.

Mark Sander, chief executive, said the good results year-to-date for gold and antimony were due to consistently strong performance at both Costerfield and Bjorkdal.

"Bjorkdal produced 12,376 ounces of saleable gold in the current quarter, the second-best production quarter ever under Mandalay ownership and only slightly below production during the record second quarter of 2016.

"With Cerro Bayo restarting operations, we expect to issue updated company guidance for full-year 2016 production, together with our guidance for 2017, when we announce our third quarter financial results after market close on November 2, 2016."

Production for the nine months so far was 114,000 ounces of gold equivalent versus 123,000 ounces at year ago. 

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Wed, 12 Oct 2016 14:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167306/cerro-bayo-closure-affects-production-at-mandalay-167306.html
<![CDATA[News - Mandalay Resources Corp starts mining again at Cerro Bayo ]]> https://www.proactiveinvestors.com.au/companies/news/166100/mandalay-resources-corp-starts-mining-again-at-cerro-bayo-166100.html Metals miner Mandalay Resources Corp (TSE:MND) said operations had started again at its Cerro Bayo underground silver-gold mine in Chile.

It comes after a contractor fatality on September 10, after which an investigation into the incident was started, and operations were suspended.

President and chief executive Dr. Mark Sander of Mandalay had said: "We deeply regret this incident and are working closely with the contractor and the authorities to understand the cause of the fatality. We are focused on the providing support for our employees on site and extend our sincerest condolences to the family of the deceased."

Today, the group said mining operations had returned to normal in all areas, excluding around the location where the accident occurred on Sept. 10, 2016, while investigations continue.

Mandalay shares nudged 1.87% higher in Toronto, at C$1.09.

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Mon, 19 Sep 2016 15:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/166100/mandalay-resources-corp-starts-mining-again-at-cerro-bayo-166100.html
<![CDATA[News - Mandalay Resources Corp elevated to Small Cap index ]]> https://www.proactiveinvestors.com.au/companies/news/165730/mandalay-resources-corp-elevated-to-small-cap-index-165730.html The annual review of Canada’s S&P/TSX Small Cap index will see Mandalay Resources Corp (TSE:MND) elevated to the list of index constituents.

The shares of the gold producer have risen by more than two-thirds so far this year, giving the company a market capitalisation of C$487mln.

The company has benefited from a recovery in the gold price but has also been doing well operationally, with the company indicating last month it now expects gold production at the upper end of guidance of 105,000 - 110,000 ounces for the full year.

The company ended the quarter with US$45.7mln of cash and equivalents. The quarterly dividend was confirmed as 0.72 cents per share, which amounts to US$3.25mln.

In less happy news, the company said operations at its Cerro Bayo operation in Aysen, Chile, have been temporarily suspended following the death of a contract worker underground.

The company is working with the contractor, authorities and its employees to respond effectively to the death.

"We deeply regret this incident and are working closely with the contractor and the authorities to understand the cause of the fatality. We are focused on the providing support for our employees on site and extend our sincerest condolences to the family of the deceased," said Dr Mark Sander, president and chief executive officer of Mandalay.

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Mon, 12 Sep 2016 09:08:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165730/mandalay-resources-corp-elevated-to-small-cap-index-165730.html
<![CDATA[News - Mandalay Resources Corp sees gold production at upper end of guidance ]]> https://www.proactiveinvestors.com.au/companies/news/129293/mandalay-resources-corp-sees-gold-production-at-upper-end-of-guidance-129293.html Mandalay Resources Corp (TSE:MND) revealed year-on-year revenue growth and better earnings in the second quarter of 2016.

The group generated US$54.2mln of revenue in the three months to June 30, up from US$50.8mln in the same period of 2015.

Earnings (adjusted EBITDA) meanwhile amounted to US£22.1mln, from US$13.5mln in the second quarter last year, and consolidated net income totalled US$3.4mln compared to US$4.4mln in 2015 with the company pointing to higher taxes and special items for the reduction.

Chief executive Mark Sander said: “Mandalay generated strong revenue and adjusted EBITDA in the second quarter of 2016.”

He highlighted that total production for the current quarter was 39,653 ounces of gold equivalent, slightly less than the year-ago, and at US$811 per ounce the cash cost of production was only slightly higher than last year.

“The stronger financial results are due mostly to higher metal prices than in the second quarter of 2015,” Sander added.

Mandalay now expects group gold production at the upper end of guidance of 105,000 - 110,000 ounces for the full year.

The company ended the quarter with US$45.7mln of cash and equivalents. The quarterly dividend was confirmed as 0.72 cents per share, which amounts to US$3.25mln.

Mandalay noted that current taxes rose to US$1.8mln during the current quarter, versus US$0.4mln a year ago, as the Costerfield operation has exhausted tax losses that had been carried forward. That asset is now fully taxable, the company added.

In the current quarter it also recognises US$1.5mln of deferred tax expenses relating to the acquisition of the Cerro Bayo royalty, purchased in the first quarter of this year.

Sander added: “Having completed the major capital items in the current life of mine plan at Costerfield, the operation now generates substantial free cash flow for the Company each quarter.

“We are working to extend the mine life through drilling lodes below the King Cobra fault, approximately 100 metres deeper than the current Cuffley workings, and by applying recent, sustainably lower operating costs to evaluation of resources already drilled in the Brunswick lode adjacent to the plant.”

"Our grade control program at Bjorkdal continued to demonstrate success in the second quarter, during which we processed an average mill-reconciled grade of 1.43 grams per tonne gold, a record under Mandalay ownership.”

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Fri, 12 Aug 2016 08:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/129293/mandalay-resources-corp-sees-gold-production-at-upper-end-of-guidance-129293.html
<![CDATA[News - Mandalay Resources closes previously announced share offer ]]> https://www.proactiveinvestors.com.au/companies/news/128648/mandalay-resources-closes-previously-announced-share-offer-128648.html Mandalay Resources Corporation (TSE:MND) has closed its previously announced treasury offering of 33.9mln shares.

The shares were offered at a price of C$1.15 each, and the issue raised just over C$39mln.

Yesterday, the company gave an upbeat update on its activities in the first half of the year and pledged to speed up exploration on all of its projects in the second half of the year.

The natural resource company has producing assets in Australia, Chile and Sweden, and a development project in Chile. It is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas, and Europe to generate near-term cash flow and shareholder value.

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Tue, 26 Jul 2016 09:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/128648/mandalay-resources-closes-previously-announced-share-offer-128648.html
<![CDATA[News - Mandalay Resources to speed up exploration work ]]> https://www.proactiveinvestors.com.au/companies/news/128596/mandalay-resources-to-speed-up-exploration-work-128596.html Mandalay Resources Corp (TSE:MND) is to accelerate exploration on all of its projects in the second half of the year.

In a first half update covering its three producing properties – Costerfield (in Australia),  Björkdal (Sweden), and Cerro Bayo (Chile) - plus the Challacollo (Chile) development project, the precious metals producer said it would be putting the pedal to the metal to confirm or convert as much of its hypothetical resources into mineral resources and reserves by the end of the year.

At Costerfield, new mineralised intercepts suggest that at least three branches of the Cuffley lode occur below the King Cobra fault; all three intercepts contain high gold and/or antimony grades typical of what the company has found in intercepts of ore bodies that are currently being mined.

“We are optimistic that further drilling planned for the balance of the year will enlarge and infill all of these emerging lodes so that we can convert these initial drill intercepts into additional indicated resources and potential mine life-extending mineral reserves at the year-end estimate,” said Dr Mark Sander, president and chief executive officer of Mandalay.

All of the mineralised zones are located quite close to Mandalay’s existing infrastructure in N-lode and Cuffley lode and the company expects they will require only a minimal amount of additional capital development to access and mine. 

At Björkdal, new drilling has pushed the limits of mineralisation in the underground mine some 200 metres to the north and up to 100 metres to the east and north-east of the previous limits of drilling.

The company is confident this work will translate into a significant increase in underground mineral resources and reserves in the updated technical report for Björkdal that should be released in the fourth quarter of this year, or shortly thereafter.

In addition, positive drilling results were generated in and around the south-east part of the open pit, extending towards the Nylunds deposit where good infill drilling results were announced previously.

These results demonstrate the potential to expand open pit mineral reserves significantly to the south-east, the company said.

It also highlighted that its only new target testing drill hole in the first half of 2016 intersected a well-mineralised vein about a kilometre to the south-east of the Nylunds deposit in the Morbacken area.

This new intercept lies within a five kilometre-long zone extending from the present open pit south-east past Nylunds and Morbacken all the way to the Ronnberget prospect.

“At Cerro Bayo, drilling under Laguna Verde continued to extend the Coyita SE vein to depth toward the southeast. We now know that the vein is mineralised virtually all the way to the Cañadón Verde fault, which is the major graben-bounding structure along the southeast margin of the Laguna Verde sector,” Dr Sander told shareholders. 

Scout drilling under Laguna Verde Norte and in the Brillantes sector has generated several gold and silver bearing intercepts that Mandalay will be following up in the second half of the year.

At Challacollo, Mandalay has completed a geophysical survey using the “self-potential” technique that measures voltages generated by oxidising sulphides at depth. Anomalies detected in this survey suggest that the major Lolon vein, along which all mineral resources currently defined in the district occur, extends significant distances under colluvium and sand dunes to the north and south of the main outcrop area.

The survey also detected significant anomalies further north and south of the Lolon vein that are interpreted to represent large volumes of sulphide-bearing material.

“We plan to drill-test all of these anomalies for the presence of silver, gold, and base metals by the end of the year,” Dr Sander revealed.

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Mon, 25 Jul 2016 11:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/128596/mandalay-resources-to-speed-up-exploration-work-128596.html
<![CDATA[News - GMT Capital buys 62.6mln Mandalay shares ]]> https://www.proactiveinvestors.com.au/companies/news/128412/gmt-capital-buys-626mln-mandalay-shares-128412.html Shares in Mandalay Resources Corp (TSE:MND) were bought by accounts of hedge fund manager GMT Capital Corp, representing 15.05% of the capital.

Over 62mln shares were acquired for investment purposes only, and not for the purpose of exercising control or direction over Mandalay.

"GMT-managed accounts may from time to time acquire additional common shares, dispose of some or all of the existing or additional common shares, or may continue to hold the common shares," said GMT.

Earlier this month, Mandalay said it expected to report a good financial performance after unveiling strong second quarter output and sales, which will be further bolstered by metals price rises.

Its Costerfield mine in Australia continues to outperform, while production at the Swedish Bjorkdal was a new record for the mine under Mandalay's ownership.

It has repeated its guidance for 2016 of between 165,000 and 180,000 of saleable gold equivalent ounces at an average production cost of $690 to $810 per gold equivalent ounce.

Overall during the three months across its three operations, Mandalay produced 39,653 saleable ounces of gold equivalent and sold 40,740 gold equivalent ounces

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Wed, 20 Jul 2016 09:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/128412/gmt-capital-buys-626mln-mandalay-shares-128412.html
<![CDATA[News - Mandalay Resources Corp unveils strong second quarter output ]]> https://www.proactiveinvestors.com.au/companies/news/128141/mandalay-resources-corp-unveils-strong-second-quarter-output-128141.html Mandalay Resources Corp (TSE:MND) expects to report a good financial performance after unveiling strong second quarter output and sales, which will be further bolstered by metals price rises.

Its Costerfield mine in Australia continues to outperform, while production at the Swedish Bjorkdal was a new record for the mine under Mandalay's ownership, it said.

The Toronto-listed firm  today repeated its guidance for 2016 of between 165,000 and 180,000 of saleable gold equivalent ounces at an average production cost of $690 to $810 per gold equivalent ounce.

Overall during the three months across its three operations, Mandalay produced 39,653 saleable ounces of gold equivalent and sold 40,740 gold equivalent ounces.

Dr Mark Sander, president and chief executive, hailing what he called "superb non-financial results", noted that  Costerfield had produced 12,252 ounces saleable gold and 962 tonnes saleable antimony.

"We expect Costerfield to produce at or near these levels for the remainder of the year," he said.

"Production at Bjorkdal in the second quarter of 2016 was 12,648 ounces saleable Au, which is a new record for the mine under Mandalay ownership.

"Since the third quarter of 2015, production has increased in every succeeding quarter as a result of steady improvement in our underground and open-pit grade control practices.

"In addition, early indications from processing optically sorted material from low-grade stockpiles in our on-site commercial-scale pilot test suggest that we can successfully upgrade the low-grade stockpile material."

Sander added: "Cerro Bayo production during the quarter was 3,818 ounces gold and 462,462 ounces silver. We continued developing the new Delia SE and Coyita mines, and stoping has begun in both."

The group has contracted an underground developer for the  Coyita mine, where efforts are aimed at improving production performance in the fourth quarter of this year and on into 2017.

For the rest of 2016, the overperformance at Costerfield is expected to offset underperformance at the Cerro Bayo mine in Chile.

In terms of sales for the three months to end June, the miner sold 29,951 ounces of gold,  993 tonnes of antimony and 439,993 ounces of silver, representing a total of 40,740 ounces gold equivalent, compared to 43,233 ounces in the same period last year.

Sander concluded: "Mandalay delivered another strong production and sales quarter, which we expect to lead to strong financial performance when combined with improvements in the prices of all our metals that we have experienced during the quarter."

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Wed, 13 Jul 2016 08:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/128141/mandalay-resources-corp-unveils-strong-second-quarter-output-128141.html
<![CDATA[News - Mandalay raises C$35 mln in bought deal, affirms guidance ]]> https://www.proactiveinvestors.com.au/companies/news/127851/mandalay-raises-c35-mln-in-bought-deal-affirms-guidance-127851.html Mandalay Resources Corporation (TSX:MND) is raising C$35 mln in a bought deal underwritten by BMO Capital Markets.

The price has been set at C$1.15 per share, a slight discount to the C$1.33 the shares were trading at prior to the news. Nonetheless the market clearly approved, as the shares held firmly above the funding price, at C$1.19 following announcement.

The money raised will be used for metallurgical improvement projects at Mandalay’s key Bjorkdal and Cerro Bayo mines, for increased exploration activities across all the company’s projects, and for general working capital purposes.

Simultaneously, the company also reaffirmed previously issued guidance for production this year.

This is likely to come in at between 2.9 mln and 3.3 mln ounces of silver, 100,000 and 115,000 ounces of gold, 3,000 to 3,500 tonnes of antimony, all at cash costs of between US$690 and US$810 per gold equivalent ounce.

 

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Tue, 05 Jul 2016 08:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/127851/mandalay-raises-c35-mln-in-bought-deal-affirms-guidance-127851.html