Mandalay Resources on track to meet 2021 production guidance as it records solid second quarter

Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) (FRA:R7X2) posted a solid set of production figures for its second quarter to end-June and sees further improvements ahead. 

Across its projects in Sweden, Australia and Chile, the metals producer generated 28,843 ounces of gold-equivalent for the three months to June 30, up from 24,752 ounces in the same quarter a year earlier. 

READ: Mandalay Resources’ exploration drill results at Björkdal bode well for future mine development

This was the miner’s highest result since the fourth quarter of 2017 and the fourth consecutive quarter of increased output.

In terms of sales, the group sold 28,115 gold-equivalent ounces in the second quarter, up from 24,916 gold-equivalent ounces in 2Q, 2020.

Dominic Duffy, the CEO of Mandalay, said the miner was “firmly on track” to meet its 105,000 to 117,000 production guidance for 2021, with “further increases expected in the coming quarters”.

Costerfield (Australia) achieved another solid quarter with grades and production performance tracking well within guidance, with the site producing 14,818 ounces of saleable gold equivalent, he added.

“We are targeting higher levels of gold production from Costerfield in both the third and fourth quarters of the year as stope tonnage ramps up in Youle, which on average is higher grade than development ore.”

At Björkdal, in Sweden, production of 10,941 saleable gold ounces in the second quarter was in line with the previous quarter.

“The site continues to develop to the extremities of the Aurora zone and is currently advancing development along lower levels, where the average grade is higher. We anticipate stope production in the deeper levels will begin in the second half of the year, which will lift the overall gold production from Björkdal,” noted Duffy.

Meanwhile, Cerro Bayo in Chile produced 3,084 ounces of saleable gold equivalent from processing low-grade waste dumps in the quarter, which also helped to boost group production.

Also in the statement, Mandalay said that Belinda Labatte had resigned as chief development officer at Mandalay but had agreed to remain as a consultant for 12 months to “complete the closure efforts at Lupin and outstanding corporate development activities”.

The company thanked her for her ‘tireless contributions’ and wished her well for the future.

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