Mandalay Resources Corp has unveiled a strong set of third-quarter operations metrics, which included the highest quarterly amount of gold equivalent ounces sold in four years and the highest quarterly saleable gold equivalent production from its Australia mine.
In a statement, the group said that overall, across its two mines in Sweden and Australia, it generated 33,121 ounces of saleable gold-equivalent, which was the highest quarterly result since 4Q, 2017.
Gold-equivalent ounces sold in the three months to September 30 this year totalled 28,752, the highest for four years, while Costerfield’s highest ever quarterly saleable gold equivalent production came in at 18,946 ounces.
READ: Mandalay Resources reveals that Equus Mining has exercised its option to buy the Cerro Bayo mine in Chile
Dominic Duffy, CEO of Mandalay, said that over the nine months, the metals miner had generated 90,640 ounces of gold equivalent, which showed the stability of the company's operations and meant it was poised to "achieve the upper limits of our 2021 combined production guidance from Costerfield and Björkdal".
"The main reasons for this are the overperformance at Costerfield and the increased antimony price," he said.
Mandalay expects that consolidated 2021 saleable production (not including production from Cerro Bayo in Chile) will be at the higher end of the previously reported range of between 105,000 and 117,000 ounces of gold-equivalent.
Looking ahead for Costerfield, Duffy said Mandalay would continue with the scheduled stoping of the higher-grade upper levels of the Youle deposit.
"We also expect to enter the Shepherd zone during the fourth quarter 2021, as the lowest level currently being developed will enter the Shepherd zone on the southern extent," he added.
Elsewhere, at the firm's Swedish mine at Björkdal, third-quarter production of 11,250 saleable gold ounces was a slight improvement upon the previous quarter, however, it was still below the planned production rates, said Duffy.
"The positive for the quarter was that we began to see improved grades in September as the underground operation was able to decrease the excessive dilution in key stopes," he added.
"We are currently testing bolting of the upper sections of the stopes to better control the dilution and the initial results have been favorable. This adjustment along with other dilution controls being implemented should see mining grades continue to lift for the remainder of 2021."
Turning to Mandalay's Chile asset, Duffy said: "Cerro Bayo continued with its processing of the low-grade mineralized waste material throughout the third quarter and produced 2,925 ounces of saleable gold equivalent. Due to economic uncertainties surrounding this process, no production guidance was provided for Cerro Bayo at the start of this year.
"However, with slightly higher-than-expected grades coupled with the support from a strong silver price, it has allowed for the project to be profitable since its initiation in March 2021. Processing will continue through to December 1, 2021, when Equus Mining will acquire ownership of the operation."
Mandalay Resources has producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under care and maintenance, closure or development status.
Contact the author at giles@proactiveinvestors.com