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Mandalay hikes production forecast, delivers record Q2

11th July 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Canada-based natural resource company Mandalay Resources on Wednesday increased its full-year production forecast after record output at Costerfield, in Australia, and Cerro Bayo, in Chile.

Gold production from Costerfield was now expected to reach between 20 000 oz and 25 000 oz, up from the initial guidance of between 18 000 oz and 21 000 oz, while the operation’s antimony output would remain between 2 800 t and 3 000 t for the 2013 financial year.

The TSX-listed company was confident of Cerro Bayo delivering production within “the upper end” of its production guidance of 16 000 oz to 21 000 oz of gold, while producing between 2.8-million and 3.1-million ounces of silver.

“This is based on our experience with higher-than-planned mill feed gold grade and our growing confidence at being able to extract and sell a significant amount of coarse gold in gravity concentrate while maintaining high gold grades in our flotation concentrate,” Mandalay CEO Brad Mills said in a statement.

Mandalay reported producing 23 681 oz of gold during the six months to June, of which 13 046 oz were delivered during the past three months alone.

This compared with the 15 095 oz produced in the corresponding six-month period the year before.

A total of 60 686 oz of gold equivalent was produced during the first half of 2013, with 23 715 oz originating from Costerfield and 36 971 oz from Cerro Bayo.

Costerfield contributed 13 082 oz of gold and 1 504 t of antimony during the interim period, while Cerro Bayo produced 10 599 oz of gold and 1.53-million ounces of silver.

“Costerfield generated its third-highest antimony production quarter ever. As expected, Cerro Bayo's record second-quarter performance made up for lower production in the first quarter, which was related to the planned curtailment of plant operations during installation and commissioning of flotation automation equipment,” Mills commented.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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