Mandalay Resources (TSE:MND) has reiterated 2014 production guidance after a strong fourth quarter at both of its operations.
The company produced a total of 12,117 ounces (oz) gold (Au), 805 tonnes antimony (Sb), and 878,542 oz silver (Ag), representing a total of 32,770 oz of gold equivalent production in the final three months of 2013.
Production at Costerfield in Australia was 6,085 oz Au and 805 tonnes Sb, while at Cerro Bayo in Chile, production was 5,272 oz Au and 878,542 oz Ag.
Those numbers took combined saleable production for the whole of 2013 to record levels of 50,240 ounces Au, 3,275 tonnes Sb and 3.15mln oz Ag, all of which is equivalent to 126,908 oz of gold, up by around 18% on 2012.
Prices moved against the company during the year, with the average price achieved for gold in the fourth quarter down to US$1,271 per ounce, versus US$1,717 the year before.
The average price for antimony declined to US$9,940 per tonne from US$12,317 per tonne a year earlier, while the silver price dropped to US$20.76 from US$32.57 in the fourth quarter of the previous year.
The company sold 12,578 oz Au in the fourth quarter, 959 tonnes Sb and 769,120 oz Ag, representing a total of 32,648 oz gold equivalent.
“Total gold equivalent sales [for all of 2013] were 126,095 ounces, approximately 22% greater than the previous year,” said Brad Mills, Mandalay’s chief executive officer.
"Both our planned growth projects are on track, supporting our reiteration of 2014 production guidance and continuing our organic growth trajectory,” Mills continued.
“At Costerfield, the Cuffley decline has reached the target Cuffley mineralization and on-vein drifting is exposing the vein as we expected from the resource model. As stated previously, we expect to be able to convert the Cuffley Measured and Indicated Mineral Resource declared in the September 2013 Preliminary Economic Assessment (see Mandalay news release dated September 10, 2013) to Proven and Probable Mineral Reserves in the year-end 2013 Mineral Reserves update anticipated for release later in the first quarter of 2014,” he added.
“At Cerro Bayo, the second access to the Delia NW vein is also proceeding on schedule, which will allow us to increase nominal production to about 1,400 tonnes per day by the end of the first quarter of 2014," Mills declared.
City firm RF Ambrian was especially impressed with the results from Cerro Bayo.
“Last year the company announced that it had begun drilling wide-spaced, long horizontal holes from underground platforms to test the strike lengths (500m each) of the Fabiola, Yasna and Coyita veins under Laguna Verde. These results are the first to be returned from this programme. All indications to date support our expectation that the geology continues under the relatively small and shallow Laguna Verde and that mineralisation continues,” the broker said.
On Wednesday, Mandalay unveiled positive drill results from its Cerro Bayo silver-gold mine, which show mineralisation extends beyond the current ore reserves.
The results are from the first three holes aimed at intersecting the Fabiola and Yasna veins at the property in Chile.
All three hit veins and two intersected high grade gold and silver over significant widths, the company said.
