TORONTO, March 9 /CNW/ - Mandalay Resources Corporation ("Mandalay" or "the Company") (TSX-V: MND), is pleased to announce that the previously-disclosed ramp-up at its 100% owned Costerfield gold-antimony mine in Australia has been achieved as planned at the end of February, 2010. The decline has reached three of the four targeted new levels on the Augusta lode. Together with existing ore faces, the new development will permit production of 500 to 600 tonnes of gold-antimony flotation concentrate per month going forward, up from 150 to 200 tonnes per month previously. This concentrate will contain about 52% antimony and 60 g/t gold and be associated with another 200-300 ounces per month of gold contained in gravity concentrate.
Brad Mills, CEO of Mandalay said, "Reaching this operational milestone on time is the first installment on developing the track record of the new Mandalay team as we execute our strategy of building a critical mass of production over the next three years through acquisition and organic growth. We acquired the Costerfield mine on December 1, 2009 (see press release of that date), and announced our maiden Q4-2009 production results, including just one month at Costerfield at the previous rate, on January 19, 2010. Our Q1-2010 results will represent a full quarter of production from Costerfield, with one month at the expanded rate, while our Q2-2010 results should represent a full quarter at the expanded rate. Congratulations to the operating team which has worked hard for this outcome, delivering it safely and below cost. As well, they have achieved the development while reducing the minimum mining width from 2.5 metres to 1.8 metres, making several mill improvements (including upgrading the Knelson concentrators and expanding the flotation section to permit improved recovery at higher throughput rates), and commissioning a new tailings dam. Their success has set the stage for confident investment in exploration below and adjacent to the Augusta lode.
Melanie McCarthy, Manager of Processing at Costerfield and a member of AusIMM is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical and scientific information pertaining to the Costerfield mine contained in this release.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with assets in production. The Company is focused on executing a roll-up strategy which involves aggregation of gold, copper, silver and antimony projects, creating critical mass through the acquisition of near-term or in-production assets in Australia and the Americas.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the proposal to complete the proposed transaction, including statements regarding the terms and conditions of the proposed transaction and statements regarding the growth and strategy of Mandalay following completion of the transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, risks that the parties will not proceed with the proposed transaction, that the ultimate terms of the proposed transaction will differ from those that currently are contemplated, that the proposed transaction will not be successfully completed for any reason (including the failure to obtain the required financing, TSX-V approval or board approval), Mandalay's ability to secure additional financing, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Mandalay Resources Corporation
For further information: For further information: Bradford Mills, Chief Executive Officer; Greg DiTomaso, Investor Relations, Contact: (647) 436-2592