Mandalay Resources Corporation reports record production and sales for the second quarter, 2012

TORONTO, July 9, 2012 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) announced today its production and sales results for the second quarter of 2012.

Production for the three months ended June 30, 2012:

  • The Company produced a total of 9,215 ounces ("oz") gold ("Au"), 612 tonnes ("t") antimony ("Sb"), and 814,970 oz silver ("Ag"), representing a total of 29,210 oz of gold equivalent ("Au Eq.") production.

  • Production at Costerfield (Australia) was 4,122 oz Au and 612 t Sb. These represent the highest production volumes since Mandalay assumed management of the mine in the fourth quarter of 2009.

  • Production at Cerro Bayo (Chile) reached record volumes of 5,093 oz Au and 814,970 oz Ag as the planned production ramp-up continued approximately on schedule, augmented by processing of ore stockpiled during the first quarter.

Brad Mills, Chief Executive Officer of Mandalay, commented: "The record second quarter represents our best production and sales quarter ever with both mines producing well. We expect to be able to maintain this level of performance going forward with some growth still to come from Cerro Bayo as the mine remains on track to reach design tonnage of 1,200 tpd in the fourth quarter of 2012."

Table 1. Quarterly Saleable Mine Production for 2011 and 2012

Metal    Source   Q1, 2011    Q2, 2011   Q3, 2011   Q4, 2011   2011 Total   Q1 2012   Q2 2012
Gold (oz)   Costerfield   4,528   2,856   2,057   2,803   12,244   3,690   4,122
    Cerro Bayo   1,450   1,552   1,567   2,109   6,678   2,190   5,093
    Total   5,978   4,408   3,624   4,912   18,922   5,880   9,215
Antimony (t)   Costerfield   512   413   305   346   1,576   489   612
Silver (oz)   Cerro Bayo   339,366     284,324     299,679     395,296   1,318,665     396,624     814,970
Average quarterly prices:                                
Gold US$/oz        1,386   1,506   1,703   1,685       1,694   1,614
Antimony US$/tonne       14,128   15,898   14,899   13,890       12,692   13,574
Silver US$/oz       31.67   38.56   38.83   31.81       31.78   29.39
Au Eq. (oz)1   Costerfield   9,747   7,216   4,725   5,655   27,343   7,356   9,273
    Cerro Bayo   9,204   8,832   8,400   9,572   36,008   9,631   19,936
    Total   18,951   16,048   13,125   15,227   63,351   16,988   29,210

Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the quarter by the respective average market prices of the commodities in the quarter, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the quarter.  Average Au price in the quarter is calculated as the average of the daily LME PM fixes in the quarter, with price on weekend days and holidays taken from the last business day; average Sb price in the quarter is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the quarter, with price on weekend days and holidays taken from the last business day; average Ag price in the quarter is calculated as the average of the daily London Broker's silver spot price for all days in the quarter, with price on weekend days and holidays taken from the last business day.  The source for all prices is

Table 2. Quarterly Quantity Sold for 2011 and 2012

Metal    Source   Q1 2011    Q2 2011   Q3 2011   Q4 2011   2011   Q1 2012   Q2 2012
Gold (oz)   Costerfield   4,741   3,229   2,108   2,837   12,915   3,384   4,063
    Cerro Bayo   204   1,297   1,690   2,347   5,538   1,284   4,960
    Total   4,945   4,526   3,798   5,184   18,453   4,668   9,023
Antimony (t)   Costerfield   476   433   279   352   1,540   450   608
Silver (oz)   Cerro Bayo   69,037     270,404     376,409     396,150   1,112,000     218,060     853,364
Average quarterly prices:                                
Gold US$/oz       1,499   1,469   1,814   1,734       1,715   1,570
Antimony US$/tonne       15,050   16,036   17,326   12,921       12,282   13,123
Silver US$/oz       29.41   39.85   40.50   27.00       32.97   28.68
Au Eq. (oz)2   Costerfield   9,521   7,955   4,773   5,460   27,709   6,604   9,140
    Cerro Bayo   1,559   8,632   10,093   8,516   28,801   5,475   20,546
    Total   11,080   16,587   14,866   13,977   56,510   12,080   29,687

Sales quantities of all three metals closely matched production quantities in the second quarter, as the Company's shipping schedule at Cerro Bayo returned to normal, recovering from the delays experienced in the first quarter.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's anticipated gold, silver and antimony production and sales in 2012. 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, 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. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 31, 2011, a copy of which is available under Mandalay's profile at In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. 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.



SOURCE Mandalay Resources Corporation

For further information:

Bradford Mills
Chief Executive Officer

Greg DiTomaso
Investor Relations


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Mandalay Resources Corporation

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