TORONTO, April 14 /CNW/ - Mandalay Resources Corporation ("Mandalay" or "the Company") (TSX-V: MND), is pleased to announce its Q1, 2010 operational results at its Costerfield, Australia, gold-antimony mine, which are in line with its expectations for the mine ramp-up. This is the first full quarter of production under Mandalay ownership; there are no previous Mandalay production quarters with which to compare.
For the first quarter of 2010, the Costerfield operation produced 1,826 ounces of gold and 335 tonnes of Antimony as doré and in concentrate. The mine produced 10,220 tonnes of ore and the concentrator processed 8,744 tonnes of ore, producing 732 tonnes of antimony concentrate as well as 524 ounces of gold contained in gravity concentrate. An additional 138 ounces of gold were produced from the tailings reprocessing plant. 244 metres of primary decline development were accomplished during the quarter.
During the second quarter the Company expects the mine to achieve steady state production of around 5,000 tonnes of ore per month from the mine and concentrator, producing 500-600 tonnes of gold-antimony concentrate, containing 52% antimony and 60 g/t Au. A total of 250-300 tonnes of antimony and 1,000 to 1,500 ounces of gold are anticipated to be sold each month.
Brad Mills, CEO of Mandalay, commented "Our Q1, 2010 operating results represent the first full quarter of our ownership of the Costerfield mine and another milestone in the metamorphosis of Mandalay from an exploration company to a profitable producer. The next step will be for the mine to deliver stable production at the ramped up design which we anticipate will be achieved in the second quarter."
Melanie McCarthy, Operations Manager 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.
Investor Relations Services:
The Company also announces it has extended its contract with The Capital Lab Inc. to provide investor relations services. The term of the contract is from November 1, 2009 to November 1, 2010 and is for a retainer of $10,000 monthly. The Capital Lab Inc. has also previously been granted options to acquire 200,000 common shares of the Company at a price of $0.255 per share.
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