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Mandalay Resources reports higher first-quarter production

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(Kitco News) -  First-quarter production for Mandalay Resources Corp. (TSX: MND) was higher than in both the fourth quarter and first quarter of 2019, the company announced late Monday.

For the January-March period, Mandalay produced 25,677 gold-equivalent ounces, up from 21,940 in the same quarter of 2019. The company sold 24,276 gold-equivalent ounces in the first three months of the year.

The first-quarter gold-equivalent tally included 21,370 ounces of gold and 1,108 metric tons of antimony, up from 18,490 ounces of gold and 575 tons of antimony in the same period a year ago.

“The first quarter of 2020 showed a significant increase in both gold and antimony production as production from the high-grade Youle vein at Costerfield began to ramp up,” said Dominic Duffy, president and chief executive officer. “Gold and antimony production increased 36% and 62%, respectively, compared to the fourth quarter of 2019.”

He pointed out that Costerfield produced 14,927 gold-equivalent ounces, which was the most since the second quarter of 2016. This output included a record 1,108 tons antimony.

“We are excited with the realized outcomes from the Youle vein as the mill processed an average head grade of 12.6 g/t [grams per ton] and 5.4% of gold and antimony, respectively, over the quarter,” Duffy said. “These are considerable improvements versus the 2019 full-year averages of 5.1 g/t gold and 2.5% antimony. We expect these production rates at Costerfield to be sustained as the Youle vein becomes the more prominent source of ore feed over the remainder of the 2020.”

Duffy said Mandalay is maintaining our 2020 production guidance for now despite uncertainty tied to the COVID-19 pandemic.

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