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Mandalay Resources maintains reserves over course of 2017

Last updated: 08:56 20 Feb 2018 EST, First published: 03:56 20 Feb 2018 EST

1519142396_Bjorkdal
Pictured is the group's Bjorkdal asset

Precious metals group Mandalay Resources Corp (TSE:MND) said it had maintained its reserves over 2017 despite mining from its three principle assets.

In a reserve and resource update, the miner said that expressed as total ounces of contained gold equivalent calculated at year-end 2017 metals prices, the group maintained its mineral reserves position of just over 1mln contained ounces.

"These reserves were added to our position for an exploration cost of $29.67 per gold equivalent ounce, significantly lower than in the previous year," noted Mark Sander, the president and chief executive of Mandalay.

Reserves are contained at the firm's Costerfield mine in Australia, Cerro Bayo in Chile and the Bjorkdal mine in Sweden.

In the proven and probable reserves, contained gold was approximately the same as the year prior, while contained silver decreased by 12% and contained antimony decreased by 1%.

In the measured and indicated category, contained gold increased by around 6%, contained silver decreased by 3%, and contained antimony increased by 13%.

Last month, Mandalay hailed a 'superb' performance by the Björkdal mine the fourth quarter, which meant the firm exceeded its annual consolidated revised output guidance for 2017.

On an annual basis, the mine produced 62,028 ounces of gold, which was not only 30% greater than in the previous year, but is also the highest production from the mine since 1998, the metals miner said.

This was due partly to continued grade control and the ability of the mine to deliver larger quantities of the highest quality “A” ore to the plant.

In the fourth quarter to end December, output at Björkdal was 22,035 ounces gold compared to 10,934 ounces gold in the same period of 2016.

Meanwhile, the firm's Costerfield mine in Australia produced 12,360 gold equivalent ounces in the fourth quarter and 52,137 gold equivalent ounces for the full year.

Production at the Cerro Bayo mine in Chile was suspended since June 9 last year due to the flooding incident, so there was no production in the fourth quarter.

Over the year, output at Cerro Bayo was 5,909 ounces gold and 794,533 ounces silver.

Mandalay shares in Toronto shed 1.96% to C$0.25.

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