TORONTO - Mandalay Resources Corporation ('Mandalay' or the 'Company') (TSX: MND, OTCQB: MNDJF) announced today its production and sales results for the fourth quarter and full-year 2022 and provides production and cost guidance for 2023.
2022 Production Highlights:
Consolidated full-year 2022 production of 105,906 saleable gold equivalent ounces; and Full-year consolidated saleable gold equivalent sold was 106,094 ounces.
2023 Production and Cost Guidance:
Consolidated production guidance of 105,000 - 118,000 saleable gold equivalent ounces; and Cash cost and all-in sustaining costs expected at $800 - $975 and $1,150 - $1,325 per gold equivalent ounce, respectively.
Dominic Duffy, President and CEO of Mandalay, commented
'2022 was a strong year for Mandalay Resources. On a consolidated basis, Mandalay recorded its best month during 2022, in October with 10,553 saleable gold equivalent ounces produced. This contributed towards a solid fourth quarter with 25,683 gold equivalent ounces produced. For the full-year of 2022, the Company produced 105,906 saleable gold equivalent ounces - marking the Company's second highest consolidated annual production rate since 2017. The lower annual production in 2022, when compared to 2021, was primarily due to Cerro Bayo's 2021 production of 9,037 gold equivalent ounces, as opposed to no production in 2022 due to the sale of the asset in December 2021, as well as COVID-related labor shortages at both operating sites in 2022. 'For Q4, Costerfield produced 15,427 gold equivalent ounces, which was broadly in line with the previous quarters of 2022. The site produced less ounces in December, as milled tonnes were below expectations due to a planned ball mill re-lining at the plant. In addition, a lower-than-average level of concentrate was sold at Costerfield during December due to the timing of shipments, resulting in 14,913 ounces of gold equivalent sold in Q4. Sales and cash receipts for higher-than-average stock on hand at the end of the year will be recognized in Q1 2023. 'We are expecting annual production at Costerfield in 2023 of 56,000 - 64,000 gold equivalent ounces, consistent with the production rate achieved in Q4 of 2022. 'At Bjorkdal, we were pleased with its consistent rate of production as compared to the previous quarter, with 10,256 gold ounces produced. However, full year 2022 operating results were below expectations. This was mainly due to lower underground grades due to increased dilution, coupled with higher utilization of the lower grade stockpile material at the mill because of the reduced haulage rates from COVID absenteeism. 'We expect a higher annual production in 2023 of 49,000 - 54,000 gold ounces at Bjorkdal as we continue the work around implementing incremental improvements on dilution controls and better contingencies regarding staffing protocols. Additionally, we will also begin developing in several higher-grade areas of the Eastern Deeps Central zone. 'In 2023, we anticipate consolidated production of 105,000 - 118,000 ounces of gold equivalent at an expected cash cost of $800 - $975 and an all-in sustaining cost of $1,150 - $1,325. The Company will strive to further unlock shareholder value through exploration with anticipated expenditures of $10 - $14 million. The focus of the programs will be on expanding the Mineral Reserves and Resources at Costerfield in addition to testing new targets at both operations.'
Saleable Production for the Quarter Ended December 31, 2022:
In the fourth quarter of 2022, the Company produced a total of 22,341 ounces of gold and 504 tonnes of antimony representing a total of 25,683 ounces of gold equivalent, versus 25,596 ounces of gold, 830 tonnes of antimony and 50,556 ounces of silver in the fourth quarter of 2021, representing a total of 32,362 ounces of gold equivalent.
Production at Bjorkdal was 10,256 ounces of gold in the fourth quarter of 2022 as compared to 11,190 ounces of gold in the fourth quarter of 2021.
Production at Costerfield was 12,085 ounces of gold and 504 tonnes of antimony in the fourth quarter of 2022 versus 13,397 ounces gold and 830 tonnes antimony in the fourth quarter of 2021.
Saleable Production for the Year Ended December 31, 2022:
The Company produced a total of 89,134 ounces gold and 2,292 tonnes antimony, representing a total of 105,906 ounces of gold equivalent production, versus 98,292 ounces gold, 3,380 tonnes of antimony and 266,596 ounces of silver, representing a total of 123,002 ounces of gold equivalent in 2021.
Production at Bjorkdal was 41,247 ounces gold.
Production at Costerfield was 47,887 ounces gold and 2,292 tonnes antimony.
Contact:
Dominic Duffy
President and Chief Executive Officer
Edison Nguyen
Director
Business Valuations and IR
T: 647.260.1566 ext. 1
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The Company is focused on growing its production and reducing costs to generate significant positive cashflow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement. Mandalay's mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Bjorkdal mines. Currently, the Company's main objectives are to continue mining the high-grade Youle vein at Costerfield, bring online the deeper Shepherd veins, both of which will continue to supply high-grade ore to the processing plant, and to extend Youle Mineral Reserves. At Bjorkdal, the Company will aim to increase production from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.
Contact:
OFFICE
Mandalay Resources Corporation
76 Richmond Street East, Suite 330
Toronto, ON
M5C 1P1
INVESTOR
Edison Nguyen
Director
Business Valuations and Investor Relations
T: 647-260-1566 ext. 1
E: e.nguyen@mandalayresources.com
LEGAL COUNSEL
Goodmans LLP
333 Bay Street, Suite 3400
Toronto, ON
M5H 2S7
MANDALAY RESOURCES CORPORATION 
