Mandalay Resources Corporation
Mandalay Resources Corporation
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Fuelled by a fall in Australian gold production, the suspension of operations in Chile and its Swedish production up only slightly, Mandalay Resources has seen Sept 2017 9-months gold equivalent production fall to 96,791oz from the previous 9-months’ 114,204oz.
Gold production was down to 70,192oz from 81,981oz, antimony to 2,310t from 2,806t and silver plunged to 794,533oz from 1.36Moz.
Mandalay has placed its Cerro Bayo silver-gold operations in Chile on care and maintenance, four months after it was suspended due to a flood that killed 2 miners in the Delia NW mine.
President-CEO Mark Sander says the shutdown will preserve financial capacity while Mandalay prepares to restart production at short notice and low cost once it has permits and is confident it can be done safely.
The 2-death flooding and closure of Mandalay Resources’ Cerro Bayo silver-gold mine in Chile on June 9, 2017, has plunged the company to a $US12.45M net loss for the 1st half 2017 (H1 17) from H1 16’s $4.76M profit.
Operations at Cerro Bayo remain suspended and are likely to stay that way for the rest of the year, forcing the company to drastically downgrade its FY/CY 17 aspirations to 114,000oz-128,000oz AuEq at cash costs of $925oz-$975oz AuEq from 138,000oz-163,000oz AuEq at cash costs of $860oz-$950oz AuEq.
Mandalay Resources has plunged from profit to an H1 17 $12.5M loss, with the flood-forced closure of the Cerro Bayo mine also severely cutting FY/CY17 expectations
Strong performances from its Björkdal and Costerfield operations in Sweden and Australia have offset the 2-death flooding closure of the Cerro Bayo mine in Chile to lift Mandalay Resources’ June 2017 qtr (Q2 17) gold equivalent production to 38,491oz from Q1 17’s 32,481oz.
However, June 2017 half (H1 17) production slipped to 70,972oz AuEq from H1 16’s 79,618oz.
Mandalay Resources’ H1 17 gold equivalent production slips, despite Q2 17 output jump on the previous qtr
Canadian miner Mandalay Resources has started issuing notices suspending its obligations to customers, suppliers and contractors of its Cerro Bayo silver-gold mine complex in Chile after a section of the mine was flooded on June 9 trapping 2 miners, Reuters reports.
Subsidiary Minera Cerro Bayo has invoked force majeure and is reviewing alternatives for future mining at Cerro Bayo after 2 workers went missing following the flooding of Delia NW mine within the Cerro Bayo complex. The trapped miners have not been found.
A drilling probe by rescuers seeking to find 2 workers missing in a S Chile mine for more than a week has found water in the area where they are thought to have been at the time of a June 9 flood, Reuters reports.
Snowfall in recent days and the frigid waters of a surrounding lagoon have complicated efforts to find the 2 workers in the small Delia gold-silver mine, part of Mandalay Resources’ Cerro Bayo complex.
Rescuers are battling difficult underground conditions in their search for two employees missing after a flood that inundated the Delia 2 ramp section of the Delia NW mine at its Cerro Bayo silver-gold project in Patagonia, Chile early Friday.
The Canadian-owned company says the rescue attempts are being sustained despite difficulties with the volume of water in the mine. All mining operations at Cerro Bayo are suspended.
The company has given no indication yet of the source of the flooding.
A continued strengthening of operations and improved metal prices have seen Mandalay Resources cut its Mar 2017 qtr (Q1 17) net loss to $US2.3M from the previous qtr’s $25.5M loss on gold equivalent production up to 32,481oz from 31,293oz at average cash costs down to $987oz AuEq from $1,101oz and all-in cash costs to $1,326oz AuEq from $1,385oz.