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Attention Business Editors
Mandalay Resources Delivers Costerfield Mine Ramp-Up on Schedule
TORONTO, March 9 /CNW/ - Mandalay Resources Corporation ("Mandalay" or
"the Company") (TSX-V: MND), is pleased to announce that the
previously-disclosed ramp-up at its 100% owned Costerfield gold-antimony mine
in Australia has been achieved as planned at the end of February, 2010. The
decline has reached three of the four targeted new levels on the Augusta lode.
Together with existing ore faces, the new development will permit production
of 500 to 600 tonnes of gold-antimony flotation concentrate per month going
forward, up from 150 to 200 tonnes per month previously. This concentrate will
contain about 52% antimony and 60 g/t gold and be associated with another
200-300 ounces per month of gold contained in gravity concentrate.
Brad Mills, CEO of Mandalay said, "Reaching this operational milestone on
time is the first installment on developing the track record of the new
Mandalay team as we execute our strategy of building a critical mass of
production over the next three years through acquisition and organic growth.
We acquired the Costerfield mine on December 1, 2009 (see press release of
that date), and announced our maiden Q4-2009 production results, including
just one month at Costerfield at the previous rate, on January 19, 2010. Our
Q1-2010 results will represent a full quarter of production from Costerfield,
with one month at the expanded rate, while our Q2-2010 results should
represent a full quarter at the expanded rate. Congratulations to the
operating team which has worked hard for this outcome, delivering it safely
and below cost. As well, they have achieved the development while reducing the
minimum mining width from 2.5 metres to 1.8 metres, making several mill
improvements (including upgrading the Knelson concentrators and expanding the
flotation section to permit improved recovery at higher throughput rates), and
commissioning a new tailings dam. Their success has set the stage for
confident investment in exploration below and adjacent to the Augusta lode.
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Qualified Person:
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Melanie McCarthy, Manager of Processing 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.
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About Mandalay Resources Corporation:
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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.
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Forward-Looking Statements:
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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.
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/For further information: Bradford Mills, Chief Executive Officer; Greg
DiTomaso, Investor Relations, Contact: (647) 436-2592/
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