Mandalay Resources creates exceptional shareholder value through the acquisition of undervalued assets that can: become rapidly cash generative, self fund exploration, establish and maintain high operating margins, and return cash to shareholders. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.
Mandalay operates the 100%-owned Costerfield gold-antimony mine in Victoria, Australia, having purchased it on December 1, 2009, from Western Coal. The Company restarted capital development and mining immediately, ramping through year-end 2010 to the planned production rate of 5,000 tonnes per month (“t/m”). Significant improvements in mining and processing methods since then has enabled production to grow to the 10,000-12,000 t/m range by early 2013, a level that has been sustainable going forward.
In 2010 and again in 2011, the Company delineated new reserves deeper on the Augusta E and W lodes currently being mined to approximately replace depleted reserves. Also in 2011, the Cuffley lode and the deeper N lode were discovered by surface drilling. By the end of 2011, initial high-grade Inferred Resources on these lodes were established. By mid 2013 the Inferred Resource base was extended and a substantial portion converted to Indicated Resource by infill drilling. As well, development in the N-lode converted Resources to Reserves, extending the mine life at the 10,000-12,000 t/m production rate.
Costerfield offers current gold and antimony production, the potential for significant near-term production expansion and mine life extension in the Cuffley lode, and exposure to discovery potential for new veins in the mineral district within the 100%-owned Mandalay tenement.