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Mandalay Resources posts 4Q production results highlighting continued performance at Australian and Swedish gold operations

Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) announced its 4Q production results on Thursday that showed the gold miner produced its highest amount of saleable gold in nearly three years. The company produced 24,488 saleable ounces during its fourth quarter ended December 31, 2020 from its flagship Costerfield mine in Australia and its Swedish operation, Björkdal. The quarter was its fifth consecutive quarterly improvement in consolidated saleable gold production and highest consolidated gold production since 4Q 2017, according to a statement. READ: Mandalay Resources sees encouraging results from extension drilling at Aurora target on its Björkdal gold mine During the quarter, the Toronto-based company produced a consolidated 27,351 saleable ounces of gold equivalent and sold 24,742 ounces of gold equivalent. For FY 2020, Mandalay produced 103,444 ounces of gold equivalent and sold 99,935 ounces of gold equivalent, meeting its 2020 production guidance and achieving 35% year-over-year growth. A majority of the gold production came from Mandalay’s flagship Australian asset, Costerfield, which produced 15,099 saleable gold equivalent ounces during the fourth quarter. The firm’s Swedish operation, Björkdal, produced 12,252 saleable ounces, its highest quarterly amount in 2020. At Costerfield, the high-grade Youle vein continued to deliver excellent results as head grades averaged 11.2 grams per ton (g/t) gold and 3.5% antimony processed. Björkdal also saw improvements in production amidst what the company called a “transition year” in which the company is ramping up the mill’s supply of higher-margin underground ore. 2021 guidance “Mandalay’s significant production performance in the fourth quarter of 2020 reflects the continued strengthening and improvement of our operations,” CEO Dominic Duffy said in a statement accompanying the results. Duffy added the firm is planning to begin a trial processing of waste dumps carrying gold and silver mineralization over the course of the first quarter of 2021 at Cerro Bayo, its mothballed Chilean asset, which won’t be included in its 2021 guidance. Mandalay put its 2021 guidance at 105,000 to 117,000 ounces of gold equivalent at cash costs between $800 to $1,000 at Costerfield and all-in sustaining costs of $1,100 to $1,350 per ounce. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas

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