Successfully closing the Elgin transaction as planned, and adding Elgin’s Björkdal gold mine in Sweden, Mandalay adds a third producing mine in a top mining jurisdiction. “We currently expect that the Björkdal mine will produce 8,000 to 10,000 oz of gold during the fourth quarter of the year, which increases our overall 2014 Mandalay production guidance to a range of 138,000 to 148,000 oz of gold equivalent,” said Brad Mills, CEO of Mandalay Resources. “Our plans for the Björkdal mine will immediately focus on refining the life of mine resource and reserve model for the open-pit and underground mines, improving the grade of production of both mines based upon this more granular model, evaluating and adopting new milling approaches in the plant to improve gold recovery and expand plant capacity. We will also evaluate all of the exploration potential on the property and commence an exploration program to expand reserves. We anticipate that we will start to see results from these efforts within the next three to six months.”
“In connection with our acquisition of Elgin, Mandalay has reviewed its property portfolio and decided to sell two assets that are now deemed non-core to our future plans. These assets are the Lupin gold mine, in Nunavut, Canada, and the La Quebrada copper-silver project in Chile,” Mills said.