Brad Mills, Chief Executive Officer of Mandalay, commented, "Mandalay continued its strong operating performance in the third quarter of 2013. Costerfield produced and sold record amounts of gold and antimony during the quarter. The higher production is due to greater tonnage mined and processed at excellent grades of both gold and antimony. Cerro Bayo has performed according to our expectations, given the disruptions associated with the fatality experienced in the quarter. Cerro Bayo delivered record silver sales, catching up on shipping delays experienced in the first quarter."
Mr. Mills continued, "Our operational performance over the first nine months of 2013 was extremely strong, with 12-57% growth in metals produced (depending on the metal) and 27-64% growth in metals sold. This performance, plus our operating commitments for the rest of the year, gives us confidence that full-year production will be at the upper end of our previously announced guidance of 20,000-25,000 ounces of gold and 2,800-3,000 tonnes of antimony from Costerfield and 16,000-21,000 ounces of gold and 2.8-3.1 million ounces of silver from Cerro Bayo."
"We expect Mandalay\'s organic growth to continue. As previously announced, capital development is occurring for the second access to the Delia NW vein at Cerro Bayo which is expected to lead to a production increase from the current 1,200 tonnes per day ("tpd") to approximately 1,400 tpd by the end of the first quarter of 2014. As well, the Company recently announced commencement of the development of the Cuffley lode at Costerfield, with initial production expected by the end of 2013. With the continued good exploration results recently announced at both operations, we expect to grow reserves at Costerfield and approximately replace reserves at Cerro Bayo in the Company\'s end of 2013 reserves update."