Mandalay Resources’ (TSE:MND) drill results from Costerfield underlined its ability to boost the resource at the Australian mine, said RFC Ambrian.
“With Costerfield reserves sitting at 420,000t (at year end 2013) and a production rate of 120-130ktpa, this latest set of in-fill/extensional drilling results will certainly — again — increase resources/reserves,” said RFC.
Current reserves sit at a grade of 9.2g/t and 3.6%Sb (antimony) and have quadrupled since Mandalay acquired the project in 2009.
While the failure of step out program was disappointing there are targets still to be followed up and the reserves do not include any of the 569,000 tonnes of Inferred Resources at 7.4g/t and 3.8% Sb.
A recent resources to reserves conversion rate of 52.7%, demonstrates Costerfield still has considerable mine life potential ahead, added the house broker.
The Toronto-listed shares rose 3% yesterday to C$1.12, just shy of the high for the year.
