April 18, 2011 / 12:24 PM / 6 years ago

UPDATE 1-Mandalay increases mineral resources at Australia mine

2 Min Read

* Says total measured resources rise 8 pct to 236,000 tonnes

* Estimated mining reserves rise 9 pct to 71,300 tonnes

* Says new estimates will help extend life of Costerfield mine to 2012 (Follows alerts)

April 18 (Reuters) - Canada's Mandalay Resources reported an increase in the mineral resources and said it has replaced depleted reserves at its gold-antimony mine in Australia.

The miner said total new measured resources at the Costerfield mine in Victoria rose nearly 8 percent to 236,000 tonnes, containing 89,000 ounces of gold and 16,700 tonnes of antimony.

Mandalay, which has assets in Chile and Australia, said mining reserves for the Augusta East and West lodes have been estimated at 71,300 tonnes, compared with its previous estimate of 65,565 tonnes of ore.

The company said underground development will continue through 2011 to 900 meters, approximately 100 meters below the current deepest level in the mine.

Reserves depleted by production from March to December have been replaced in terms of contained metal, the company said in a statement.

Mandalay said the new mineral resource and reserve estimates will help extend the reserve life of the Costerfield mine well into 2012.

Shares of Toronto-based Mandalay closed at 71 Canadian cents on Friday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Roshni Menon)

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