Mandalay Resources Reports High-Grade Gold and Antimony, Expands Costerfield

Author: Hannah Lewis Updated: 09-10-2024 05:28 PM

Mandalay Resources Drilling Update at Costerfield

Mandalay Resources Corporation ("Mandalay" or the "Company") has released an update on the drilling progress at its Costerfield operation in Victoria, Australia. The recent drilling results confirm the potential for continued high-grade gold and antimony production from the site, as well as the possibility of further expansion through deeper exploration.

New Drilling Results

The latest drilling campaign has focused on the Shepherd and Kendall vein systems. Extension and infill drilling in these areas have provided more certainty about the resource potential. Key intercepts from this drilling include:

751.7 g/t gold and 1.8% antimony over 0.22m in PD142
291.3 g/t gold over 1.26m in PD175
547.3 g/t gold over 0.86m in KD907
107.0 g/t gold over 0.55m in PD114
33.4 g/t gold and 31.4% antimony over 1.00m in BC399

Further drilling to the south of the Costerfield operation, beneath the Cuffley mine, has also yielded promising results. These intercepts suggest there could be significant untapped resources at depth:

550.0 g/t gold over 0.15m in AD213
58.4 g/t gold and 17.6% antimony over 0.77m in AD203

In addition, drilling to the north of the Cuffley deposit indicates the potential for further extension of the mineralized system, with notable intercepts including:

17.1 g/t gold and 0.3% antimony over 1.20m in CB001
4.0 g/t gold and 20.2% antimony over 0.45m in TP021

These results underscore the potential for continued exploration success both to the north and south of the current mining areas, further extending the life of the Costerfield operation.

Exploration Focus for 2024

Mandalay's primary goal for 2024 is to continue exploring and developing near-mine targets at Costerfield. This exploration strategy aims to extend the life of the mine by focusing on areas near existing infrastructure, which will allow the Company to take advantage of the high-grade veins identified in recent drilling. In particular, Mandalay is targeting extensions to the Shepherd and Youle vein systems, both of which have delivered consistently strong production results in recent years.

Drilling in the Shepherd area has concentrated on delineating the westernmost vein (630) within the system. This drilling has identified additional parallel veins to the east and west, further increasing the resource potential of the area. Notable intercepts include:

7.4 g/t gold and 49.1% antimony over 0.44m in PD147
18.3 g/t gold and 26.2% antimony over 2.02m in PD190
15.1 g/t gold and 22.2% antimony over 1.26m in PD211
26.7 g/t gold and 22.1% antimony over 0.31m in SQ040B1
108.0 g/t gold and 29.1% antimony over 0.58m in PD151
26.4 g/t gold and 36.7% antimony over 0.21m in PD210

These intercepts confirm the rich antimony content of the 630 vein in the southern portion of the Shepherd area, which had been suggested in Mandalay's 2023 exploration update. The 630 vein has proven to be consistently antimony-rich, which bodes well for the long-term production potential of this part of the mine.

In the Kendall area, drilling has also revealed promising results. The "580" vein, which had previously been identified, has now been upgraded with the following high-grade intercepts:

82.6 g/t gold and 45.0% antimony over 0.20m in BC394
54.7 g/t gold and 63.5% antimony over 0.60m in BC395
38.0 g/t gold and 35.7% antimony over 1.00m in BC399

This area is readily accessible with minimal capital development, making it an attractive target for further resource additions. The upcoming drilling program will aim to extend the known mineralization within the Kendall vein set, particularly towards the boundary of the Whitelaw Fault footwall.

Cuffley Extensions and Depth Exploration

Late in 2023, Mandalay's drilling efforts intersected high-grade mineralization in a previously untested area below the Cuffley deposit. Drillhole AD200, located approximately 150m from the southern boundary of the existing Cuffley resource, returned promising results. Follow-up drilling has confirmed the presence of mineralized structures in all directions surrounding AD200. A total of 14 drill holes, covering 7,006m, have been completed in this area, with significant intercepts including:

58.4 g/t gold and 17.6% antimony over 0.77m in AD203
550.0 g/t gold over 0.15m in AD213

These results suggest that the Cuffley deposit could extend further to the south, with the potential for additional high-grade shoots within the mineralized structure. This is an exciting development for Mandalay, as it opens up new areas for future exploration and resource definition.

To the north of Cuffley, Mandalay has also had success with its drilling efforts. Drillhole TP021 intersected 4.0 g/t gold and 20.2% antimony over 0.45m, while the Cuffley-Brunswick Gap program has identified further high-grade mineralization. Notably, drillhole CB001 returned 17.1 g/t gold and 0.3% antimony over 1.20m, located 80m north of the current Cuffley resource boundary. These intercepts suggest that the mineralization at Cuffley may strengthen to the north, following the crossing of the Rattler Fault.

Forward Exploration Strategy

Given the recent positive results, Mandalay plans to focus its near-mine exploration efforts on the Cuffley Deeps area. The Company will continue to drill along the northern continuation of the Cuffley system and the Brunswick North extension area, approximately 300m to the east of the central corridor. Regional drilling will also continue, targeting depth extensions at satellite deposits like Robinsons and True Blue, as well as the northern potential of the field.

Drilling and Assaying Procedures

All diamond drill core samples were logged and analyzed by On Site Laboratory Services (OSLS) in Bendigo, Victoria. The samples underwent fire assay for gold and Atomic Absorption Spectroscopy (AAS) for antimony. In cases where coarse visible gold was present, a screen fire assay method was used to ensure accurate results. Quality assurance and control procedures were implemented, with reference materials and blanks submitted alongside drill and face samples for assay. For detailed information on drilling, sampling, and assaying procedures, refer to Mandalay's technical report on the Costerfield operation, available on SEDAR.

Qualified Person

Chris Davis, Vice President of Operational Geology and Exploration at Mandalay, is a Qualified Person as defined by NI 43-101. He is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)) and a Member of the Australian Institute of Geoscientists (MAIG). He has reviewed and approved the technical information in this release.

About Mandalay Resources

Mandalay Resources Corporation is a Canadian resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company's strategy focuses on increasing production while lowering costs to generate significant cash flow. Mandalay is committed to safe, environmentally responsible operations, while maintaining strong community and employee engagement.

The Company’s main objectives are to continue mining the high-grade Youle vein at Costerfield and ramp up production from the deeper Shepherd veins. Both will continue to supply high-quality ore to the processing plant, contributing to the extension of Mineral Reserves. At Björkdal, Mandalay aims to maximize profitability by focusing on the Aurora zone and other high-grade areas in the coming years.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.