Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) is pleased to provide an update on encouraging
results from the Aurora extension and delineation drill programs at
its Björkdal mine. These results highlight the open nature of the
plunge extensions and an emerging new high-grade domain.
Aurora Drilling
Highlights
Extensional drilling to the east and down
plunge:
- 4.8 g/t
gold over a true width of
2.47
m in MU20-007; and
- 2.7 g/t gold
over a true width of
2.82
m in MU20-016
Definition drilling to the east:
- 8.1 g/t gold
over a true width of 2.99
m in DOD2020-063; and
- 3.0 g/t gold over a
true width of 3.45
m in DOD2020-073
Surrounding veining highlights:
- 14.5 g/t gold over a
true width of 2.92
m in DOD2020-060; and
- 38.7 g/t gold over a true width
of 0.59
m in DOD2020-074; and
- 55.6 g/t gold over a true width of
0.28 m in MU20-018
Note: A full listing of significant drilling
composites can be found in Tables 1 and 2 at the bottom of this
document.
Dominic Duffy, President and Chief Executive
Officer of Mandalay, commented, “We are pleased to report continued
encouraging results from the Aurora extension program. These
results come at a time when ore production from Aurora is ramping
up and becoming the most significant ore source for Björkdal.”
Mr. Duffy continued, “With the exceptional
grades seen at Aurora, its extension - both to the east and west -
represents an important incremental step for Björkdal providing the
foundation to bolster overall feed grade and extend mine life. We
are also encouraged by some very high-grade intercepts of veins in
close proximity to Aurora which will also be a focus of additional
drilling going forward.”
Mr. Duffy continued, “With the current
exploration focus turned to strategic development of other targets
within Björkdal, we look forward to continuing the Aurora expansion
program in early 2021.”
Mr. Duffy concluded, “Alongside this exploration
release, a video has been prepared by Mr. Chris Davis, Vice
President of Operational Geology and Exploration to further
illustrate the detail in this press release, I would like to invite
everyone to view the posted video here.”
Aurora Extensional Drilling
The Aurora Extensional Drilling has continued
since Mandalay’s last Aurora update in June 2020. To the east
MU20-016 returned an intercept of 2.82 m @ 2.7 g/t Au, indicating
the plunge extent of Aurora is still open at depth. This was
supported by MU20-013 with a reasonably well mineralized array of
veining over 3.02 m at 1.6 g/t Au, typical of Aurora, intercepted
approximately 60 m above. Higher in the system there has been a
reinterpretation of Aurora veining due to new information mining
and other drilling results. As a consequence MU20-007 was
reinterpreted to include a high-grade composite of 2.47 m at 4.8
g/t Au that, combined with another previously reported intercept
(MU20-018 at 7.21 m at 2.5 g/t Au) to the north, highlights a new
enriched domain open to the east (see Figure 2).
Further drilling to the east within holes
MU20-030 and MU20-032 did not intercept significant mineralization
along the interpreted Aurora continuation however in both cases the
footwall veining was enriched with 0.25 m at 23.5 g/t Au in
MU20-030 and 0.96 m at 12.4 g/t in MU20-032 (see Figure 1). This
could indicate a jump across structures of the gold endowment or an
as yet unrecognised offset to the main Aurora structure. These
results represent the furthest intercepts yet drilled to the east.
Continuation of the extension campaign is expected in early
2021.
Surrounding Veining
As well as delineating and extending Aurora the
drilling is providing grade information on the stacked set of veins
that exist in both the footwall and hanging wall. As seen in
MU20-30 and MU20-32, these veins are sometimes higher grade than
Aurora and are an important addition to the production potential of
the Björkdal mine. In the last Resource update for Björkdal, Aurora
made up approximately 45% of metal in resource from veining above
the marble contact with the remainder in the surrounding veining.
Results from the surrounding veining within recent drilling can be
found in Table 2 and illustrated within Figure 1.
Western
Definition
Drilling
Due to the complicated nature of the veining and
gold enrichment within and around Aurora, it is necessary to
undertake targeted definition drilling to optimise ore extraction.
From this drilling Mandalay has discovered that the Aurora system
is also open to the west with encouraging intercepts following
along the Frea Fault interaction such as 3.17 m at 3.0 g/t Au in
DOD2020-075 and 4.66 m at 2.1 g/t Au in DOD2020-072. In this area
approximately 15 additional continuous veins exist alongside Aurora
with highlights of 0.59 m at 38.7 g/t Au in DOD2020-074 and 0.37 m
at 31.7 g/t in DOD2020-075. As with the extension to the east, a
drilling program will focus on extension along this trend in early
2021.
Figure 1. North-South Cross Section at
illustrating the location and orientation of the new intercepts
surrounding Aurora between 1550 E and 1650 E is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/65c1259e-a6a4-4c35-afc4-a58fe4aa3ed8.
Veining and interpreted lithology is displayed at 1600 E. The DOD
series of holes are drilled further to the west and are not shown
on this section.
Figure 2. Longitudinal section of Aurora
illustrating the location of recent extension and definition
drilling results is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/98b65977-3ee7-4386-a792-d98da87f9249.
Drilling and Assaying
At Björkdal, all diamond drill core was logged
and sampled by Björkdal geologists. Exploration drill hole samples
(prefix MU) were sent to CRS Laboratories Oy (“CRS”) in Kempele,
Finland for sample preparation and assaying. Development
optimization drill hole samples (prefix DOD) were prepared and
assayed at the onsite laboratory ran by Minlab AB, a subsidiary of
CRS (see Technical Report dated March 30, 2020 entitled “Technical
Report on the Björkdal Gold Mine, Sweden”, available on SEDAR
(www.sedar.com), which contains a complete description of drilling,
sampling, and assaying procedures).
Assaying was conducted utilizing the Pal1000
cyanide leaching processes. Mandalay’s rigorous QA/QC program
included the use of standard reference samples, blanks, duplicates,
repeats, and internal laboratory quality assurance procedures.
Qualified Person:
Chris Davis, Vice President of Operational
Geology and Exploration at Mandalay Resources, is a Charted
Professional of the Australian Institute of Mining and Metallurgy
(MAusIMM CP(Geo)), and a Qualified Person as defined by NI 43-101.
He has reviewed and approved the technical and scientific
information provided in this release.
For Further Information
Dominic DuffyPresident and Chief Executive Officer
Edison NguyenManager, Analytics and Investor Relations
Contact:647.260.1566
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural
resource company with producing assets in Australia and Sweden, and
care and maintenance and development projects in Chile. The Company
is focused on growing production at its gold and antimony operation
in Australia, and gold production from its operation in Sweden to
generate near term cash flow.
Forward-Looking Statements:
This news release contains "forward-looking
statements" within the meaning of applicable securities laws,
including statements regarding the exploration and development
potential of the Aurora Zone (Björkdal). Readers are cautioned not
to place undue reliance on forward-looking statements. Actual
results and developments may differ materially from those
contemplated by these statements depending on, among other things,
changes in commodity prices and general market and economic
conditions. The factors identified above are not intended to
represent a complete list of the factors that could affect
Mandalay. A description of additional risks that could result in
actual results and developments differing from those contemplated
by forward-looking statements in this news release can be found
under the heading “Risk Factors” in Mandalay’s annual information
form dated March 30, 2020, a copy of which is available under
Mandalay’s profile at www.sedar.com. In addition, there can be no
assurance that any inferred resources that are discovered as a
result of additional drilling will ever be upgraded to proven or
probable reserves. Although Mandalay has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
Table 1. New Drilling
Composites on Aurora
Drill Hole ID |
From (m) |
To (m) |
Drill Width (m) |
True Width (m) |
Au Grade (g/t) |
Au (g/t) over min. 3m mining width |
Target |
DOD2020-058 |
77 |
80.65 |
3.65 |
2.81 |
0.2 |
0.1 |
Western Definition |
DOD2020-059 |
87.9 |
93.52 |
5.62 |
3.78 |
0.4 |
0.4 |
Western Definition |
DOD2020-060 |
79.65 |
85 |
5.35 |
4.25 |
0.8 |
0.8 |
Western Definition |
DOD2020-061 |
66.6 |
70.2 |
3.60 |
3.33 |
0.9 |
0.9 |
Western Definition |
DOD2020-063 |
94.25 |
98.4 |
4.15 |
2.99 |
8.1 |
8.1 |
Western Definition |
DOD2020-072 |
148.5 |
153.2 |
4.70 |
4.66 |
2.1 |
2.1 |
Western Definition |
DOD2020-073 |
142.25 |
145.7 |
3.45 |
3.45 |
3.0 |
3.0 |
Western Definition |
DOD2020-074 |
145.7 |
149.5 |
3.80 |
3.77 |
0.2 |
0.2 |
Western Definition |
DOD2020-075 |
139.05 |
142.25 |
3.80 |
3.17 |
3.0 |
3.0 |
Western Definition |
DOD2020-076 |
145.45 |
148.3 |
3.80 |
2.67 |
0.2 |
0.2 |
Western Definition |
DOD2020-097 |
121 |
126.6 |
5.55 |
3.50 |
0.7 |
0.7 |
Western Definition |
DOD2020-099 |
107.2 |
113.8 |
6.55 |
4.63 |
2.0 |
2.0 |
Western Definition |
MU20-007 |
323.45 |
326.2 |
2.75 |
2.47 |
4.8 |
3.9 |
Eastern Extension |
MU20-013 |
216.1 |
219.55 |
3.45 |
3.02 |
1.6 |
1.6 |
Eastern Extension |
MU20-016 |
271.6 |
276.6 |
5.00 |
2.82 |
2.7 |
2.5 |
Eastern Extension |
MU20-017 |
188.3 |
197.75 |
9.45 |
7.30 |
0.6 |
0.6 |
Eastern Extension |
MU20-030 |
132 |
135.4 |
3.40 |
2.36 |
0.6 |
0.5 |
Eastern Extension |
MU20-031 |
161.95 |
163.85 |
1.90 |
1.17 |
0.4 |
0.1 |
Eastern Extension |
MU20-032 |
208.25 |
211.15 |
2.90 |
1.89 |
1.6 |
1.0 |
Eastern Extension |
Notes
- Where True widths
are greater than 3 m, grades are not diluted and are presented as
the grade over the composite true width.
Table 2. New Drilling
Composites Surrounding Aurora
Drill Hole ID |
From (m) |
To (m) |
Drilled Width (m) |
True Width (m) |
Au Grade (g/t) |
Au (g/t) over min. 3m mining width |
Description |
DOD2020-058 |
71.00 |
72.80 |
1.80 |
1.60 |
2.9 |
1.6 |
Foot Wall Veining |
DOD2020-060 |
73.60 |
77.80 |
4.20 |
2.92 |
14.5 |
14.1 |
Foot Wall Veining |
DOD2020-060 |
115.00 |
115.35 |
0.35 |
0.25 |
9.5 |
0.8 |
Hanging Wall Veining |
DOD2020-061 |
52.55 |
60.10 |
7.55 |
6.51 |
2.6 |
2.6 |
Foot Wall Veining |
DOD2020-061 |
97.30 |
97.70 |
0.40 |
0.31 |
8.9 |
0.9 |
Hanging Wall Veining |
DOD2020-063 |
133.80 |
134.10 |
0.30 |
0.19 |
57.4 |
3.6 |
Hanging Wall Veining |
DOD2020-072 |
83.80 |
84.75 |
0.95 |
0.92 |
9.7 |
3.0 |
Foot Wall Veining |
DOD2020-072 |
116.10 |
116.50 |
0.40 |
0.31 |
5.9 |
0.6 |
Foot Wall Veining |
DOD2020-072 |
157.75 |
158.75 |
1.00 |
0.78 |
4.8 |
1.3 |
Hanging Wall Veining |
DOD2020-072 |
187.55 |
188.10 |
0.55 |
0.50 |
7.6 |
1.3 |
Hanging Wall Veining |
DOD2020-072 |
191.50 |
192.00 |
0.50 |
0.49 |
3.8 |
0.6 |
Hanging Wall Veining |
DOD2020-073 |
48.05 |
48.65 |
0.60 |
0.59 |
5.8 |
1.1 |
Foot Wall Veining |
DOD2020-073 |
64.50 |
64.85 |
0.35 |
0.31 |
6.3 |
0.6 |
Foot Wall Veining |
DOD2020-073 |
153.15 |
153.60 |
0.45 |
0.44 |
3.8 |
0.6 |
Hanging Wall Veining |
DOD2020-073 |
178.05 |
179.65 |
1.60 |
1.59 |
4.9 |
2.6 |
Hanging Wall Veining |
DOD2020-073 |
185.70 |
186.00 |
0.30 |
0.21 |
24.3 |
1.7 |
Hanging Wall Veining |
DOD2020-074 |
32.70 |
33.30 |
0.60 |
0.59 |
38.7 |
7.6 |
Foot Wall Veining |
DOD2020-074 |
131.95 |
132.35 |
0.40 |
0.39 |
16.0 |
2.1 |
Foot Wall Veining |
DOD2020-074 |
153.70 |
156.10 |
2.40 |
2.15 |
2.0 |
1.4 |
Hanging Wall Veining |
DOD2020-074 |
165.90 |
167.75 |
1.85 |
1.80 |
3.5 |
2.1 |
Hanging Wall Veining |
DOD2020-074 |
185.60 |
185.95 |
0.35 |
0.34 |
6.1 |
0.7 |
Hanging Wall Veining |
DOD2020-075 |
31.60 |
32.05 |
0.45 |
0.42 |
5.6 |
0.8 |
Foot Wall Veining |
DOD2020-075 |
52.75 |
53.10 |
0.35 |
0.34 |
7.7 |
0.9 |
Foot Wall Veining |
DOD2020-075 |
77.00 |
77.35 |
0.35 |
0.33 |
5.1 |
0.6 |
Foot Wall Veining |
DOD2020-075 |
108.75 |
109.10 |
0.35 |
0.31 |
9.3 |
1.0 |
Foot Wall Veining |
DOD2020-075 |
123.20 |
124.60 |
1.40 |
1.29 |
3.2 |
1.4 |
Foot Wall Veining |
DOD2020-075 |
170.15 |
170.65 |
0.50 |
0.34 |
10.3 |
1.2 |
Hanging Wall Veining |
DOD2020-075 |
180.80 |
181.20 |
0.40 |
0.37 |
31.7 |
3.9 |
Hanging Wall Veining |
DOD2020-075 |
190.25 |
190.60 |
0.35 |
0.31 |
13.3 |
1.4 |
Hanging Wall Veining |
DOD2020-076 |
29.88 |
30.25 |
0.37 |
0.27 |
6.1 |
0.5 |
Foot Wall Veining |
DOD2020-076 |
51.40 |
52.83 |
1.43 |
1.36 |
1.8 |
0.8 |
Foot Wall Veining |
DOD2020-076 |
103.00 |
103.35 |
0.35 |
0.29 |
7.4 |
0.7 |
Foot Wall Veining |
DOD2020-076 |
117.30 |
117.65 |
0.35 |
0.27 |
12.4 |
1.1 |
Foot Wall Veining |
DOD2020-076 |
126.15 |
126.50 |
0.35 |
0.32 |
6.5 |
0.7 |
Foot Wall Veining |
DOD2020-076 |
157.20 |
157.70 |
0.50 |
0.31 |
5.6 |
0.6 |
Hanging Wall Veining |
DOD2020-076 |
163.00 |
164.45 |
1.45 |
1.38 |
3.3 |
1.5 |
Hanging Wall Veining |
DOD2020-076 |
183.35 |
183.70 |
0.35 |
0.31 |
15.0 |
1.6 |
Hanging Wall Veining |
DOD2020-076 |
196.30 |
199.30 |
3.00 |
2.69 |
2.1 |
1.9 |
Hanging Wall Veining |
DOD2020-076 |
201.65 |
202.00 |
0.35 |
0.31 |
5.1 |
0.5 |
Hanging Wall Veining |
DOD2020-097 |
111.25 |
112.25 |
1.00 |
0.78 |
3.5 |
0.9 |
Foot Wall Veining |
DOD2020-097 |
166.15 |
166.80 |
0.65 |
0.37 |
7.9 |
1.0 |
Hanging Wall Veining |
DOD2020-099 |
112.90 |
113.75 |
0.85 |
0.70 |
4.0 |
0.9 |
Hanging Wall Veining |
DOD2020-099 |
139.55 |
139.95 |
0.40 |
0.29 |
11.2 |
1.1 |
Hanging Wall Veining |
MU20-007 |
229.30 |
230.00 |
0.70 |
0.61 |
2.7 |
0.6 |
Foot Wall Veining |
MU20-008A |
320.05 |
321.95 |
1.90 |
1.90 |
1.4 |
0.9 |
Foot Wall Veining |
MU20-009A |
327.05 |
329.00 |
1.95 |
1.07 |
14.5 |
5.2 |
Foot Wall Veining |
MU20-009A |
338.40 |
338.85 |
0.45 |
0.27 |
5.9 |
0.5 |
Foot Wall Veining |
MU20-011 |
177.60 |
178.50 |
0.90 |
0.78 |
2.5 |
0.6 |
Foot Wall Veining |
MU20-011 |
271.60 |
273.00 |
1.40 |
0.30 |
7.2 |
0.7 |
Foot Wall Veining |
MU20-011 |
278.75 |
279.25 |
0.50 |
0.23 |
32.5 |
2.5 |
Foot Wall Veining |
MU20-011 |
337.45 |
338.65 |
1.20 |
0.29 |
13.9 |
1.3 |
Hanging Wall Veining |
MU20-011 |
362.20 |
362.75 |
0.55 |
0.26 |
6.2 |
0.5 |
Hanging Wall Veining |
MU20-011 |
371.60 |
372.00 |
0.40 |
0.31 |
5.1 |
0.5 |
Hanging Wall Veining |
MU20-012 |
119.70 |
120.00 |
0.30 |
0.29 |
6.5 |
0.6 |
Foot Wall Veining |
MU20-014 |
191.30 |
192.15 |
0.85 |
0.78 |
6.2 |
1.6 |
Hanging Wall Veining |
MU20-015 |
153.75 |
154.70 |
0.95 |
0.79 |
2.9 |
0.8 |
Hanging Wall Veining |
MU20-016 |
27.90 |
28.60 |
0.70 |
0.70 |
3.4 |
0.8 |
Foot Wall Veining |
MU20-016 |
224.40 |
224.75 |
0.35 |
0.20 |
12.5 |
0.8 |
Foot Wall Veining |
MU20-017 |
167.65 |
168.15 |
0.50 |
0.34 |
5.6 |
0.6 |
Foot Wall Veining |
MU20-018 |
114.20 |
114.65 |
0.45 |
0.44 |
3.7 |
0.5 |
Foot Wall Veining |
MU20-018 |
194.40 |
195.25 |
0.85 |
0.78 |
4.5 |
1.2 |
Hanging Wall Veining |
MU20-030 |
96.20 |
96.55 |
0.35 |
0.25 |
23.5 |
2.0 |
Foot Wall Veining |
MU20-032 |
155.70 |
156.85 |
1.15 |
0.96 |
12.4 |
4.0 |
Foot Wall Veining |
Notes
- Where True widths are greater than 3 m, grades are not diluted
and are presented as the grade over the composite true width.
- Composites that are below 0.5 g/t Au when diluted to 3 m are
not reported in this table.
Mandalay Resources (TSX:MND)
Historical Stock Chart
From Aug 2024 to Sep 2024
Mandalay Resources (TSX:MND)
Historical Stock Chart
From Sep 2023 to Sep 2024