Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) is pleased to report on the extension of high
grade gold into a new domain approximately 100 meters (“m”) below
the current mining operations of the Youle deposit.
Youle Drilling Highlights The
first results from the New High-Grade Gold Domain
at depth:
- 99.8 g/t gold and 0.2% antimony over a true width of
0.30 m in BC105; and
- 60.3 g/t gold and 0.2% antimony over a true width of
0.24 m in BC145; and
- 144.7 g/t gold and 0.0% antimony over a true width of
0.57 m in BC151
Continued drilling to the north of
Youle has seen highlights such as:
- 84.3 g/t gold and 53.8% antimony over a true width of
0.44 m in BC116; and
- 186.0 g/t gold and 37.4% antimony over a true width of
0.27 m in BC140; and
- 214.0 g/t gold and 0.0% antimony over a true width of
0.18 m in BC149 which is the deepest hole down
plunge.
Note: A full listing of significant drilling
composites can be found in Tables 1, 2 and 3 at the bottom of this
document.
Dominic Duffy, President and Chief Executive
Officer of Mandalay, commented, “We are pleased to report continued
exploration success at Costerfield on the Youle deposit. The
continuation of significant gold grades at depth is confirming our
expectation that the deposit will add significantly more high-grade
mine life to Costerfield’s operations.”
Mr. Duffy continued, “Recent drilling has also
indicated potential for significant extension to the historic
Minerva Reef. This east dipping reef is situated 50 m above current
infrastructure and already dewatered by the Youle operations. A
separate mining area close to Youle would not only add additional
mine life, but would provide diverse scheduling options allowing
for superior optimization of ore extraction.”
Mr. Duffy concluded, “Since first ore in August
2019, Youle has been a consistent producer of high-grade ore.
Boundary upgrades achieved through production optimization drilling
has extended on-vein development. While this has delayed stoping,
metal production for the site has well exceeded planning
predictions for 2020, as a result of the excellent grades realized
at Youle as demonstrated in our latest guidance update. The
successful expansion of Youle is an important step providing a
sound economic foundation for continued mine life at significant
profit margins.”
Youle Extension Drilling at
Depth
Year to date, mining through the upper portions
of Youle has delivered average grades of 13.7 g/t gold and 5.4%
antimony. The majority of this has come from development with only
20% of tonnage coming from stoping due to the early stages of
mining. This represents more than a doubling of the grade mined in
2019, which was predominantly from the Brunswick deposit.
Alongside this record production, extensional
drilling on Youle has been ongoing, with a further 68 holes drilled
(with assays returned) since our last news release in June 2020.
This work has yielded highly encouraging results – high-grade gold
domain at depth as well as another emerging high-grade plunge
extension to the north at depth (see Figure 1). The gold within
these two domains is of a nuggetty nature hosted within quartz.
Antimony is also present, but at lower grades than the current
Youle reserves. Current underground development has now reached a
level at which deeper exploration drilling on Youle is possible and
the program will continue to explore the plunge and depth potential
of Youle.
Drilling Above Youle
We have also drilled above Youle to investigate
instances of veining that were not extracted during the historic
mining of Costerfield. Subvertical veining has been discovered with
a number of notable intercepts such as BC129 which retuned an assay
of 92.4 g/t gold and 39.3%
antimony over a true width of 0.14 m.
These intercepts suggest the potential for further undiscovered
mineralisation around the historic workings that could be accessed
from the Youle infrastructure.
Emerging Minerva Extension
During the course of the 2020 Youle drilling
program, drill hole BC142 intercepted a 0.24 m thick laminated
quartz vein with significant coarse visible gold and moderate
antimony mineralization close to the planned end depth of the hole.
We believe this intercept represents a southern extension to the
historically mined Minerva Reef, on the eastern side of the group
of historic workings (illustrated in Figure 2). The intercept
assayed at 12.6 g/t gold and 3.1%
antimony over a true width of 0.24 m,
some 40 m from the nearest documented historic workings.
Additional historic intercepts attributed to the
Minerva Reef include BC003 (33.2g/t gold and
2.1% antimony over a true width of 0.57
m) drilled by Mandalay in 2014 and several near-surface RC
holes drilled by AGD in 1995 in the course of open-cut resource
definition drilling at Costerfield. Further geological modelling
has extended the envelope of potential mineralization to a panel in
excess of 400 m by 150 m, the bulk of which has not been
systematically drill tested. The Minerva Reef is close to Youle
infrastructure and has the potential to increase the life-of-mine
resource if an economic panel of mineralization can be
identified.
Figure 1: Longitudinal section of Youle
illustrating the location of recent Youle extension and
optimization intercepts in close proximity to current
workings.https://www.globenewswire.com/NewsRoom/AttachmentNg/3dc26a42-e5e2-4329-8dff-2f29f114cb83
Figure 2: Section at 6670 northing
illustrating the location and orientation of the new intercept on
Minerva
Reef.https://www.globenewswire.com/NewsRoom/AttachmentNg/7f371b2b-1fe1-44e8-aa22-397f0753bec2
Drilling and Assaying
At Costerfield, diamond drill core was logged
and sampled by Costerfield geologists. All samples were sent to
OnSite Laboratory Services in Bendigo, Victoria, Australia, for
sample preparation and assay. Site geological and metallurgical
personnel have implemented a QA/QC process that includes the
regular submission of standard reference materials and blanks with
drill and face samples submitted for assay. Standard reference
materials have been certified by Geostats Pty Ltd. (March 30, 2020
Technical Report entitled “Costerfield Operation, Victoria,
Australia NI 43-101 Report”, available on SEDAR (www.sedar.com),
which contains a complete description of drilling, sampling, and
assaying 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 Duffy President and Chief Executive
Officer
Edison Nguyen Manager, 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 Youle and Minerva Reef deposits (Costerfield).
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. Youle Extensional
Drilling Composites
Drill Hole ID |
From (m) |
To (m) |
Drill Width (m) |
True Width (m) |
Au Grade (g/t) |
Sb Grade (%) |
AuEq (g/t) |
AuEq (g/t) over min. 1.8m mining width |
Structure |
BC069 |
583.55 |
584.00 |
0.45 |
0.32 |
0.0 |
0.0 |
0.0 |
0.0 |
Youle |
BC096 |
527.06 |
527.85 |
0.79 |
0.65 |
1.0 |
0.0 |
1.0 |
0.4 |
Youle |
BC105 |
179.18 |
179.69 |
0.51 |
0.30 |
99.8 |
0.2 |
100.0 |
16.7 |
Youle |
BC106 |
198.03 |
198.40 |
0.37 |
0.31 |
0.0 |
0.0 |
0.0 |
0.0 |
Youle |
BC107 |
149.10 |
149.42 |
0.32 |
0.18 |
0.4 |
0.0 |
0.4 |
0.0 |
Youle |
BC110 |
157.81 |
157.93 |
0.12 |
0.09 |
60.1 |
31.2 |
93.9 |
4.8 |
Youle |
BC118 |
133.20 |
133.31 |
0.11 |
0.10 |
18.2 |
5.9 |
24.6 |
1.4 |
Youle |
BC121 |
133.66 |
133.77 |
0.11 |
0.10 |
39.6 |
36.3 |
78.9 |
4.3 |
Youle |
BC122 |
159.09 |
159.20 |
0.11 |
0.06 |
2.9 |
7.7 |
11.2 |
0.4 |
Youle |
BC123 |
144.84 |
144.95 |
0.11 |
0.08 |
18.9 |
11.5 |
31.4 |
1.5 |
Youle |
BC125 |
37.10 |
37.21 |
0.11 |
0.09 |
143.0 |
8.3 |
152.0 |
7.8 |
Youle |
BC125 |
38.37 |
39.59 |
1.22 |
1.02 |
8.4 |
1.0 |
9.4 |
5.3 |
Splay
Vein |
BC126 |
29.90 |
30.12 |
0.22 |
0.17 |
20.1 |
29.3 |
51.8 |
4.9 |
Youle |
BC131 |
167.74 |
168.97 |
1.23 |
0.44 |
7.4 |
33.5 |
43.6 |
10.7 |
Youle |
BC132 |
170.20 |
170.55 |
0.35 |
0.19 |
42.4 |
0.1 |
42.5 |
4.4 |
Youle |
BC136 |
151.00 |
151.17 |
0.17 |
0.10 |
46.4 |
28.6 |
77.4 |
4.2 |
Youle |
BC137 |
168.53 |
168.69 |
0.16 |
0.07 |
4.5 |
6.2 |
11.3 |
0.4 |
Youle |
BC140 |
111.99 |
112.70 |
0.71 |
0.63 |
6.0 |
4.0 |
10.4 |
3.6 |
Splay
Vein |
BC140 |
123.18 |
123.63 |
0.45 |
0.27 |
186.0 |
37.4 |
226.5 |
34.1 |
Youle |
BC140 |
126.79 |
128.10 |
1.31 |
0.96 |
5.5 |
8.6 |
14.8 |
7.9 |
Splay
Vein |
BC141A |
142.20 |
142.39 |
0.19 |
0.16 |
59.8 |
36.6 |
99.4 |
8.7 |
Doyle |
BC141A |
119.04 |
119.15 |
0.11 |
0.08 |
0.6 |
10.9 |
12.4 |
0.6 |
Youle |
BC144 |
147.11 |
148.67 |
1.56 |
1.00 |
3.4 |
0.7 |
4.2 |
2.4 |
Youle |
BC145 |
126.13 |
126.43 |
0.30 |
0.24 |
60.3 |
0.2 |
60.5 |
8.0 |
Youle |
BC147 |
209.86 |
210.20 |
0.34 |
0.09 |
12.8 |
0.9 |
13.8 |
0.7 |
Youle |
BC149 |
137.20 |
137.55 |
0.35 |
0.18 |
214.0 |
0.0 |
214.0 |
20.8 |
Youle |
BC151 |
159.56 |
160.70 |
1.14 |
0.57 |
144.7 |
0.0 |
144.7 |
45.8 |
Youle |
BC155 |
137.62 |
137.76 |
0.14 |
0.08 |
9.1 |
9.1 |
18.9 |
0.8 |
Youle |
Notes 1. The AuEq (gold equivalent) grade
is calculated using the following formula:
AuEq g per t = Au g per t + Sb% x |
Au price per g x Au processing recovery |
|
Sb price per 10kg x Sb processing recovery |
Figures used are based on a 9-month average from
January through September of 2020: Au $/oz = 1,760, Sb $/t = 5,680
Au Recovery = 89.6% and Sb Recovery = 96.7%
Table 2. Youle Production
Optimisation Drilling Composites
Drill Hole ID |
From (m) |
To (m) |
Drill Width (m) |
True Width (m) |
Au Grade (g/t) |
Sb Grade (%) |
AuEq (g/t) |
AuEq (g/t) over min. 1.8m mining width |
Structure |
BC109 |
96.33 |
97.43 |
1.10 |
0.45 |
2.1 |
1.4 |
3.7 |
0.9 |
Splay
Vein |
BC109 |
98.13 |
98.30 |
0.17 |
0.13 |
1.4 |
6.0 |
7.9 |
0.6 |
Youle |
BC116 |
115.02 |
115.46 |
0.44 |
0.44 |
84.3 |
53.8 |
142.6 |
34.7 |
Youle |
BC117 |
112.14 |
112.56 |
0.42 |
0.42 |
12.1 |
9.6 |
22.5 |
5.2 |
Youle |
BC119 |
119.84 |
120.61 |
0.77 |
0.53 |
23.7 |
12.3 |
37.0 |
11.0 |
Youle |
BC119 |
116.46 |
116.87 |
0.41 |
0.32 |
15.4 |
8.3 |
24.4 |
4.4 |
Splay
Vein |
BC120 |
115.73 |
115.84 |
0.11 |
0.10 |
8.2 |
14.2 |
23.5 |
1.3 |
Splay
Vein |
BC120 |
124.14 |
124.25 |
0.11 |
0.09 |
61.5 |
16.2 |
79.0 |
4.0 |
Splay
Vein |
BC120 |
131.76 |
131.98 |
0.22 |
0.19 |
43.9 |
21.0 |
66.7 |
7.2 |
Youle |
BC120 |
143.44 |
143.69 |
0.25 |
0.15 |
83.1 |
0.8 |
84.0 |
7.2 |
Splay
Vein |
BC120 |
169.99 |
170.10 |
0.11 |
0.09 |
7.2 |
6.9 |
14.7 |
0.7 |
Splay
Vein |
BC133 |
127.54 |
127.65 |
0.11 |
0.07 |
187.0 |
25.2 |
214.3 |
8.4 |
Splay
Vein |
BC133 |
134.89 |
135.41 |
0.52 |
0.36 |
39.5 |
20.0 |
61.2 |
12.3 |
Youle |
BC134 |
147.69 |
148.02 |
0.33 |
0.25 |
0.1 |
5.4 |
5.9 |
0.8 |
Youle |
KD703 |
138.74 |
138.85 |
0.11 |
0.11 |
16.8 |
13.5 |
31.4 |
1.9 |
Youle |
KD703 |
150.62 |
150.73 |
0.11 |
0.10 |
10.3 |
9.7 |
20.8 |
1.2 |
Splay
Vein |
KD704 |
4.66 |
4.81 |
0.15 |
0.07 |
1.9 |
13.9 |
17.0 |
0.6 |
Splay
Vein |
KD709 |
22.71 |
23.20 |
0.49 |
0.28 |
44.6 |
25.6 |
72.3 |
11.3 |
Youle |
KD711 |
13.96 |
14.47 |
0.51 |
0.42 |
1.9 |
2.1 |
4.2 |
1.0 |
Youle |
KD712 |
44.86 |
45.93 |
1.07 |
0.93 |
20.8 |
11.2 |
32.9 |
17.0 |
Youle |
KD713 |
44.64 |
45.22 |
0.58 |
0.50 |
78.6 |
47.3 |
129.8 |
36.2 |
Youle |
KD716 |
5.23 |
5.63 |
0.40 |
0.34 |
5.3 |
7.0 |
12.9 |
2.4 |
Splay
Vein |
KD717 |
7.01 |
7.12 |
0.11 |
0.08 |
95.8 |
41.4 |
140.6 |
6.5 |
Youle |
Notes 1. The AuEq (gold equivalent) grade
is calculated using the following formula:
AuEq g per t = Au g per t + Sb% x |
Au price per g x Au processing recovery |
|
Sb price per 10kg x Sb processing recovery |
Figures used are based on a 9-month average from
January through September of 2020: Au $/oz = 1,760, Sb $/t = 5,680
Au Recovery = 89.6% and Sb Recovery = 96.7%
Table 3. Significant composites
above Youle including first intercept into the Minerva
Extension.
Drill Hole ID |
From (m) |
To (m) |
Drill Width (m) |
True Width (m) |
Au Grade (g/t) |
Sb Grade (%) |
AuEq (g/t) |
AuEq (g/t) over min. 1.8m mining width |
Structure |
BC108 |
116.02 |
116.18 |
0.16 |
0.15 |
13.5 |
7.8 |
21.9 |
1.8 |
Splay
Vein |
BC108 |
153.36 |
153.57 |
0.21 |
0.12 |
1.4 |
19.0 |
22.0 |
1.5 |
Dominant
Vein |
BC108 |
186.63 |
186.81 |
0.18 |
0.09 |
3.5 |
4.4 |
8.2 |
0.4 |
Splay
Vein |
BC112A |
105.13 |
107.01 |
1.88 |
1.21 |
13.9 |
5.2 |
19.6 |
13.1 |
Dominant
Vein |
BC112A |
98.53 |
100.97 |
2.44 |
1.73 |
1.1 |
3.3 |
4.6 |
4.4 |
Splay
Vein |
BC113 |
138.72 |
138.86 |
0.14 |
0.14 |
51.9 |
15.8 |
69.0 |
5.3 |
Dominant
Vein |
BC113 |
113.19 |
113.33 |
0.14 |
0.12 |
30.0 |
11.7 |
42.7 |
2.9 |
Splay
Vein |
BC114 |
170.77 |
173.83 |
3.06 |
1.39 |
9.7 |
2.1 |
12.0 |
9.3 |
Dominant
Vein |
BC114 |
131.75 |
132.85 |
1.10 |
0.84 |
3.2 |
2.0 |
5.4 |
2.5 |
Splay
Vein |
BC114 |
154.30 |
154.41 |
0.11 |
0.08 |
7.3 |
10.8 |
19.0 |
0.9 |
Splay
Vein |
BC125 |
32.91 |
33.12 |
0.21 |
0.13 |
31.2 |
16.9 |
49.5 |
3.7 |
Splay
Vein |
BC128 |
136.47 |
136.67 |
0.20 |
0.14 |
6.0 |
11.8 |
18.8 |
1.5 |
Dominant
Vein |
BC129 |
164.90 |
165.07 |
0.17 |
0.14 |
92.4 |
39.3 |
135.0 |
10.7 |
Dominant
Vein |
BC130 |
168.76 |
168.92 |
0.16 |
0.10 |
120.0 |
9.9 |
130.7 |
7.5 |
Dominant
Vein |
BC130 |
172.48 |
173.07 |
0.59 |
0.42 |
16.8 |
0.8 |
17.6 |
4.2 |
Splay
Vein |
BC130 |
196.74 |
196.97 |
0.23 |
0.21 |
11.7 |
38.7 |
53.6 |
6.2 |
Splay
Vein |
BC142 |
125.47 |
125.73 |
0.26 |
0.24 |
7.5 |
2.4 |
10.2 |
1.4 |
Splay
Vein |
BC142 |
199.24 |
199.62 |
0.38 |
0.24 |
12.6 |
3.1 |
16.0 |
2.2 |
Minerva |
Notes 1. The AuEq (gold equivalent) grade
is calculated using the following formula:
AuEq g per t = Au g per t + Sb% x |
Au price per g x Au processing recovery |
|
Sb price per 10kg x Sb processing recovery |
Figures used are based on a 9-month average from
January through September of 2020: Au $/oz = 1,760, Sb $/t = 5,680
Au Recovery = 89.6% and Sb Recovery = 96.7%
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