TORONTO, April 24, 2024 /PRNewswire/ -- Mandalay Resources
Corporation ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF)
announced today that it has expanded the Storheden gold deposit,
600 meters ("m") from the Björkdal mine, on-strike to over 1.6
kilometers ("km") and at depth of approximate 200 m with high-grade gold intercepts. This press
release is the first in a series of updates on our 2024 regional
exploration progress at Björkdal.
Program Highlights
- Drilling confirms Storheden along strike to over 1.6 km;
- Doubled known system depth to ~200 m;
- Mineralization characterized by high grade gold intercepts
(assay highlights below);
- Structural setting akin to multi-million ounce Björkdal deposit
located 600 m southwest; and
- A mining concession was secured in 2018 over a significant
portion of the area.
Assay Highlights
- 70.2 g/t gold over 0.45 m
(ETW 0.15 m) in SH-06 at 136 m;
- 39.7 g/t gold over 0.70 m
(ETW 0.45 m) in SH-06 at 120 m;
- 7.3 g/t gold over 3.05 m
(ETW 1.96 m) in SH-11 at 225 m; and
- 33.0 g/t gold over 0.40 m
(ETW 0.26m) in SH-21 at 90 m.
|
Note: Further
intercept details including significant intercepts within composite
intervals can be found in the appendix to this document. ETW
= Estimated True Width
|
Chris Davis, VP of Exploration
and Operational Geology, commented:
"I am pleased to share progress on our 2023 initiatives at
Storheden. This deposit has not been thoroughly explored in
comparison to our extensive Björkdal deposit however it is showing
promising signs of gold mineralization. In 2023, about 5,150 m were drilled across 22 drillholes
targeting two separate objectives: depth extension with
verification of system geometries and strike extension of the shear
system.
"This extensive drill testing program covered over 1.6 km and
reached depths of approximately 100
m. It revealed many similarities to Björkdal and we are
pleased to report success with high-grade gold discovered at depth
and along strike. Moreover, this campaign also provided valuable
insight into modelling the deposits.
In 2024, efforts at Storheden will prioritize diamond drilling
to test the downward extensions of the mineralized zones and will
be supplemented by generating regional targets using field mapping,
soil sampling, and reconnaissance base-of-till drilling.
Additionally, ongoing analysis of existing prospects will
contribute to the development of new drilling targets and the
continuation of exploration efforts based on the findings from
previous campaigns."
Regional Exploration Ramp-up at
Björkdal
During the summer seasons of 2022 and 2023 a total of
15,444 m, from 67 holes were drilled
on prospective targets within the vicinity of the Björkdal mine
(Figure 1). These targets were identified through analysis and
interpretation of historical datasets and recent fieldwork
conducted within Mandalay's active exploration permits. They
represent areas of high potential for further mineral discoveries
and underscore our commitment to advancing exploration efforts in
the region.
Storheden Focus
The Storheden deposit is located roughly 600 m to the Northeast of the Björkdal mine
(Figure 2-3). Mineralization was first identified in the area from
"top of bedrock" geochemical drilling in 1987. Subsequently, while
percussion drilling had been undertaken on the target delineating
an extensive mineral system, the active mine (Björkdal) has
been the focus for exploration efforts leaving Storheden
underexplored. In 2017, confirmation drilling and modelling
undertaken by Mandalay lead to the granting of a mining concession
in 2018 encompassing the confirmed mineralized zone.
During 2023 a total of 5,149 m
were drilled across 22 drillholes. Two separate targets were
identified for drill testing.
- Depth extension and verification of system geometries;
and
- Strike extension of the system to the southeast where
the Storheden shear is interpreted to interact with the marble
horizon.
The primary aim of the 2023 deeps drilling campaign was to
validate historical intercepts from percussion drilling and explore
the down-dip extensions of the mineralized zone. Investigating
the depth potential is important as the deposit is situated in part
below the Bjorkdal tailings storage facility.
Previous models for the Storheden deposit have been limited by
the lack of diamond drill core, with most data derived from
percussion drilling. However, oriented core obtained from drilling
during 2023 has made it possible to verify and extend upon existing
models, demonstrating the down-dip continuity of mineralized veins
controlled by a moderately, N to NE-dipping system of shears that
runs parallel to the Skellefte-Vargfors contact.
Mineralized fluids appear to have utilized the rheological
contact between relatively rigid volcanics of the Skellefte Group
and weaker sedimentary sequences of the overlying Vargfors Group
during deformation, in a similar manner to how shearing, fluid flow
and mineralization in the Björkdal deposit is localized along the
marble.
Mineralization in the Björkdal deposit has significant vertical
continuity, with known mineralization dipping to the
north-westalong a slope distance of 1500
m, while remaining open at depth. The potential for similar
down-dip continuity of mineralization in Storheden remains open,
with 2023 drilling demonstrating that mineralization extends
beneath shallow historical intercepts.
Future programs will further test the down-dip potential of
mineralization at Storheden, while extending the coverage of
oriented drill core to verify historic data obtained from
percussion drilling, particularly within the central section of the
Storheden deposit.
Gold mineralization occurs predominantly in quartz veins,
ranging in thickness from less than a centimetre to more than
several decimetres. Gold rich quartz veins are often associated
with minor sulphides such as pyrrhotite, pyrite, chalcopyrite and
arsenopyrite. In addition, scheelite, tsumoite and free gold are
commonly observed in mineralised quartz veins Figure (figure 5 and
6).
During 2023, a limited drill program totaling 1,116 m across 6 drill holes targeted the eastern
extension of the marble horizon hosting the Björkdal deposit, which
is also situated along the projected SE extension of the Storheden
shear system (Figure 1).
No drilling has previously targeted this area, however, limited
historic drilling to the east has intercepted minor mineralized
quartz veins. Despite its promising structural setting, the 2023
drilling showed that this area lacks the pervasive veining
characterizing the Björkdal and Storheden deposits. This is
tentatively attributed to a thickening of the marble towards the
northern margin of the Björkdal dome that may have accommodated
strain during deformation, inhibiting fracturing and veining within
in its hanging and footwall.
Drilling and Assaying
At Björkdal, all diamond drill core was logged and sampled by
Björkdal geologists. Exploration drill hole samples were sent to
CRS Laboratories Oy ("CRS") in Kempele, Finland for sample preparation and
assaying.
Assaying was primarily conducted utilizing the Pal1000 cyanide
leaching processes. For sulphide -rich samples, Fire-Assaying
conducted at MSALABS (FAS-221, 50 g charge) in Canada, following sample preparations
(crushing, pulverizing) at CRS Kempele. Mandalay's rigorous QA/QC
program included the use of standard reference samples, blanks,
duplicates, repeats, and internal laboratory quality assurance
procedures. (see March 31, 2023,
Technical Report 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).
Qualified Person:
Chris Davis, Vice President of
Operational Geology and Exploration at Mandalay Resources, is a
Chartered Professional of the Australasian Institute of Mining and
Metallurgy (MAusIMM CP(Geo)), as well as a Member of the Australian
Institute of Geoscientists (MAIG) and a Qualified Person as defined
by NI 43-101. He has reviewed and approved the technical and
scientific information provided in this release.
About Mandalay Resources
Corporation
Mandalay Resources is a Canadian-based natural resource company
with producing assets in Australia
(Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay's mission is to create shareholder value through the
profitable operation and continuing the regional exploration
program, at both its Costerfield and Björkdal mines. Currently, the
Company's main objectives are to continue mining the high-grade
Youle vein at Costerfield, ramping up production from deeper
Shepherd veins, both of which will continue to supply high-quality
ore to the processing plant, and to extend Mineral Reserves. At
Björkdal, the Company will continue to produce from the Aurora zone
and other higher-grade areas in the coming years, in order to
maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "forward-looking statements"
within the meaning of applicable securities laws, including
statements regarding the Company's expected production of gold and
antimony and costs for the 2024 fiscal year. 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 28, 2024, 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.
Appendix
Table 1. Significant intercepts from the 2023 drilling
programs at Storheden
|
HOLE
ID
|
FROM
(M)
|
TO
(M)
|
INTERVAL
(M)
|
ESTIMATED
TRUE
WIDTH (M)
|
GOLD
GRADE
(G/T)
|
GOLD
GRADE
DILUTED TO
1 M (G/T)
|
|
SH-02
|
64.75
|
65.40
|
0.65
|
0.56
|
1.9
|
1.0
|
|
SH-02
|
88.00
|
88.70
|
0.70
|
0.61
|
5.6
|
3.4
|
|
SH-02
|
92.30
|
92.85
|
0.55
|
0.35
|
2.1
|
0.7
|
|
SH-02
|
97.85
|
98.30
|
0.45
|
0.39
|
6.0
|
2.3
|
|
SH-02
|
168.25
|
169.00
|
0.75
|
0.65
|
0.9
|
0.6
|
|
SH-04
|
70.60
|
71.25
|
0.65
|
0.56
|
1.1
|
0.6
|
|
SH-04
|
89.95
|
91.10
|
1.15
|
1.00
|
3.5
|
3.5
|
|
SH-04
|
112.50
|
113.00
|
0.50
|
0.25
|
7.1
|
1.8
|
|
SH-04
|
171.70
|
172.45
|
0.75
|
0.65
|
1.6
|
1.0
|
|
SH-04
|
181.10
|
182.40
|
1.30
|
0.84
|
14.6
|
12.2
|
|
SH-05
|
50.60
|
51.40
|
0.80
|
0.40
|
1.2
|
0.5
|
|
SH-05
|
96.70
|
97.20
|
0.50
|
0.43
|
1.9
|
0.8
|
|
SH-06
|
119.30
|
120.00
|
0.70
|
0.45
|
39.7
|
17.9
|
|
SH-06
|
133.70
|
134.05
|
0.35
|
0.27
|
1.7
|
0.4
|
|
SH-06
|
136.80
|
137.25
|
0.45
|
0.15
|
70.2
|
10.8
|
|
SH-07
|
113.10
|
115.40
|
2.30
|
1.15
|
1.9
|
1.9
|
|
SH-08
|
60.35
|
60.85
|
0.50
|
0.25
|
1.9
|
0.5
|
|
SH-08
|
74.20
|
74.80
|
0.60
|
0.52
|
1.0
|
0.5
|
|
SH-08
|
75.70
|
76.20
|
0.50
|
0.43
|
1.9
|
0.8
|
|
SH-09
|
104.50
|
108.00
|
3.50
|
2.25
|
3.4
|
3.4
|
|
SH-09
|
132.85
|
133.30
|
0.45
|
0.29
|
2.1
|
0.6
|
|
SH-11
|
223.10
|
226.15
|
3.05
|
1.96
|
7.3
|
7.3
|
|
SH-11
|
243.95
|
244.30
|
0.35
|
0.22
|
5.1
|
1.1
|
|
SH-11
|
248.50
|
248.90
|
0.40
|
0.31
|
1.5
|
0.5
|
|
SH-18
|
221.10
|
222.50
|
1.40
|
0.70
|
1.4
|
1.0
|
|
SH-18
|
231.60
|
232.50
|
0.90
|
0.45
|
2.7
|
1.2
|
|
SH-19
|
81.30
|
82.00
|
0.70
|
0.45
|
1.9
|
0.8
|
|
SH-19
|
92.10
|
93.10
|
1.00
|
0.64
|
1.3
|
0.8
|
|
SH-19
|
142.45
|
142.80
|
0.35
|
0.20
|
3.1
|
0.6
|
|
SH-19
|
221.70
|
222.45
|
0.75
|
0.43
|
1.5
|
0.7
|
|
SH-19
|
228.00
|
228.90
|
0.90
|
0.78
|
2.2
|
1.7
|
|
SH-19
|
290.35
|
290.85
|
0.50
|
0.43
|
1.5
|
0.6
|
|
SH-20
|
135.50
|
136.10
|
0.60
|
0.21
|
5.6
|
1.2
|
|
SH-20
|
140.80
|
141.30
|
0.50
|
0.25
|
2.1
|
0.5
|
|
SH-21
|
43.50
|
44.20
|
0.70
|
0.66
|
2.2
|
1.4
|
|
SH-21
|
47.90
|
48.60
|
0.70
|
0.61
|
1.2
|
0.7
|
|
SH-21
|
83.80
|
84.35
|
0.55
|
0.48
|
2.7
|
1.3
|
|
SH-21
|
87.20
|
87.80
|
0.60
|
0.34
|
1.4
|
0.5
|
|
SH-21
|
89.10
|
89.50
|
0.40
|
0.26
|
33.0
|
8.5
|
|
SH-21
|
118.50
|
119.10
|
0.60
|
0.21
|
3.3
|
0.7
|
|
SH-21
|
130.70
|
131.50
|
0.80
|
0.66
|
1.8
|
1.2
|
|
SH-22
|
48.30
|
49.20
|
0.90
|
0.74
|
3.0
|
2.2
|
|
SH-22
|
64.00
|
65.75
|
1.75
|
1.34
|
1.8
|
1.8
|
|
SH-22
|
70.00
|
71.10
|
1.10
|
0.84
|
3.0
|
2.6
|
|
SH-22
|
73.70
|
74.10
|
0.40
|
0.33
|
4.1
|
1.4
|
|
SH-22
|
109.85
|
110.20
|
0.35
|
0.20
|
3.2
|
0.6
|
|
SH-22
|
113.00
|
113.80
|
0.80
|
0.66
|
1.3
|
0.9
|
|
Notes
|
|
1.
|
Where true widths are
greater than 1m, grades are not diluted and are presented as the
grade over the composite true width.
|
|
2.
|
Composites that are
below 0.5 g/t Au when diluted to 1 m are not reported in this
table.
|
Table 2. Drill hole collar details from the 2023 drilling
programs at Storheden
|
HOLE
ID
|
SWEREF
NORTH
|
SWEREF
EAST
|
SWEREF
ELEVATION
|
DEPTH
|
AZIMUTH
(SWEREF)
|
DIP
|
DATE
FINISHED
|
|
SH-01
|
7213654
|
765396
|
138
|
302.15
|
144
|
-60
|
23/04/2023
|
|
SH-02
|
7213653
|
765396
|
138
|
309
|
173
|
-45
|
26/04/2023
|
|
SH-03
|
7213385
|
765255
|
138
|
151.5
|
150
|
-60
|
29/04/2023
|
|
SH-04
|
7213384
|
765257
|
138
|
307.6
|
351
|
-40
|
30/04/2023
|
|
SH-05
|
7213563
|
764932
|
147
|
199.95
|
234
|
-70
|
02/05/2023
|
|
SH-06
|
7213563
|
764933
|
147
|
275.2
|
329
|
-60
|
04/05/2023
|
|
SH-07
|
7213562
|
764933
|
147
|
197.6
|
129
|
-75
|
05/05/2023
|
|
SH-08
|
7213567
|
764834
|
148
|
251.3
|
94
|
-65
|
07/05/2023
|
|
SH-09
|
7213566
|
764835
|
148
|
202
|
323
|
-60
|
08/05/2023
|
|
SH-10
|
7213564
|
764835
|
148
|
79.4
|
320
|
-45
|
09/05/2023
|
|
SH-11
|
7213564
|
764835
|
148
|
301.6
|
339
|
-44
|
12/05/2023
|
|
SH-12
|
7213082
|
765995
|
145
|
205.35
|
160
|
-46
|
23/05/2023
|
|
SH-13
|
7213115
|
766240
|
143
|
190.6
|
166
|
-54
|
26/05/2023
|
|
SH-14
|
7213044
|
766561
|
138
|
151.35
|
166
|
-50
|
27/05/2023
|
|
SH-15
|
7213359
|
766545
|
140
|
157.8
|
165
|
-50
|
28/05/2023
|
|
SH-16
|
7213323
|
766824
|
151
|
235.2
|
160
|
-50
|
30/05/2023
|
|
SH-17B
|
7213147
|
766946
|
143
|
176.2
|
195
|
-50
|
03/06/2023
|
|
SH-18
|
7213889
|
763818
|
164
|
276.55
|
126
|
-62
|
05/06/2023
|
|
SH-19
|
7214039
|
763885
|
168
|
305.7
|
132
|
-61
|
09/06/2023
|
|
SH-20
|
7213869
|
764159
|
160
|
181.7
|
334
|
-62
|
12/06/2023
|
|
SH-21
|
7214047
|
764304
|
163
|
299.55
|
161
|
-61
|
16/06/2023
|
|
SH-22
|
7214043
|
764026
|
167
|
392.15
|
131
|
-67
|
21/06/2023
|
Frazer Bourchier, President and Chief Executive Officer;
Edison Nguyen, Director, Business
Valuations and Investor Relations, Contact: 647.258.9722
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