TORONTO, Feb. 22, 2023 /PRNewswire/ -- Mandalay Resources
Corporation ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF)
is pleased to provide an update on the Eastern Plunge Extension
drilling and significant intercepts from the Aurora Upper Extension
program at its Björkdal operation in Sweden.
New Drilling Highlights:
Eastern Plunge Extension
- 783.0 g/t gold over 0.35 m
(Estimated True Width "ETW" 0.25 m)
in MU22-032;
- 104.7 g/t gold over 1.00 m
(ETW 0.87 m) in MU22-031; and
- 22.7 g/t gold over 3.90 m
(ETW 3.19 m) in MU22-029.
Aurora Extension
- 89.5 g/t gold over 0.30 m
(ETW 0.23 m) in MU22-027;
- 2.9 g/t gold over 3.50 m
(ETW 3.05 m); and
- 36.0 g/t gold over 0.30 m
(ETW 0.15 m) in ME22-004.
|
Note: Further
intercept details including significant intercepts within composite
intervals can be found in Tables
1 and 2 in the Appendix to this document.
|
Dominic Duffy, President and CEO of
Mandalay, commented:
"Björkdal is a high tonnage and low-grade gold mine with the
potential for significant profit growth at relatively small
increases to mined gold grades. To this end, a major focus of our
near mine exploration program was to identify areas of higher
grades that can be prioritized within our short to medium term
mining schedules. Excitingly, these consistent drill results from
the Eastern Plunge Extension program are exceeding our expectations
by producing highly significant grades the likes of which we would
consider exceptional at our high-grade Costerfield mine in
Australia.
"The impact of this program has flowed through and upgraded
Björkdal's recently announced year-end 2022 Mineral Resources and
Reserves estimate with an 11% lift to Mineral Reserves' gold grade
from 1.39 g/t to 1.54 g/t for the 11.6 million tonnes in Proven and
Probable Reserves.
"As the Eastern Plunge Extension drilling is still in its
infancy and currently there is little access to drill further east
and down plunge, we do not know how far this significant grade
increase will continue. However, to date the Eastern Plunge
drilling is completely open to the East and Down Plunge. We will
continue to drill this area over the remainder of 2023 to try and
establish the continuation of this area and the impact it will have
on the long term operations at Björkdal. The mining permit
extension which will allow for mining in this area is currently
being processed by the authorities and we expect the permit to be
issued in 2023.
"Further to the successes of the Eastern Plunge Extension, the
Aurora system has been tested successfully approximately 150 metres
up dip and to the east from current and scheduled mining. Not only
is Aurora itself and the surrounding veining continuous, but
significant grades comparable to the core of system have been
identified within the veining. This extension is encouraging as
Aurora has been, and is currently, the main source of bulk ore
tonnage at Björkdal.
"We look forward to providing further updates on these projects
throughout the year as well as the developments from our North Zone
Extension drilling and the Aurora Depth Extension drilling, which
are both currently ongoing."
Focus for Underground
Exploration
During the second half of 2022 near mine exploration was focused
on exploring the eastern plunge extension of the main and central
zones, the upwards eastern extension of Aurora, the depth extension
of the Aurora system and the further delineation and extension of
North Zone. The latter two programs investigating the depth of
Aurora and North Zone are still underway and are not discussed
within this release.
Eastern Extension
Discovered first in 2021 the eastern plunge extension of Main
Zone and Central Zone has been an exciting addition to our Mineral
Resources and future outlook of Björkdal. A series of drilling
programs dedicated to defining the enriched veining has been
ongoing since the potential was realized, with each program
delivering exceptional grades and evidence to understanding the
driving forces behind the high grades of this domain (see News
Release dated January 24, 2022).
The significant intercepts disclosed within this news release
are from drilling undertaken within the second half of 2022. The
focus of this program was to infill a gap in information spanning
the interaction between the Main Zone and Central Zone as well as
an area of sparse drilling in the Lake Zone eastern extension. The
results of this definition drilling supported the modelling
replicating the excellent grades of nearby veining intercepts.
Highlights of this drilling include 783.0 g/t gold over
0.35 m (0.25m ETW) in MU22-032 and 104.7 g/t gold over
1.00 m (0.87
m ETW) in MU22-31.
Over the two years of exploration the continuously encouraging
results of the eastern extension drilling has flowed through to
Mineral Resource Estimates and Mineral Reserves. From the year end
2021 to year end 2022 the global Mineral Reserves for Björkdal has
increased in grade by 11% from 1.39 g/t gold to 1.54 g/t gold (see
News Release dated February 21,
2023). This increase has predominantly come from portions of
Central Zone, Main Zone and Lake Zone that continue into the
Eastern Plunge Domain.
Aurora Upper Extension
The focal point of the Aurora System is a central array of gold
bearing quartz veining approximately 2 to 8 metres in width, 500
metres in strike length and 400m in
dip extension. This central array is surrounded by further quartz
veining with widths generally less than two metres and continuous
up to 200 metres in strike and 100 metres in vertical extent. This
veining persists to varying degrees for approximately 100m into the hanging wall and foot wall of
central Aurora. The recent round of extension drilling on Aurora
was focused on testing the upper eastward extension with six holes,
two of which have been drilled from surface and four from
underground (see Figure 1).
Encouragingly, the holes intercepted what is interpreted to be
the extension of both the Central Array (Aurora) and the
surrounding veining approximately 150 metres to the east and up of
the known Aurora System. While the Aurora veining had been expected
to persist, the surrounding veining was an unknown and its presence
indicate the potential for multiple mining horizons in this
extended area with significant intercepts in both hanging wall and
footwall veining. Highlights from the results include 89.5 g/t gold
over 0.30 m (0.23 m ETW), 2.9 g/t gold over 3.5 m (3.05 m ETW)
and 36.0 g/t gold over 0.30 m
(0.15 m ETW) within veining both in
the hanging and footwall of the central array.
Outlook
Current underground drilling locations do not provide support
for further extension of the eastern plunge extension, however
mining is now scheduled for the area and once more appropriate
drilling horizons have been developed extension drilling will
continue to further explore this potential. As the interpretation
stands the veining remains open at depth. There is no current
indication that grades will curtail down the mineral plunge to the
east at Björkdal.
The expectation that the Aurora system continues up-dip and to
the east is something that needs further testing. Currently the
drilling discussed here is the furthest from known Aurora in this
direction and further drilling is required so that the breadth of
mineralization can be understood. This drilling will take place in
2023.
Exploration is also currently ongoing on the extension of the
veining in North Zone and the depth extension of the Aurora System
below the Marble Horizon. An update on this drilling is expected in
Q2 2023 once the current extension program is complete.
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 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. (see March 30, 2021, 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), with projects in
Chile and Canada under
closure or development status. 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, bring the deeper Shepherd veins into
production, both of which are expected to continue to supply
high-grade ore to the processing plant, and to extend Youle's
Mineral Reserves. At Björkdal, the Company will aim to increase
production 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 exploration and development potential of
the exploration results disclosed. 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
31, 2022, 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. Table of Significant Intercepts from the Eastern
Plunge Extension Drilling
|
DRILL HOLE
ID
|
FROM
(M)
|
TO
(M)
|
INTERVAL
(M)
|
ESTIMATED
TRUE
WIDTH (M)
|
AU GRADE
(G/T)
|
AU (G/T)
OVER
MIN. 1M
WIDTH
|
|
MU22-028
|
0.95
|
1.40
|
0.45
|
0.3
|
50.5
|
14.6
|
|
MU22-028
|
13.55
|
14.00
|
0.45
|
0.3
|
25.0
|
8.5
|
|
MU22-028
|
42.55
|
42.85
|
0.30
|
0.2
|
27.8
|
6.4
|
|
MU22-028
|
200.60
|
204.30
|
3.70
|
3.6
|
3.3
|
3.3
|
|
MU22-028
|
341.05
|
342.30
|
1.25
|
1.0
|
3.2
|
3.0
|
|
MU22-029
|
4.15
|
4.55
|
0.40
|
0.1
|
17.7
|
2.5
|
|
MU22-029
|
19.45
|
20.45
|
1.00
|
0.6
|
5.2
|
3.4
|
|
MU22-029
|
49.70
|
50.40
|
0.70
|
0.2
|
3.7
|
0.7
|
|
MU22-029
|
90.05
|
91.00
|
0.95
|
0.5
|
1.8
|
0.8
|
|
MU22-029
|
107.00
|
110.90
|
3.90
|
3.2
|
22.7
|
22.7
|
|
MU22-029
|
177.75
|
178.10
|
0.35
|
0.2
|
83.5
|
18.4
|
|
MU22-029
|
431.85
|
433.05
|
1.20
|
1.0
|
1.4
|
1.4
|
|
MU22-030
|
6.00
|
6.40
|
0.40
|
0.1
|
8.5
|
1.2
|
|
MU22-030
|
20.80
|
21.20
|
0.40
|
0.3
|
16.3
|
4.2
|
|
MU22-030
|
43.70
|
44.20
|
0.50
|
0.3
|
2.6
|
0.8
|
|
MU22-030
|
50.00
|
50.45
|
0.45
|
0.3
|
1.5
|
0.5
|
|
MU22-030
|
66.00
|
66.50
|
0.50
|
0.3
|
2.8
|
0.7
|
|
MU22-030
|
75.90
|
77.20
|
1.30
|
0.4
|
12.1
|
5.3
|
|
MU22-030
|
107.00
|
108.00
|
1.00
|
0.6
|
1.8
|
1.2
|
|
MU22-030
|
110.80
|
111.80
|
1.00
|
0.8
|
1.1
|
0.8
|
|
MU22-030
|
112.60
|
113.00
|
0.40
|
0.4
|
17.2
|
6.5
|
|
MU22-030
|
115.00
|
116.00
|
1.00
|
0.8
|
1.2
|
0.9
|
|
MU22-030
|
117.70
|
118.10
|
0.40
|
0.3
|
3.5
|
0.9
|
|
MU22-030
|
186.70
|
187.20
|
0.50
|
0.4
|
1.2
|
0.5
|
|
MU22-030
|
187.60
|
188.50
|
0.90
|
0.7
|
14.9
|
10.5
|
|
MU22-030
|
191.00
|
191.50
|
0.50
|
0.5
|
1.5
|
0.7
|
|
MU22-030
|
195.40
|
196.00
|
0.60
|
0.5
|
2.0
|
1.0
|
|
MU22-030
|
209.00
|
210.00
|
1.00
|
0.8
|
2.1
|
1.6
|
|
MU22-030
|
213.00
|
213.60
|
0.60
|
0.5
|
39.9
|
20.7
|
|
MU22-030
|
325.00
|
325.60
|
0.60
|
0.3
|
1.7
|
0.5
|
|
MU22-030
|
328.00
|
329.00
|
1.00
|
0.8
|
1.4
|
1.1
|
|
MU22-030
|
347.50
|
348.10
|
0.60
|
0.5
|
3.2
|
1.5
|
|
MU22-030
|
377.60
|
378.20
|
0.60
|
0.5
|
1.1
|
0.6
|
|
MU22-031
|
3.60
|
4.30
|
0.70
|
0.5
|
8.9
|
4.8
|
|
MU22-031
|
8.20
|
9.10
|
0.90
|
0.4
|
1.6
|
0.6
|
|
MU22-031
|
16.70
|
22.30
|
5.60
|
3.7
|
1.7
|
1.7
|
|
MU22-031
|
45.00
|
45.60
|
0.60
|
0.3
|
2.4
|
0.7
|
|
MU22-031
|
52.50
|
53.00
|
0.50
|
0.5
|
15.6
|
7.3
|
|
MU22-031
|
111.00
|
111.50
|
0.50
|
0.4
|
2.1
|
0.8
|
|
MU22-031
|
114.70
|
119.00
|
4.30
|
4.0
|
5.5
|
5.5
|
|
MU22-031
|
135.70
|
136.10
|
0.40
|
0.4
|
2.2
|
0.9
|
|
MU22-031
|
144.00
|
144.40
|
0.40
|
0.3
|
107.0
|
33.2
|
|
MU22-031
|
215.00
|
216.00
|
1.00
|
0.9
|
104.7
|
91.1
|
|
MU22-031
|
237.35
|
238.50
|
1.15
|
1.0
|
3.5
|
3.5
|
|
MU22-031
|
321.30
|
322.00
|
0.70
|
0.2
|
2.1
|
0.5
|
|
MU22-032
|
56.70
|
57.25
|
0.55
|
0.2
|
2.3
|
0.5
|
|
MU22-032
|
98.00
|
99.00
|
1.00
|
0.6
|
1.7
|
1.0
|
|
MU22-032
|
148.15
|
148.55
|
0.40
|
0.2
|
3.2
|
0.6
|
|
MU22-032
|
191.30
|
192.15
|
0.85
|
0.6
|
10.0
|
5.5
|
|
MU22-032
|
204.25
|
204.55
|
0.30
|
0.2
|
3.9
|
0.9
|
|
MU22-032
|
216.90
|
217.25
|
0.35
|
0.3
|
783.0
|
195.8
|
|
MU22-032
|
256.00
|
257.00
|
1.00
|
0.3
|
2.0
|
0.5
|
|
MU22-047
|
52.50
|
53.45
|
0.95
|
0.5
|
1.1
|
0.5
|
|
MU22-047
|
68.00
|
68.60
|
0.60
|
0.5
|
8.5
|
4.4
|
|
MU22-047
|
85.40
|
87.00
|
1.60
|
1.4
|
22.0
|
22.0
|
|
MU22-047
|
141.70
|
142.00
|
0.30
|
0.3
|
2.4
|
0.6
|
|
MU22-047
|
168.20
|
169.00
|
0.80
|
0.3
|
2.4
|
0.6
|
|
MU22-047
|
482.25
|
483.40
|
1.15
|
0.7
|
0.9
|
0.7
|
|
MU22-048
|
60.85
|
61.35
|
0.50
|
0.4
|
1.7
|
0.6
|
|
MU22-048
|
74.05
|
75.70
|
1.65
|
1.3
|
2.3
|
2.3
|
|
MU22-048
|
92.95
|
93.25
|
0.30
|
0.2
|
34.5
|
7.9
|
|
MU22-048
|
115.40
|
115.70
|
0.30
|
0.2
|
4.5
|
0.9
|
|
MU22-048
|
153.60
|
154.00
|
0.40
|
0.3
|
7.8
|
2.4
|
|
MU22-048
|
166.95
|
169.00
|
2.05
|
0.9
|
1.2
|
1.1
|
|
MU22-048
|
196.75
|
197.10
|
0.35
|
0.2
|
10.8
|
1.9
|
|
MU22-048
|
221.20
|
223.50
|
2.30
|
1.5
|
1.9
|
1.9
|
|
MU22-048
|
227.00
|
234.10
|
7.10
|
5.4
|
2.4
|
2.4
|
|
MU22-048
|
244.00
|
244.55
|
0.55
|
0.4
|
2.9
|
1.0
|
|
MU22-048
|
272.00
|
272.40
|
0.40
|
0.3
|
184.0
|
47.8
|
|
MU22-048
|
278.70
|
279.10
|
0.40
|
0.3
|
11.7
|
3.6
|
|
MU22-048
|
489.30
|
489.70
|
0.40
|
0.3
|
3.1
|
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. Table of Significant Intercepts from the Aurora
Upper Extension Program
|
DRILL HOLE
ID
|
FROM
(M)
|
TO
(M)
|
INTERVAL
(M)
|
ESTIMATED
TRUE
WIDTH (M)
|
AU GRADE
(G/T)
|
AU (G/T)
OVER
MIN. 1M
WIDTH
|
|
ME22-003
|
230.60
|
231.10
|
0.50
|
0.5
|
3.1
|
1.4
|
|
ME22-003
|
333.30
|
333.80
|
0.50
|
0.5
|
1.5
|
0.7
|
|
ME22-003
|
342.00
|
343.00
|
1.00
|
0.9
|
1.0
|
0.8
|
|
ME22-003
|
344.10
|
344.60
|
0.50
|
0.4
|
3.4
|
1.5
|
|
ME22-003
|
400.20
|
400.70
|
0.50
|
0.4
|
2.1
|
0.8
|
|
ME22-004
|
326.50
|
327.10
|
0.60
|
0.5
|
1.1
|
0.6
|
|
ME22-004
|
333.10
|
333.60
|
0.50
|
0.5
|
1.2
|
0.5
|
|
ME22-004
|
360.60
|
364.10
|
3.50
|
3.1
|
2.9
|
2.9
|
|
ME22-004
|
380.80
|
381.10
|
0.30
|
0.2
|
36.0
|
5.4
|
|
MU22-026
|
9.00
|
10.00
|
1.00
|
0.6
|
1.3
|
0.8
|
|
MU22-026
|
408.55
|
409.50
|
0.95
|
0.5
|
1.2
|
0.6
|
|
MU22-026
|
413.60
|
414.10
|
0.50
|
0.1
|
25.3
|
3.3
|
|
MU22-026
|
418.00
|
418.35
|
0.35
|
0.3
|
7.1
|
2.3
|
|
MU22-026
|
438.05
|
439.05
|
1.00
|
0.7
|
0.8
|
0.6
|
|
MU22-026
|
444.55
|
444.90
|
0.35
|
0.3
|
3.7
|
0.9
|
|
MU22-027
|
3.70
|
4.10
|
0.40
|
0.3
|
2.3
|
0.6
|
|
MU22-027
|
11.95
|
13.05
|
1.10
|
0.8
|
1.5
|
1.2
|
|
MU22-027
|
347.05
|
347.95
|
0.90
|
0.6
|
0.9
|
0.6
|
|
MU22-027
|
353.00
|
353.35
|
0.35
|
0.3
|
7.3
|
2.0
|
|
MU22-027
|
354.35
|
354.70
|
0.35
|
0.3
|
2.8
|
0.8
|
|
MU22-027
|
368.20
|
369.55
|
1.35
|
1.0
|
1.6
|
1.6
|
|
MU22-027
|
404.55
|
405.50
|
0.95
|
0.7
|
1.1
|
0.8
|
|
MU22-027
|
409.85
|
410.15
|
0.30
|
0.2
|
89.5
|
20.6
|
|
MU22-043
|
3.20
|
4.00
|
0.80
|
0.3
|
8.4
|
2.3
|
|
MU22-043
|
346.10
|
346.60
|
0.50
|
0.3
|
4.3
|
1.1
|
|
MU22-043
|
374.00
|
375.00
|
1.00
|
0.6
|
4.2
|
2.7
|
|
MU22-043
|
395.60
|
396.00
|
0.40
|
0.3
|
2.2
|
0.6
|
|
MU22-043
|
398.00
|
398.50
|
0.50
|
0.3
|
2.1
|
0.7
|
|
MU22-043
|
472.80
|
473.30
|
0.50
|
0.2
|
5.0
|
0.9
|
|
MU22-044
|
2.60
|
3.10
|
0.50
|
0.3
|
2.0
|
0.5
|
|
MU22-044
|
14.50
|
15.40
|
0.90
|
0.4
|
2.6
|
1.0
|
|
MU22-044
|
209.90
|
211.20
|
1.30
|
0.4
|
1.7
|
0.7
|
|
MU22-044
|
372.00
|
372.50
|
0.50
|
0.4
|
1.5
|
0.6
|
|
MU22-044
|
377.00
|
377.30
|
0.30
|
0.2
|
9.4
|
1.8
|
|
MU22-044
|
390.60
|
391.00
|
0.40
|
0.4
|
3.6
|
1.2
|
|
MU22-044
|
415.50
|
416.10
|
0.60
|
0.5
|
2.3
|
1.2
|
|
MU22-044
|
423.90
|
424.60
|
0.70
|
0.5
|
1.2
|
0.6
|
|
MU22-044
|
426.50
|
427.10
|
0.60
|
0.4
|
2.0
|
0.8
|
|
MU22-044
|
431.00
|
432.00
|
1.00
|
0.6
|
0.8
|
0.5
|
|
|
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.
|
Dominic Duffy, President and Chief Executive
Officer; Edison Nguyen, Director, Business Valuations and
Investor Relations, Contact: 647.260.1566, ext. 1
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