GlobeNewswire

Mandalay Resources Corporation Announces Recent Drilling Results For Costerfield Youle Deposit, Highlighting High-Grade Gold Depth Extensions

Share

TORONTO, Oct. 21, 2020 (GLOBE NEWSWIRE) -- 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
BC069583.55584.000.450.320.00.00.00.0Youle
BC096527.06527.850.790.651.00.01.00.4Youle
BC105179.18179.690.510.3099.80.2100.016.7Youle
BC106198.03198.400.370.310.00.00.00.0Youle
BC107149.10149.420.320.180.40.00.40.0Youle
BC110157.81157.930.120.0960.131.293.94.8Youle
BC118133.20133.310.110.1018.25.924.61.4Youle
BC121133.66133.770.110.1039.636.378.94.3Youle
BC122159.09159.200.110.062.97.711.20.4Youle
BC123144.84144.950.110.0818.911.531.41.5Youle
BC12537.1037.210.110.09143.08.3152.07.8Youle
BC12538.3739.591.221.028.41.09.45.3Splay Vein
BC12629.9030.120.220.1720.129.351.84.9Youle
BC131167.74168.971.230.447.433.543.610.7Youle
BC132170.20170.550.350.1942.40.142.54.4Youle
BC136151.00151.170.170.1046.428.677.44.2Youle
BC137168.53168.690.160.074.56.211.30.4Youle
BC140111.99112.700.710.636.04.010.43.6Splay Vein
BC140123.18123.630.450.27186.037.4226.534.1Youle
BC140126.79128.101.310.965.58.614.87.9Splay Vein
BC141A142.20142.390.190.1659.836.699.48.7Doyle
BC141A119.04119.150.110.080.610.912.40.6Youle
BC144147.11148.671.561.003.40.74.22.4Youle
BC145126.13126.430.300.2460.30.260.58.0Youle
BC147209.86210.200.340.0912.80.913.80.7Youle
BC149137.20137.550.350.18214.00.0214.020.8Youle
BC151159.56160.701.140.57144.70.0144.745.8Youle
BC155137.62137.760.140.089.19.118.90.8Youle

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
BC10996.3397.431.100.452.11.43.70.9Splay Vein
BC10998.1398.300.170.131.46.07.90.6Youle
BC116115.02115.460.440.4484.353.8142.634.7Youle
BC117112.14112.560.420.4212.19.622.55.2Youle
BC119119.84120.610.770.5323.712.337.011.0Youle
BC119116.46116.870.410.3215.48.324.44.4Splay Vein
BC120115.73115.840.110.108.214.223.51.3Splay Vein
BC120124.14124.250.110.0961.516.279.04.0Splay Vein
BC120131.76131.980.220.1943.921.066.77.2Youle
BC120143.44143.690.250.1583.10.884.07.2Splay Vein
BC120169.99170.100.110.097.26.914.70.7Splay Vein
BC133127.54127.650.110.07187.025.2214.38.4Splay Vein
BC133134.89135.410.520.3639.520.061.212.3Youle
BC134147.69148.020.330.250.15.45.90.8Youle
KD703138.74138.850.110.1116.813.531.41.9Youle
KD703150.62150.730.110.1010.39.720.81.2Splay Vein
KD7044.664.810.150.071.913.917.00.6Splay Vein
KD70922.7123.200.490.2844.625.672.311.3Youle
KD71113.9614.470.510.421.92.14.21.0Youle
KD71244.8645.931.070.9320.811.232.917.0Youle
KD71344.6445.220.580.5078.647.3129.836.2Youle
KD7165.235.630.400.345.37.012.92.4Splay Vein
KD7177.017.120.110.0895.841.4140.66.5Youle

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
BC108116.02116.180.160.1513.57.821.91.8Splay Vein
BC108153.36153.570.210.121.419.022.01.5Dominant Vein
BC108186.63186.810.180.093.54.48.20.4Splay Vein
BC112A105.13107.011.881.2113.95.219.613.1Dominant Vein
BC112A98.53100.972.441.731.13.34.64.4Splay Vein
BC113138.72138.860.140.1451.915.869.05.3Dominant Vein
BC113113.19113.330.140.1230.011.742.72.9Splay Vein
BC114170.77173.833.061.399.72.112.09.3Dominant Vein
BC114131.75132.851.100.843.22.05.42.5Splay Vein
BC114154.30154.410.110.087.310.819.00.9Splay Vein
BC12532.9133.120.210.1331.216.949.53.7Splay Vein
BC128136.47136.670.200.146.011.818.81.5Dominant Vein
BC129164.90165.070.170.1492.439.3135.010.7Dominant Vein
BC130168.76168.920.160.10120.09.9130.77.5Dominant Vein
BC130172.48173.070.590.4216.80.817.64.2Splay Vein
BC130196.74196.970.230.2111.738.753.66.2Splay Vein
BC142125.47125.730.260.247.52.410.21.4Splay Vein
BC142199.24199.620.380.2412.63.116.02.2Minerva

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%

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

The results of the private placement of Subordinated Convertible Notes and private placement of Secured Notes of AS PRFoods / transactions with persons connected with the issuer18.6.2021 16:22:48 CEST | Press release

THIS NOTICE IS NOT INTENDED FOR PUBLICATION, ALLOCATION OR TRANSMISSION, IN PART OR WHOLLY, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, OR ELSEWHERE THE DISCLOSURE OR TRANSMISSION OF THIS INFORMATION IS NOT ALLOWED. By a company announcement dated 04.06.2021, AS PRFoods (hereinafter "PRFoods") informed investors that it was conducting an issue of subordinated convertible notes, whereunder PRFoods is to issue up to 350 subordinated convertible notes, with the maximum aggregate nominal value of up to EUR 3,500,000, nominal value of EUR 10,000 per subordinated convertible note, interest rate of 7% per annum and maturity date on 01.10.2025 (hereinafter the “ConvertibleNotes”). The subscription period for the Convertible Notes ended on 14.06.2021. In course of the private placement, investors subscribed for 237 Convertible Notes, with the aggregate nominal value of EUR 2,370,000, i.e. for approximately 67% of the m

CONDITIONS FOR PURCHASES OF CORPORATE BONDS18.6.2021 16:20:00 CEST | Press release

Bid procedure, 2021-06-23BondsBonds issued in SEK by Swedish non-financial undertakings. The following bonds are eligible for delivery: RIKSHEM AB: SE0011452507, 2023-07-18 RIKSHEM AB: SE0011869981, 2023-05-08 EPIROC AB: XS1918042364, 2023-12-06 EPIROC AB: XS2258568778, 2026-05-18 SCANIA CV AB: XS2042641121, 2022-08-22 SCANIA CV AB: XS2332891089, 2023-04-19 AB INDUSTRIVARDEN: SE0011869668, 2022-02-28 AB INDUSTRIVARDEN: SE0012676724, 2023-02-20 SVENSK FASTIGHETS FIN: SE0012194058, 2022-02-28 SVENSK FASTIGHETS FIN: SE0012676872, 2022-09-07 Delivery of a Bond may not occur if the Counterparty has purchased the Bond from the issuer more recently than one month prior to the date of announcement of the Special terms, that is, the purchase may not have taken place after: 2021-05-23Bid date2021-06-23Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SE0011452507: 30 mln SEK +/-30 mln SEK SE0011869981: 30 mln SEK +/-30 mln SEK XS1918042364: 30 mln SEK

CONDITIONS FOR RIKSBANK BID PROCEDURE KOMMUNINVEST BONDS18.6.2021 16:20:00 CEST | Press release

Bid procedure, 2021-06-22BondsKOMMUNINVEST I SVERIGE: 2311. SE0010948240. 2023-11-13 KOMMUNINVEST I SVERIGE: 2505, SE0011414010, 2025-05-12 KOMMUNINVEST I SVERIGE: 2805, SE0015660139, 2028-05-12 BidsBids on interest and volume are entered via Bloomberg Bond Auction SystemBid date2021-06-22Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)2311: 500 mln SEK +/-250 mln SEK 2505: 1000 mln SEK +/-500 mln SEK 2805: 750 mln SEK +/-350 mln SEK Highest permitted bid volume (corresponding nominal amount)2311: 500 mln SEK per bid 2505: 1000 mln SEK per bid 2805: 750 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 11.15 (CET/CEST) on the Bid dateDelivery and payment date2021-06-24Delivery of bondsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383General Terms and ConditionsGeneral Terms and Conditions General Terms and Condition

CONDITIONS FOR THE RIKSBANK´S PURCHASES OF COMMERCIAL PAPER18.6.2021 16:20:00 CEST | Press release

Bid procedure, 2021-06-23CertificateCommercial paper issued in SEK by non-financial companies with their registered office in Sweden and with a remaining maturity of up to six months on the Bid date. i.e. with the latest maturity date as of 2021-12-23 Delivery may not be made in commercial paper purchased by the Counterparty from the issuer less than one week prior to the date for announcing the Special terms, i.e. the purchase may not have been made after 2021-06-11 BidsCounterparties may make one bid per Credit rating class and maturity class. Bids are made to tel 08-696 69 70 and confirmed by e-mail to EOL@riksbank.se.Bid date2021-06-23Bid times09.00-09.30 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SEK 4 billionHighest permitted bid volume (corresponding nominal amount)The total bid volume from one Counterparty for the two Credit rating classes may not exceed SEK 4 billion. No bid may contain Commercial paper in excess of SEK 250 million issued by the s

Eolus förvärvar två fullt tillståndsgivna svenska vindkraftsprojekt18.6.2021 16:15:00 CEST | Pressemelding

Hässleholm den 18 juni 2021 Eolus har tecknat avtal med RWE om att förvärva två fullt tillståndsgivna svenska vindkraftsprojekt. Projekten som omfattar 99 MW är lokaliserade i SE3 och Eolus kommer under sommaren att påbörja försäljningsprocessen med ambitionen att teckna avtal med en investerare under hösten 2021. Projekten är belägna i Avesta kommun (Skallberget/Utterberget) och Hedemora kommun (Tjärnäs) och omfattar totalt vardera 74,4 MW och 24,8 MW. Projekten är fullt tillståndsgivna. Eolus kommer under sommaren att påbörja försäljningsprocessen med ambitionen att teckna ett avtal med en investerare under hösten 2021. Planerad driftsättning är under 2023. För ytterligare information kontakta: Per Witalisson, VD, telefon +46 (0)70-265 16 15 Johan Hammarqvist, kommunikationschef, telefon +46 (0)720-50 59 11 Kort om Eolus Eolus Vind är en av Nordens ledande projektörer av vindkraftsanläggningar. Eolus skapar värden i alla led inom ramen för projektutveckling och drift av vindkraftsanl

Eolus acquires two fully permitted wind power projects in Sweden18.6.2021 16:15:00 CEST | Press release

Hässleholm, Sweden, June 18, 2021 Eolus has signed an agreement to acquire two fully permitted wind power projects in Sweden from RWE. The projects located in SE3 totals about 99 MW and Eolus will during summer initiate the sales process with the ambition to sign an agreement with an investor during the autumn of 2021. The projects are located in Avesta municipality (Skallberget/Utterberget) and Hedemora municipality (Tjärnäs) and totals respectively 74.4 MW and 24.8 MW. The projects are fully permitted. Eolus will during the summer initiate the sales process with the ambition to sign an agreement with an investor during the autumn of 2021. Planned commissioning is during 2023. For further information contact: Per Witalisson, CEO, +46 70-265 16 15 Johan Hammarqvist, Head of Communications, +46 720 50 59 11 About Eolus: Eolus Vind AB is one of the leading wind power developers in the Nordics. Eolus is active in the whole value chain from development of green field projects to constructi

Stolt-Nielsen Limited to Host a Video Conference to Present the Results for the Second Quarter of 202118.6.2021 15:22:01 CEST | Press release

LONDON, June 18, 2021 – Stolt-Nielsen Limited (Oslo Børs: SNI) will host a video conference to present the Company’s unaudited results for the second quarter of 2021 on Thursday, July 1, 2021 at 15:00 CEST (09:00 EST, 14:00 BST). The presentation and video conference will be hosted by: - Mr. Niels G. Stolt-Nielsen - Chief Executive Officer, Stolt-Nielsen Limited - Mr. Jens F. Grüner-Hegge - Chief Financial Officer, Stolt-Nielsen Limited - Mr. Lucas Vos - President, Stolt Tankers Those who wish to watch the live broadcast may access it here The presentation will be published on our website: https://www.stolt-nielsen.com/en/investors/reports-presentations/ For additional information please contact: Jens F. Grüner-Hegge Chief Financial Officer UK +44 (0) 20 7611 8985 j.gruner-hegge@stolt.com Ellie Davison Head of Corporate Communications UK +44 (0) 20 7611 8926 e.davison@stolt.com About Stolt-Nielsen Limited Stolt-Nielsen Limited (SNL or 'the Company') is a long-term investor and manager