Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) is pleased to provide a special update on the
early success of the Robinson drilling campaign at its Costerfield
Operation (Victoria, Australia).
Highlights:
Drilling has identified a potential offset to
the historically producing Robinson Mine with an intercept of:
- 1,780 g/t gold over 0.17 m (Estimated True
Width “ETW” of 0.15 m) in RB007; and
- Visible gold seen in two other drill holes along trend (assays
pending) and within two additional intercepts along a parallel
trend beneath the historic Cochran Mine.
Notes:
- Due to the potentially material
nature of the primary intercept, this news has been reported prior
to the assay of other visually significant intercepts within the
drilling program. A supplementary update will follow shortly.
- Further intercept details can be
found in Table 1 in the Appendix to this document.
Dominic Duffy, President and CEO of Mandalay,
commented:
“We are pleased to report the extraordinary
result from the Robinson Prospect drilling campaign. These
intercepts sit 2 km to the south of the Brown Prospect, which was
the focus of our 2020 and 2021 eastern drilling campaign. The
high-grade results look to be related to the historic Robinson Mine
which historic accounts suggest, produced high-grade gold ore
during the 1880s. While geological interpretation is preliminary,
the intercept looks to be an offset downward continuation of the
historically worked veining, a scenario which Mandalay is very
familiar with. Past identification of similar kinds of offsets
subsequently led to the discovery and mining of the Cuffley and
Youle orebodies.
Excitingly, this intercept is accompanied by two
others within RB005 and RB008 which are on trend and, although
assays are still pending, similar veining is observed within each
suggesting a structural continuation over approximately 250 m.
Visible gold was also identified in both RB005 and RB008, but to a
significantly lesser degree than RB007. Mineralization was
identified in a potential parallel structure further to the east
with visible gold located in a secondary intercept in RB007 and in
RB004 that could align with the parallel Cochrane trend and
historic mining.
The Robinson Prospect is approximately 2 km east
of the underground infrastructure and is within the bounds of
Mandalay’s current mining licence which makes this discovery all
the more significant. This intercept is outstanding, although not a
surprise as it is situated next to Costerfield which has
consistently been one of the world’s highest gold grade mines.”
2022 Robinson drilling program
Located approximately 2 km east of the Augusta
Mine site in the Costerfield State Forest, the Robinson Prospect is
characterised by extensive surface workings and several shafts that
were sunk on the two historically mined lodes, the Cochrane and
Robinson lodes. A drilling campaign comprising three diamond drill
holes was completed in 2020 to test the nature and extent of gold
mineralization under the historically mined lodes. Drilling results
showed the presence of gold anomalism below the Cochrane workings
but failed to intercept any significant gold mineralization below
the Robinson line of workings and historic infrastructures. A
reassessment of drilling results from the 2020 Robinson drilling
program suggested that the lack of gold anomalism below Robinson’s
workings in drillholes was likely caused by fault-blanking on a
series of moderate to steeply dipping north-east striking shears
which are interpreted to introduce a progressive westward offset in
the mineral system. The 2022 program has been designed to any
potential westward offset of the Robinson line of lode, as strike
extensions. Four holes in this program have now been completed and
the fifth in progress. Quartz veining containing visible gold has
been intercepted in four holes so far. Intercepts gained to date
lie predominantly to the west of the Robinson surface workings,
supporting the proposed westward offset of the Robinson line of
lode at depth (Figure 1).
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/492e350e-b06a-45a3-9b8e-16e6f403e4af
Figure 1. Section at 5040N showing the location
of surface historic workings and the location of new drilling at
depth.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f9a41680-12ed-4121-987b-60466711fbc3
Figure 2. Surface map in local mine grid of the
Robinson Prospect, showing collar locations, drillhole traces and
historic workings. The inset to the top left shows the location of
the Robinson’s prospect relative to the Augusta and Brunswick mine
sites.
The Intercepts
RB007 was drilled west to east to test the area
of anomalism identified in RB005 and RB006 (described below). This
drillhole successfully intercepted a 0.17 m (0.15 m ETW) gold
bearing quartz breccia vein to the west of the Robinson’s workings
(Figure 1). The breccia is oriented sub-vertically, with a roughly
north-south strike, interpreted parallel to the historic Robinson’s
workings. The gold is concentrated in the first 0.05 m of the
intercept along with pyrite mineralization seen both within the
vein and in the hosting siltstone. A distinct boundary is seen
between the visible-gold rich quartz breccia and the downhole
quartz breccia, as the downhole breccia appears darker may indicate
multiple pulses of mineralising fluids through the host structure
(Figure 1). The breccia vein was sampled as one returning a grade
of 1,780 g/t gold over a length of 0.17 m (0.15 m ETW).
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3df50010-5eb7-480b-804b-62c817cec88a
Figure 3. Images of the RB007 intercept
including a picture of the core tray showing surrounding breccia
and assays grades (A), hand specimen of the uphold contact of the
mineralized breccia (B) and micrographs of some of the gold grains
(C).
RB008 is currently testing for the continuation
of this mineralised trend ~90 m to the south RB007 and has
intercepted a 300 mm thick quartz breccia with visible gold (Figure
2). While this intercept will still need to be fully interrogated,
the structural orientation and character of veining indicate that
this structure could represent further westward offset of the
intercept in RB007. RB008 is currently advanced 250 m and will
continue to transect the Cochrane trend target. Drilling results
from RB007 and RB008 have also identified several moderately west
to northwest dipping faults occurring before mineralized intercepts
that were not identified in the previous round of drilling. While
their significance is still being investigated preliminary
interpretations suggest they may represent the hanging wall of the
mineralization seen in RB007 and RB008. The offset in the mineral
system could be introduced by these faults and their presence would
explain the lack of a surface expression of the mineralisation
intercepted to the west of the workings.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/5d93f319-499e-4564-b471-1af8efcc637f
Figure 4. Images of the RB008 intercept
including a picture of the core tray showing surrounding fault zone
and host rock (A), hand specimen of the mineralized breccia (B) and
a micrograph of a gold grain within the breccia (C).
Initially designed to test for gold
mineralization under the South Robinson Shaft, RB005 intercepted
mineralization a further 70 m to the west of the South Robinson
Shaft. This intercept consisted of a 0.15 m fault gouge, followed
by a zone of quartz tension veining and bedding parallel quartz
veins over approximately 4.5 m characterized by moderate to strong
pyrite alteration. One of the bedding parallel veins held visible
gold and the assays for this intercept are still pending. A broad
zone of quartz stockwork veining and strong pyrite alteration was
also identified at a similar easting in RB006, highlighting the
potential for a ~300 m corridor of anomalism west of the Robinson’s
working.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/89203b0f-96a2-4026-a89a-757664a59a41
Figure 5. Images of the RB005 intercept
including a picture of the core tray showing tension veining
faulting and host rock (A) and a micrograph of a gold grain spotted
within the veining (B).
Drilling also highlighted the upgrade potential
on the Cochrane line of lode anticipated in the 2020 Robinson
Drilling campaign, with quartz-stibnite veining intercepted in
RB003 and RB002 in the vicinity of the Cochrane trend (press
released June 22, 2020). RB004 intersected a zone of strong
mineralisation broadly correlating with the Cochrane. This zone
comprises several mineralized structures culminating with two
quartz breccias containing minor stibnite and several specimens of
visible gold within a quartz-stibnite stockwork zone. RB007 has
also intercepted a similar zone characterized by quartz-stibnite
veining with free gold present in one vein which could indicate the
continuation of this mineralised trend at depth. While still poorly
understood this additional line of mineralization is a welcome
addition and exploration of this trend will continue alongside
Robinson. The RB004 composite is 8.3 g/t gold over 0.69 m (0.42 m
ETW).
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9d528410-5dd3-4cc7-bc1d-88fed1b95105
Figure 6. Images of the RB004 intercept
including a picture of the core tray showing mineralised veining
and host rock with interval assays (A) and two micrographs of gold
grains spotted within the veining (B).
Some Context
The historic Robinson Mine and the current
prospect sits on a regional trend that includes the Brown Prospect
and is approximately parallel and 2 km to the east of the
Costerfield Mine. Offset from the Augusta/Cuffley and Youle hosting
Costerfield Formation by the King Cobra Fault, the Robinson-Brown
corridor mineralization is hosted in the younger silty sandstone
dominated Wapentake Formation turbidites. The Costerfield Formation
is interpreted to sit approximately 800m below the surface, which
suggests that mineralization along the Robinson-Brown trend could
be the most surficial expression of a deep system that parallels
the ~2 million oz central corridor.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1ba22847-8064-4668-930b-81b977a6eac1
Figure 7. Regional perspective block diagram
showing the spatial relationship of Costerfield Central Corridor,
where current mining is ongoing, and the Brown and Robinson
line.
The Robinson Mine was worked from discovery in
1881 to 1899 and from historic accounts was a high-grade gold mine.
No recorded reason for the cessation of mining at Robinson has been
found to date however, in other deposits mined in the same era at
Costerfield, veining was lost on flat faults at the base of the
mines where the operators at the time failed to locate the offset
depth continuation of veining. Mandalay’s preliminary
interpretation suggests that this could have also happened at the
Robinson Mine.
Future Exploration
Drilling will continue on the Robinson Prospect,
with an intent to define the geological framework of the prospect
and understand the breadth of mineralization. Further soils and
bedrock sampling is also planned to provide greater resolution to
the current 200 m spaced lines. Although still in the early stages
of exploration, Mandalay has committed to extending and augmenting
the Robinson testing program in the near future.
Drilling and Assaying
All diamond drill core was logged and sampled by
Costerfield geologists. All samples were sent to On Site Laboratory
Services (OSLS) in Bendigo, Victoria, Australia, for sample
preparation and analysis by fire assay for gold, and Atomic
Absorption Spectroscopy (AAS) for antimony. Samples featuring
coarse grained visible gold were assayed using a variant of fire
assay known as screen fire assay. This method is routinely used to
mitigate potential problems associated with heterogeneity in the
distribution of coarse gold within drill samples. The procedure
collects all coarse heterogenous coarse gold by screening at 75µm
after crushing and pulverisation, and subsequently fire assays the
resultant mass to extinction. A mass weighted average of gold grade
of the sample is subsequently calculated from the +75µm and -75µm
fractions of the sample. Site geological and metallurgical
personnel have implemented a QA/QC procedure that includes
systematic submission of standard reference materials and blanks
within batches of drill and face samples submitted for assay.
Costerfield specific reference materials produced from Costerfield
ore have been prepared and certified by Geostats Pty Ltd., a
specialist laboratory quality control consultancy. See Technical
Report entitled “Costerfield Operation, Victoria, Australia NI
43-101 Report” dated March 30, 2020, available on SEDAR
(www.sedar.com) for 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.
For Further Information
Dominic DuffyPresident and Chief Executive Officer
Edison Nguyen
Director, Business Valuations and Investor
Relations
Contact:647.260.1566 ext. 1
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, bring online the deeper
Shepherd veins, both of which will continue to supply high-grade
ore to the processing plant, and to extend Youle 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 Brown’s Prospect (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 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. Significant intercepts of the Robinson
Testing drilling program
DRILL HOLE ID |
FROM (M) |
TO (M) |
DRILL WIDTH (M) |
ESTIMATED TRUEWIDTH (M) |
AU GRADE (G/T) |
SB GRADE (%) |
SAMPLEDSTRUCTURE |
RB004 |
121.91 |
122.60 |
0.69 |
0.42 |
8.3 |
0.2 |
Cochrane Trend |
INCLUDING |
122.20 |
122.60 |
0.40 |
0.24 |
13.1 |
0.2 |
|
RB004 |
147.60 |
148.20 |
0.60 |
0.32 |
1.7 |
0.0 |
Unnamed |
RB005 |
225.90 |
226.35 |
0.45 |
0.28 |
Assays pending |
Unnamed |
RB007 |
125.11 |
125.28 |
0.17 |
0.15 |
1780.0 |
0.0 |
Robinson Trend |
RB007 |
276.00 |
277.50 |
1.50 |
1.30 |
Assays pending |
Cochrane Trend |
RB008 |
121.91 |
122.60 |
0.69 |
0.42 |
Assays pending |
Robinson Trend |
Notes
- Composites that
are not interpreted to be connected to a named vein or trend and
are below 1 g/t Au are not considered significant and are not
recorded here.
Table 2. Drill Hole Collar Details
DRILL HOLE ID |
EASTING |
NORTHING |
ELEVATION |
DEPTH |
DIP |
AZIMUTH |
DATECOMPLETE |
RB004 |
17256 |
5086 |
1195 |
188.2 |
-41.2 |
91.0 |
4/04/2022 |
RB005 |
17432 |
4816 |
1203 |
283.3 |
-38.9 |
265.6 |
25/04/2022 |
RB006 |
17466 |
5131 |
1189 |
280.7 |
-31.0 |
263.6 |
6/05/2022 |
RB007 |
17180 |
5034 |
1204 |
309.0 |
-51.3 |
88.3 |
20/05/2022 |
RB008 |
17072 |
4951 |
1212 |
|
-48.0 |
90.0 |
Not yet Complete |
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