The company released exploration updates for all three of its mines: Costerfield (Australia); Cerro Bayo (Chile); and Björkdal (Sweden).
At Costerfield, new intercepts suggest that at least three branches of the Cuffley lode occur below the King Cobra fault in the vicinity of the underground infrastructure.
All three intercepts contain high gold or antimony grades, or both, and chief executive Brad Mills said the company is optimistic that further drilling planned for 2016 will outline a potentially significant new resource.
Intercepts obtained at the Margaret and Brunswick targets have confirmed the presence of mineralized veins and improved Mandalay's understanding of the structural settings for potential mineralization in these areas.
In addition, an initial round of shallow reverse circulation (RC) drilling to test the large top-of-bedrock gold and antimony anomaly at West Costerfield has demonstrated the presence of an extensive system of mineralized structures, which may be followed up by core drilling in 2016, the company revealed.
At Cerro Bayo, drilling under Laguna Verde continued to reveal the south-east and depth limits of the Coyita vein, with a gap remaining in the middle of the lake that has proved difficult to drill from currently accessible locations, Mills disclosed.
New intercepts on the Yasna vein under Laguna Verde have further defined and slightly enlarged this ore shoot as well, leading the company to expect modest increases in resources on both these veins at the year-end 2015 resources and reserves update.
“Our first hole to test below the north-eastern half of the lake intersected a new vein called Victoria. While this wide intercept did not contain economic grades, it indicates that significant structures exist to the east of the current Laguna Verde vein system that were active at the time of mineralization,” Mills revealed.
At Björkdal, Mills said drilling has pushed the limits of underground mineralization some 200 metres to the north and up to 100 metes to the east and north-east.
“We expect this work will translate into a significant increase in underground resources and reserves in our year-end reserve and resource update,” Mills said.
“Furthermore, drilling results in and around the south-east part of the open pit suggests we will be able to expand the pit in this area.
“This year’s core drilling has also confirmed the validity of the Nylunds resource model that had previously only been defined by historic RC drilling. We expect the Nylunds resource to convert to a new open pit reserve as a result.
“Finally, a new mineralized zone was intercepted in the Storheden area some 700 metres north of the current Björkdal mine. This intercept, which is anomalously wide for the district, represents a new high quality exploration target for the coming year,” Mills concluded.
Mandalay said its end-2015 resource and reserves update should be ready by the middle of February 2016.
Shares of the Toronto, Ontario-based company gained 4.8% to C$0.66 at 1:15 p.m. in Toronto.