Precious metals miner Mandalay Resources Corp (TSE:MND) has unveiled encouraging high grade drill results from exploration under the historic Costerfield mine in Australia.
The firm has sunk 27 diamond holes into what's called the Youle vein in three campaigns spanning 2011, 2014 and the latest from last year to this.
The firm is targeting projections of veins beneath the historic Kendall and Costerfield mine, which was the largest historical producer in the district from 1864 to 1938.
"We are encouraged by the high-grade cluster of drill intercepts defining the core of the emerging Youle vein beneath the historic Costerfield mine," said Mark Sander, president and chief executive of Mandalay.
"This setting is similar to the locations of the Augusta lodes, the Cuffley lode and the Brunswick lode beneath other historic mines of the district, all of which Mandalay has converted to mineral reserves and has either mined or is preparing to mine."
The strike length (400 to 600 m) and depth extent (150 to 200 m) of the intercepts are also consistent with the dimensions of orebodies the firm have found beneath the other historic mines in the district that have proved very profitable for Mandalay, he noted.
Highlight assays included 0.37m width at 120.9 g/t gold and 11.1% antimony. Another width showed 0.58m at 272.1 g/t gold and 13.3% antimony.
Sander added: "There is room to grow this discovery along strike and downdip.
"The fact that Youle lies just several hundred metres to one kilometre from the Brunswick lode, to which capital development access will be created later this quarter, suggests that there is potential to access the shoot quickly and for limited development capital.
"We plan to add additional surface rigs to the Youle drilling program to expand and infill high-grade mineralization as quickly as possible, with the goal of adding significantly to the company's mineral resources and reserves by the end of 2018."
Mandalay shares shed 2.50% to C$0.20.