viewMandalay Resources Corp.

Mandalay Resources kicks off 2019 exploration campaign

The firm announced it has kicked off its exploration campaign at its Costerfield operation in Victoria, Australia, as well as its Björkdal operation in Sweden

Bjorkdal mine
The firm is exploring at its Costerfield operation in Victoria, Australia, as well as its Björkdal operation in Sweden (pictured)

Mandalay Resources Corp. (TSE:MND) said Tuesday it has kicked off its 2019 exploration campaign at its Costerfield operation in Victoria, Australia, as well as its Bjorkdal operation in Sweden. 

The firm said drilling has continued to yield encouraging results. 

"At Costerfield, the company is testing extensions to the Youle orebody and has commenced a deep drilling program under the known Costerfield mineral systems to test for potential high-grade mineralization similar to Fosterville's Swan zone. At Bjorkdal, the company has expanded the Aurora mineralization, and in addition is pleased to provide drilling results for newly discovered high-grade skarn at the Lake zone," the firm said in a statement. 

READ: Mandalay Resources' first quarter shows strengthening finances, uplift of Björkdal output

The company said it was pleased to report additional diamond drilling results from both operations based on drilling that was carried out since the company's last exploration release on November 14, 2018. 

"We are pleased to announce that we have commenced our 2019 exploration programs at both of our sites. We believe that the most recent drilling results at Costerfield and Bjorkdal are very positive and suggest further opportunities for increasing the value of our operations," said Dominic Duffy, President and CEO of Mandalay in a statement. 

"At Costerfield, we commenced drilling to test the northern extension of the high-grade Youle lode in May 2019 and met with immediate success in the first hole, which intercepted 0.5 metres at 39 grams per tonne of gold equivalent. This result is encouraging as it gives us increased confidence about the continuity of Youle to the north. Currently, the Youle lode is open to extension in all directions. We expect to commence mining of this high-grade lode in the fourth quarter of this year, with the opportunity for further expansion from underground drill platforms when we get there," said Duffy. 

Drilling program at Costerfield the first phase

The firm said it began phase one deep drilling program at Costerfield in May 2019, the first phase of a program expected to continue over the coming 12 months. The objective of the first phase of deep drilling is to establish the geological and stratigraphic context for where a high-grade gold deposit would likely be found.

"We have begun the first of two deep holes and we will be wedging off of each hole to get a clearer picture of the structural setting further up dip. We believe this program will provide a strong framework for understanding the geology and potential styles of mineralization that may exist at depth, to allow planning of the future deep drilling program."

The firm concluded that at Bjorkdal, drilling at the Aurora zone in the fourth quarter of 2018, together with further drilling in the second quarter of 2019, has continued to expand the size of the deposit, which is still open both vertically and along strike. Aurora currently measures 500 metres in strike length and 300 metres in height with significantly larger widths than we are currently mining. In addition to further delineating Aurora, we are pleased to also announce high-grade drill results from the newly discovered Lake zone skarn deposit. The skarn deposit adds a new dimension to the Bjorkdal by reporting significantly higher grades than are typically mined at the operation."

Contact Katie Lewis at katie@proactiveinvestors.com

Quick facts: Mandalay Resources Corp.

Price: 1.32 CAD

Market: TSX
Market Cap: $120.42 m

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