Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) on Monday unveiled encouraging exploration drilling results from its mines in Australia and Sweden, which underscore the potential to continue to expand these operations.
The metals miner has been carrying out regional testing and resource extension work at the Costerfield mine in Australia and the Björkdal operation in Sweden.
"Despite the ongoing COVID-19 pandemic, we have been able to increase our drilling while protecting our staff and contractors with strict risk mitigation protocols," said Dominic Duffy, CEO at Mandalay.
Notably, a first hole at the Brown’s prospect, 2.3 km east from the high grade Youle mine at Costerfield, returned a highly significant intersection of 14.5 grams per ton (g.t) gold, over a true width of 1.27 metres (m) and 23.5 g/t gold over 0.12 metres.
The work also showed encouraging intercepts on parallel veins, along with encouraging early intercepts within the True Blue line, which lies 2.2 km west of the Youle and Brunswick mine workings.
"These drilling programs are still in their infancy and Mandalay is committed to continuing and accelerating drilling where needed in order to understand their full potential," said Duffy.
"As we continue to extract excellent grades from the Youle ore body we have also had success in our near-mine drilling program extending strike to the north with characteristically high-grade mineralization intercepted along structure," the company boss added.
Turning to Sweden, Duffy noted the "encouraging intercepts returned from our Aurora extension drilling program at Björkdal".
"Grades we are seeing at depth are comparable to the highest we have seen at Björkdal with strike extension drilling also showing high-grade results to the east.”
Drill assays from the Swedish operation included 9.7 g/t gold over 4.31 metres in one hole at Aurora, while northern drilling encountered 26.9 g/t of the precious metal over a true width of 0.61 metres in another hole.
"Whilst the Aurora deposit grows at Björkdal, we continue to drill to the north with aims to secure additional, parallel and high-grade veining. This program has continued to deliver towards this goal with three zones of veining intercepted at significant grades. The realization of stacked Aurora-like systems is of great importance to the mining operations at Björkdal and could allow a step change in high-grade ore extraction rates in the future," said Duffy.
Updating on current activity in Australia, Mandalay also revealed it had increased drilling rates at its Youle vein extension program and started the already successful regional resting programs.
"The anticipated second deep drill hole underneath the central Costerfield system has also commenced," the miner added.
Canada-headquartered Mandalay is focused on growing production at its gold and antimony operation in Australia, and gold production from its mine in Sweden to generate near term cash flow.
In May, the group posted a strong operating and financial performance in its first quarter, largely thanks to its Costerfield mine in Australia, where the firm saw improved grades and realized gold prices, leading to record revenue.
Revenue from Costerfield for the three months to March 31 came in at C$ $20.4 million, which was 96% up on the fourth quarter to end December.
Mandalay shares surged over 13% on Monday to C$1.61 each.
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