Mandalay Resources Corporation Announces Further High-Grade Intercepts at Youle (Costerfield) and the Discovery of the Aurora Zone at Björkdal

CBJ Newsmakers

TORONTO, Nov. 14, 2018 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to provide an exploration update from recent diamond drilling on the emerging Youle deposit at its Costerfield operation in Victoria, Australia, as well as initial diamond drilling on the newly discovered Aurora deposit at its Björkdal operation in Sweden.

Since the Company’s last exploration press release on June 27, 2018, the Company has drilled 24 holes at the Costerfield Youle Vein (see Table 3). The Company has also drilled 54 holes at the Björkdal Aurora Zone (see Table 4). Highlights from the recent Youle (Costerfield) and Aurora (Björkdal) drilling include the following intercepts:

Table 1: Youle (Costerfield) Drilling Highlights

Hole

True Width
(m)
Gold
(g/t)
Antimony
(%)
AuEq (g/t) over minimum
diluted mining width of 1.8 m
 BC047 1.40 152.0 18.1 142.7
 BC036W1 1.65 93.9 31.1 136.4
 BC032 0.66 338.8 14.4 133.1
 BC058A 0.60 129.6 10.4 48.9

Table 2: Aurora Zone (Björkdal) Drilling Highlights

Hole

True Width
(m)
Gold
(g/t)
Gold (g/t) over minimum diluted
mining width of 3.0 m
 DOD2018-123 11.46 4.97 4.97
 DOD2018-062 8.64 7.1 7.1
 MU8-037 4.29 9.21 9.21
 DOD2018-169 4.9 9.04 9.04
 MU8-041 2.63 12.51 10.97

Dominic Duffy, President and CEO of Mandalay, commented, “Infill drilling at Youle continues to intercept significant gold and antimony grades, along with unbroken structural continuity over a 600 metre strike length. Three new intercepts have returned considerably higher grades than previously reported for Youle (see Mandalay press releases dated April 3 and June 27, 2018). Elevated understanding from infill drilling has revealed the potential for high-grade extension to the north and south, and at depth. This discovery gives the Company increased confidence about how this deposit can grow, and further potential for what has been, to date, the highest-grade deposit Mandalay has found. At a district level, the Youle discovery has accelerated our understanding of the geology and further potential of Costerfield and has unlocked new exploration targets, both adjacent to known mineralization, and throughout the property.”

Mr. Duffy continued, “We are also very pleased about an exciting discovery at Björkdal, known as the Aurora Zone. This exploration success is in keeping with the Company’s new focus at Björkdal to mine wider and higher-grade areas for increased profitability. The Aurora Zone is significantly wider than any other mining area at Björkdal, which is expected to allow for more efficient production. Exploration drilling and two levels of development initiated in the third quarter of 2018 have shown higher average grades than those historically mined from underground. Geologically, the Aurora Zone is noteworthy because it is the first area in the Björkdal underground where we have encountered mineralization above the marble contact. Historically this contact has limited the upper extensions of mineralization, meaning that the Aurora Zone has the potential for significant vertical extension. Currently, Aurora is open to extension in all directions.”

Youle Drilling Update

Charts accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/fd76678c-365b-4702-b17b-84d81ad6b8b3

http://www.globenewswire.com/NewsRoom/AttachmentNg/b4e793f5-c2f9-4579-a6ef-93068d93b03c

Drilling details for Youle are found in the table below:

Table 3: Youle Drilling Results (June 2018 – October 2018)

Hole ID Hole
Completion
Date
Total
hole
Depth
Intercept
Easting
(Mine
Grid)
Intercept
Northing
(Mine
Grid)
Intercept
Elevation
(Mine
Grid)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Sb
Grade
(%)
AuEq
(g/t)
over
min.
1.8m
mining
width
 BC028 27/06/2018 362.1 15404 6849 946 2.65 2.30 1.1 1.5 3.8
 BC032 19/06/2018 451.3 15364 7019 826 0.73 0.66 338.8 14.4 133.1
 BC032W2 18/06/2018 428.7 15385 7025 850 0.34 0.32 73.1 16.0 18.1
 BC036 10/07/2018 351.0 15398 6787 949 0.47 0.41 55.7 40.1 28.9
 BC036W1 13/07/2018 326.4 15399 6785 952 1.84 1.65 93.9 31.1 136.4
 BC037 11/07/2018 441.0 15302 6874 820 0.30 0.24 31.3 17.0 8.2
 BC038 16/07/2018 447.0 15395 7078 865 0.11 0.09 65.4 20.1 4.9
 BC039 12/07/2018 483.3 15341 7080 780 0.10 0.09 31.5 16.2 2.8
 BC040 27/07/2018 381.9 15362 6694 950 0.43 0.29 54.5 1.6 9.1
 BC045A 1/08/2018 423.9 15353 6910 860 1.04 0.86 1.4 2.6 2.8
 BC046 23/07/2018 459.0 15360 7076 805 0.27 0.24 15.2 7.1 3.7
 BC047 25/07/2018 440.9 15399 7016 880 1.71 1.40 152.0 18.1 142.7
 BC048 6/08/2018 460.6 15325 6990 793 1.06 0.88 16.7 2.4 10.2
 BC049 4/08/2018 443.9 15378 7054 831 0.17 0.15 50.7 21.9 7.7
 BC050 22/08/2018 428.5 15366 6991 837 1.47 1.26 2.7 1.8 4.1
 BC050W1 26/08/2018 419.5 15370 7002 837 1.40 1.27 11.4 3.3 12.1
 BC051 7/10/2018 436.2 15379 6988 862 0.15 0.14 39.9 26.9 6.6
 BC052 25/08/2018 520.2 15307 7119 728 0.73 0.58 65.7 8.0 25.7
 BC055 5/09/2018 489.2 15299 7062 739 0.33 0.26 199.7 5.2 30.5
 BC056 15/09/2018 490.2 15292 7003 752 0.12 0.09 51.7 22.1 4.7
 BC057 19/09/2018 447.0 15404 6932 902 0.42 0.35 13.0 8.1 5.3
 BC058A 1/10/2018 448.1 15325 6881 842 0.77 0.60 129.6 10.4 48.9
 BC059 14/09/2018 437.2 15359 7043 805 0.52 0.45 33.6 6.5 11.4
 BC061 27/09/2018 474.2 15387 7145 826 0.74 0.31 61.9 41.5 23.2

At present, Youle is still open in all directions. Current drilling efforts are focused on exploring the southern extension of mineralization with the objective of encountering the high-grades of Youle potentially closer to the Company’s current mining focus (the Brunswick deposit). Reducing the distance between Youle and Brunswick is expected to reduce the time required to begin producing from Youle. The Company anticipates that Youle will be added to the Company’s 2018 Mineral Reserves and Resources update which it plans to release in early January 2019.

Aurora Drilling Update

At Björkdal, underground extension diamond drilling northwards past the Lake Zone (Figure 3) has resulted in the discovery of a broad mineralized zone (the Aurora Zone) with assay results that are consistently higher-grade than current mill feed. Drilling to date in the zone suggests that it is large in size and of consistent grade. It currently extends approximately 250 metres horizontally in an east-west direction and 150 metres vertically, and is outlined by approximately 50 diamond exploration and development optimization drill holes to date (Figure 4 and Table 4). Two underground development drives were also initiated during the third quarter, 2018.

Charts accompanying this announcement are available at

http://www.globenewswire.com/NewsRoom/AttachmentNg/0dc388a6-ed14-49fa-9eca-46abe10fb81c

http://www.globenewswire.com/NewsRoom/AttachmentNg/0539a0fc-e752-4edb-911c-4f61b48193ea

Drilling details for Aurora are found in Table 4 below:

Table 4: Aurora Drilling Results

Hole ID Hole
Completion
Date
Total
hole
Depth
(m)
Intercept
Easting
(Mine
Grid) 
Intercept
Northing
(Mine
Grid) 
Intercept
Elevation
(Mine
Grid)
Drilled
Width
(m)
True
Width
(m)
Au
(g/t)
Au (g/t)
over min.
3 m mining
width
DOD2017-065 2017-10-09 165.9 1241.7 1798.5 -453.1 10.41 9.14 1.13 1.13
DOD2017-067 2017-09-23 215 1193.4 1777.9 -430.5 7.85 6.25 1.05 1.05
DOD2017-071 2017-12-19 180.3 1314.3 1795.2 -438.1 14.85 13.22 1.61 1.61
DOD2017-072 2017-11-07 248.2 1272.5 1789.1 -424.6 8.93 6.92 0.92 0.92
DOD2017-073 2017-11-14 245.3 1261.5 1824.3 -495.7 13.2 7.96 1.76 1.76
DOD2018-057 2018-04-10 101.1 1281.1 1803.6 -453.2 10.3 8.12 1.38 1.38
DOD2018-058 2018-04-05 119.2 1307.9 1800.3 -450.2 16.78 14.67 0.52 0.52
DOD2018-059 2018-03-31 99.4 1340.7 1801.5 -448.1 17.33 15.19 2.75 2.75
DOD2018-060 2018-03-24 118 1198.0 1784.3 -441.6 6.7 5.6 0.30 0.30
DOD2018-061 2018-03-27 117.9 1200.0 1790.7 -452.8 10.83 8.68 0.60 0.60
DOD2018-062 2018-04-23 125.4 1226.1 1800.8 -464.9 13.39 8.64 7.10 7.10
DOD2018-063 2018-04-20 106.3 1234.5 1790.0 -444.1 6.74 5.32 1.22 1.22
DOD2018-064 2018-04-25 115.2 1235.5 1795.3 -453.1 8.7 6.62 2.10 2.10
DOD2018-065 2018-04-29 94.3 1241.0 1791.8 -444.0 7.53 6.43 0.57 0.57
DOD2018-066 2018-05-01 105.8 1245.0 1803.9 -465.3 6.84 5.11 1.51 1.51
DOD2018-067 2018-05-04 104.2 1265.7 1806.9 -466.7 5.47 4.27 0.51 0.51
DOD2018-068 2018-05-02 101.1 1273.0 1802.9 -453.9 7.25 6.37 0.36 0.36
DOD2018-076 2018-06-14 140.5 1214.8 1774.1 -417.0 8.56 7.42 0.94 0.94
DOD2018-077 2018-06-11 138 1249.7 1776.8 -417.0 5.9 5.22 2.56 2.56
DOD2018-078 2018-06-07 147.3 1291.6 1787.6 -418.8 9.75 8.02 1.28 1.28
DOD2018-088 2018-06-29 140.4 1183.4 1816.3 -512.3 12.86 7.4 0.99 0.99
DOD2018-090 2018-07-11 143.3 1263.7 1826.4 -505.6 10.18 7.6 1.68 1.68
DOD2018-091 2018-04-17 135.8 1328.0 1812.1 -470.7 16.56 11.98 1.95 1.95
DOD2018-092 2018-05-04 144.4 1341.3 1822.8 -487.8 16.24 11.63 2.61 2.61
DOD2018-093 2018-05-01 133.9 1368.1 1826.3 -489.2 20.2 15.26 1.08 1.08
DOD2018-094 2018-04-27 125.9 1381.9 1817.7 -474.9 16.68 13.73 0.90 0.90
DOD2018-095 2018-04-24 135.2 1410.3 1824.6 -492.0 24.59 18.03 0.43 0.43
DOD2018-110 2018-03-20 141.5 1184.7 1786.8 -451.1 14.05 9.69 0.31 0.31
DOD2018-111 2018-03-18 149.8 1184.5 1781.6 -441.7 10.67 7.63 1.33 1.33
DOD2018-112 2018-03-22 144.8 1185.3 1792.7 -460.7 12.4 8.29 0.64 0.64
DOD2018-113 2018-04-07 138.8 1301.0 1818.6 -475.5 9.5 7.19 4.31 4.31
DOD2018-120 2018-08-18 123.1 1329.6 1778.7 -415.9 17.72 14.1 2.68 2.68
DOD2018-121 2018-08-24 120 1352.4 1776.6 -399.1 11.6 10.68 1.82 1.82
DOD2018-122 2018-07-09 95.3 1362.9 1789.3 -412.5 8.6 8.26 3.82 3.82
DOD2018-123 2018-08-28 102.7 1383.0 1782.6 -397.5 11.5 11.46 4.97 4.97
DOD2018-124 2018-07-05 95 1396.8 1786.0 -414.5 11.3 11.08 0.94 0.94
DOD2018-169 2018-10-07 176.4 1354.3 1842.5 -511.5 7.05 4.90 9.04 9.04
MU6-037 2016-08-07 145.85 1219.7 1806.4 -476.9 17.89 13.59 0.75 0.75
MU7-028 2017-06-22 230.8 1356.8 1797.2 -438.8 19.15 17.04 1.71 1.71
MU7-029 2017-06-16 260.1 1383.1 1835.9 -506.1 21.55 15.16 1.51 1.51
MU7-030 2017-06-09 251.8 1406.7 1850.5 -546.6 15.24 9.18 6.18 6.18
MU8-001 2018-01-11 205.8 1356.2 1809.5 -460.4 19.5 15.32 3.07 3.07
MU8-002 2018-01-18 200.7 1374.3 1806.4 -454.6 19.5 16.42 1.33 1.33
MU8-003 2018-01-25 201.1 1375.9 1804.5 -443.5 8.15 7.23 0.98 0.98
MU8-004 2018-01-31 200.5 1392.6 1815.9 -465.8 17.86 14.2 0.97 0.97
MU8-005 2018-02-07 206.8 1398.3 1801.0 -440.3 16.1 14.67 0.53 0.53
MU8-033 2018-10-03 131.3 1427.4 1784.9 -399.2 15.69 14.96 2.70 2.70
MU8-035 2018-09-16 210.3 1402.2 1858.6 -552.8 16.04 8.35 1.70 1.70
MU8-036 2018-08-22 201.1 1363.9 1856.0 -540.8 6.97 4.58 5.86 5.86
MU8-037 2018-08-27 200.9 1325.1 1842.0 -517.0 6.34 4.29 9.21 9.21
MU8-038 2018-09-20 155.1 1245.4 1760.9 -396.1 3.6 3.49 3.87 3.87
MU8-039 2018-09-24 165.2 1209.4 1753.0 -393.5 4.8 4.5 3.97 3.97
MU8-040 2018-09-04 160.1 1238.0 1822.7 -515.2 2.42 1.42 1.91 0.91
MU8-041 2018-09-09 212.7 1203.9 1821.2 -517.3 4.7 2.63 12.51 10.97


The discovery of gold mineralization at Aurora provides the potential to mine high-tonnage/higher-grade ore more cost effectively. Aurora is readily accessible from current underground developments, with two levels already having been initiated.

Based on the Company’s current drilling data, Aurora appears to be open in all directions. Extensional drilling during the remainder of 2018 and into 2019 is expected to focus on larger step-outs above and below the known mineralization to obtain a framework overview by bounding the Aurora mineralized zone.

Drilling and Assaying

At Youle, diamond drill core was logged and sampled by Costerfield geologists. All samples were sent to Onsite Laboratory in Bendigo, Victoria, Australia, for sample preparation and assay. Site geological and metallurgical personnel have implemented a QA/QC process that includes the regular submission of standard reference materials and blanks with drill and face samples submitted for assay. Standard reference materials have been certified by Geostats Pty Ltd. (see March 29, 2018, Technical Report entitled “Costerfield Operation, Victoria, Australia NI 43-101 Report”, available on SEDAR (www.sedar.com), which contains a complete description of drilling, sampling, and assaying procedures).

At Björkdal, all diamond drill core was logged and sampled by Björkdal geologists. Exploration drill hole samples (prefix MU) were sent to CRS Minlab Oy (CRS) in Kempele, Finland for sample preparation and assaying. Development Optimization drill hole samples (prefix DOD) were at the onsite lab ran by ALS for sample preparation and assaying (see March 29, 2018, Technical Report entitled “Technical Report on the Björkdal Gold Mine, Sweden”, available on SEDAR (www.sedar.com), which contains a complete description of drilling, sampling, and assaying procedures).

Assaying in both the CRS and ALS laboratories was conducted utilizing the Pal1000 (CRS) cyanide leaching processes. Mandalay’s rigorous QA/QC program included the use of standard reference samples, blanks, duplicates, repeats, and internal laboratory quality assurance procedures.

Qualified Person:

Chris Gregory, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Member of the Australian Institute of Geoscientists (AIG), 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 Duffy
President and Chief Executive Officer

Greg DiTomaso
Director of Investor Relations

Contact:
647.260.1566

About Mandalay Resources Corporation

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in production gold, copper, silver and antimony projects in Australia, the Americas, and Europe to generate near-term cash flow and shareholder value.

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 Youle deposit (Costerfield) and the Aurora Zone (Björkdal). 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 29, 2018, 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.

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