Mandalay Resources Corporation (TSE:MND) (OTCQB:MNDJF) (FRA:R7X2) revealed positive intercepts from a newly-discovered veining horizon near the Youle deposit on the company’s Costerfield gold operation in Australia.
Highlights included 460.5 grams per ton (g/t) gold over 0.1 metres (m) and 165.1 g/t gold over 0.2m, according to a statement Friday.
Toronto-based Mandalay told shareholders that a study of the structural dynamics within and surrounding the Youle deposit highlighted the “distinct probability” of a continuation to auriferous veining within a sub-vertical geometry underneath the westerly-dipping Youle deposit.
READ: Mandalay Resources posts more encouraging drill assays from Youle deposit at its Australia mine
Around 90m below the deepest known intercept on Youle and 200m below current on vein development, drill hole BC176 intercepted a quartz structure with “abundant” visible gold, Mandalay told investors. While the intercept was not fully recovered, with about 40% of the intercept ground away in the drilling process, the company recovered 0.6m of core containing the auriferous quartz vein assaying 460.5 g/t gold.
Another intercept was fully recovered and a 0.2m vein appeared in the core that exhibited grains of gold through the quartz alongside blebs of stibnite, which was sampled and assayed at 165.1 g/t gold over a true width of 0.20m.
“We are excited by the initial drill hole underneath the Youle deposit as it returned a very significant intersection of high gold grades in both the parent hole and confirmatory wedge hole approximately one metre away,” Mandalay CEO Dominic Duffy said in a statement accompanying the results.
“At approximately 90 metres below the last intercept on Youle, this discovery may indicate a new gold mineralized structure below and separate from the high-grade Youle deposit. This is a major milestone for our exploration program so early in the year and reinforces our planned 2021 program of deeper drilling below several of the known deposits.”
Mandalay added that drilling is ongoing at Costerfield to test the extent of the visually auriferous, veining and the parallel vein sets.