Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) has reported exploration drill results from its Björkdal gold project in Sweden, which are highly encouraging for potential future production at the mine.
The assays hail from the firm's eastern extension drill programs and include some of the best grades seen at Björkdal, said Mandalay, which has already submitted an application to extend its mining license holdings to cover this extension.
"Predominantly, the intercepts are interpreted to be direct extensions of the Main and Central zone veining, however, the grades recovered from the Central Extension drilling show a distinct upgrading down plunge," said Mandalay CEO Dominic Duffy in a statement.
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"The increasing grades within the extensions of the Björkdal deposit at depth to the east mark a significant development in the multifaceted efforts to lift ore grades produced from the mine and will be a major focus of our production in the years to come
"The Main, Lake and Central zones are all open to the north-east and those drilling results are showing higher grades the deeper and further to the east we drill. This is very exciting, and this drilling will continue to be one the primary exploration focuses over the course of 2022," he added.
At the Central zone extension infill drilling, a highlight result was 47.7 grams per ton (g/t) gold over 11.7 metres (m) from a depth of 66.3m in one hole, and at the Central zone extension testing drilling, Mandalay hit 5.14 g/t gold over 8m from 151m depth.
At the Central zone to Lake zone link, there was 19.3 g/t gold over 0.4m in one hole from 389.7m depth.
Since the success of the Lake and Main Zone extension projects, Mandalay has drilled a further 17 holes for 7,253m into the eastern extension of the Björkdal veining in three programs - the Central Zone Extension, Central Zone Conversion and Central to Lake Zone Link drilling programs.
Currently, these results have connected to the continuation of 21 existing veins and 16 new veins have been discovered.
So far, and to varying degrees, the veining has been extended up to 350m from current workings, said Mandalay.
Canada-based Mandalay Resources has producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under closure or development status.
Contact the author at giles@proactiveinvestors.com