Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) has issued an update on drilling progress at its Costerfield operation in Victoria, Australia, reporting extended mineralization.
Particularly, infill drilling at the Shepherd Zone supported and extended high-grade veining to the north, and both extended and upgraded the zone’s southern portion.
In the north, the company found 234.7 g/t gold over 4.17 meters (m) in hole BC262 and 377.4 g/t gold over 0.54 m in hole BC371, while mineralization located 300 m to the south along trend of Shepherd and a further 150 m at depth included 332.0 g/t gold over 0.33 m in hole BC274W1.
READ: Mandalay Resources strengthens balance sheet in 2Q; completes sale of Challacollo Silver-Gold Project in Chile
“During the course of 2022, Mandalay has been focused on confirming grade continuity through Shepherd and extending the veining horizon both at depth and to the south,” CEO Dominic Duffy said in a statement. “The ongoing drilling at Costerfield is achieving these goals, however, the programs are not yet complete and will progress into 2023 before the potential of the Shepherd trend is better understood.”
Duffy also noted a potential third veining horizon at Shepherd located in three drill holes approximately 40 m further west of the known Shepherd veining including 17.6 g/t gold & 18.6% antimony over 0.17 m in hole BC299.
“Excitingly, drilling has intercepted a potential third veining horizon within the Shepherd domain,” Duffy added. “This new discovery is slightly deeper and further to the west of the domain and could represent the continuation of a stepped progression of gold concentration across structures.
The Shepherd veining system contains a series of gold-bearing quartz veins that, in some locations, also contains stibnite, the company said. The gold within the veining is characterized as being of coarse grain size. This characteristic lends itself to greater variability in gold grades across intercepts compared to those seen in the Youle orebody.
Veining located to the east of the project’s Youle portion showed high potential for extension, the company said, with highlights including 22.2 g/t gold and 16% antimony over 0.24 m in hole BC295. Drilling above Youle intercepted an undiscovered and unmined panel of veining including 27.8 g/t gold & 31.5% antimony over 0.67 m in hole BC328.
“Mandalay has also been focused on investigating the surrounds of the upper Youle and Kendal area,” Duffy said. “Two areas have emerged with the potential to be near mine sources of ore and are a focus of continued exploration.”
Elsewhere, the northern high-grade zone of Suffolk has been confirmed by three additional intercepts of the same vein with a highlight of 377g/t gold over 0.54 m in BC317 and 347g/t gold over 0.27 m in BC316.
A full breakdown of the results can be found here.
Mandalay is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The company is focused on growing its production and reducing costs to generate significant positive cash flow.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel