Mandalay Resources Corporation Confirms Excellent Results From Its Björkdal Eastward Mine Extension Drilling and Reports Encouraging Results From the North Zone Drilling Program

TORONTO, June 21, 2022 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to provide an update on the eastern extension drilling and significant intercepts from the North Zone drilling program at its Björkdal operation in Sweden.



New Drilling Highlights:


North Zone


  • 155.0 g/t gold over 0.80 m

    (Estimated True Width “ETW” 0.61 m);

  • 183.0 g/t gold over 0.45 m

    (ETW 0.34 m); and

  • 64.8 g/t gold over 0.85 m

    (ETW 0.55 m) in MU22-002.


Extension Plunge Extension


  • 14.7 g/t gold over 4.10 m

    (ETW 3.48 m) in MU21-009;

  • 27.3 g/t gold over 2.20 m

    (ETW 1.61 m) in MU21-010; and

  • 91.3 g/t gold over 0.30 m

    (ETW 0.26 m) in MU21-012.


Note: Further intercept details including significant intercepts within composite intervals can be found in Table 1 in the Appendix to this document.

Dominic Duffy, President and CEO of Mandalay, commented:

“We are pleased to report progress on the Eastern Plunge extension program where infill drilling of the eastern section between the Central and Lake Zone plunge extensions have produced excellent results while bridging our knowledge in this new and exciting extension. We expect these results will increase our 2022 year-end Mineral Reserves.

“Furthermore, as the initial step out phase of eastern extension drilling concludes, underground drilling resources will shift towards our North Zone program. An area north of Aurora in which east-west trending veining parallels the Aurora and surrounding veins. The latest round of drilling is ongoing and is aimed at infilling known veining and testing for the lateral and vertical extents. So far, the drilling supports the interpreted veining previously tested and suggest a concentration of veining approximately 450 m north of Aurora where the best grades of the prospect have been recovered in MU22-002. Lateral extension drilling is not far progressed, however, there are indications that the trend could span 750 m.

“Lastly, a video has been prepared by Chris Davis, Vice President of Operational Geology and Exploration, to further explain the information in this release. This video can be found on Mandalay’s website or by clicking

here

.”



Dual focus for Underground Exploration

During the first half of 2022 underground exploration at Björkdal has been focused on further defining the Eastern Plunge extension veining and investigating the breadth and grade of mineralization to the north of Aurora within the North Zone.


https://www.globenewswire.com/NewsRoom/AttachmentNg/59472517-26a9-427b-a806-e80d75655662

Figure 1. Perspective view of the Björkdal Mine looking towards the SW highlighting the interaction of the veining (Red), Marble (Blue) and Björkdal fault (Yellow). Drilling from the 2022 Eastern extension and North Zone programs is also shown.



Eastern Extension

Late in 2021, it became apparent that a gap of highly prospective ground was underexplored between Lake and Central Zones at depth. A testing program was designed to explore the gap and yielded initial success (press released January 24, 2022). A follow-up drilling campaign was designed to define the extended and newly discovered veining. The 2022 program included seven holes and intercepted 17 now modelled veins with encouraging grades amongst them including 14.7 g/t gold over 4.10 m (3.48 m ETW) and 27.3 g/t gold over 2.20 m (1.61 m ETW). Assays are pending for the last half of MU22-006 however veining was identified within this drillhole along trend.

This drilling program has now identified veining of mineable grades up to 400 m down plunge from the current underground infrastructure.


https://www.globenewswire.com/NewsRoom/AttachmentNg/f0ccaea4-94b3-4498-b3ea-67b04851289b

Figure 2. Plan section of the Central Zone – Lake Zone Link Drilling. Intercepts above 0.5 g/t Au when diluted to 1 m are denoted by dots. Drillholes are annotated with composites over 2.0 g/t Au when diluted to 1 m.

Like previous drilling of the eastern continuation, visible gold is common within the quartz veining and is generally accompanied by significant gold grades when assayed. Below is an image of the aforementioned MU022-010 intercept.


https://www.globenewswire.com/NewsRoom/AttachmentNg/4bfc75dc-c078-4902-ba7e-d32b98b4a73f

Figure 3. Photograph of core containing gold within MU22-010 (340.05 – 342.25 m – ETW 1.61m @ 27.3 g/t Au).



North Zone

In January 2022, Mandalay recommenced the North Zone drilling program with an intention to further define mineralization intercepted in 2020 and test for lateral and vertical extents. The drilling program is ongoing with 11 drill holes completed to-date. Excitingly, the drilling has highlighted an area of increased veining density at approximately 450 m north of Aurora. This increased density is also accompanied by increased grades with two of the best results in the prospect coming from MU22-002. These are: 155.0 g/t gold over 0.80 m (0.61 m ETW) in MU22-002 and 183.0 g/t gold over 0.45 m (0.34 m ETW).

Apart from the exceptional grade, these intercepts are important due to their location above the marble unit and what that could mean for vertical and lateral grade continuity. Veining below the marble horizon general persists for 80 m in vertical extent. The Aurora orebody – like the North Zone – exists above the marble and has a mineable vertical extent of approximately 350 m and lateral extent of 400 m. The 2022 North Zone drilling campaign has intersected mineralization across a 750 m trend and 200 m vertical extent although the bounds of the zone have not yet been found.


https://www.globenewswire.com/NewsRoom/AttachmentNg/75aea6e4-9958-4f6e-891e-5313c639e23f

Figure 4. Plan section of the North Zone drilling area showing the 2022 drilling complete to date. Intercepts above 0.5 g/t Au when diluted to 1 m are denoted by dots. Drillholes are annotated with composites over 2.0 g/t Au when diluted to 1 m.


https://www.globenewswire.com/NewsRoom/AttachmentNg/66c6c133-05d5-4c6c-adde-6f5371182f73

Figure 5. East-West cross-section of area showing the divergence of Marble and Björkdal Shear. Intercepts above 0.5 g/t Au when diluted to 1 m are denoted by dots. Drillholes are annotated with composites over 2.0 g/t Au when diluted to 1 m.

Drilling and development of both areas of interest will be ongoing through 2022 with an intent of increasing reserves and setting up the next high tonnage and grade development area for the Björkdal Mine.


https://www.globenewswire.com/NewsRoom/AttachmentNg/98e8b3ba-1540-4241-bc8c-9a3e7ee32902

Figure 6. Photograph of the MU22-002 intercept at 476.7m with image of core showing gold entrained within quartz.



Drilling and Assaying

At Björkdal, all diamond drill core was logged and sampled by Björkdal geologists. Exploration drill hole samples were sent to CRS Laboratories Oy (“CRS”) in Kempele, Finland for sample preparation and assaying.

Assaying was conducted utilizing the Pal1000 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 (see March 31, 2022, Technical Report entitled “Mandalay Resources – Björkdal Property NI 43-101 Technical Report” available on SEDAR (


www.sedar.com


), which contains a complete description of drilling, sampling, and assaying procedures).



Qualified Person:

Chris Davis, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)), as well as a Member of the Australian Institute of Geoscientists (MAIG) 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

Edison Nguyen

Director, Business Valuations and Investor Relations

Contact:

647.260.1566 ext. 1



About Mandalay Resources Corporation

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under closure or development status. The Company is focused on growing its production and reducing costs to generate significant positive cashflow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.

Mandalay’s mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Björkdal mines. Currently, the Company’s main objective is to continue mining the high-grade Youle vein at Costerfield, bring online the deeper Shepherd veins, both of which will continue to supply high-grade ore to the processing plant, and to extend Youle Mineral Reserves. At Björkdal, the Company will aim to increase production from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.



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


exploration results disclosed


.


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 31, 2022, 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.



Appendix


Table 1.

Table of Significant Intercepts from the Central to Lake Zone drilling program


Drill Hole



ID

From



(m)

To (m)

Interval



(m)

Estimated



True



Width (m)

Au



Grade



(g/t)

Au (g/t)



over



min. 1m



width

MU22-006
23.30 23.75 0.45 0.34 3.6 1.2

MU22-006
44.00 44.35 0.35 0.22 55.8 12.3

MU22-006
74.60 75.95 1.35 1.30 1.4 1.4

MU22-006
100.75 101.25 0.50 0.40 8.4 8.4

MU22-006
237.00 238.10 1.10 0.87 2.7 2.7

MU22-007
110.55 113.05 2.50 1.61 2.0 2.0

MU22-007
217.40 217.90 0.50 0.43 4.7 2.0

MU22-007
241.30 242.65 1.35 1.17 3.8 3.8

MU22-008
101.15 101.85 0.70 0.44 1.2 1.2

MU22-008
125.80 126.85 1.05 0.66 1.0 1.0

MU22-008
305.00 308.00 3.00 0.78 2.8 2.2

MU22-008
359.55 359.85 0.30 0.23 24.6 5.7

MU22-008
365.00 366.00 1.00 0.63 13.3 13.3

MU22-009
25.00 26.00 1.00 0.77 0.9 0.9

MU22-009
33.00 34.00 1.00 0.77 1.8 1.8

MU22-009
55.00 56.00 1.00 0.77 1.1 1.1

MU22-009
87.00 88.00 1.00 0.77 1.5 1.5

MU22-009
94.95 95.25 0.30 0.23 68.4 15.7

MU22-009
126.05 127.00 0.95 0.73 0.8 0.8

MU22-009
215.40 215.80 0.40 0.38 6.1 2.3

MU22-009
229.30 233.40 4.10 3.48 14.7 14.7

MU22-009
247.70 248.75 1.05 0.81 2.0 2.0

MU22-009
250.80 254.50 3.70 2.83 2.4 2.4

MU22-009
356.00 359.00 3.00 2.32 8.1 8.1

MU22-009
383.60 384.25 0.65 0.56 29.1 16.3

MU22-009
402.35 403.00 0.65 0.50 41.8 20.9

MU22-009
427.00 427.95 0.95 0.73 0.8 0.8

MU22-009
473.85 474.15 0.30 0.26 11.5 3.0

MU22-010
81.85 82.95 1.10 1.08 4.2 4.2

MU22-010
101.95 103.05 1.10 0.78 1.7 1.3

MU22-010
108.00 109.00 1.00 0.71 6.8 4.8

MU22-010
137.00 138.00 1.00 0.78 0.8 0.8

MU22-010
148.05 148.95 0.90 0.78 0.8 0.6

MU22-010
255.85 256.40 0.55 0.39 4.0 1.5

MU22-010
265.05 266.05 1.00 0.78 2.5 2.5

MU22-010
319.05 320.00 0.95 0.74 0.9 0.9

MU22-010
323.00 326.00 3.00 2.35 2.2 2.2

MU22-010
340.05 342.25 2.20 1.61 27.3 27.3

MU22-010
360.00 361.00 1.00 0.78 0.9 0.9

MU22-010
363.95 364.75 0.80 0.69 9.6 6.6

MU22-010
373.20 374.15 0.95 0.78 1.9 1.5

MU22-010
385.00 386.00 1.00 0.78 1.3 1.3

MU22-010
386.60 387.00 0.40 0.38 1.5 0.6

MU22-011
24.00 26.05 2.05 0.87 1.7 1.5

MU22-011
32.00 33.00 1.00 0.66 1.0 1.0

MU22-011
37.00 37.95 0.95 0.63 7.2 7.2

MU22-011
82.00 83.00 1.00 0.66 2.1 2.1

MU22-011
215.00 215.35 0.35 0.32 7.8 2.5

MU22-011
271.95 273.00 1.05 0.70 1.1 1.1

MU22-011
333.60 334.20 0.60 0.56 28.9 16.2

MU22-011
345.00 347.85 2.85 2.18 1.4 1.4

MU22-011
366.00 368.00 2.00 1.00 2.6 2.6

MU22-011
375.95 376.95 1.00 0.50 2.1 1.1

MU22-011
405.05 405.90 0.85 0.56 3.4 3.4

MU22-011
480.75 481.80 1.05 0.53 1.1 0.6

MU22-012
259.45 259.75 0.30 0.28 2.5 0.7

MU22-012
265.00 266.30 1.30 1.15 3.2 3.2

MU22-012
274.70 275.00 0.30 0.26 91.3 23.7

MU22-012
301.70 302.00 0.30 0.27 1.9 0.5

MU22-012
309.00 310.00 1.00 1.00 1.4 1.4

MU22-012
311.00 312.10 1.10 0.71 1.0 0.7

MU22-012
317.95 319.00 1.05 0.95 1.2 1.1

MU22-012
347.40 347.80 0.40 0.20 3.8 0.8

MU22-012
354.00 356.00 2.00 1.73 3.5 3.5

Notes:

  1. Where true widths are greater than 1m, grades are not diluted and are presented as the grade over the composite true width.
  2. Composites that are below 0.5 g/t Au when diluted to 1 m are not reported in this table.


Table 2.

Table of Significant Intercepts from the North Zone drilling program


Drill Hole



ID

From



(m)

To (m)

Interval



(m)

Estimated



True



Width (m)

Au



Grade



(g/t)

Au (g/t)



over



min. 1m



width

MU22-001
12.70 13.35 0.65 0.53 3.6 1.9

MU22-001
22.45 22.85 0.40 0.31 6.4 2.0

MU22-001
32.40 36.15 3.75 1.58 3.1 3.1

MU22-001
78.85 79.30 0.45 0.19 3.4 0.6

MU22-001
322.60 323.25 0.65 0.43 3.1 1.3

MU22-001
488.40 488.70 0.30 0.19 16.9 3.2

MU22-001
501.55 502.35 0.80 0.51 8.9 4.5

MU22-001
509.90 510.25 0.35 0.27 2.2 0.6

MU22-001
527.45 528.90 1.45 1.11 4.7 4.7

MU22-001
532.50 533.10 0.60 0.32 2.5 0.8

MU22-002
103.15 104.00 0.85 0.55 64.8 35.6

MU22-002
149.95 150.55 0.60 0.16 4.8 0.8

MU22-002
210.35 210.80 0.45 0.29 5.7 1.7

MU22-002
216.50 217.20 0.70 0.24 2.6 0.6

MU22-002
323.00 323.60 0.60 0.46 2.7 1.2

MU22-002
343.00 343.45 0.45 0.37 2.5 0.9

MU22-002
352.30 353.00 0.70 0.35 5.9 2.1

MU22-002
400.40 401.00 0.60 0.39 1.9 0.8

MU22-002
410.85 411.40 0.55 0.35 5.9 2.0

MU22-002
476.70 477.50 0.80 0.61 155.0 94.6

MU22-002
500.10 500.55 0.45 0.34 183.0 62.2

MU22-002
530.85 531.55 0.70 0.54 1.0 0.5

MU22-003
2.65 3.00 0.35 0.15 135.0 20.3

MU22-003
88.60 88.95 0.35 0.27 6.8 1.8

MU22-003
115.65 116.45 0.80 0.40 1.4 0.6

MU22-003
122.40 123.10 0.70 0.49 4.9 2.4

MU22-003
135.65 136.70 1.05 0.74 1.2 0.9

MU22-003
145.15 147.25 2.10 1.13 6.7 6.7

MU22-003
173.10 173.80 0.70 0.45 2.2 1.0

MU22-003
546.20 546.60 0.40 0.28 2.0 0.6

MU22-003
559.65 561.20 1.55 1.10 2.6 2.6

MU22-003
584.50 585.05 0.55 0.32 1.7 0.5

MU22-003
599.25 604.65 5.40 3.17 1.9 1.9

MU22-004
63.90 64.65 0.75 0.48 1.6 0.7

MU22-004
237.05 237.40 0.35 0.28 2.2 0.6

MU22-004
248.20 249.20 1.00 0.60 1.1 0.7

MU22-004
350.65 351.60 0.95 0.57 1.5 1.5

MU22-004
424.20 424.60 0.40 0.17 5.9 1.0

MU22-004
437.00 437.55 0.55 0.35 3.3 1.2

MU22-005
37.20 37.80 0.60 0.49 2.0 1.0

MU22-005
58.60 59.20 0.60 0.46 1.6 0.7

MU22-005
231.65 232.25 0.60 0.52 2.6 1.3

MU22-005
394.80 395.30 0.50 0.25 25.9 6.5

MU22-005
462.00 462.60 0.60 0.30 6.1 1.8

MU22-005
476.05 476.50 0.45 0.32 1.9 0.6

MU22-013
190.00 190.50 0.50 0.19 2.4 2.4

MU22-013
251.00 251.50 0.50 0.21 3.8 0.8

MU22-013
549.60 550.10 0.50 0.09 8.9 0.8

MU22-013
580.00 581.80 1.80 0.62 1.5 0.9

MU22-013
585.20 587.60 2.40 1.20 3.4 3.4

MU22-014
56.50 57.00 0.50 0.25 2.3 0.6

MU22-014
145.60 146.00 0.40 0.26 2.8 0.7

MU22-014
149.00 150.00 1.00 0.50 1.1 1.1

MU22-014
151.00 151.40 0.40 0.20 3.0 0.6

MU22-014
181.90 182.30 0.40 0.26 6.0 1.5

MU22-014
199.00 200.00 1.00 0.50 1.5 1.5

MU22-015A
142.00 142.50 0.50 0.25 7.8 2.0

MU22-015A
322.00 322.50 0.50 0.43 4.2 1.8

MU22-015A
549.00 549.60 0.60 0.46 12.2 5.6

MU22-016
73.50 74.50 1.00 0.64 3.3 2.1

MU22-016
109.40 110.00 0.60 0.39 2.1 0.8

MU22-016
117.60 118.50 0.90 0.69 1.3 0.9

MU22-016
161.00 161.40 0.40 0.31 1.9 0.6

MU22-016
365.70 366.00 0.30 0.26 4.7 1.2

MU22-017
69.60 72.10 2.50 2.17 2.9 2.9

MU22-017
79.00 79.50 0.50 0.43 4.2 1.8

MU22-017
255.80 256.30 0.50 0.25 5.9 1.5

MU22-017
274.00 275.00 1.00 0.75 6.0 6.0

MU22-017
281.70 282.00 0.30 0.23 11.0 2.5

MU22-017
327.00 327.40 0.40 0.38 5.4 2.0

MU22-017
410.50 411.00 0.50 0.43 1.4 0.6

MU22-017
449.00 449.60 0.60 0.46 2.2 1.0

Notes:

  1. Where true widths are greater than 1m, grades are not diluted and are presented as the grade over the composite true width.
  2. Composites that are below 0.5 g/t Au when diluted to 1 m are not reported in this table.


Table 3.

Drill Hole Collar Details


Drill



Program

Drill Hole



ID

Easting

Northing

Elevation

Depth

Dip

Azimuth

Date



Complete

CZ – LZ Infill
MU22-001 763276 7213187 -281 598.90 -23.0 325.3 4/5/2022

CZ – LZ Infill
MU22-002 763271 7213231 -203 623.80 -26.6 312.9 17/1/2022

CZ – LZ Infill
MU22-003 763243 7213184 -184 610.20 -27.1 316.8 7/2/2022

CZ – LZ Infill
MU22-004 763242 7213184 -185 621.05 -33.1 310.2 28/2/2022

CZ – LZ Infill
MU22-005 763242 7213183 -184 530.40 -30.4 303.4 5/6/2022

CZ – LZ Infill
MU22-006 764152 7213204 -223 500.50 -35.3 330.2 5/4/2022

CZ – LZ Infill
MU22-007 764149 7213200 -222 491.80 -36.4 339.1 26/4/2022

North Zone
MU22-008 764149 7213200 -222 513.45 -35.2 330.2 4/5/2022

North Zone
MU22-009 764152 7213204 -222 501.05 -30.8 321.3 6/4/2022

North Zone
MU22-010 764152 7213204 -222 404.35 -30.4 316.3 5/2/2022

North Zone
MU22-011 764149 7213200 -222 498.05 -29.9 308.3 27/2/2022

North Zone
MU22-012 764149 7213201 -222 433.00 -22.2 299.3 16/3/2022

North Zone
MU22-013 763463 7213371 -319 600.35 -36.7 355.5 16/3/2022

North Zone
MU22-014 763463 7213370 -319 600.30 -39.2 344.7 24/2/2022

North Zone
MU22-015 763462 7213370 -319 174.50 -41.0 330.3 22/12/2021

North Zone
MU22-015A 763462 7213370 -319 603.30 -41.1 331.0 30/1/2022

North Zone
MU22-016 763462 7213370 -319 384.50 -34.5 320.6 6/4/2022

North Zone
MU22-017 763361 7213275 -301 600.40 -26.2 330.3 4/5/2022

North Zone
MU22-022 763276 7213187 -281 597.50 -26.0 329.3 14/5/2022

Notes:

  1. Coordinate System: SWEREF 99


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