Mandalay Resources Corporation Provides Exploration Update And Announces Early Success of the Brown’s Prospect Drilling Program at Costerfield

TORONTO, June 22, 2020 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to report on the initial encouraging results of its regional testing programs and high-grade resource extensions in both the Youle and Aurora ore bodies at its Costerfield operation in Victoria, Australia, and its Björkdal operation in Skellefteå, Sweden, respectively.

Exploration Highlights

Costerfield

  • Early success in regional drilling program with significant intercepts in first drill hole into Brown’s prospect:
    • 14.5 g/t gold, over a true width of 1.27 m and 23.5 g/t gold over a true width of 0.12 m in BWN001 (first hole in the testing program)
  • The high-grade Youle ore body extends to the north with substantial grades intercepted:
    • 21.7 g/t gold and 1.7% antimony over a true width of 1.23 m in BC099; and
    • 44.3 g/t gold and 26.3% antimony over a true width of 1.07 m in BC100
  • Commencement of second Costerfield deeps hole with results expected in August.

Björkdal

  • Drilling results show high-grade extension at depth in Aurora with additional extension potential to the east:
    • 9.7 g/t gold over a true width of 4.31 m in MU20-011; and
    • 2.5 g/t gold over a true width of 7.21 m in MU20-018
  • Northern drilling has intercepted three zones exhibiting high-grade intercepts:
    • 26.9 g/t gold over a true width of 0.61 m in MU20-001; and
    • 2.5 g/t gold over a true width of 2.09 m in MU20-002

Dominic Duffy, President and Chief Executive Officer of Mandalay, commented, “We are pleased to report continued exploration success at both of our sites. The most recent drilling results at Costerfield and Björkdal confirm the significant upside potential value of our operations. Despite the ongoing COVID-19 pandemic, we have been able to increase our drilling while protecting our staff and contractors with strict risk mitigation protocols.”

Mr. Duffy added, “At Costerfield, we are excited by the early success in our regional testing programs which have targeted parallel lines of historically mined gold reefs. The first hole drilled into the Brown’s prospect, which is 2.3 km east from our high-grade Youle mine, returned a highly significant intersection of high-grade gold, along with encouraging intercepts on parallel veins. We also encountered encouraging early intercepts within the True Blue line. This intercept strengthens our vision of a long term, high performing asset in this rich central Victorian field. These drilling programs are still in their infancy and Mandalay is committed to continuing and accelerating drilling where needed in order to understand their full potential.”

Mr. Duffy continued, “As we continue to extract excellent grades from the Youle ore body we have also had success in our near-mine drilling program extending strike to the north with characteristically high-grade mineralization intercepted along structure. We have also enjoyed the encouraging intercepts returned from our Aurora extension drilling program at Björkdal. Grades we are seeing at depth are comparable to the highest we have seen at Björkdal with strike extension drilling also showing high-grade results to the east.”

Mr. Duffy continued, “Whilst the Aurora deposit grows at Björkdal, we continue to drill to the north with aims to secure additional, parallel and high-grade veining. This program has continued to deliver towards this goal with three zones of veining intercepted at significant grades. The realization of stacked Aurora-like systems is of great importance to the mining operations at Björkdal and could allow a step change in high-grade ore extraction rates in the future.”

Mr. Duffy concluded, “Along with this exploration update, we have posted on our website a video prepared by Mr. Chris Davis, Vice President of Operational Geology and Exploration, explaining the updates for both sites. I invite you all to click here to view.”

Mandalay Resources Exploration Update June 2020: https://www.globenewswire.com/NewsRoom/AttachmentNg/528007cd-8893-40af-a148-fd3ba7ba7eaa

Costerfield Drilling Programs

Since our last update in January 2020, Mandalay has increased drilling rates on the Youle extension program and started the already successful regional resting programs. The anticipated second deep drill hole underneath the central Costerfield system has also commenced.

Youle Optimisation and Extension Drilling Results

Mandalay’s Youle development has continued with exceptional gold and antimony grades being realised. 12 active headings have advanced along the veining, with strike extents between 240 – 290 m achieved in line with geological interpretation and expected grades. Additionally, 63 optimisation and extension diamond drill holes, totalling 7,667 m of oriented diamond drill core, have increased confidence in Mandalay’s mining schedule and strike extension for the area. Further testing and bounding drilling is planned as optimised underground drill sites continue to become available with active underground development.

Recent production optimisation drilling has been focused on delineating the extents of the Youle system whilst navigating the locally complex system. The program has added significant value by adding detail to a comprehensive model on which sound scheduling and viability decisions are made. Major gold and antimony grades have been intercepted in these holes, including 61.7 g/t gold (“Au”) and 15.0% antimony (“Sb”) over a true width of 1.77 m in hole KD624 and 139 g/t Au and  51.8% Sb over a true width of 0.47 m in hole KD619 (Figure 1). Further highlighted results from the drilling program can be found in Table 1.

Figure 1. Longitudinal section of Youle illustrating the location of recent Youle extension and optimization intercepts in close proximity to current workings.
ttps://www.globenewswire.com/NewsRoom/AttachmentNg/e0fc1801-998a-4f9e-89dc-ffee87ee2f5d

Table 1. Production Optimization Drilling Highlights

Drill
Hole ID
Drill
Width
(m)
True
Width
Au Grade
(g/t)
Sb Grade
(%)
AuEq
(g/t)
AuEq (g/t) over
min. 1.8 m
mining width
KD597 0.46 0.21 44.5 5.4 51.7 6.0
KD599 4.63 4.40 2.5 2.7 6.1 6.1
KD608 0.34 0.30 61.5 7.6 71.6 11.8
KD609 1.21 1.11 11.7 3.9 16.9 10.5
KD615 0.31 0.22 54.2 44.0 112.8 13.5
KD619 0.55 0.47 139.0 51.8 208.0 53.9
KD622A 1.4 1.07 24.7 3.5 29.3 17.5
KD623 2.5 1.92 20.7 17.6 44.1 44.1
KD624 2.31 1.77 61.7 15.0 81.7 80.3
Including 0.26 0.20 280.0 37.9 330.5 36.6
KD625 0.57 0.42 173.7 10.3 187.4 44.1
KD625 1.59 1.44 28.2 16.2 49.8 39.9
KD639 1.4 1.06 30.7 8.0 41.3 24.3
KD640 0.27 0.26 104.0 17.3 127.0 18.0
KD641 0.48 0.31 44.4 14.2 63.3 11.1
KD673 1.2 0.85 1.2 13.3 19.0 8.9
KD675 0.2 0.14 80.1 46.5 142.0 11.4
KD676 0.6 0.30 211.0 34.6 257.1 42.8
KD676 0.73 0.42 39.1 8.2 50.0 11.6
KD677 0.26 0.24 31.5 30.8 72.5 9.7
KD684 1.53 1.10 6.1 4.8 12.5 7.6
KD685 1.1 0.46 46.6 45.8 107.5 27.8
KD687 1.35 1.11 39.6 19.2 65.2 40.1
Including 0.1 0.08 162.0 51.1 230.0 10.5
KD688 2.56 1.96 4.7 4.5 10.7 10.7
KD689 0.9 0.09 62.8 41.3 117.8 6.2
KD699 0.14 0.11 58.4 23.5 89.7 5.3
KD702 1.37 1.02 4.1 6.0 12.1 6.8

Notes
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery  
Sb price per 10kg x Sb processing recovery   

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%.
2. Where the true width of the composite is greater than 1.8m the diluted AuEq g/t is not diluted.
3. Intercepts listed in the above table are highlights. The full table can be found in Appendix A.

With additional capital development opening up underground drill sites, exploration drilling at Youle has continued to build on the mineralized extents of the ore-body. Youle exploration highlights identified significant mineralization to the north in BC099 (21.7 g/t Au and 1.7% Sb over a true width of 1.23 m including 0.1 m true width at 263 g/t Au and 15% Sb), as well as BC100 (44.3 g/t Au and 26.6% Sb over a true width of 1.07 m). Further significant southern zones were defined down-dip in BC083, which intercepted 49.8 g/t Au and 27.8% Sb at a true width of 0.37 m (Table 2). These results have extended the mine plan in the lower southern portion of the mine and to the north by upwards of 70 m.

Figure 2. Longitudinal Section and Plan Section of Youle illustrating the location of recent exploration intercepts with detail against the Youle Extension intercepts.
https://www.globenewswire.com/NewsRoom/AttachmentNg/caeed020-1a34-4b6e-9128-083bb1a2a11b

Table 2. Youle Extension Highlights

Drill Hole
ID
Drill
Width
(m)
True Width
(m)
Au Grade
(g/t)
Sb Grade
(%)
AuEq
(g/t)
AuEq (g/t) over
min. 1.8m mining
width
BC083 0.51 0.37 49.8 27.8 86.8 18.0
BC084W1 0.65 0.51 21.6 0.3 22.0 6.3
BC099 1.74 1.23 21.7 1.7 24.0 16.4
Including 0.14 0.10 263.0 15.0 283.0 15.6
BC100 1.18 1.07 44.3 26.6 79.7 47.4

Note
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%.
2.     Intercepts listed in the above table are highlights. The full table can be found in Appendix A.

Costerfield Regional Testing

A series of short diamond testing programs have been designed and executed with the intent of testing potentials around Costerfield that will add significant growth to the life of the operation.

Early success at the Brown’s prospect includes encouraging results in True Blue and Robinson’s Prospects.

Figure 3. Map of the regional testing programs
https://www.globenewswire.com/NewsRoom/AttachmentNg/d9ac7212-7da2-429c-ac37-d7a3b884001a

Brown’s Prospect

Following a review of historic literature and comprehensive surface mapping of the area, Mandalay began a diamond drilling program targeting both the Brown’s and Robinson’s prospects in May 2020 (Figure 3). The Brown’s drilling program is still underway with only two out of five holes completed (total of 623 m has been drilled of the 1,200 m program). The first drill hole intercepted 14.51 g/t Au, over 1.27 m (true width) in diamond drill hole BWN001. Both BWN001 & BWN002 (Figures 4 & 5) were drilled below the historic Felix Brown mine.

Assays for two (BWN001 & BWN002) drill holes have been returned. Below are the significant assays along with their intervals. The main Brown’s reef intercept in BWN001 consists of a multi-generation breccia, containing free gold, and a small amount of pyrite and trace sphalerite. Two main lines of mineralization have been interpreted at Brown’s, which are hosted by a large north-south orientated anticline, which is broadly continuous for several hundred meters, situated east of the well-known Costerfield anticline.

Figure 4: Plan Section illustrating drill hole trace for BWN001 & BWN002 in relation to historic Felix Brown mine and mapped surface reefs in the Brown’s Program.
https://www.globenewswire.com/NewsRoom/AttachmentNg/ed986c23-675d-4ec0-91e6-fbb1456c2cd7

Table 3. Significant intercepts of the Browns Testing Drilling Program

Drill Hole
ID
Drill
Width
(m)
True Width
(m)
Au Grade
(g/t)
Sb Grade
(%)
AuEq
(g/t)
AuEq (g/t) over
min. 1.8
m mining
width
BWN001 2.21 1.27 14.5 0.0 14.5 10.2
BWN001 1.42 0.91 5.4 1.6 7.6 3.9
Including 0.19 0.12 23.2 0.2 23.5 1.6
BWN002 1.49 0.88 3.3 0.1 3.4 1.7
BWN002 1.96 1.36 0.98 0.62 1.8 1.4

Note
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%.
2.     Intercepts listed in the above table are highlights. The full table can be found in Appendix B.

The intercepts gained in BWN001 & BWN002, provide the first step in proving the down-dip continuity of the extensive surface mineralization and the reef worked in the Felix Brown mine. Similar quartz-pyrite-gold breccias similarly occur within the Cuffley and Brunswick veins in the Augusta mine which may have positive implications for the nature of the mineralized vein structures at depth.

Figure 5: Cross Section illustrating interpretation from the first 2 holes drilled so far in the Brown’s Program.
https://www.globenewswire.com/NewsRoom/AttachmentNg/266aeb4b-57f5-420f-ba26-eaebd1480925

Robinson’s Prospect

To the south of the Brown Prospect, three holes totalling 636 m have been drilled out of a five-hole, (900 m) program into the Robinson prospect (Figures 6 & 7). Assays for the most prospective samples have been returned with the most significant intercept recovered on the historically named Cochrane’s reef (RB002, 2.7 g/t Au and 0.4% Sb over a true width of 1.42 m).

Diamond drilling thus far, has confirmed that the geology of Robinson’s and Cochrane’s reefs is very similar to Brown’s prospect. The reefs are situated in the hinge zone of a large anticline, folding silty sandstone-dominated Wapentake Formation turbidites. In drill core, the mineralized structures are found to be quartz-cemented breccias with dispersed pyrite and silica flooding of the included wallrock clasts. In RB001, the intersection of Robinson’s reef was not found to be significantly mineralized and in light of subsequent intercepts of the nearby Cochranes reef appears to be significantly affected by late faulting, causing a blank in mineralization. Where the mineralized structures have been intercepted in the weathered zone (eg, Cochrane’s Reef in RB002), the vein carries a visibly yellowish hue characteristic of decayed sulfides and synonymous with gold mineralization within the district.

Figure 6: Plan Section illustrating drill hole trace for RB001, RB002 and RB003 in relation to historic Robinson’s shaft  and  Robinsons and Cochranes’s surface reefs.
https://www.globenewswire.com/NewsRoom/AttachmentNg/69accc9e-61dc-4d70-a410-7fbc5dfd413c

Table 4. Significant intercepts of the Robinson Testing Drilling Program.

Drill Hole ID Drill Width (m) True Width (m) Au Grade (g/t) Sb Grade (%) AuEq (g/t) AuEq (g/t) over min. 1.8 m mining width
RB002 2.92 1.42 2.7 0.4 3.3 2.6
RB003 2.22 1.70 1.4 0.1 1.4 1.4

Note
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%.
2.     Intercepts listed in the above table are highlights. The full table can be found in Appendix B.

Figure 7. Cross Section illustrating interpretation from the first 2 holes drilled so far in the Robinson’s Program.
https://www.globenewswire.com/NewsRoom/AttachmentNg/25d4ee84-37d9-4895-a54b-bbc52cb61d31

The confirmation that Brown’s and Robinson’s prospects share a common geological setting, and the interpretation of both prospects lying on the same large-scale structure along strike opens up the possibility of additional undiscovered mineralization under the wide alluvial cover of Sandy Creek which runs between the two areas.

True Blue Testing

The first phase of Costerfield’s True Blue Regional testing commenced mid-March, with the first two (623 m) of five holes completed. Lying 2.2 km west of the Youle and Brunswick mine workings (Figure 3) the True Blue Prospect is targeting several lines of the historic True Blue line of workings.

Mandalay drilled a single hole (TB01) beneath the northern end of the old mine in 2010 and intercepted low-tenor quartz-stibnite veining in heavily faulted ground (Figure 8). Auger-sampled bedrock geochemistry in the area undertaken in 2014, also revealed a large antimony-gold anomaly extending under alluvial cover to the south of the old workings.

Following a review of historic literature, previous diamond and auger drilling programs and intensive surface mapping; two major fault systems have been identified – the Malbec and Merlot faults. The first phase of drilling is testing the down dip extension of the True Blue shaft and the previously identified geochemical anomaly. The first drill hole, TB002, successfully tested the down dip extension of the Malbec fault, below the True blue mine and returned 5.8 g/t Au, and 14.2% Sb over 0.13 m (true width). TB003 tested the down dip continuation of the Merlot fault, also successfully identified mineralization of 2.1 g/t Au over a true width of 0.3 m and 1.5 g/t Au over 1.5 m (true width) in the Merlot splay fault (Figures 8 & 9).

Figure 8: Plan Section illustrating drill hole trace for TB002 & TB003 in relation to historic Merlot and Malbec faults.
https://www.globenewswire.com/NewsRoom/AttachmentNg/423d39c3-6598-40ce-a9e3-635bddca49c1

Table 5. Significant intercepts of the True Blue Testing Drilling Program

Drill Hole ID Drill Width (m) True Width (m) Au Grade (g/t) Sb Grade (%) AuEq (g/t) AuEq (g/t) over min. 1.8 m mining width
TB002 0.14 0.13 5.8 14.2 24.7 1.8
TB003 1.65 1.52 1.5 0.0 1.5 1.3

Note
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%

2.     Intercepts listed in the above table are highlights. The full table can be found in Appendix B.

Figure 9. Cross Section illustrating interpretation so far in the True Blue Program.
https://www.globenewswire.com/NewsRoom/AttachmentNg/979b5532-1d9a-4a0d-9ea3-d9125571d9b7

Costerfield Deeps Program

In late March 2020, the second hole of the Costerfield Deeps Program; CD002 commenced drilling. The aim of this hole is to investigate a highly prospective block located at depth below the Augusta-Cuffley portion of Costerfield’s mine. This mineralized zone was first identified in the 2015 – 2016 sub-King Cobra Fault drilling campaign, during which high grade nuggety gold-bearing veins were intercepted in the tail portions of the then deepest holes in the district. CD002 was advanced to 1,043 m by early June, and is not yet entered the anticipated target zone. It is expected that this diamond drill hole and the wedge daughter hole will be completed in August 2020.

Björkdal Drilling Programs

Since our last update in January 2020, Mandalay has continued to focus on the lateral and vertical extensions of the Aurora zone, as well as the further investigation into the progression of the mineralized package to the North of current operations. Furthermore, an additional extensional program was completed in January 2020, targeted at the down dip extension of skarn mineralization observed in the open pit.

West Pit Skarn Extension

During the last quarter of 2019 and the first quarter of 2020, Mandalay completed a surface drilling campaign, totalling 10 diamond drill holes for 1,544 m. The aim of this program was to investigate the down-dip continuation of mineralized skarnification observed in the open-pit. The drilling successfully demonstrated that the skarnification continues down-dip from the pit and above the current underground infrastructure. The resultant grade within the skarnification was relatively low, however, high-grade veining (43 g/t Au over 1.02 m) was intercepted below the marble horizon. Further follow up work will be required in this area.

Table 6. Significant intercepts of the West Pit Skarn Extension Program

Hole id Drilled True Au
Width (m) Width (m) Grade (g/t)
MP9-002 1.2 1.02 43.0
MP9-002 0.6 0.49 17.2
MP9-003 0.85 0.71 25.8

Note: intercepts listed in the above table are highlights. The full table can be found in Appendix C.

Figure 12. Cross section of Björkdal Mine Area Showing the Location of the Northern Extension Intercepts.
https://www.globenewswire.com/NewsRoom/AttachmentNg/41c3320a-3a74-4d7b-8f69-a9d2b83e1de1

Figure 13. Cross section of Björkdal Mine Area Showing the Location of the West pit Skarn Extension intercepts.
https://www.globenewswire.com/NewsRoom/AttachmentNg/3ec8a109-a6e5-4c03-995d-312ff2e392c5

Aurora Extension and Delineation

Since Mandalay’s last exploration update, our understanding of the Aurora system has been augmented by 13 extensional drill holes (3,877 m of diamond core) and 24 Development Optimisation Drill (DOD) holes (further 4,230 m of diamond core). Underground drilling to the east and at depth has excitingly intercepted high grades including 9.7g/t Au over 4.3 m in MU20-011 and 14.5 g/t Au over 1.07 m in MU20-009A. These holes have confirmed the existence of a structurally controlled, high-grade zone plunging towards the northeast. The up-dip extension of the zone revealed mixed results with extension to the veining intercepted at shallower depths with lower grades. An exception is ME20-005, which returned grades along Aurora at 1.55 g/t Au gold over 4.3 m to the upper east. Extension drilling towards the east is currently being planned in addition to the four remaining holes within the extension program.

Table 7. Significant intercepts of the Aurora Extension Drilling Program

Hole id Drilled
Width (m)
True
Width (m)
Au
Grade (g/t)
MU20-009A 11.05 3.35 1.9
MU20-011 7.25 4.31 9.7
MU20-018 8.85 7.21 2.5

Note: intercepts listed in the above table are highlights. The full table can be found in Appendix D.

Figure 14. Björkdal Mine Scale Overview Map Showing the Location of the Aurora Zone and the Northern target test drilling in relation to mine development. Below Cross section are denoted with A-A’ (Aurora Longitudinal Section) and B-B’ (Northern Extension Cross Section).
https://www.globenewswire.com/NewsRoom/AttachmentNg/2a550d63-3c13-4ba3-b106-2ee06ec2b2bd

Figure 15. Longitudinal Section of the Aurora Zone, Looking North, Illustrating Location of Recent Intercepts.
https://www.globenewswire.com/NewsRoom/AttachmentNg/7f030662-b320-4178-b894-6944b5cc3af0

Northern Extension

The Björkdal gold deposit is a lode-style, sheeted vein deposit hosted within the upper portions of the Skellefte Group metavolcanics/volcaniclastics. The veining is locally structurally complex, with many cross-veining features observed and thin mineralized quartz veinlets in the wall rocks proximal to the main quartz veins. The main portion of gold mineralization historically lays below and within the Marble horizon. The Aurora system and surrounding veins uncharacteristically exists above the marble extending up dip for hundreds of meters and, as previously stated, is open to the east and down plunge.

The northern extension drilling is continuing to intercept high grade within Aurora style mineralization along multiple horizons, again sitting above the marble, to the north. Underground drilling in this area has been carried out intermittently since 2016 however, with the establishment of Aurora, this northern extension drilling has become a consistent and highly encouraging program.

A total of three diamond drill holes have been drilled into the area during 2020 to date, totalling 1,768 m. Three additional 600 m holes are planned to be drilled to complete this program. To date the drill spacing in the region is >70 m, however, a number of auriferous veins can now be traced over an approximate 200 m strike length. Although the program is still relatively in its infancy 3 zones of mineralization are becoming apparent with grades, such as 26.9 g/t Au over 0.61 m in MU20-001.

Table 8. Significant intercepts of the Northern Extension Drilling Program.

Hole id Drilled
Width (m)
True
Width (m)
Au
Grade (g/t)
Au (g/t) over min. 3 m
mining width
MU20-001 0.85 0.61 26.9 5.5
MU20-002 2.45 2.09 2.5 1.8

Note: intercepts listed in the above table are highlights. The full table can be found in Appendix E.

Figure 16. Cross section of Björkdal Mine Area Showing the Location of the Northern Extension Intercepts.
https://www.globenewswire.com/NewsRoom/AttachmentNg/4ca7aead-4604-4baf-88d5-d51786c7bc8d

Drilling and Assaying

At Costerfield, diamond drill core was logged and sampled by Costerfield geologists. All samples were sent to OnSite Laboratory Services 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. For further details please refer to the March 30, 2020 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. For further details please refer to the March 30, 2020 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 Davis, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Charted Professional of the Australian Institute of Mining and Metallurgy (MAusIMM CP(Geo)), 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
Manager, Analytics and 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 growing production at its gold and antimony operation in Australia, and gold production from its operation in Sweden to generate near term cash flow.

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 30, 2020, 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 A. Costerfield – Youle Extension and Production Optimisation Drilling Result

Hole ID Hole Completion Date Total Hole Depth Intercept Easting (Mine Grid) Intercept Northing (Mine Grid) Intercept Elevation (Mine Grid) Drill Width (m) True Width Au Grade (g/t) Sb Grade (%) AuEq. (g/t) AuEq (g/t) over min. 1.8 m mining width Sampled Structure
BC081 14/01/2020 130.6 15345 6809 899 0.16 0.15 14.1 11.6 29.5 2.5 Youle
BC082 16/01/2020 175.5 15273 6794 833 0.37 0.27 7.5 16.3 29.2 4.3 Youle
BC083 23/02/2020 171.0 15270 6828 807 0.51 0.37 49.8 27.8 86.8 18.0 Youle
BC084W1 23/01/2020 164.9 15267 6879 784 0.65 0.51 21.6 0.3 22.0 6.3 Youle
BC085 23/01/2020 539.3 15232 6718 831 0.30 0.22 0.4 0.0 0.4 0.1 Youle
BC085 23/01/2020 539.3 15243 6722 807 0.27 0.20 3.8 1.3 5.6 0.6 Splay Vein
BC086 17/03/2020 683.9 15195 6945 693 0.20 0.19 0.0 0.0 0.0 0.0 Youle
BC090 30/01/2020 152.6 15271 6708 874 0.20 0.13 0.1 0.0 0.1 0.0 Youle
BC091 3/02/2020 185.5 15262 6672 886 0.43 0.32 0.0 0.0 0.0 0.0 Youle
BC092 4/02/2020 92.5 15334 6749 907 0.26 0.25 0.7 0.3 1.2 0.2 Youle
BC095 12/03/2020 693.7 15227 7065 638 0.43 0.31 0.2 0.0 0.2 0.0 Youle
BC098 27/04/2020 279.5 15421 7104 923 0.15 0.11 19.2 29.4 58.4 3.5 Youle
BC098 27/04/2020 279.5 15427 7107 925 0.15 0.12 0.7 6.1 8.8 0.6 Splay Vein
BC098 27/04/2020 279.5 15436 7112 927 0.16 0.12 28.4 15.9 49.6 3.4 Splay Vein
BC099 21/04/2020 314.5 15420 7139 898 1.74 1.23 21.7 1.7 24.0 16.4 Youle
Including           0.14 0.10 263.0 15.0 283.0 15.6 Youle
BC100 15/04/2020 306.4 15406 7111 879 1.18 1.07 44.3 26.6 79.7 47.4 Youle
BC100 15/04/2020 306.4 15411 7114 879 0.16 0.15 5.6 39.3 57.9 4.8 Splay Vein
BC102 28/04/2020 211.6 15392 7136 866 0.10 0.08 24.5 1.0 25.8 1.2 Splay Vein
BC102 28/04/2020 211.6 15401 7144 865 1.94 0.76 0.6 1.9 3.2 1.3 Youle
KD597 5/12/2019 70.0 15383 6855 919 0.46 0.21 44.5 5.4 51.7 6.0 Youle
KD599 12/12/2019 80.0 15400 6880 937 4.63 4.40 2.5 2.7 6.1 6.1 Youle + Splays
Including           0.14 0.13 20.6 21.1 48.7 3.6 Youle
KD604 10/12/2019 75.1 15417 6958 946 0.80 0.11 5.7 1.1 7.1 0.4 Youle
KD604 10/12/2019 75.1 15434 6953 954 0.74 0.46 14.0 4.4 19.9 5.0 Splay Vein
KD605 13/12/2019 50.7 15421 6974 937 0.11 0.11 6.8 9.0 18.8 1.1 Splay Vein
KD606 9/01/2020 69.1 15427 7002 934 0.13 0.11 2.0 1.4 3.8 0.2 Splay Vein
KD608 7/01/2020 61.7 15388 6943 890 0.34 0.30 61.5 7.6 71.6 11.8 Youle
KD609 18/12/2019 55.1 15406 6952 902 1.21 1.11 11.7 3.9 16.9 10.5 Youle
KD610 21/12/2019 50.7 15395 6962 889 0.15 0.15 46.1 6.7 55.0 4.6 Youle
KD612 14/01/2020 66.0 15410 6998 905 0.19 0.15 22.9 29.1 61.7 5.0 Youle
KD615 16/12/2019 74.1 15413 7004 920 0.31 0.22 54.2 44.0 112.8 13.5 Youle
KD615 16/12/2019 74.1 15426 7015 918 0.16 0.09 0.5 7.6 10.7 0.5 Splay Vein
KD618 17/12/2019 80.0 15405 6887 947 1.28 1.07 5.3 2.3 8.3 5.0 Youle + Splays
Including           0.14 0.12 30.8 9.7 43.7 2.8 Youle
KD619 18/12/2019 72.0 15405 6914 918 0.55 0.47 139.0 51.8 208.0 53.9 Youle
KD620 19/12/2019 51.7 15377 6882 903 0.32 0.22 16.7 10.6 30.8 3.7 Youle
KD621 6/01/2020 60.0 15371 6862 905 0.08 0.07 68.3 31.2 109.8 4.4 Youle
KD622A 31/01/2020 62.2 15393 6896 910 1.40 1.07 24.7 3.5 29.3 17.5 Youle
KD623 16/01/2020 64.0 15414 6938 945 2.50 1.92 20.7 17.6 44.1 44.1 Youle
KD624 30/01/2020 78.2 15416 6914 950 2.31 1.77 61.7 15.0 81.7 80.3 Youle
Including           0.26 0.20 280.0 37.9 330.5 36.6 Youle
KD625 7/02/2020 64.4 15409 6897 948 0.57 0.42 173.7 10.3 187.4 44.1 Splay Vein
KD625 7/02/2020 64.4 15411 6897 949 1.59 1.44 28.2 16.2 49.8 39.9 Youle
KD626 4/02/2020 32.2 15387 6793 931 0.14 0.08 0.0 0.5 0.7 0.0 Youle
KD627A 5/02/2020 35.4 15373 6793 928 0.16 0.12 0.2 1.0 1.6 0.1 Youle
KD628 11/02/2020 55.2 15379 6733 938 0.39 0.32 0.1 0.2 0.4 0.1 Youle
KD629 12/02/2020 49.5 15372 6736 934 0.51 0.49 0.2 0.0 0.2 0.1 Youle
KD632 13/02/2020 58.2 15380 6752 937 0.23 0.18 0.6 0.0 0.6 0.1 Youle
KD632 13/02/2020 58.2 15383 6752 935 0.12 0.08 0.6 9.1 12.7 0.6 Splay Vein
KD633 14/02/2020 50.0 15368 6751 929 0.38 0.36 0.3 0.1 0.4 0.1 Youle
KD639 19/02/2020 57.5 15386 6923 898 1.40 1.06 30.7 8.0 41.3 24.3 Youle
KD640 21/02/2020 44.7 15382 6951 880 0.27 0.26 104.0 17.3 127.0 18.0 Youle
KD641 20/02/2020 59.7 15372 6914 888 0.48 0.31 44.4 14.2 63.3 11.1 Youle
KD673 26/02/2020 102.0 15400 7043 915 1.20 0.85 1.2 13.3 19.0 8.9 Youle
KD674A 17/03/2020 127.1 15415 7086 901 0.32 0.16 1.6 35.5 48.9 4.3 Youle
KD675 23/03/2020 130.0 15405 7082 887 0.20 0.14 80.1 46.5 142.0 11.4 Youle
KD676 26/03/2020 104.1 15399 7049 865 0.60 0.30 211.0 34.6 257.1 42.8 Youle
KD676 26/03/2020 104.1 15405 7053 858 0.73 0.42 39.1 8.2 50.0 11.6 Splay Vein
KD677 26/02/2020 35.6 15376 6766 934 0.26 0.24 31.5 30.8 72.5 9.7 Youle
KD678 27/02/2020 39.0 15391 6771 943 0.08 0.07 22.3 14.1 41.1 1.7 Youle
KD679 2/03/2020 38.9 15377 6781 933 0.13 0.12 32.2 17.7 55.8 3.7 Youle
KD681 28/02/2020 115.4 15438 7053 925 0.11 0.08 2.9 17.7 26.5 1.2 Youle
KD682 3/03/2020 127.9 15419 7057 927 0.22 0.19 8.4 16.8 30.7 3.3 Splay Vein
KD682 3/03/2020 127.9 15446 7075 930 0.15 0.12 35.7 10.8 50.1 3.3 Youle
KD683 10/03/2020 129.0 15417 7060 918 0.17 0.07 2.7 11.8 18.4 0.8 Splay Vein
KD683 10/03/2020 129.0 15426 7066 918 0.13 0.08 3.6 16.4 25.5 1.2 Youle
KD684 30/03/2020 145.5 15421 7079 920 1.53 1.10 6.1 4.8 12.5 7.6 Youle
KD685 31/03/2020 24.0 15419 6975 942 1.10 0.46 46.6 45.8 107.5 27.8 Youle
KD686 31/03/2020 26.0 15430 6975 951 2.21 0.27 0.0 0.3 0.5 0.1 Youle
KD687 14/04/2020 100.2 15426 6984 945 1.35 1.11 39.6 19.2 65.2 40.1 Youle
Including           0.10 0.08 162.0 51.1 230.0 10.5 Youle
KD687 14/04/2020 100.2 15417 6987 942 0.15 0.11 15.1 32.8 58.8 3.6 Splay Vein
KD687 14/04/2020 100.2 15432 6981 947 0.57 0.15 10.4 25.5 44.4 3.6 Splay Vein
KD688 1/04/2020 39.2 15420 6811 967 1.61 1.23 4.7 1.3 6.4 4.4 Splay Vein
KD688 1/04/2020 39.2 15415 6815 964 2.56 1.96 4.7 4.5 10.7 10.7 Youle + Splays
KD689 2/04/2020 27.3 15399 6825 953 0.90 0.09 62.8 41.3 117.8 6.2 Youle
KD695 10/04/2020 37.1 15366 6771 926 0.42 0.23 0.0 0.0 0.0 0.0 Youle
KD696 20/04/2020 110.1 15440 7040 947 1.31 1.10 3.7 2.8 7.5 4.6 Youle
KD696 20/04/2020 110.1 15447 7042 949 0.63 0.22 5.1 4.6 11.2 1.3 Splay Vein
KD697 16/04/2020 100.6 15431 7016 939 0.15 0.12 1.2 1.2 2.8 0.2 Youle
KD698 21/04/2020 114.6 15416 7005 948 0.30 0.25 1.9 6.1 10.0 1.4 Youle
KD699 14/05/2020 121.1 15414 7092 903 0.14 0.11 58.4 23.5 89.7 5.3 Youle
KD702 19/05/2020 144.0 15417 7098 910 1.37 1.02 4.1 6.0 12.1 6.8 Youle

Notes
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%

2.     Where the true width of the composite is greater than 1.8m the diluted AuEq g/t is not diluted.

Appendix B. Costerfield – Regional Drilling Results

Hole ID Hole Completion Date Total Hole Depth Intercept Easting (Mine Grid) Intercept Northing (Mine Grid) Intercept Elevation (Mine Grid) Drill Width (m) True Width Au Grade (g/t) Sb Grade (%) AuEq. (g/t) AuEq (g/t) over min. 1.8 m mining width Sampled Structure if Known
BWN001 21/05/2020 323.6 17634 6267 1126 2.21 1.27 14.5 0.0 14.5 10.3 Felix Lode
BWN001 21/05/2020 323.6 17597 6267 1094 0.07 0.07 2.6 0.1 2.6 0.1  
BWN001 21/05/2020 323.6 17587 6267 1086 0.40 0.37 1.8 0.2 2.1 0.4  
BWN001 21/05/2020 323.6 17586 6267 1085 0.72 0.00 0.6 0.1 0.7 0.0  
BWN001 21/05/2020 323.6 17579 6266 1079 0.64 0.37 0.6 0.2 0.9 0.2  
BWN001 21/05/2020 323.6 17578 6266 1079 0.13 0.07 0.7 0.6 1.5 0.1  
BWN001 21/05/2020 323.6 17576 6266 1076 1.42 0.91 5.4 1.6 7.6 3.8 Western Lode
Including           0.19 0.12 23.2 0.2 23.5 1.6 Western Lode
BWN002 4/06/2020 300.0 17581 6271 1132 1.49 0.88 3.3 0.1 3.4 1.7 Western Lode
Including           0.18 0.11 24.4 0.0 24.4 1.5 Western Lode
BWN002 4/06/2020 300.0 17588 6271 1126 2.23 1.15 0.7 0.4 1.2 0.8  
BWN002 4/06/2020 300.0 17626 6271 1089 1.96 1.36 1.0 0.6 1.8 1.4 Felix Lode
RB001 22/04/2020 244.7 17405 4907 1113 2.96 2.09 0.5 0.0 0.5 0.5 Cochrane Lode
RB002 1/05/2020 241.6 17397 4942 1151 2.92 1.42 2.7 0.4 3.3 2.6 Cochrane Lode
RB003 8/05/2020 149.9 17381 5047 1173 2.22 1.70 1.4 0.1 1.5 1.4 Cochrane Lode
RB003 8/05/2020 149.9 17327 5044 1135 0.29 0.26 0.0 0.0 0.1 0.0 Robinson Lode
TB002 30/03/2020 229.1 13251 7204 1134 0.14 0.13 5.8 14.2 24.7 1.8 Malbec Fault
TB003 15/04/2020 242.4 13615 6579 1119 0.34 0.21 1.0 0.0 1.0 0.1  
TB003 15/04/2020 242.4 13601 6579 1109 1.65 1.52 1.5 0.0 1.5 1.2 Merlot Splay
TB003 15/04/2020 242.4 13550 6580 1070 0.33 0.30 2.1 0.0 2.1 0.4  
TB003 15/04/2020 242.4 13549 6580 1070 0.41 0.35 0.9 0.0 0.9 0.2  

Notes
1.     The AuEq (gold equivalent) grade is calculated using the following formula:

AuEq g per t = Au g per t + Sb% x  Au price per g x Au processing recovery
Sb price per 10kg x Sb processing recovery

Figures used: Au $/oz = 1478, Sb $/t = 5931 Au Recovery = 89.3% and Sb Recovery = 95.3%

2.     Where the true width of the composite is greater than 1.8m the diluted AuEq g/t is not diluted.

Appendix C. Björkdal – West Pit Skarn Intercepts  

Hole id Hole
Completion
Date
Intercept
Northing
(Mine Grid)
Intercept
Easting
(Mine Grid)
Intercept
Elevation
(Mine Grid)
From
(m)
To
(m)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Au (g/t)
over min. 3 m
mining width
MP9-001 8/10/2019 1056 1212 -140 75.7 76.2 0.45 0.36 1.3 0.2
MP9-002 12/10/2019 1026 1241 -183 123.8 124.5 0.65 0.54 1.2 0.2
MP9-002   1025 1241 -184 125.0 126.2 1.20 1.02 43.0 14.6
MP9-002   1020 1241 -192 134.3 134.9 0.60 0.49 17.2 2.8
MP9-003 16/10/2019 1075 1257 -150 75.1 75.6 0.50 0.41 1.1 0.2
MP9-003   1062 1267 -190 118.0 118.9 0.85 0.71 25.8 6.1
MP9-003   1059 1270 -200 128.6 129.6 1.00 0.84 0.9 0.3
MP9-004 22/10/2019 1004 1120 -135 61.0 61.4 0.35 0.28 1.4 0.1
MP9-004   984 1121 -171 102.0 102.5 0.50 0.41 0.9 0.1
MP9-005 30/11/2019 1111 1324 -172 101.2 101.9 0.70 0.58 2.2 0.4
MP9-005   1106 1329 -183 114.5 114.6 0.05 0.01 1.6 0.0
MP9-005   1106 1329 -184 114.7 115.7 1.05 0.89 7.8 2.3
MP9-006 6/12/2019 1077 1220 -197 131.7 132.0 0.35 0.28 1.2 0.1
MP9-006   1076 1219 -199 133.7 134.7 0.92 0.77 1.2 0.3
MP9-007 10/01/2020 1136 1157 -166 87.8 88.1 0.35 0.28 12.6 1.2
MP9-007   1123 1150 -191 116.6 117.6 1.00 0.84 8.6 2.4
MP9-007   1112 1144 -212 141.5 141.9 0.45 0.36 2.8 0.3
MP9-007   1105 1141 -226 157.3 157.8 0.50 0.41 1.5 0.2
MP9-008 7/01/2020 1119 1199 -208 132.1 132.8 0.65 0.54 2.4 0.4
MP9-009 17/12/2019 1123 1231 -168 107.0 107.4 0.40 0.32 1.0 0.1
MP9-009   1103 1250 -199 148.0 149.0 1.00 0.84 2.0 0.5
MP9-009   1101 1252 -201 151.7 152.0 0.35 0.28 2.9 0.3
MP9-015 11/12/2019 1142 1233 -90 6.4 7.0 0.65 0.54 1.3 0.2
MP9-015   1130 1232 -102 23.0 23.5 0.50 0.41 1.8 0.2
MP9-015   1043 1227 -191 147.6 148.2 0.60 0.49 4.2 0.7

Appendix D. Björkdal – Aurora Intercepts  

Hole id Hole
Completion
Date
Intercept
Northing
(Mine Grid)
Intercept
Easting
(Mine Grid)
Intercept
Elevation
(Mine Grid)
From
(m)
To
(m)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Au (g/t)
over min. 3 m
mining width
DOD2019-050 12/09/2019 1752 1109 -421 111.0 114.0 3.00 2.75 0.32 0.30
DOD2019-048 29/09/2019 1724 1102 -380 95.8 99.1 3.30 3.04 3.05 3.05
DOD2019-049 20/09/2019 1739 1107 -400 100.9 104.4 3.50 3.31 0.16 0.16
DOD2019-051 17/09/2019 1738 1125 -387 99.8 103.0 3.20 3.17 0.29 0.29
DOD2019-068 23/11/2019 1718 1269 -321 189.6 194.9 5.30 5.01 0.68 0.68
DOD2019-069 13/11/2019 1726 1324 -316 185.6 190.8 5.20 5.19 1.9 1.9
DOD2019-070 8/11/2019 1729 1348 -316 187.4 193.3 5.85 5.83 2.3 2.3
DOD2019-089 16/10/2019 1745 1045 -438 134.3 138.3 4.00 2.66 0.2 0.2
DOD2019-090 23/09/2019 1743 1079 -420 114.7 118.0 3.30 2.71 0.7 0.6
DOD2019-091 14/09/2019 1760 1081 -453 132.0 135.0 3.00 2.24 0.5 0.4
DOD2019-109 3/10/2019 1760 1122 -423 116.0 119.3 3.25 3.03 0.0 0.0
DOD2019-110 9/10/2019 1757 1097 -439 121.3 124.8 3.55 2.90 0.2 0.2
DOD2019-136 9/12/2019 1831 1437 -483 98.8 105.5 6.75 6.09 0.6 0.6
DOD2019-137 29/11/2019 1812 1467 -463 94.0 101.0 7.00 5.73 0.6 0.6
DOD2019-138 3/12/2019 1812 1484 -462 105.6 110.1 4.55 3.38 1.1 1.1
DOD2019-139 6/12/2019 1832 1456 -493 105.4 113.7 8.35 6.76 0.4 0.4
DOD2019-140 12/12/2019 1835 1408 -505 104.6 108.2 3.60 3.03 1.3 1.3
DOD2019-151 28/12/2019 1847 1434 -511 119.0 123.4 4.40 3.56 1.1 1.1
DOD2019-152 20/01/2020 1838 1454 -512 115.7 119.9 4.20 3.11 1.3 1.3
DOD2019-153 24/01/2020 1838 1480 -508 122.2 133.4 11.25 7.90 1.2 1.2
DOD2019-154 27/01/2020 1849 1413 -527 125.8 130.3 4.50 3.38 5.3 5.3
DOD2019-155 3/01/2020 1854 1437 -531 132.5 137.9 5.45 3.97 0.1 0.1
DOD2020-032 21/03/2020 1775 1494 -381 168.0 172.5 4.45 3.89 1.2 1.2
DOD2020-033 21/03/2020 1762 1451 -363 145.9 150.0 4.15 4.00 0.5 0.5
ME20-004 4/03/2020 1649 1409 -151 119.0 123.0 4.00 3.74 0.1 0.1
ME20-005 17/03/2020 1743 1526 -293 331.8 336.4 4.60 4.30 1.6 1.6
ME20-006 26/03/2020 1650 1190 -246 230.6 234.9 4.35 4.33 0.1 0.1
ME20-007 9/04/2020 1672 1116 -274 254.4 257.2 2.85 2.66 1.1 1.0
MU20-007 4/04/2020 1775 1589 -371 305.5 310.0 4.50 4.05 0.6 0.6
MU20-009A 30/03/2020 1923 1597 -670 327.1 329.0 1.95 1.07 14.5 5.2
MU20-009A   1957 1595 -701 368.4 379.5 11.05 3.35 2.0 2.0
MU20-010 19/02/2020 1960 1640 -686 363.6 364.2 0.60 0.38 3.8 0.5
MU20-011 19/05/2020 1912 1545 -642 307.3 314.5 7.25 4.31 9.7 9.7
MU20-012 21/04/2020 1811 1626 -458 124.5 128.2 3.75 3.45 0.3 0.3
MU20-014 4/03/2020 1870 1602 -496 163.7 172.5 8.80 7.26 0.2 0.2
MU20-015 25/02/2020 1812 1572 -442 137.0 138.4 1.35 1.14 2.4 0.9
MU20-018 4/05/2020 1803 1619 -397 121.3 130.1 8.85 7.21 2.5 2.5
MU9-001A 6/06/2019 1632 1087 -201 316.3 323.0 6.70 5.89 0.2 0.2
MU9-002 5/09/2019 1700 1381 -253 312.4 315.0 2.65 2.13 0.3 0.2
MU9-003 12/01/2020 1658 1068 -244 339.0 343.7 4.70 3.91 0.2 0.2
MU9-004 29/07/2019 1634 991 -234 339.0 344.8 5.75 4.55 0.5 0.5
MU9-006 20/12/2019 1657 1285 -225 294.9 298.7 3.80 3.36 0.0 0.0
MU9-007 20/01/2020 1731 1477 -307 348.0 353.3 5.35 4.95 0.8 0.8
MU9-030 28/11/2019 1809 1051 -524 279.5 281.5 2.05 1.46 0.6 0.3

Appendix E. Björkdal – Northern Extension Intercepts  

Hole id Hole
Completion
Date
Intercept
Northing
(Mine Grid)
Intercept
Easting
(Mine Grid)
Intercept
Elevation
(Mine Grid)
From
(m)
To
(m)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Au (g/t)
over min. 3 m
mining width
MU20-001 11/02/2020 1860 1227 -506 14.8 15.2 0.45 0.38 1.0 0.1
MU20-001   1863 1227 -508 18.1 18.5 0.40 0.29 3.2 0.3
MU20-001   1895 1228 -521 52.7 53.1 0.35 0.20 3.6 0.2
MU20-001   1896 1228 -522 53.6 54.1 0.50 0.31 1.1 0.1
MU20-001   1997 1232 -562 162.1 162.7 0.55 0.38 3.4 0.4
MU20-001   2003 1233 -564 168.6 169.3 0.70 0.50 0.9 0.2
MU20-001   2041 1235 -578 209.3 210.4 1.05 0.82 3.9 1.1
MU20-001   2117 1242 -603 289.7 290.9 1.25 0.92 1.6 0.5
MU20-001   2132 1243 -608 305.2 305.8 0.65 0.50 2.7 0.5
MU20-001   2140 1244 -610 313.6 314.3 0.70 0.66 3.3 0.7
MU20-001   2155 1245 -615 329.2 329.9 0.65 0.61 1.3 0.3
MU20-001   2166 1246 -618 340.7 341.5 0.85 0.61 27.0 5.5
MU20-001   2223 1252 -635 401.0 401.4 0.45 0.21 1.4 0.1
MU20-001   2238 1253 -639 416.9 417.2 0.35 0.32 1.4 0.1
MU20-001   2252 1255 -643 430.8 431.2 0.40 0.31 10.1 1.0
MU20-002 29/04/2020 1831 1321 -495 0.8 2.3 1.55 0.95 3.2 1.0
MU20-002   1912 1301 -528 90.9 91.4 0.50 0.27 1.1 0.1
MU20-002   1984 1285 -555 169.7 170.4 0.70 0.64 3.0 0.6
MU20-002   2012 1279 -566 200.1 200.8 0.70 0.57 1.5 0.3
MU20-002   2039 1273 -575 229.3 230.4 1.10 1.01 2.1 0.7
MU20-002   2046 1271 -578 237.4 237.7 0.30 0.25 1.8 0.2
MU20-002   2093 1261 -594 287.8 288.4 0.60 0.34 0.9 0.1
MU20-002   2136 1252 -609 334.4 334.7 0.25 0.15 6.6 0.3
MU20-002   2142 1251 -611 339.4 341.9 2.45 2.09 2.5 1.8
MU20-002   2148 1250 -613 346.7 347.2 0.50 0.27 1.1 0.1
MU20-002   2150 1249 -613 349.2 349.5 0.35 0.31 0.9 0.1
MU20-002   2155 1248 -615 354.2 354.9 0.70 0.61 1.8 0.4
MU20-002   2162 1247 -617 362.5 362.9 0.40 0.15 0.8 0.0
MU20-002   2165 1246 -618 364.7 365.4 0.70 0.50 5.5 0.9
MU20-002   2174 1244 -621 374.4 375.0 0.60 0.54 1.4 0.3
MU20-002   2175 1244 -621 376.0 377.0 1.00 0.92 2.5 0.8
MU20-002   2178 1244 -622 379.0 379.5 0.45 0.40 3.0 0.4
MU20-002   2180 1243 -623 381.5 381.8 0.35 0.31 3.0 0.3
MU20-002   2198 1240 -628 400.7 401.0 0.35 0.31 1.3 0.1
MU20-002   2204 1239 -630 406.5 407.1 0.60 0.56 1.9 0.3
MU20-002   2215 1236 -633 418.8 419.2 0.40 0.21 1.4 0.1
MU20-003 1/06/2020 1825 1169 -502 15.5 15.8 0.35 0.25 1.4 0.1
MU20-003   1837 1167 -509 29.1 29.7 0.60 0.34 2.5 0.3
MU20-003   1840 1167 -511 32.5 33.2 0.75 0.75* 1.8 0.5
MU20-003   2194 1144 -690 431.0 431.3 0.30 0.19 4.9 0.3
MU20-003   2216 1145 -699 454.6 455.4 0.80 0.52 1.9 0.3
MU20-003   2261 1147 -715 502.4 502.7 0.30 0.19 8.7 0.6

Notes

 * True width not attainable as intercept was not associated with a measurable vein.

Primary Logo

Figure 1

Longitudinal section of Youle illustrating the location of recent Youle extension and optimization intercepts in close proximity to current workings.
Figure 2

Longitudinal Section and Plan Section of Youle illustrating the location of recent exploration intercepts with detail against the Youle Extension intercepts.
Figure 3

Map of the regional testing programs
Figure 4

Plan Section illustrating drill hole trace for BWN001 & BWN002 in relation to historic Felix Brown mine and mapped surface reefs in the Brown’s Program.
Figure 5

Cross Section illustrating interpretation from the first 2 holes drilled so far in the Brown’s Program.
Figure 6

Plan Section illustrating drill hole trace for RB001, RB002 and RB003 in relation to historic Robinson’s shaft and Robinsons and Cochranes’s surface reefs.
Figure 7

Cross Section illustrating interpretation from the first 2 holes drilled so far in the Robinson’s Program.
Figure 8

Plan Section illustrating drill hole trace for TB002 & TB003 in relation to historic Merlot and Malbec faults.
Figure 9

Cross Section illustrating interpretation so far in the True Blue Program.
Figure 12

Cross Section illustrating interpretation so far in the True Blue Program.
Figure 13

Cross section of Björkdal Mine Area Showing the Location of the West pit Skarn Extension intercepts.
Figure 14

Björkdal Mine Scale Overview Map Showing the Location of the Aurora Zone and the Northern target test drilling in relation to mine development. Below Cross section are denoted with A-A’ (Aurora Longitudinal Section) and B-B’ (Northern Extension Cross Section).
Figure 15

Longitudinal Section of the Aurora Zone, Looking North, Illustrating Location of Recent Intercepts.
Figure 16

Cross section of Björkdal Mine Area Showing the Location of the Northern Extension Intercepts.