Mandalay Resources Corporation

Published : September 06th, 2011

Mandalay Resources Corporation Cerro Bayo

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment

Mandalay Resources Corporation Cerro Bayo Exploration Update: Discovery at Delia SE and Extensions of Dagny, Fabiola and Delia NW Veins

TORONTO, Sept. 6, 2011 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) is pleased to provide an update on development and Diamond drilling at its Cerro Bayo, Chile, silver-gold mine (click here for Cerro Bayo Property Map and here for Laguna Verde Overlook). A complete description of the mine, the current reserves and resources and the restart plan that Mandalay has been executing since acquiring the project in August 2010, is contained in the NI 43-101 compliant technical report dated May 17, 2010, and available on www.sedar.com (the "2010 Technical Report").

Brad Mills, CEO of Mandalay, commented, "The results of our first seven months of intensive exploration and development at Cerro Bayo are extremely encouraging. Drilling to test the first near-mine exploration target, the Delia SE extension, has successfully located the offset vein and confirmed continuity of high-grade mineralization.  We are excited that this target has potential to substantially increase our mineral resources given its impressive widths and grades.  We are following up these initial intercepts in the third quarter to determine the overall strike and dip extent of the high-grade mineralized zone as well as infill it to determine continuity.

In addition, infill drilling of previously Inferred resources in and around the first three of our planned mines, Dagny, Fabiola and Delia NW is confirming the continuity and grade of mineralization, with numerous intercepts showing high-grade mineralization for both silver and gold. Furthermore, underground development sampling has demonstrated that actual minable ore boundaries extend well beyond those predicted by the drilling-based block models. These results give us great confidence in our start-up mine plan and our ability to significantly extend the initial mine life."

Delia Vein SE Discovery -
At the time of Mandalay's acquisition of the Cerro Bayo property, previous drilling had outlined Inferred resources in the Delia Vein SE area which were not included in reserves (click here for Delia Vein SE long section). Drilling since January of this year has confirmed the existence of continuous high-grade mineralization at Delia SE in a zone approximately 250 meters ("m") long and 150 m down dip.  It also has now extended this mineralization an additional 150 m to the southeast across what was previously believed to be a bounding fault, for a total of at least 400 m strike length.

Selected assays for drilling completed in 2011 from the Delia Vein SE are listed in the following table, showing intercepts ranging in true width from 0.9 to 4.1 m, in gold grade from 0.93 to 24.96 grams per tonne ("g/t") and in silver grade from 130 to 1,170 g/t (see Appendix 2 for a complete table of assays).

Hole_ID Intercept
UTM_E
Intercept
UTM_N
Int. Elev.
(m)
Int.
From
(m)
Int.
To
(m)
Int.
Length
(m)
Int.
True
Width
(m)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AuEq
(g/t)
(diluted
to min.
2.4 m)
DELIA VEIN SE
DDE-088 271736.95 4840330.18 99.64 224.1 226.0 1.94 0.92 24.96 272 11.65
DDE-089 271783.66 4840266.02 195.01 124.3 130.7 6.37 4.00 0.93 239 5.71
DDE-090 271687.20 4840324.68 160.99 185.2 187.7 2.49 1.55 6.59 1170 19.37
DDE-096 271749.46 4840322.55 113.79 216.1 229.7 13.57 6.70 8.19 333 14.85
DDE-099 271700.78 4840358.34 89.19 258.1 261.3 3.24 1.79 6.45 215 8.02
DDE-106 271724.73 4840298.50 176.36 145.7 151.3 5.55 3.45 3.32 514 13.60
DDE-113 271908.45 4840286.92 72.77 265.8 269.2 3.37 1.43 2.01 374 5.65
DELIA VEIN SE EXTENSION
DDE-104 271940.18 4840224.51 176.11 130.2 133.4 3.24 1.64 1.08 166 3.01
DDE-122 272041.29 4840205.10 105.44 184.5 190.8 6.22 4.06 17.63 317 23.97
DDE-124 271940.71 4840258.84 125.03 187.7 190.8 3.07 1.53 5.42 130 5.11
DDE-128 271940.69 4840258.79 125.09 171.1 175.6 4.50 3.70 4.94 435 13.64

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, accounting for metal price and recovery.

The Delia Vein SE extension zone remains open to the southeast and follow-up drilling is continuing.

Dagny, Fabiola and Delia NW Veins Infill Drilling -
Infill drilling of Inferred resources defined in the Dagny, Fabiola and Delia NW veins by the 2010 Technical Report has confirmed significant quantities of high-grade mineralization. Selected intercepts are listed in the following table, showing intercepts ranging in true width from 0.46 to 7.96 m, in gold grade from 0.89 to 11.43 g/t and in silver grade from 284 to 3,193 g/t (see Appendix 2 for the complete table of assays).

Hole_ID Intercept
UTM_E
Intercept
UTM_N
Int. Elev.
(m)
Int.
From
(m)
Int.
To
(m)
Int.
Length
(m)
Int.
True
Width
(m)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AuEq
(g/t)
(diluted
to min.
2.4 m)
DAGNY VEIN
DDAG-85 271288.37 4840873.22 260.83 59.35 61.35 2.00 1.72 2.68 541 9.66
DDAG-92 271158.01 4840921.71 179.71 135.8 138.9 3.14 1.79 1.92 289 5.76
DDAG-105 271358.45 4840709.75 85.35 254.7 257.0 2.31 1.11 6.64 347 6.28
DDAG-107 271070.05 4841035.60 151.55 158.1 158.8 0.68 0.57 11.43 308 4.18
DDAG-110 271252.69 4840780.38 91.21 201.0 202.6 1.53 0.99 4.66 575 6.67
FABIOLA VEIN
FCH529 271272.99 4841351.38 258.44 2.59 102.72 105.31 2.34 3.38 379 10.68
FCH532 271210.20 4841472.58 197.19 7.73 171.56 179.29 5.21 6.12 3193 69.98
FCH534 271047.19 4841623.25 261.33 0.73 100.07 100.80 0.46 4.46 824 4.01
FCH536 271438.91 4841228.98 184.98 2.60 131.55 134.15 1.59 0.89 512 7.36
FCH537 271278.18 4841376.35 200.67 2.15 106.90 109.05 1.66 2.65 416 7.60
FCH541 271317.37 4841336.56 221.55 2.00 108.20 110.20 1.50 2.19 704 10.17
FCH548 271527.68 4841159.20 129.27 1.94 193.36 195.30 0.76 4.89 649 5.66
FCH549 271487.41 4841164.58 210.21 3.45 111.02 114.47 1.95 1.13 818 14.24
DELIA VEIN NW
DDE-066 270847.29 4840792.70 238.67 76.6 78.1 1.55 1.51 2.46 1100 15.39
DDE-067 270816.80 4840829.97 212.10 88.3 97.0 8.70 6.35 4.16 290 9.96
DDE-076 271242.10 4840540.78 121.66 237.2 251.9 14.70 7.96 2.76 335 9.46
DDE-079 271042.01 4840721.65 102.16 196.1 199.1 3.02 1.77 4.22 298 7.51
DDE-080 271381.05 4840460.90 230.22 142.2 147.2 4.92 3.67 1.25 284 6.93
DDE-093 270862.66 4840809.02 180.12 151.5 153.1 1.59 1.46 5.23 441 8.55
DDE-094 270940.62 4840757.20 176.10 139.2 144.0 4.83 4.22 5.22 633 17.88
DDE-097 270959.79 4840743.71 177.94 139.7 144.1 4.40 3.92 10.85 787 26.59

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, accounting for metal price and recovery.

Production Sampling from Development Drives on the Dagny and Fabiola Veins -
Production development sampling in the operating Dagny and Fabiola veins is significantly extending the volume of high-grade mineralization beyond the original limits predicted by the resource model defined in the 2010 Technical Report. The location of the production sampling and the Mandalay infill drilling are summarized in the long sections of each vein (click here for Dagny long section, here for Fabiola long section and here for the Delia NW long section).

Bianca Vein - Mine development of the Dagny vein has discovered ore-grade mineralization in the intersecting Bianca vein. This was unexpected due to the fact that historical and recent drilling had not predicted significant ore grade mineralization in the Bianca vein. (click here for Bianca long section).

The Company is currently implementing the exploration program at Cerro Bayo with six drills, and is mobilizing a seventh drill to site. With an additional 14 high-priority drill targets similar to Delia SE to be tested in the next year, management believes that Cerro Bayo is developing into a significant, long-life, low-cost mine for Mandalay.

Qualified Person:

Ronald Luethe, General Manager of Mandalay Chile Ltda. is an Idaho registered Professional Geologist and an AIPG Certified Professional Geologist. As a Qualified Person defined by NI 43-101, he has reviewed and approved the technical and scientific information contained in this release.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with production and exploration assets in Australia and Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of applicable securities laws, in particular with respect to the significance of reported drill intercepts at the Cerro Bayo mine on the Company's operational plans and expectations. Readers are cautioned not to place undue reliance on forward-looking statements, since actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices, general market and economic conditions, and success of future drilling. 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, 2011, 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 1:  Drilling, sampling, and assaying process

The Company began underground vein development in the third quarter of 2010 based on Proven and Probable reserves estimated in the 2010 Technical Report. The objective of concurrent drilling has been to infill Inferred resources identified in the 2010 Technical Report on veins planned for near-term mining in order to convert them to Measured and Indicated resources that can quickly increase Life of Mine ("LOM") Proven and Probable reserves. In a press release dated April 5, 2011, the Company announced its first resource and reserve additions, estimated from early infill drilling on the Yasna vein. With the arrival of two additional contract rigs in June and July, the Company also began testing high-priority targets for potential extensions to known ore shoots.

Drilling at Cerro Bayo is currently advancing with four mine-owned Diamec drills using NQ/BQ core and two drills contracted from Master Drilling using HQ/NQ core.  Core is logged, split or sawn, and then sampled on-site by Mandalay personnel.  Samples are prepared and assayed by the on-site mine laboratory, which has been recently audited by SGS.

Mine assay samples are taken from channels across the vein from each blast face by mine geologists. Separate samples of the vein, the footwall, and the hanging wall are taken at chest height.

Mandalay follows a strict Quality Assurance and Quality Control ("QA/QC") program in accordance with industry standards that includes incorporation of blanks and standards in every assay batch as well as duplicate assays of selected samples. Routine check samples are sent to the ALS Chemex laboratory in La Serena, Chile, for independent verification. The detailed QA/QC process from drilling through sampling and assaying is described in the 2010 Technical Report. For internal grade control, a gold equivalent grade of each assayed interval is calculated according to the formula below, which accounts for metal price and recovery:

Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50.

Appendix 2- Drilling results

Dagny Vein - (click here for Dagny long section)
Prior to Mandalay's acquisition of Cerro Bayo from Coeur d'Alene Mines Corporation ("Coeur"), Coeur had drilled 133 holes (24,496 total meters) on the Dagny vein. Coeur generated 58 intercepts with grades greater than the current incremental cutoff grade of 2.4 g/t AuEq over 2.4 m ("successful" intercepts), for a success rate of 44%.  In the 2010 Technical Report, a Proven and Probable reserve of 203,850 t containing 325 g/t Ag (2,130,265 oz) and 2.35 g/t Au (15,403 oz Au) was estimated from these intercepts, with an additional 31,736 t of Inferred resource.

In 2010 and 2011 to date, Mandalay has drilled 34 additional holes (6,410 total meters), generating 7 intercepts greater than the internal cutoff grade for a success rate of 21%.  Inspection of the Dagny section shows that no waste holes were drilled inside limits of the Indicated resource, and the 7 successful holes served to confirm the Indicated resource or confirm/extend the Inferred resource.  As well, for 2011 to date, Mandalay has achieved 857 m of horizontal ore development, 148% of the planned 581 m.  Part of this excess is due to faster than planned advance and part is due to moderate extension of high-grade mineralization beyond the limits predicted by the block model presented in the 2010 Technical Report.  The Company anticipates that this new drilling and production sampling will result in a modest net increase to estimated Measured and Indicated resources when the model is updated, after giving effect to 2011 production.

In addition, three high-grade holes at the southeast end of the Dagny section suggest that the mineralization shoot continues out under Laguna Verde. This target will be followed up later in the program.

Table 1- Drill Intercepts of Dagny Vein

HOLE_ID Hole
Total
Depth
(m)
Intercept
UTM_E
Intercept
UTM_N
Int.  Elev.
(m)
Int. From
(m)
Int. To
(m)
Int. Length
(m)
Int. True
Width
(m)
Au
Grade
(g/t)
Ag Grade
(g/t)
AuEq
(g/t)
(diluted
to 2.4 m)
2010 Mandalay
DDAG-85 71.95 271288.37 4840873.22 260.83 59.35 61.35 2.00 1.72 2.68 541 9.66
DDAG-86 64.90 271319.73 4840832.07 262.02 50.49 51.07 0.58 0.53 0.60 184 0.95
2011 Mandalay
DDAG-87 111.80 271041.23 4841088.65 237.09 84.5 84.9 0.40 0.26 2.90 699 1.86
DDAG-88 152.50 271037.46 4841096.03 237.82 84.0 86.8 2.84 1.98 0.20 12 0.36
DDAG-89 170.75 271025.76 4841110.38 257.57 54.0 56.6 2.56 1.71 0.11 11 0.23
DDAG-90 150.00 271074.90 4841025.94 205.11 120.8 121.6 0.83 0.54 2.53 312 1.98
DDAG-91 132.10 271061.18 4841057.61 255.04 46.6 47.3 0.61 0.36 0.40 87 0.32
DDAG-92 161.75 271158.01 4840921.71 179.71 135.8 138.9 3.14 1.79 1.92 289 5.76
DDAG-93 189.15 271169.93 4840900.26 134.61 163.0 163.9 0.83 0.32 0.63 43 0.20
DDAG-94 205.00 271110.50 4840977.07 122.12 185.5 186.1 0.56 0.19 0.10 4 0.01
DDAG-95 160.00 270997.44 4841146.29 187.13 142.9 143.5 0.56 0.28 2.07 32 0.32
DDAG-96 251.70 271072.54 4841018.81 94.59 208.5 209.3 0.85 0.25 0.13 18 0.05
DDAG-97 126.50 270955.66 4841182.91 260.00 92.9 93.7 0.79 0.79 1.97 282 2.50
DDAG-98 151.45 270948.55 4841189.39 247.50 96.0 96.4 0.34 0.31 0.50 135 0.42
DDAG-99 166.45 271006.26 4841106.65 166.11 133.4 134.1 0.75 0.14 0.23 4 0.02
DDAG-100 239.00 271346.95 4840730.95 177.41 199.6 200.4 0.78 0.58 2.10 342 2.16
DDAG-101 165.25 270944.72 4841193.56 203.18 126.7 127.2 0.58 0.45 1.17 50 0.40
DDAG-102 220.45 No Intercept on Dagny Vein
DDAG-103 227.65 No Intercept on Dagny Vein      
DDAG-104 284.90 No Intercept on Dagny Vein        
DDAG-105 288.05 271358.45 4840709.75 85.35 254.7 257.0 2.31 1.11 6.64 347 6.28
DDAG-106 305.55 271352.04 4840691.59 79.03 251.6 252.8 1.20 0.48 1.04 89 0.56
DDAG-107 181.00 271070.05 4841035.60 151.55 158.1 158.8 0.68 0.57 11.43 308 4.18
DDAG-108 251.10 271097.33 4840968.27 82.84 213.7 216.0 2.30 1.47 0.25 12 0.30
DDAG-109 197.70 271240.47 4840841.04 128.37 180.6 181.0 0.39 0.32 2.56 814 2.51
DDAG-110 221.80 271252.69 4840780.38 91.21 201.0 202.6 1.53 0.99 4.66 575 6.67
DDAG-111 250.10 271231.42 4840738.90 60.96 225.0 225.9 0.91 0.55 0.41 59 0.36
DBI-001 140.00 271022.33 4841109.63 269.46 47.4 47.7 0.34 0.25 0.10 11 0.03
DBI-002 160.30 271019.41 4841108.63 242.66 60.8 62.2 1.36 0.55 0.66 68 0.46
DBI-011 256.40 271003.34 4841133.37 209.49 122.4 123.1 0.68 0.41 2.60 97 0.78
DBI-013 143.75 271027.09 4841075.34 254.36 42.7 43.0 0.30 0.23 0.46 242 0.51
DBI-014 214.40 271003.86 4841134.55 233.62 110.1 111.1 0.95 0.92 0.18 40 0.38
DBI-015B 189.10 271023.44 4841086.77 244.68 50.0 52.2 2.21 1.63 0.37 82 1.37
DBI-017B 207.00 271055.58 4841060.81 208.45 96.3 98.0 1.63 0.86 1.27 202 1.90

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, which accounts for metal price and recovery.

Fabiola Vein - (click here for Fabiola long section)
Prior to Mandalay's acquisition of Cerro Bayo, Coeur had drilled 98 holes, for a total of 19,688 m, on the Fabiola vein. Coeur generated 43 intercepts with grades greater than the current incremental cutoff grade of 2.4 g/t AuEq over 2.4 m, for a success rate of 44%. In the 2010 Technical Report, a Proven and Probable reserve of 199,060 t containing 338 g/t Ag (2,098,200 oz) and 3.32 g/t Au (20,610 oz Au) was estimated from these intercepts, with an additional 29,371 t of Inferred resource.

In 2010 and 2011 to date, Mandalay has drilled 38 additional holes for 8,202 m, generating 12 intercepts greater than the internal cutoff grade for a success rate of 38%.  Inspection of the Fabiola section shows that 10 of the successful holes mostly serve to confirm or extend Indicated or Inferred resources, whereas only 2 of the below cutoff holes were in areas of Indicated resource. For 2011, Mandalay has achieved 1,073 m of horizontal ore development, 212% of the planned 507 m. Inspection of the long section reveals that most of this excess is due to extending the limits of high-grade mineralization predicted by the block model presented in the 2010 Technical Report. From the drilling and mine sampling results, the Company anticipates a significant increase in Measured and Indicated resources when the model is updated, before giving effect to 2011 production. This may translate into a moderate increase after giving effect to 2011 production.

Table 2 - Drill Intercepts of Fabiola Vein

Hole_ID Hole
Total
Depth
(m)
Intercept
UTM_E
Intercept
UTM_N
Intercept
Elev
(m)
Intercept
Length
(m)
From
(m)
To
(m)
True
Width
(m)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
AuEq
(g/t)
(diluted
to
2.4 m)
2010 Mandalay                    
FCH489 232.15 271232.64 4841452.36 179.09 1.87 198.67 200.54 1.49 1.96 185 3.53
FCH490 260.50 271256.47 4841431.98 100.51 0.91 241.79 242.70 0.55 10.44 338 3.94
FCH491 312.90 NO VEIN INTERCEPT               0.00
FCH492 233.65 271268.75 4841418.80 141.37 0.56 223.54 224.10 0.41 0.96 48 0.33
2011 Mandalay                    
FCH503 300.75 271209.74 4841509.39 42.73 0.13 292.17 292.30 0.05 2.99 58 0.09
FCH505 279.40 NO VEIN INTERCEPT               0.00
FCH507 318.00 271278.23 4841418.47 25.04 1.85 304.56 306.41 0.93 1.17 27 0.66
FCH510 297.00 271350.38 4841348.15 34.12 0.28 271.12 271.40 0.10 6.07 96 0.34
FCH512 297.00 271348.01 4841357.43 37.33 1.12 288.78 289.90 0.38 0.05 8 0.03
FCH513 275.00 271279.37 4841409.18 99.65 0.35 250.93 251.28 0.25 1.79 131 0.45
FCH517 332.75 NO VEIN INTERCEPT               0.00
FCH523 348.75 NO VEIN INTERCEPT               0.00
FCH527 93.80 271056.00 4841640.00 166.13 1.25 70.25 71.50 0.93 0.13 28 0.27
FCH528 161.50 271386.42 4841278.83 187.01 1.82 140.00 141.82 1.58 0.98 147 2.58
FCH529 116.10 271272.99 4841351.38 258.44 2.59 102.72 105.31 2.34 3.38 379 10.68
FCH530 113.40 271365.34 4841277.49 232.35 0.82 92.26 93.08 0.79 1.36 420 3.21
FCH531 263.10 271493.88 4841150.29 211.19 0.80 114.00 114.80 0.43 0.10 2 0.03
FCH532 188.00 271210.20 4841472.58 197.19 7.73 171.56 179.29 5.21 6.12 3193 69.98
FCH533 222.05 NO VEIN INTERCEPT               0.00
FCH534 145.00 271047.19 4841623.25 261.33 0.73 100.07 100.80 0.46 4.46 824 4.01
FCH535 164.05 271486.84 4841179.82 179.23 0.93 139.65 140.58 0.46 0.50 203 0.87
FCH536 131.00 271438.91 4841228.98 184.98 2.60 131.55 134.15 1.59 0.89 512 7.36
FCH537 156.10 271278.18 4841376.35 200.67 2.15 106.90 109.05 1.66 2.65 416 7.60
FCH538 184.00 271320.75 4841361.53 164.03 0.98 154.75 155.73 0.48 0.15 27 0.14
FCH539 177.00 271336.69 4841327.39 177.68 0.35 159.65 160.00 0.29 0.80 125 0.39
FCH540 206.00 271508.61 4841159.46 148.64 2.00 167.60 169.60 0.62 0.22 50 0.31
FCH541 134.00 271317.37 4841336.56 221.55 2.00 108.20 110.20 1.50 2.19 704 10.17
FCH542 181.00 271358.71 4841310.78 161.23 1.85 161.93 163.78 1.53 0.71 101 1.75
FCH543 206.12 271338.16 4841336.26 125.86 0.55 190.60 191.15 0.26 0.10 4 0.02
FCH544 229.00 NO VEIN INTERCEPT               0.00
FCH545 272.55 271494.67 4841205.44 107.32 0.40 210.40 210.80 0.15 0.10 2 0.01
FCH546 215.25 271366.68 4841309.85 111.59 1.80 197.00 198.80 1.34 0.53 52 0.87
FCH547 260.80 271424.08 4841223.46 111.63 0.47 199.53 200.00 0.30 0.56 157 0.46
FCH548 214.10 271527.68 4841159.20 129.27 1.94 193.36 195.30 0.76 4.89 649 5.66
FCH549 128.06 271487.41 4841164.58 210.21 3.45 111.02 114.47 1.95 1.13 818 14.24
FCH550 145.00 271462.04 4841204.76 198.46 0.46 128.18 128.64 0.24 0.62 49 0.16
FCH551 209.85 NO VEIN INTERCEPT               0.00
FCH552 196.85 271006.45 4841677.40 280.38 0.76 94.85 96.12 0.76 0.70 59 0.60

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, accounting for metal price and recovery.

Bianca Vein - (click here for Bianca long section)

Mandalay encountered the Bianca vein in 2011 as a splay off the Dagny vein while developing the northwest portion of the Dagny mine. Sampling on two levels demonstrates that high-grades are present, but are quite variable over short distances. Stoping has begun on this vein.

Coeur did not identify the Bianca vein in its historical drilling, although reinterpretation of Coeur's data suggests that the Bianca vein was intercepted five times with two successful hits above cutoff grade. Mandalay drilled 15 more holes to probe ahead of the ore-grade mine advances in Bianca and only encountered one intercept above cutoff grade. The occurrence of ore-grade advance sampling in an area of disappointing drill results is not an anomaly-similar results have occurred outside the modeled ore reserves in Fabiola.

Table 3 - Drill Intercepts of Bianca Vein

Hole_ID Hole
Total
Depth
(m)
Int.
UTM_E
Int.
UTM_N
Int.
Elev.
(m)
Int.
Length
(m)
From
(m)
To
(m)
True
Width
(m)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AuEq
(g/t)
(diluted
to 2.4 m)
2011 Mandalay                    
BDI-001 140.00 271056.95 4841169.59 240.78 122.3 122.7 0.45 0.32 0.17 12 0.05
BDI-002 160.30 271037.96 4841163.80 183.16 144.6 145.5 0.93 0.35 1.38 52 0.35
BDI-003 170.45 271051.17 4841198.33 252.92 102.7 103.1 0.39 0.22 0.73 244 0.51
BDI-004 161.40 271018.34 4841233.73 219.60 129.3 129.6 0.30 0.20 0.30 32 0.08
BDI-005 185.50 270999.44 4841275.94 239.12 140.5 141.0 0.50 0.40 4.46 358 1.94
BDI-008 265.85 271012.71 4841234.21 163.90 177.6 179.4 1.74 0.90 0.10 8 0.10
BDI-009 184.95 270967.47 4841313.77 137.33 231.1 232.0 0.98 0.42 0.47 16 0.14
BDI-010 197.35 270953.77 4841394.16 238.00 192.4 192.9 0.53 0.44 0.27 12 0.09
BDI-012 250.25 270968.98 4841346.03 214.52 219.4 220.0 0.54 0.42 6.83 33 1.31
BDI-013 143.75 271079.19 4841078.40 187.62 127.0 128.2 1.18 0.65 5.11 100 1.93
BDI-014 214.4 271041.46 4841182.27 201.71 178.3 180.1 1.77 1.50 2.62 99 2.88
BDI-016 232.70 270967.55 4841280.86 171.67 207.5 208.5 1.02 0.67 0.30 3 0.10
BDI-017B 207.00 270958.05 4841318.64 186.11 160.0 161.3 1.31 0.30 2.88 46 0.48
BDI-018 221.65 271091.86 4841052.83 156.59 200.1 200.3 0.21 0.13 0.10 2 0.01
BDI-019 290.00 271167.50 4841473.49 190.40 176.3 177.7 1.43 0.55 0.44 38 0.28

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, which accounts for metal price and recovery.

Delia Vein NW - (click here for Delia NW long section)
Prior to Mandalay's acquisition of Cerro Bayo, Coeur had drilled 95 holes, (15,649 total meters), on the Delia Vein NW. Coeur generated 64 intercepts with grades greater than the current incremental cutoff grade of 2.4 g/t AuEq over 2.4 m, for a success rate of 67%.  In the 2010 Technical Report, a Proven and Probable reserve of 196,053 t containing 258 g/t Ag (1,628,572 oz) and 2.62 g/t Au (16,536 oz Au) was estimated from these intercepts, with an additional 158,427 t of Inferred resource in both the Delia NW and Delia SE segments.

In 2011 to date, Mandalay has drilled 29 additional holes for 5,837 m, generating 12 intercepts greater than the internal cutoff grade for a success rate of 41%.  Inspection of the Delia vein NW section shows that these successful holes mostly serve to infill or extend Inferred resources. The Company anticipates a significant increase in Measured and Indicated resources when the model is updated.

Table 4 - Drill Intercepts of Delia NW Vein

Hole_ID Hole
Total
Depth
(m)
Int.
UTM_E
Int.
UTM_N
Int.
Elev.
(m)
Int.
From
(m)
Int.
To
(m)
Int.
Length
(m)
Int.
True
Width
(m)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AuEq
(g/t)
(diluted
to 2.4 m)
2011 Mandalay
DDE-066 98.55 270847.29 4840792.70 238.67 76.6 78.1 1.55 1.51 2.46 1100 15.39
DDE-067 126.15 270816.80 4840829.97 212.10 88.3 97.0 8.70 6.35 4.16 290 9.96
DDE-068 191.95 HOLE DID NOT INTERCEPT DELIA VEIN
DDE-069 158.65 HOLE DID NOT INTERCEPT DELIA VEIN
DDE-070 173.25 271317.41 4840485.25 199.08 123.8 125.5 1.75 0.89 1.89 362 3.39
DDE-071 275.75 271315.64 4840496.53 122.6 249.3 249.9 0.57 0.26 6.01 661 2.08
DDE-072 302.65 271379.76 4840467.73 125.45 275.3 277.5 2.14 0.87 0.11 3 0.06
DDE-073 329.65 271340.97 4840520.63 55.89 321.2 322.1 0.91 0.61 0.53 2 0.14
DDE-074 233.65 271277.85 4841513.72 162.57 214.1 214.5 0.39 0.23 1.09 67 0.23
DDE-075 302.40 271284.16 4840520.7 122.36 251.0 263.7 12.65 6.95 2.21 57 3.35
DDE-076 275.70 271242.1 4840540.78 121.66 237.2 251.9 14.70 7.96 2.76 335 9.46
DDE-077 232.90 271094.9 4840658.88 70.65 218.3 222.4 4.04 2.75 0.27 15 0.57
DDE-078 200.00 271230.64 4840516.76 203.12 172.2 172.7 0.45 0.28 0.33 17 0.08
DDE-079 221.70 271042.01 4840721.65 102.16 196.1 199.1 3.02 1.77 4.22 298 7.51
DDE-080 161.35 271381.05 4840460.9 230.22 142.2 147.2 4.92 3.67 1.25 284 6.93
DDE-081 191.25 271416.97 4840444.34 203.81 156.6 158.3 1.63 1.15 0.17 6 0.14
DDE-082 201.90 271080.01 4840656.93 125 177.3 184.4 7.01 5.69 0.62 25 1.12
DDE-083 201.65 271457.54 4840400.66 210.05 157.7 160.4 2.75 1.66 1.09 84 1.92
DDE-084 170.55 271003.86 4840673.13 196.3 147.7 148.5 0.80 1.37 0.10 13 0.21
DDE-085 254.70 271476.3 4840455.86 125.91 243.3 243.6 0.21 0.13 0.33 105 0.13
DDE-087 98.55 271017.04 4840673.95 174.69 151.9 152.9 1.03 0.94 1.30 257 2.52
DDE-091 110.95 271005.59 4840658.17 196.22 101.1 102.0 0.86 0.68 0.53 117 0.81
DDE-092 207.90 271331.53 4840498.57 151.16 196.8 197.6 0.77 0.36 0.57 17 0.14
DDE-093 174.85 270862.66 4840809.02 180.12 151.5 153.1 1.59 1.46 5.23 441 8.55
DDE-094 163.30 270940.62 4840757.2 176.1 139.2 144.0 4.83 4.22 5.22 633 17.88
DDE-095 160.00 271281.71 4840499.68 185.36 125.4 127.9 2.46 1.03 0.10 4 0.08
DDE-097 169.20 270959.79 4840743.71 177.94 139.7 144.1 4.40 3.92 10.85 787 26.59
DDE-103 189.75 270862.33 4840816.88 141.98 171.9 175.9 4.02 3.32 1.77 174 5.25
DDE-112 188.65 270711.28 4840925.29 184.04 143.6 145.4 1.89 1.64 2.18 9 1.61

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, which accounts for metal price and recovery.

Delia Vein SE- (click here for Delia vein SE long section)
Prior to Mandalay's acquisition of Cerro Bayo, Coeur had drilled 29 holes for a total of 6,113 m on the Delia Vein SE. Coeur generated 17 intercepts with grades greater than the incremental cutoff grade of 2.4 g/t AuEq over 2.4 m, for a success rate of 59%. In the 2010 Technical Report, no Measured or Indicated resources were estimated for this section of the vein.

In 2011 to date, Mandalay has drilled 17 additional holes for 4,172 m, generating 12 intercepts greater than the internal cutoff grade for a success rate of 71%.  Inspection of the Delia Vein SE section shows that these successful holes have confirmed the Inferred resource.  The Company anticipates a significant increase in estimated Measured and Indicated resources when the model is updated.

Delia SE Extension Target - (click here for Delia SE Extension long section)
Previous drilling by Coeur encountered high-grade mineralization along the Delia Vein SE until the shoot was truncated by a fault. Two Coeur holes drilled to locate the vein offset failed. Mapping and interpretation by the Mandalay team generated a new hypothesis for the offset geometry, which was confirmed by Mandalay's first new target drill test. The geometry has been confirmed and refined by five follow-up holes, one that missed the offset vein and four that intersected it. The Delia vein is the thickest and highest-grade vein included in the Cerro Bayo mine plan to date and proving that it exists with significant grade and thickness across the fault opens up a large target for immediate follow-up drilling.

Table 5 - Drill Intercepts of Delia Vein SE and SE Extension Discovery

Hole_ID Hole
Total
Depth
(m)
Intercept
UTM_E
Intercept
UTM_N
Int.
Elev.
(m)
Int.
From
(m)
Int.
To
(m)
Int.
Length
(m)
Int.
True
Width
(m)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AuEq
(g/t)
(diluted
to 2.4 m)
Mandalay 2011
DDE-086   271631.11 4840369.08 123.00 227.3 228.0 0.67 0.38 0.10 2 0.02
DDE-088   271736.95 4840330.18 99.64 224.1 226.0 1.94 0.92 24.96 272 11.65
DDE-089   271783.66 4840266.02 195.01 124.3 130.7 6.37 4.00 0.93 239 5.71
DDE-090   271687.20 4840324.68 160.99 185.2 187.7 2.49 1.55 6.59 1170 19.37
DDE-096   271749.46 4840322.55 113.79 216.1 229.7 13.57 6.70 8.19 333 14.85
DDE-098   271761.64 4840279.08 170.72 144.1 146.4 2.32 1.23 3.00 180 3.38
DDE-099   271700.78 4840358.34 89.19 258.1 261.3 3.24 1.79 6.45 215 8.02
DDE-100   271806.54 4840282.20 87.21 230.2 233.0 2.83 0.97 0.10 6 0.09
DDE-101   271880.55 4840260.25 96.83 223.4 224.5 1.15 0.41 2.37 10 0.44
DDE-104   271940.18 4840224.51 176.11 130.2 133.4 3.24 1.64 1.08 166 3.01
DDE-106   271724.73 4840298.50 176.36 145.7 151.3 5.55 3.45 3.32 514 13.60
DDE-107   271893.81 4840267.50 85.66 240.9 241.9 1.01 0.41 0.92 97 0.49
DDE-114   NO VEIN INTERCEPT
DDE-113   271908.45 4840286.92 72.77 265.8 269.2 3.37 1.43 2.01 374 5.65
DDE-122   272041.29 4840205.10 105.44 184.5 190.8 6.22 4.06 17.63 317 23.97
DDE-124   271940.71 4840258.84 125.03 187.7 190.8 3.07 1.53 5.42 130 5.11
DDE-128   271940.69 4840258.79 125.09 171.1 175.6 4.50 3.70 4.94 435 13.64

Note: Au Equivalent grams per tonne ("AuEq g/t") = Au(g/t)+ Ag(g/t)/50, which accounts for metal price and recovery.

 

For further information:

Bradford Mills
Chief Executive Officer

Greg DiTomaso
Investor Relations
Contact: 647.260.1566
Email: g.ditomaso@mandalayresources.com
Company website: www.mandalayresources.com

.
Data and Statistics for these countries : Australia | Chile | All
Gold and Silver Prices for these countries : Australia | Chile | All

Mandalay Resources Corporation

PRODUCER
CODE : R7X.F
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Mandalay Res. is a gold and silver producing company based in Canada.

Mandalay Res. produces gold, silver, antimony in Australia, develops gold and silver in Chile, and holds various exploration projects in Canada and in Chile.

Its main asset in production is COSTERFIELD in Australia, its main asset in development is CERRO BAYO in Chile and its main exploration properties are OTISH (BARD) and KING in Canada and EL PUCLARO in Chile.

Mandalay Res. is listed in Canada and in Germany. Its market capitalisation is CA$ 18.7 millions as of today (US$ 14.4 millions, € 12.8 millions).

Its stock quote reached its highest recent level on October 11, 1996 at CA$ 2.15, and its lowest recent point on December 24, 2015 at CA$ 0.01.

Mandalay Res. has 416 131 978 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Option Grants of Mandalay Resources Corporation
5/25/2007Re-Pricing Of Stock Options
Nominations of Mandalay Resources Corporation
5/24/2016Announces Appointment of DirectorAnnounces Appointment of Di...
5/2/2007Appointment Of Director
4/10/2007Appointment Of Director
Financials of Mandalay Resources Corporation
11/3/2016Announces Third Quarter 2016 Financial Results, Quarterly Di...
3/13/2011Mandalay Resources Announces Early Adoption
Project news of Mandalay Resources Corporation
2/13/2014Mandalay Resources Corporation Increases
2/7/2014Mandalay Resources Corporation completes purchase of Challac...
1/28/2014Proactive Investors Forum: Triton Minerals, Red Mountain Min...
1/15/2014Mandalay Resources announces high-grade
12/20/2013Mandalay Resources announces purchase of The
10/10/2013Mandalay Resources Corporation Announces Renewal of Normal C...
9/30/2013Mandalay Resources announces results of
9/10/2013Mandalay Resources announces positive
8/9/2013Mandalay Resources Announces Operating and
7/19/2013Mandalay Resources Corporation resumes operations at Cerro B...
7/15/2013Mandalay Resources Corporation Reports Fatality at Cerro Bay...
7/3/2013Mandalay Resources Announces Amendment to
6/7/2013Mandalay Resources Corporation reports on insider selling
5/15/2013Mandalay Resources Corporation Announces the Results of its ...
3/29/2013Mandalay Resources Announces Filing of Annual Information Fo...
3/19/2013Mandalay Resources Corporation Announces Changes to its Mana...
1/7/2013Mandalay Resources Corporation extends mineralized zones in ...
1/7/2013Mandalay Resources Corporation extends mineralized zones at ...
10/15/2012Mandalay Resources Corporation Announces Renewal of Normal C...
8/16/2012Mandalay Files Updated NI 43-101 Technical Report for its La...
7/9/2012Mandalay Resources Corporation reports
7/9/2012Mandalay Resources Corporation Announces
7/5/2012Amended: Mandalay Resources Corporation
7/4/2012Mandalay Resources Corporation Announces
7/3/2012Mandalay Resources Corporation announces
6/26/2012Mandalay Resources Corporation Reaches New
6/21/2012Mandalay Resources Corporation Announces the Results of its ...
6/8/2012Mandalay Resources Secures US$20 Million
5/28/2012Mandalay Resources Corporation Announces Mailing of Substant...
5/10/2012CORRECTION: Mandalay Resources Corporation Announces Substan...
5/10/2012Mandalay Resources Corporation Announces
5/9/2012Mandalay Resources Corporation Announces
4/25/2012Mandalay Resources Corporation Announces
4/11/2012Mandalay Resources Corporation Announces Early Exercise of W...
4/2/2012Mandalay Resources Corporation Resumes
3/31/2012Mandalay Announces Filing of Annual Information Form and Upd...
3/13/2012Mandalay Resources Corporation Announces
3/9/2012Mandalay Resources Corporation Provides
2/24/2012Mandalay Resources Provides Update on Public
2/23/2012Mandalay Resources Corporation Doubles
1/10/2012Mandalay Resources Corporation Expands the High Grade Minera...
10/13/2011Mandalay Resources Corporation Announces
9/16/2011Plinian Capital increases investment in Mandalay Resources C...
9/6/2011Mandalay Resources Corporation Cerro Bayo
8/24/2011Mandalay Resources Corporation Extends W- and N-Lode Ore Sho...
8/9/2011Mandalay Resources Corporation Delivers
6/17/2011Mandalay Resources Corporation Announces the Results of its ...
6/2/2011MANDALAY RESOURCES FILES INDEPENDENT
5/20/2011MANDALAY RESOURCES COMPLETES HEDGING PROGRAM
5/6/2011Mandalay Resources Corporation Announces
4/14/2011Mandalay Resources Corporation Receives
4/6/2011Mandalay Resources Corporation Provides
4/1/2011Mandalay Resources Corporation Announces
2/14/2011Mandalay Resources Corporation Ships First
2/11/2011Mandalay Resources Corporation Launches
3/30/2007(La Quebrada)Additional Six Holes
Corporate news of Mandalay Resources Corporation
2/19/2014Mandalay Resources Corporation Announces Financial Results f...
11/5/2013Mandalay Resources Announces Financial Results, Quarterly Di...
10/10/2013Mandalay Resources Files Preliminary Economic Assessment for...
10/7/2013Mandalay Resources Corporation reports record gold and antim...
7/10/2013Mandalay Resources Corporation reports production and sales ...
5/15/2013Mandalay Resources Announces Results for the First Quarter o...
4/18/2013Mandalay Resources Corporation Announces Production and Sale...
2/21/2013Mandalay Resources Corporation Announces Record Financial Re...
1/14/2013Mandalay Resources Corporation Announces Record Production a...
11/9/2012Mandalay Resources Corporation Announces Record Third Quarte...
10/15/2012Mandalay Resources Corporation Announces Production and Sale...
7/9/2012Mandalay Resources Corporation Announces Mid-Year Exploratio...
2/3/2012CORRECTION: Mandalay Resources Corporation Announces Product...
2/1/2012Mandalay Resources Corporation Announces Production Results ...
1/6/2012Mandalay Resources Comments on News Story Regarding Explorat...
5/16/2011Mandalay Resources Corporation Announces Record Results for ...
4/20/2007Announces Additional Results from La Quebrada
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
FRANKFURT (R7X.F)
0.020+0.00%
FRANKFURT
€UR 0.020
08/04 08:08 -
0%
Prev close Open
0.020 0.020
Low High
0.020 0.020
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.020 -%
Volume 1 month var.
6,000 -%
24hGold TrendPower© : -44
Produces Antimony - Gold
Develops Gold - Silver
Explores for
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.06+0.57%Trend Power :
OceanaGold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 8.92-2.58%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.59-3.26%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.05+10.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.06+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
 12.67+0.88%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.34+6.25%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.18+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
 1.77-2.21%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 40.38-0.21%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.04+0.00%Trend Power :
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.