Mandalay Resources Corporation Extends Mineralized Zones in Five Veins at its Cerro Bayo Silver-gold Mine, Chile
TORONTO, January 7, 2013 /PRNewswire/ --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) is pleased to provide an update on drilling results generated by the ongoing exploration program at its 100%-owned Cerro Bayo silver-gold mine in Aysen, Chile. Results presented here were acquired between the cutoff date for the Company's July 9, 2012 exploration update for Cerro Bayo and December 31, 2012. Highlights of these results include:
- During the period, Mandalay continued extensional and infill drilling on five targets and drilled eight new targets.
- Extensional drilling on the Delia SE, Dagny, Coyita, Trinidad and Marcela veins successfully extended the known mineralized zones by a collective 800 metres ("m") along strike. By the end of the year, only the Dagny vein extension had been fully delineated by drilling. Mineralization remains open, either at depth or along strike, on the other targets.
- Of the eight new targets tested, all contained either scattered intercepts of potentially economic grades and widths, as yet without demonstrated continuity (Coigues Este and Central, Gabriela, Gabriela Este, Josefina, Josefina Este) or no significant results (Caiquenes and Guanaco 1).
- In 2013, the Company plans to drill approximately 60,000 m at Cerro Bayo, continuing to test extensions of known mineralized zones at Coyita, Marcela, Delia SE veins, Fabiola, Trinidad and Yasna veins and testing several new targets in the district.
Brad Mills, CEO of Mandalay, commented, "In the second half of 2012, we continued to delineate mineralization in extensions of existing veins and to test new targets. We expect a new, independent NI 43-101 reserve and resource report for Cerro Bayo based on this work to be completed in the first quarter of 2013. We have developed an extensive inventory of new targets at Cerro Bayo that are ready for drilling and expect to test a significant portion of these in 2013."
Cerro Bayo drilling and assaying
During the reporting period, Mandalay drilled 28,627 m of core in 107 holes. Diamond core was logged and sampled by Mandalay geologists. Core samples, including blanks, standards, and duplicates, were assayed on-site at the Compañia Minera Cerro Bayo laboratory. The Cerro Bayo laboratory, which was audited in 2011 by SGS Lakefield Research Ltd., routinely sends check samples to ALS Laboratory (an ISO 9001:2008 and ISO/IEC 17025:2005 certified laboratory) in La Serena, Chile, following QA/QC practices established by Mandalay. See the March 18, 2012 technical report entitled "Technical Report on the Cerro Bayo Project, Chile", available on SEDAR (http://www.sedar.com), for a full description of the drilling, logging, assaying, and estimation processes.
Significant exploration results
Locations of the veins discussed in this report appear in Figure 1.
Dagny vein
Twenty-five holes (7,915 m) tested approximately 300 m of the Dagny vein extension strike length under Laguna Verde to the point where it intersects the Delia SE vein (see Table 1; click here for Figure 2: Dagny Long Section). Drill results indicate that potentially economic mineralization (minimum 2.4 m width of >120 g/t AgEq¹) exists in an area measuring about 200 m horizontally by 70 m vertically. Evaluation of this mineralization will be included in the Company's year-end resource and reserve update.
Note 1: AgEq was calculated using the formula AgEq= Ag + (Au x 53.8) where Ag and Au are in grams per tonne ("g/t").
Table 1: Recent drill intercepts on the Dagny vein under Laguna Verde
Hole Intercept
Hole Comp. Depth Intercept Intercept Elev From To Intercept
Hole_ID Date (m) UTM_E UTM_N (m) (m) (m) Length
DDAG119 17/07/2012 299 271443.0 4840649.0 105.2 265.4 267.3 2.0
DDAG120 23/07/2012 398 NO VEIN INTERSECTION
DDAG121 26/07/2012 331 271443.2 4840645.0 72.5 282.6 287.5 4.9
DDAG122 24/07/2012 341 271504.8 4840574.5 20.3 310.0 313.6 3.6
DDAG123 05/08/2012 316 271406.5 4840671.5 70.6 286.1 288.3 2.2
DDAG124 29/07/2012 351 271545.1 4840523.2 18.2 308.2 308.5 0.3
DDAG125 05/08/2012 333 271472.9 4840617.9 35.3 300.7 305.3 4.6
DDAG126 15/08/2012 301 271464.7 4840632.3 87.0 269.3 275.9 6.6
DDAG127 14/08/2012 314 271550.1 4840530.2 34.4 299.0 302.1 3.1
DDAG128 24/08/2012 318 271456.1 4840630.8 45.9 296.5 299.1 2.6
DDAG129 25/08/2012 337 271556.6 4840422.2 111.3 218.7 223.1 4.4
DDAG130 05/09/2012 335 271432.2 4840662.3 24.7 327.6 328.5 0.9
DDAG131 13/09/2012 262 271472.0 4840625.8 117.4 251.3 252.1 0.8
DDAG132 16/09/2012 364 271544.4 4840435.1 89.2 235.0 237.1 2.1
DDAG133 23/09/2012 306 271519.4 4840574.4 99.6 259.9 261.6 1.7
DDAG134 01/10/2012 333 271536.9 4840557.6 84.8 268.6 272.0 3.4
DDAG135 09/10/2012 327 271581.8 4840519.5 118.1 260.0 260.4 0.4
DDAG136 17/10/2012 287 271560.0 4840552.7 134.5 251.0 251.5 0.5
DDAG137 25/10/2012 283 271523.3 4840591.8 126.2 250.1 250.5 0.4
DDAG138 03/11/2012 281 271466.2 4840646.1 146.7 249.0 249.7 0.7
DDAG139 12/11/2012 290 271430.9 4840662.1 135.2 268.6 269.5 0.9
DDAG140 19/11/2012 303 271428.1 4840663.2 120.9 273.7 274.3 0.6
DDAG141 22/11/2012 282 NO VEIN INTERSECTION
DDAG142 29/11/2012 312 271525.5 4840560.9 93.4 258.1 262.7 4.7
DDAG143 25/12/2012 311 271519.62 4840571.1 64.29 277.2 278.4 1.2
Table 1 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
DDAG119 1.7 9.8 1353
DDAG120 NO VEIN INTERSECTION
DDAG121 4.2 2.3 137
DDAG122 2.9 0.7 16
DDAG123 1.6 0.7 42
DDAG124 0.2 1.8 33
DDAG125 3.8 1.1 43
DDAG126 5.9 4.6 326
DDAG127 2.5 0.3 28
DDAG128 2.2 0.7 72
DDAG129 3.8 1.6 48
DDAG130 0.7 0.9 23
DDAG131 0.7 4.6 1124
DDAG132 1.7 0.8 27
DDAG133 1.6 0.4 14
DDAG134 3.2 0.9 124
DDAG135 0.3 1.5 422
DDAG136 0.3 0.3 46
DDAG137 0.3 1.3 672
DDAG138 0.6 2.0 83
DDAG139 0.7 0.7 82
DDAG140 0.4 0.7 7
DDAG141 NO VEIN INTERSECTION
DDAG142 4.4 1.4 195
DDAG143 1.05 0.4 46
Rounding may result in apparent interval differences.
Delia Southeast ("SE") vein
Eleven new holes (2,665 m) of infill and extensional drilling were completed at Delia SE where reinterpretation of the limits of mineralization and faulting has extended the strike length and down-dip extent of potentially economic mineralization (see Table 2; click here for Figure 3: Delia SE Long Section). Based on this information, reserves and resources for the Delia SE vein will be updated for year-end reporting.
Table 2: Recent drill intercepts on the Delia SE vein
Hole Intercept
Hole Comp. Depth Intercept Intercept Elev From To Intercept
Hole_ID Date (m) UTM_E UTM_N (m) (m) (m) Length
DDE229 05/07/2012 231 271583.8 4840376.7 150.6 197.6 198.4 0.9
DDE231 08/07/2012 350 271595.0 4840296.1 9.3 327.0 331.8 4.8
DDE232 04/07/2012 155 271600.5 4840359.7 172.9 140.6 142.8 2.2
DDE233 07/07/2012 129 271586.1 4840336.8 220.5 116.2 117.5 0.2
DDE234 11/07/2012 372 271734.4 4840381.9 28.6 232.2 332.9 0.7
DDE236 18/07/2012 365 271964.8 4840261.3 52.7 298.8 300.3 1.5
DDE239 04/08/2012 122 271847.0 4840231.6 230.4 66.1 68.1 2.1
DDE240 07/08/2012 345 271848.0 4840325.9 34.8 321.3 327.9 6.6
DDE241 10/08/2012 100 271857.0 4840216.6 240.7 55.9 58.5 2.6
DDE242 19/08/2012 140 271905.0 4840248.5 214.4 108.3 109.0 0.7
DDE245 07/09/2012 356 271634.2 4840365.1 73.4 259.3 262.8 3.5
Table 2 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
DDE229 0.5 0.1 28
DDE231 1.4 26.3 972
DDE232 1.1 2.6 334
DDE233 0.1 0.4 54
DDE234 0.3 11.8 524
DDE236 0.4 0.3 6
DDE239 1.2 0.2 33
DDE240 2.4 0.9 16
DDE241 1.5 0.1 47
DDE242 0.4 1.7 267
DDE245 1.1 7.9 194
Rounding may result in apparent interval differences.
Trinidad vein
Eight new holes (2,562 m) of infill and extensional drilling were completed at Trinidad where potentially economic mineralization was intersected over approximately 300 m of strike length (see Table 3; click here for Figure 4: Trinidad Long Section). Given its proximity to the Delia vein, this mineralization can likely be mined from the Delia NW ramp.
Table 3: Recent drill intercepts on the Trinidad vein
Hole Intercept
Hole Comp. Depth Intercept Intercept Elev From To Intercept
Hole_ID Date (m) UTM_E UTM_N (m) (m) (m) Length
DDE229 05/07/2012 231 271535.5 4840251.0 248.4 30.9 32.2 1.3
DDE245 07/09/2012 356 271547.4 4840241.1 241.5 34.7 35.0 2.7
DTRI017 06/09/2012 191 271509.7 4840259.1 186.1 119.4 122.2 2.7
DTRI018 22/09/2012 201 271517.6 4840261.8 111.2 183.3 183.9 0.6
DTRI019 29/09/2012 179 271486.4 4840272.4 151.3 150.7 152.2 1.5
DTRI020 04/10/2012 212 271545.0 4840229.8 117.9 173.9 174.2 0.3
DTRI021 22/11/2012 162 271588.7 4840217.9 176.2 119.4 119.7 0.3
DTRI022 29/11/2012 210 271669.4 4840184.7 133.3 166.8 168.1 1.3
Table 3 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
DDE229 1.1 0.5 297
DDE245 0.2 0.4 4
DTRI017 2.2 33.2 84
DTRI018 0.3 2.8 9
DTRI019 0.7 6.0 41
DTRI020 0.1 0.1 2
DTRI021 0.2 3.0 24
DTRI022 0.5 0.3 2
Rounding may result in apparent interval differences.
Coyita vein
Thirty-one new holes (5,379 m) have been drilled at Coyita where step-out drilling has extended potentially economic mineralization south approximately 200 m along strike over approximately 100 m of vertical extent (see Table 4; click here for Figure 5: Coyita Long Section). These new intercepts will be included in the Company's year-end resource and reserves update. Mineralization is open down dip and along strike to the south.
Table 4: Recent drill intercepts on the Coyita vein
Hole
Hole Comp. Depth Intercept Intercept Intercept From To Intercept
Hole_ID Date (m) UTM_E UTM_N Elev (m) (m) (m) Length
DCOY002 31/08/2012 215 271751.4 4841434.4 126.2 196.6 202.1 5.5
DCOY003 08/09/2012 187 271731.8 4841411.3 193.0 108.8 111.9 3.1
DCOY004 21/09/2012 281 271790.3 4841385.9 124.8 243.4 253.9 10.5
DCOY005 30/09/2012 149 271739.9 4841375.1 209.4 103.6 106.4 2.8
DCOY006 29/09/2012 120 271471.4 4841712.6 266.8 75.0 76.0 1.0
DCOY007 02/10/2012 111 271517.5 4841639.5 267.7 76.7 78.6 1.9
DCOY008 05/10/2012 126 271708.9 4841394.1 238.8 62.2 62.5 0.4
DCOY009 06/10/2012 109 271526.4 4841589.4 296.1 84.1 86.1 2.0
DCOY010 11/10/2012 165 271653.9 4841558.1 184.9 102.7 105.1 2.4
DCOY011 11/10/2012 192 271529.4 4841651.7 223.2 119.7 120.3 0.7
DCOY012 14/10/2012 92 271447.7 4841695.8 305.1 70.1 70.9 0.8
DCOY013 19/10/2012 150 271697.3 4841513.3 181.8 102.2 102.9 0.8
DCOY014 22/10/2012 245 271581.6 4841615.1 166.4 187.8 189.0 1.2
DCOY015 25/10/2012 120 271789.8 4841312.0 188.7 84.0 88.0 4.0
DCOY016 29/10/2012 170 271569.0 4841593.4 223.4 138.3 141.7 3.4
DCOY017 30/10/2012 130 271813.4 4841264.2 192.1 103.9 104.7 0.8
DCOY018 03/11/2012 140 271559.6 4841583.8 274.1 115.5 116.5 1.0
DCOY019 04/11/2012 119 271756.9 4841320.7 210.7 90.1 90.7 0.6
DCOY020 10/11/2012 201 271483.0 4841725.9 222.4 160.2 164.0 3.9
DCOY021 10/11/2012 120 271794.8 4841279.5 213.5 84.5 87.2 2.7
DCOY022 14/11/2012 101 271411.7 4841749.9 296.7 70.0 71.0 1.0
DCOY023 15/11/2012 149 271746.5 4841358.6 165.2 109.4 110.5 1.2
DCOY024 20/11/2012 359 271159.8 4842035.0 290.5 70.0 71.5 1.5
DCOY025 23/11/2012 261 271710.9 4841512.7 130.0 146.6 147.1 0.5
DCOY026 20/11/2012 141 271752.8 4841342.9 191.5 101.5 103.1 1.6
DCOY027 26/11/2012 150 271779.0 4841341.9 176.5 101.5 103.4 1.9
DCOY028 26/11/2012 120 271647.6 4841547.7 229.7 80.2 83.5 3.4
DDIM032 11/11/2012 418 271801.9 4841322.6 164.8 354.4 355.6 1.2
DCOY031 8/12/2012 217 271802.9 4841357.7 123.53 136.9 140.1 3.2
DCOY032 12/12/2012 207 271826.7 4841297.7 151.7 113.1 117.1 4
Table 4 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
DCOY002 2.9 0.7 82
DCOY003 1.4 1.8 749
DCOY004 5.3 1.5 172
DCOY005 0.9 5.7 609
DCOY006 0.6 3.1 215
DCOY007 1.4 9.4 1904
DCOY008 0.2 3.6 73
DCOY009 1.9 0.1 4
DCOY010 1.6 1.7 90
DCOY011 0.4 0.9 196
DCOY012 0.7 0.5 41
DCOY013 0.6 1.1 572
DCOY014 0.7 0.4 95
DCOY015 3.1 1.0 153
DCOY016 2.6 1.0 90
DCOY017 0.7 0.3 102
DCOY018 0.9 0.3 31
DCOY019 0.5 0.1 2
DCOY020 3.6 0.4 17
DCOY021 2.5 1.4 294
DCOY022 0.8 0.1 10
DCOY023 0.8 2.7 526
DCOY024 0.8 0.4 18
DCOY025 0.2 1.2 414
DCOY026 1.5 3.5 130
DCOY027 1.5 1.2 127
DCOY028 2.9 1.1 165
DDIM032 1.1 2.1 263
DCOY031 1.55 1.17 179
DCOY032 2.18 0.64 121
Rounding may result in apparent interval differences.
Marcela vein
Extensional drilling continued at Marcela with eleven new holes (4,146 m) completed. Potentially economic mineralization continues north approximately 100 m along strike and over 50 m vertically down dip from the limits of previously Inferred Resource (see Table 5; click here for Figure 6: Marcela Long Section). In addition, the Marcela vein appears to have a significant, but poorly tested, root zone below existing mine workings that Mandalay is currently evaluating with further drilling.
Table 5: Recent drill intercepts on the Marcela vein
Hole
Hole Comp. Depth Intercept Intercept Intercept From To Intercept
Hole_ID Date (m) UTM_E UTM_N Elev (m) (m) (m) Length
DMA012 31/07/2012 342 279890.0 4841484.3 218.8 221.8 222.8 1.0
DMA013 16/08/2012 473 279725.4 4841753.9 240.8 226.0 226.6 0.7
DMA014 20/08/2012 401 279810.7 4841694.2 252.1 213.3 215.0 1.7
DMA015 26/08/2012 401 279685.8 4841766.3 190.7 239.9 240.3 0.4
DMA016 29/08/2012 325 279743.5 4841890.4 359.9 46.8 47.1 0.3
DMA017 05/09/2012 415 279882.8 4841428.0 171.1 317.4 320.1 2.7
DMA020* 22/09/2012 291 279883.4 4841280.0 145.4 289.1 290.8 1.7
DMA021 07/10/2012 368 279977.0 4841075.3 120.6 318.1 318.6 0.6
DMA022 19/10/2012 400 279732.6 4841719.5 197.0 248.5 250.1 1.7
DMA024 06/11/2012 335 279689.8 4841742.7 149.7 268.7 269.0 0.3
DMA020A 20/12/2012 395 279905.6 4841276.9 123.05 319.35 319.75 0.4
Table 5 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
DMA012 0.94 1.8 457
DMA013 0.65 0.5 40
DMA014 1.64 0.1 3
DMA015 0.35 0.5 31
DMA016 0.26 0.6 9
DMA017 2.65 0.5 106
DMA020* 1.51 2.0 226
DMA021 0.48 0.4 17
DMA022 1.58 0.1 2
DMA024 0.27 0.7 71
DMA020A 0.36 0.1 2
Rounding may result in apparent interval differences.
* DMA020 was terminated in vein due to technical problems and is being re-drilled to test the full extent of the vein.
Other exploration results
Core drilling continued to test new targets during the second half of 2012. These holes generated mixed results (Table 6) and the new targets do not, as yet, have significant demonstrated volume or continuity of potentially economic mineralization. Further work is continuing on these targets.
Table 6: Coigües Central and Este, Caiquenes, Guanaco I Sur, Gabriela, Gabriela Este, Josefina and Josefina Este drill intercepts
Hole
Hole Comp. Depth Intercept Intercept Intercept From To Intercept
Hole_ID Date (m) UTM_E UTM_N Elev (m) (m) (m) Length
Coigües Central
DCO014 06/07/2012 300.1 270301.0 4841492.1 224.35 259.92 260.4 0.48
DCO015 16/07/2012 299 270270.5 4841557 298.36 169.05 172.1 3.05
DCO016 24/07/2012 329 270237.7 4841693.4 266.91 222 222.5 0.5
DCO017 14/12/2012 239 270255.0 4841554.6 253.46 195.35 196.2 0.85
Coigües Este
DCO014 06/07/2012 300 270383.51 4841498.6 278.47 160.8 161.77 0.97
DCO015 16/07/2012 299 270326.77 4841556.5 247.97 245.8 246.4 0.6
Caiquenes
DCA002 16/06/2012 216 269322.28 4840405.7 330.68 123.85 126.4 2.55
DCA003 07/07/2012 183 269749.03 4839553.7 388.9 138.2 141.5 3.3
DCA006 12/08/2012 180 269578.69 4839810.6 386.73 77.4 79.1 1.7
Guanaco I Sur
DGU002 05/10/2012 452 278619.12 4841047.1 168.01 335.16 337.28 2.12
DGU003 19/10/2012 457 278674.55 4841182.1 271.53 188.04 188.39 0.35
Gabriela
DGA-029 01/12/2012 400.4 271967.01 4842725.24 252.3 96.5 103.52 7.02
Gabriela Este
DGA-025 04/10/2012 272 271952.6 4843117.4 282.66 135.82 145.8 9.98
DGA-026 14/10/2012 371 271898.8 4843527 224.08 233.1 235.2 2.1
DGA-028 27/11/2012 295 271882.4 4843639.7 247.65 220.15 221.25 1.1
DGA-029 01/12/2012 400 271985.2 4842726.9 236.2 120.38 128.45 8.07
Josefina
DGA-027 11/11/2012 400.5 272178.6 4842368.6 188.95 120.2 122.6 2.4
DGA-029 01/12/2007 400.4 272058.1 484273.2 174.24 220.06 220.3 0.24
Josefina Este
DGA-022 30/08/2012 300 272113.5 4842736.9 207.05 142 142.24 0.24
DGA-027 11/11/2012 401 272300.5 4842445.3 76.34 303.95 304.5 0.55
DGA-029 01/12/2012 400 272184.6 4842731 75.29 379.72 381.87 2.15
Table 6 continued:
Gold Silver
True Grade Grade
Hole_ID Width (g/t) (g/t)
Coigües Central
DCO014 0.43 0.23 8
DCO015 1.58 0.84 29
DCO016 0.34 0.2 30
DCO017 0.26 3.2 98
Coigües Este
DCO014 0.64 1 69
DCO015 0.47 0.27 21
Caiquenes
DCA002 2.55 0.1 2
DCA003 3.3 0.1 2
DCA006 1.7 3.24 24
Guanaco I Sur
DGU002 1.87 0.1 2
DGU003 0.21 0.1 2
Gabriela
DGA-029 4.29 0.4 77
Gabriela Este
DGA-025 6.02 0.11 5
DGA-026 1.77 0.17 28
DGA-028 0.97 0.1 4
DGA-029 5.39 0.53 135
Josefina
DGA-027 2.4 0.1 2
DGA-029 0.15 0.87 41
Josefina Este
DGA-022 0.11 2.82 511
DGA-027 0.36 0.1 2
DGA-029 1.41 0.25 15
Qualified Person:
Ronald Luethe, General Manager of Mandalay Chile Ltda., is an AIPG Certified Professional Geologist and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information on Cerro Bayo contained in this release.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in 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, including statements regarding the Company's mineral Resources, mineral Reserves, planned exploration program, the timing and contents of an updated NI 43-101 report for Cerro Bayo and the potential economic viability of any identified mineralization. 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, 2012, a copy of which is available under Mandalay's profile at http://www.sedar.com. In addition, there can be no assurance that any current or future 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.
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For further information:
Bradford Mills
Chief Executive Officer
Greg DiTomaso
Investor Relations
+1-647-260-1566
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