Industria
Mandalay Resources Reports 2024 Mineral Reserves and Resources Approaching Two Million Gold Equivalent Ounces in Measured and Indicated Resources
Consolidated Highlights
Costerfield Highlights
Björkdal Highlights
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Using Mineral Reserve metal prices (see notes of Table 2)
Using Mineral Resource metal prices (see notes of Table 1)
Chris Davis, Vice President of Exploration and Operational Geology, commented:
"The exploration success at Costerfield and Björkdal highlights the exceptional potential of our assets. The rapid expansion of the True Blue deposit at Costerfield and the continued Resource development at Björkdal reinforce our confidence in the future growth of our operations. We are excited to build on these achievements and further expand our resource base in the coming years."
Group Mineral Resource and Mineral Reserve Summary
Table 1: Group Mineral Resources as of December 31, 2024
Table 2: Group Mineral Reserves as of December 31, 2024
Details of the Mineral Resources and Reserves estimates at each property are related below. Estimates were prepared or verified by the following independent third parties: SLR Consulting Ltd. (“SLR”) at Björkdal; and SRK Consulting. (“SRK”) at Costerfield.
The year-end 2024 estimates of Mineral Resources and Reserves for the Costerfield and Björkdal will be fully documented in independent Technical Reports prepared in accordance with National Instrument 43-101 (“NI 43-101”) to be filed on www.sedarplus.com and the Mandalay website www.mandalayresources.com within 45 days of this press release.
Costerfield Mineral Resource and Mineral Reserve Summary
During 2024, at Costerfield, Mandalay drilled a total of 49.4 kilometres (“km”) of exploration diamond core at a cost of $9.6 million USD. The breakdown of this significant drilling campaign is as follows:
The 12.9 km of regional testing included 8.9 km drilling on the nearby True Blue deposit located approximately 2 km north west from the current Youle workings. The Inferred Resource at True Blue increased >300% in 2024, with the quartz-stibnite lode extended along dip and strike. This lode is hosted in the Costerfield siltstone (which also hosts all other current Resources at Costerfield) and is akin to those seen in the Augusta and Cuffley orebodies mined from 2008 to 2018. Gold is also hosted within these veins, typically within the quartz.
In addition to drilling, 2,411 m of on-vein development was completed dominantly on the Shepherd ore body. Rock chip samples used in mine grade control were also included in the geological database and used in the Mineral Resources estimation process to improve Mineral Resources classification in areas accessed by development.
Drill core was logged and sampled by Costerfield geologists, who also performed mine sampling. All samples were submitted 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 site specific and externally sourced standard reference materials, duplicates and blanks with drill and face samples submitted for assay. Site specific standard reference materials were both produced and certified by ORE Research and Exploration Pty Ltd. (OREAS). OREAS is an Australian consultancy who specializes in laboratory quality control systems.
The acQuire Geoscientific Information Management (“GIM”) system was used to store and validate all geological data used for the Mineral Resource Estimate. A two-dimensional (“2D”) accumulation estimation method was used for all models. This method is considered most applicable for the narrow veins of Costerfield. The Datamine™ Studio RM platform supports 2D accumulation estimation and was used to complete the Mineral Resource Estimation. Validated drilling and mine sampling data were imported into Datamine and composited to full intersection width. Gold accumulation, antimony accumulation (accumulation = vein true width x vein grade) and vein true width were estimated into a 2D block model for each lode using ordinary kriging interpolation in zones of high data density, and inverse distance in a limited number of inferred, exploration areas. Gold and antimony grades were back-calculated using the estimated accumulated data and vein true width.
Where vein true widths are less than 1.2 m, vein grades were diluted to a minimum mining width of 1.2 m using dilution grades of zero g/t gold and zero percent antimony for host lithologies. Where vein true widths are greater than or equal to 1.2 m grades were not diluted.
Mineral Resources were reported above a cut-off of 4.3 g/t gold equivalent (“AuEq”) which was determined using Costerfield's 2024 production costs, and using a gold price of $2,500/oz, and an antimony price of $19,000/t. Cut-off grade is expressed as AuEq to allow for the inclusion and expression of the secondary metal (Sb) in terms of the primary metal (Au). AuEq is calculated using the formula AuEq = Au + (Sb x 2.39) where Sb is expressed as a percentage, and Au is in grams per tonne, both based on 1.2 m diluted grades.
Table 3: Mineral Resources at Costerfield, Inclusive of Mineral Reserves as of December 31, 2024
The Measured and Indicated categories of Mineral Resource were used to update the mine plan using predominantly a long-hole stoping mining method with cemented rock fill. A sustaining cut-off grade of 5.6 g/t AuEq was determined from Costerfield's 2024 production costs, and minimum stoping width of 1.5 m were used, with planned and unplanned dilution at zero grade for both Au and Sb. An incremental cut-off grade of 3.2 g/t AuEq was applied where incremental mining conditions were met. AuEq grade for the Mineral Reserve is calculated using commodity prices of $2,100/oz for Au, and $16,000/t Sb. AuEq is calculated using the formula AuEq= Au + (Sb x 1.58) where Sb is in % and Au is in grams per tonne. Financial viability of Proven and Probable Mineral Reserves was demonstrated at metal prices of $2,100/oz Au and $16,000/t Sb.
Table 4: Mineral Reserves at Costerfield as of December 31, 2024
The net decrease of 19,900 ounces of gold in Proven and Probable Mineral Reserves for 2024, relative to 2023, consists of the addition of 34,800 ounces of gold added by Mineral Resource conversion across the Costerfield Operation and a total of 54,800 ounces of gold depleted or sterilized from the 2023 Mineral Reserves through mining production or mining re-evaluation in 2024. The 480 tonnes of antimony net increase in Proven and Probable Mineral Reserves consists of 3,400 tonnes of antimony added by Mineral Resources conversion across the Costerfield Operation and 3,110 tonnes of antimony depleted or sterilized from the 2023 Mineral Reserves through mining production or mining re-evaluation in 2024.
Björkdal Mineral Resource and Mineral Reserve Summary
Since the completion of the year-end 2022 Mineral Resource estimate, additional drill holes were completed within the Bjorkdal mine focusing on the Eastern Extension area, Aurora and a newly discovered area called North Zone Below Marble which is a northward continuation of the Bjorkdal system. Additional drilling was also completed at the Storheden and Norrberget deposits which are approximately 1 km and 4 km respectively to the east of the Bjorkdal mine. The year-end 2024 Mineral Resource estimate incorporates the results of the new drilling information comprising 41,427 m at Bjorkdal and 16,083 m across regional targets over the two years. In addition, underground operations included 10,832 m of on-vein development during 2023 and 2024, which was mapped and sampled in detail according to the grade control protocols.
Other than the normal course updating of the mineralization wireframes to account for new drilling and sampling information, the workflow and estimation parameters used to prepare the year-end 2024 Björkdal long-term block model were largely unchanged.
The reporting cut-off grades for the Mineral Resource and Mineral Reserve statement were modified to reflect higher gold prices and more favourable exchange rates compared to previous estimates. The net effect is a significantly lower cut-off grade, which adds low-grade material to the open pit Mineral Resources. These are detailed in the notes section of the tables.
Updated operational costs and input parameters, based upon Q1 to Q3 2024 actual figures and the 2025 budget, were used in the Mineral Reserve estimation process.
The Mineral Resource estimates are presented in Table 3. The Mineral Reserve estimates are presented in Table 4.
Table 5: Bjo ̈ rkdal Mineral Resource Estimate, Inclusive of Mineral Reserves, as of December 31, 2024
Notes:
Other than the normal course updating of the underground development and stope wireframes and the re-optimisation of the Björkdal and Norrberget open pits to account for the updated resource model, the workflow and modifying factors used to prepare the year-end 2024 Björkdal Mineral Reserves were largely unchanged from those used during the previous year.
Table 6: Björkdal Mineral Reserve Estimate, as of December 31, 2024
Notes:
A total of 125,600 ounces of gold were added to Mineral Reserves at Björkdal during 2023 and 2024 at an exploration cost of US$4.2 million, not including regional exploration expenditure. The exploration cost of adding these additional Mineral Reserves was US$33.4 per ounce of gold.
Qualified Persons
All Qualified Persons listed below have read and approved the contents of this news release as it pertains to the Mineral Resource and Mineral Reserve estimates disclosed in this news release. The QPs are not aware of any mining, metallurgical, infrastructure, permitting, or other relevant factors that could materially affect their respective Mineral Reserve estimate. The QPs are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect their respective Mineral Resource estimate.
For Further Information
Frazer Bourchier
President and Chief Executive Officer
Edison Nguyen
Director, Business Valuations and IR
Contact:
647.258.9722
About Mandalay Resources Corporation
Mandalay is a Canada-based natural resource company with producing assets in Australia (the Costerfield gold-antimony mine) and Sweden (the Björkdal gold mine). The Company is focused on growing its production and reducing costs to generate significant positive cash flow. Mandalay is committed to operating safely and in an environmentally responsible manner, while fostering strong community and employee engagement.
Mandalay's mission is to create shareholder value through profitable operations and successful organic exploration at its Costerfield and Björkdal mines, while actively evaluating accretive, and non-dilutive inorganic growth opportunities. At Costerfield, the Company focuses on mining the high-grade Youle and Shepherd veins, while expanding near-mine and regional Mineral Resources & Reserves. At Björkdal, the goal is to enhance production from the Eastern Extension area and other higher-margin zones, such as the North Zone, to optimize profitability in the coming years.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable securities laws. 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 28, 2024, 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.
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