Mandalay Resources discovers new gold domain at Björkdal, Sweden

Mandalay Resources Corp. [TSX: MND; OTCQB: MNDJF] provided an update on near mine exploration success at its Björkdal operation in Sweden, highlighting the discovery of North Zone Below Marble – a new underground mineral domain 200 metres north of the current operations.

New Drilling Highlights – North Zone Below Marble Discovery: Identified 18 interpreted veins over a 400-metre strike length and 250 metres in height, located approximately 200 m from current development.

A maiden Mineral Resource estimate expected in Mandalay’s year-end update (to be released February 2025), has the potential to add multiple years of mine life.

Key intercepts include: 178.9 g/t gold over 1.15 metres (Estimated True Width “ETW” 0.94 m) and 39.6 g/t gold over 3.90 m (ETW 2.76 m) in MU24-010 and 69.4 g/t gold over 0.80 m (ETW 0.69 m) in MU24-024.

Main Zone Infill Drilling – Continued success in Eastern Extension with intercepts: 115.8 g/t gold over 1.85 metres (ETW 1.60 m) in MU24-018 and 43.0 g/t gold over 1.55 metres (ETW 1.34 m) in MU24-020.

Aurora Zone Extension – Successful testing of a 200 m strike extension identified 3.4 g/t gold over 7.40 metres (ETW 3.70 m) in MU24-004 and 3.9 g/t gold over 2.70 metres (ETW 1.70 m) in MU24-001.

Chris Davis, VP of Exploration and Operational Geology, commented: “Björkdal’s near-mine exploration primarily targets higher margin resources. The newly discovered North Zone Below Marble exhibits consistent, high-grade veining approximately 200 metres north of the current underground mine. The veining architecture is similar to the Main Zone, known for its consistently higher-grade ore. This discovery remains open at depth and along strike.

“Additionally, infill drilling in the Eastern Extension of the Main Zone has continued to demonstrate consistent veining and gold endowment through the zone. The Main Zone remains unbound and further extension is expected as appropriate drill platforms become available as mining progresses into the area.

“Lastly, exploration in the larger Aurora Zone has successfully identified wide gold-bearing veins at depth and to the east, approximately 180 metres along strike of current mining operations. These intercepts reinforce Aurora’s potential for extended delivery of bulk tonnage.”

Near mine exploration through 2024 has focused on three extension areas of the Björkdal deposit. 2023 exploration focused on veining to the north of Aurora above the marble horizon however with some keen incites from Björkdal geologists, the focus moved to below marble where, with targeting success, a significant portion of drilling through 2024 has continued.

Further to the south and along the eastern flank of the mine, the eastern extension of Main Zone has been a major source of exploration success and Reserve growth over the past years. In 2024, drilling in this area continued with an infill program targeting previously identified Inferred resources.

Additionally, and as appropriate drilling horizons became available, drilling continued to test the extensions of Aurora to the east and at depth.

North Zone Below Marble: Since late 2023 a total of 14 holes have been drilled from underground workings to the northwest intercepting a series of quartz veins. We are very excited that these veins are interpreted to be largely continuous through the tested areas and, in many instances, exhibit visible gold.

Within the 14 holes drilled, a total of 193 significant sample composites have been assayed across 18 veins currently interpreted. In addition to these stated drilling highlights, this program has also produced 43.9 g/t gold over a length of 1.10 metres (ETW 0.71 m in MU24-006, 6.1 g/t gold over a length of 3.85 metres (ETW 3.62 m in MU24-008 and 42.9 g/t gold over 0.80 metres (ETW 0.69 m in MU24-024.

Main Zone Infill Drilling (part of Eastern Extension): The Björkdal deposit is split into a number of domains based on mineralisation characteristics. Main Zone has been a consistent source of higher-grade ore since underground production commenced in 2008. Veining within the domain terminates at its upper extent at the Björkdal shear however it is open down plunge to the east. Since 2021, Main Zone has been explored and extended to the east through a series of drilling campaigns. In 2024, an infill drilling program was executed targeting the Inferred resource discovered in 2023. The drilling confirmed gold bearing veins that are typical of the Main Zone with encouraging assay results returned. Some highlights, additional to the previously stated, are 16.8 g/t gold over a length of 3.1 metres (ETW 0.8 m in MU24-018 and 59.3 g/t gold over a length of 0.40 m (ETW 0.35 m in MU24-022.

Due to the eastward plunge of Main Zone and the positioning of mine development, the further testing of veining becomes difficult with less desirable angles of intercept when targeting above 250 metres from development, therefore further extension drilling awaits mine development progression and dedicated drilling positions. The deposit however does not show signs of lessening grade and it is still open down plunge to the east.

Since production began from Aurora in 2018, the Aurora domain has been a significant source of bulk tonnage for Björkdal with some stopes extending to over 10 metres in width.

The 2024 drilling campaign looked to extend Aurora mineralization to the east. This program was successful in finding eastward continuation approximately 200 metres from current development. Two intercepts standout as significant grades within this area and are likely to be the continuation of Aurora mineralization. These are 3.4 g/t gold over 7.40 metres (ETW 3.70 m) in MU24-004 and 3.9 g/t gold over 2.70 m (ETW 1.70 m) in MU24-001.

Consistent with Aurora, the veining is of greater width then other domains within Björkdal and exhibits free gold within quartz. In general, however there is a lower amount of veining surrounding the Aurora intercepts at this point. Continued drilling will look to infill and further extend Aurora to the east.

In 2025 Mandalay will continue to explore both the underground northern and eastern extensions of the Björkdal deposit into these areas of high potential as appropriate drill horizons become available. This near mine exploration will be accompanied by further surface drilling as Mandalay builds its knowledge around the exciting and expanding Storheden and Norrberget deposits that have the potential to be significant additions to Björkdal’s future.

At Björkdal, the Company will aim to increase production from the Aurora Zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.