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Mandalay Resources Provides Exploration Results for the First Half of 2017

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TORONTO, July 24, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) is pleased to provide exploration updates for the first half of 2017 for two of its producing properties, Björkdal (Sweden) and Costerfield (Australia), and its Challacollo (Chile) development project.   

This press release refers to tables and figures. Accompanying tables can be found at the end of this press release, whereas the figures accompanying this release can be found in an exploration presentation posted on the Company's website that can be accessed at:

http://www.mandalayresources.com/investor-presentations/#Technical_Presentations

Dr. Mark Sander, President and CEO of Mandalay, commented, "In the first half of 2017, our exploration programs yielded excellent results, which clearly demonstrate the potential for significant near-term and long-term Mineral Reserve additions at both Björkdal and Costerfield. 

"At Björkdal, extensional drilling to the northeast and north of the mine demonstrated that the gold mineralized system extends several hundred metres beyond the current mine in those directions and is not yet closed off.  As a result, we have demonstrated the potential to increase Mineral Reserves at Lake Zone underground and West Pit at surface. We have also made significant progress in understanding the distribution and characteristics of high-grade skarn mineralization that occurs both in the open pit and underground mines. Follow-up drilling is planned.

"At Costerfield, drilling has improved the outlook for mine life extensions at different scales. At Brunswick, new holes have delivered high-grade, deep intersections that are expected to make a positive impact on the updated Mineral Resource and Reserve model anticipated in the fourth quarter. As previously reported, we anticipate the new model will significantly extend mine life based on our expectation that Brunswick will prove to be economic. As well, the potential next major new mineralized shoot after Brunswick has begun to emerge in our new drilling below the historic workings on the main Costerfield lode. These intercepts contain extraordinary gold and antimony grades scattered along a 400 metre strike length and 100 metre vertical interval. New intercepts along N-lode have also identified new splays which, as we follow them up, have the potential for incrementally adding Reserves near current underground infrastructure."

Dr. Sander concluded, "Lastly, at Challacollo, we reached a major milestone with the discovery of sufficient water to support an eventual operation.  Activities to permit and complete a production well, followed by transfer of existing water rights to the new location are underway. We now have the option to launch a project to optimize previously estimated capital and operating costs for a mine and plant at Challacollo."

Björkdal Exploration

Significant Exploration Results (Tables 1 through 4; Figures 1 through 5)

Underground Exploration

In the first half of 2017, underground diamond drilling at Björkdal extended the north-eastern limit of the Björkdal vein-system and infilled discrete areas. Intercepts from the extensional drilling demonstrate that gold mineralization extends along-strike from the defined resource for at least 200-300 metres (Figure 2 and Table 2) and mineralization remains open to the north and east. Infill drilling also increased confidence and delivered some high-grade intercepts in areas closer to the current limits of the mine (Figure 3 and Table 3).

Open Pit Exploration

Near-mine surface drilling with both core and Reverse Circulation methods during the first half of 2017 focused on extending gold mineralization in the north-western portions of the West Pit (Figure 4). This drilling intercepted many new mineralized intervals in the northern wall of the West Pit (Table 4). Results from this extensional drilling demonstrate that the mineralized vein-system in this area of the deposit extends from the current limits of the West Pit to at least 150 m further to the north. These veins are interpreted to correlate with the same vein-system mined from the underground mine, located to the east of this area.  Therefore, the Björkdal vein-system remains open to the west and north-west of the current mine footprint, presenting high-calibre extensional targets for future exploration programs at Björkdal.

In addition to successful extensional drilling of the Björkdal vein-system, significant gold intercepts were also obtained from non-veined, mineralized carbonate lenses belonging to the host-stratigraphy (the Björkdal marble unit). These mineralized carbonate lenses are strongly altered, containing abundant amphiboles (predominately actinolite), silica and chlorite with accessory pyrite, pyrrhotite and pyroxenes. This metasomatic assemblage suggests skarn-like depositional mechanisms, and represents an exciting new deposit-type both within and peripheral to the footprint of the current Björkdal mine.

Three gold-bearing, skarn-like bodies have been defined though drilling over the past six months; two in the vicinity of the underground mine and a single in the open pit mine (Figure 5). The skarnified carbonate lenses are shallow dipping, narrow, plunging bodies that are located above and adjacent to the Björkdal vein-system. Intercepts of this skarn-hosted gold-mineralization include:

  • 12.2 m (true width) at 26.99 g/t Au in hole MU7-037 (Table 2); and
  • 1 m at 10.99 g/t Au in hole MR7-002 and 8 m at 0.67 g/t (Table 4).

These results suggest that this style of mineralization presents the possibility of bulk-minable tonnages of potentially much higher gold-concentrations than the more typical Björkdal vein systems. Within the month of June, a 1,176 tonne parcel of the recently exposed West Pit skarn ore was crushed and milled with results indicating a back-calculated head-grade of 4.30 g/t Au. The recent intercepts of all significant gold-bearing skarn intercepts will be followed up as priority targets in the remainder of 2017 and 2018 exploration programs, while regional exploration models and programs will be refined to incorporate further targeting of near-surface, high-grade gold skarn and skarn-like mineralized systems in the larger Björkdal area.

Björkdal Drilling, Sampling and Assaying

During the period from January 1, 2017 to June 30, 2017, a total of 13,640 metres of exploration drilling was completed in 66 drill holes.  Drilling included 23 surface core and RC holes totalling 3,451 m and 43 underground core holes totalling 10,189 m. All drill-hole collars are surveyed, and downhole surveys are completed in order to record hole azimuth and dip variations.

All surface and underground exploration drilling has been conducted by third party contractors, with a mix of core and reverse circulation drilling using WL66, NQ2, HQ and 5½" RC sized drilling equipment (producing 50 mm, 50.5 mm and 63.5 mm diameter core respectively).

Core and RC samples are logged by Mandalay geologists on-site. Assaying of Björkdal samples was completed at CRS Minlab Oy (CRS) in Kempele, Finland and ALS in Piteå, Sweden. Whole core samples (WL66 and NQ2 size) were sent directly to the independent laboratories for sample preparation and assaying, while HQ diameter core was half-sawn at the laboratories off-site before sample preparation. Assaying was conducted utilizing the Pal1000 (CRS) and LeachWELL (ALS) cyanide leaching processes. Mandalay's rigorous QA/QC program includes the use of standard reference samples, blanks, duplicates, repeats, and internal laboratory quality assurance procedures. More details on the drilling, logging, sampling, and assaying procedures are contained in the Technical Report "Mandalay Resources Corporation Technical Report on the Björkdal Gold Mine, Sweden" filed on SEDAR (www.sedar.com) on January 27, 2017.

Costerfield Exploration

Significant Exploration Results (Tables 5 through 8; Figures 6 through 12)

Brunswick
  
Following structural analysis of Brunswick mineralization, the Company conducted infill drilling within the Penguin to Kiwi (PK) panel of the Brunswick lode (Table 6 and Figure 7). Further confidence of grade continuity was gained through this drilling, with high-grade intercepts including 24.4 g/t Au and 6.1% Sb over a vein width of 2.01 m in BD278W2.

These results will be reflected in a resource update expected in the fourth quarter of 2017. This drilling is expected to result in an increase in Indicated Mineral Resource of the Brunswick lode.

Further drilling was undertaken with the purpose of extending Brunswick below the Kiwi Fault and to the south. Both drilling campaigns intercepted antimony and gold mineralization along the Brunswick corridor. Mineralization has now been identified approximately 280 m below historic workings and approximately 100 m below the current Inferred Mineral Resource. Below the historic B3 pit, the Brunswick line of mineralization has been identified at a depth of 225 m below surface and over a strike length of 300 m (Figure 7). Highlights of this extension drilling are:

  • 9.3 g/t Au and 2.5% Sb over a vein width of 1.56 m in BD268 below the Kiwi fault; and
  • 17.4g/t Au with 4.7% Sb over a vein width of 0.63m in BD289 within Brunswick South.

Future exploration efforts are expected to focus on extending the current Mineral Resource below the Kiwi fault and into Brunswick South, pending economic analysis.

Costerfield

A target testing campaign investigating the continuation of mineralization underneath the historic Costerfield mine workings is currently underway. The early stages of this campaign have shown great success with mineralization confirmed over a strike length of approximately 500 m and to a depth of approximately 150 m vertically below the current workings (Figure 8). The highlight of the program during the first half of 2017 is the deepest northern intercept, which contained 59.8 g/t Au and 3.2% Sb over a true vein width of 0.56 m in BC006w1 (Table 7).

N Lode Upper

Structural analysis of the mineralized corridor known as N Lode has led to the recognition of a previously untested prospective zone near to surface. The first drill hole to test this area has confirmed the presence of an up-dip continuity to the enriched northern portion of N Lode. The proximity of this mineralization to established underground development makes this find an important focus for near future delineation drilling (Table 8 and Figure 9).

Alison South

Testing of the upper portion of mineralization over the Cuffley Deposit has returned high-grade gold results within two veins in an offset, up-dip continuation of the Cuffley Deposit named Alison South. The highlight of this drilling was an intercept containing 71.1 g/t Au and 0.5% Sb over a true vein width of 0.35 m in AD168 (Table 8 and Figure 10).

K Lode

A high-grade portion of K Lode was discovered through the opportunistic drilling program (Table 8 and Figure 11). This vein has already been accessed through mining on an intersecting portion of N Lode which makes this a potential low-cost mining source in the near future.

Augusta East

A drilling campaign investigating the possibility of an eastern repetition of the Augusta and Cuffley line of mineralization is currently underway. Gold has been located within a near-surface, sub-vertical vein set in the first hole to be drilled on this target (Figure 12). Although the grade of these intercepts are not potentially economic, they are characteristic of the periphery of orebodies in the district. Follow-up drilling is planned.

Costerfield Drilling, Sampling, and Assaying

During the first half of 2017, Mandalay drilled 18,489 m of diamond core at its Costerfield gold-antimony mine (Table 5). 5,520 m was dedicated to increasing immediate mine life through infill and extension of the Brunswick resource and through opportunistic drilling projects on K Lode, N Lode and Alison South. 12,969 m was devoted to regional exploration, with the drill testing of the Costerfield Mine extension, Augusta East and Brunswick line of lode extension. In addition, the Company completed 1,652 m of on-vein operating development and associated sampling of N Lode, Cuffley Lode, New Vein, Bob lode and associated splays.

Drill core was logged and sampled by Costerfield geologists, who also mapped and sampled the development advances. All samples were sent to Onsite Laboratory 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. (see Technical Report entitled "Costerfield Operation, Victoria, Australia NI 43-101 Report", filed on SEDAR (www.sedar.com) March 31, 2017, which contains a complete description of drilling, sampling, and assaying procedures).

Challacollo Exploration

Four holes were drilled at Challocollo during the first half of 2017 to explore for water, a critical requirement for further project development. A total of 416.5 metres was drilled, with all four holes encountering promising quantities of water. Drill hole locations are provided in Figure 13, with pump test results in Table 9.

Qualified Person:

Chris Gregory, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Member of the Australian Institute of Geoscientists (AIG), and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information provided on all the Company's properties contained in this release.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden 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, the Americas and Europe 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 expected exploration results and increases to resources and reserves. 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 31, 2017, 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.

Accompanying Drill Summary Tables:

Table 1: Björkdal H1 2017 drilling summary

CATEGORY Metres No. of Holes   AREA Metres No. of Holes
Infill 5,622 27   Underground Main and Central Zone 5,421 25
Extension 8,018 39   Underground Lake Zone North 4,768 18
Target Test 0     Open Pit 3,451 23
  13,640 66     13,640 66

Table 2: Björkdal underground extensional drilling results

Significant new underground core-drilling intercepts from extensional drilling. Note: only intercepts displayed with Au grade greater than resource cut-off grade (i.e. greater than underground resource cut-off grade once diluted to minimum mining width of 3 metres). Drill holes labelled with italics and "*" are skarn-hosted intercepts.

 

Hole ID
Hole
Completion
Date
Total
Hole
Depth
(m)
Intercept
Easting
(Mine Grid)
Intercept
Northing
(Mine Grid)
Intercept
RL
(Mine Grid)
Drilled
Width
(m)
Intercept
Angle (˚)
True
Width
(m)
Au
Grade
(g/t)
MU6-056 08/01/2017 425.8 1787.498 1413.9 -376.732 1 53 0.76 6.62
MU6-056     1839.244 1381.508 -417.335 1.35 46 0.93 3.25
MU6-056     1932.742 1312.574 -495.203 0.4 65 0.34 12.90
MU6-056     1939.954 1306.791 -501.348 0.5 66 0.43 19.90
MU6-056     1947.495 1300.68 -507.79 0.5 68 0.44 6.66
MU6-056     1977.948 1275.375 -534.029 0.9 28 0.37 10.90
MU6-056     1981.479 1272.401 -537.064 0.35 54 0.25 75.20
MU6-056     1987.25 1267.53 -542.006 1 N/A   2.99
MU6-062B 19/11/2016 360 1741.766 1362.736 -397.62 1 N/A   7.02
MU6-062B     1752.195 1471.121 -455.173 0.65 47 0.43 29.60
MU6-062B     1762.741 1565.771 -503.546 1 N/A   20.20
MU6-063 05/11/2016 368.85 1741.826 1331.859 -376.674 0.8 40 0.47 12.45
MU6-063     1757.374 1384.879 -398.062 4.5 65 4.05 4.69
MU6-064 02/12/2016 371.3 1827.702 1523.897 -493.954 2 N/A   3.00
MU6-064     1839.071 1549.513 -508.003 1.1 N/A   2.49
MU6-066 20/12/2016 299.9 1769.494 1343.963 -375.715 0.45 55 0.33 16.30
MU6-066     1776.555 1340.798 -378.272 0.45 65 0.38 7.82
MU6-066     1845.415 1308.012 -404.855 1.1 N/A   2.92
MU6-066     1983.533 1254.474 -459.286 0.4 N/A   6.54
MU6-066     1997.045 1249.595 -464.549 0.5 59 0.40 25.20
MU6-067 14/12/2016 289.8 1788.086 1328.791 -377.312 0.7 67 0.62 114.00
MU6-067     1879.828 1263.105 -394.558 1 N/A   114.00
MU6-067     1957.741 1202.092 -411.012 0.35 60 0.27 10.10
MU6-068 05/01/2017 334 1811.246 1375.92 -407.466 1 N/A   3.72
MU6-068     1895.604 1246.547 -468.29 0.3 62 0.24 45.20
MU6-068     1898.868 1240.906 -470.775 0.85 68 0.75 6.29
MU6-068     1907.14 1226.295 -477.191 0.4 69 0.35 38.00
MU6-068     1909.549 1221.967 -479.079 0.8 58 0.64 4.14
MU6-069 29/11/2016 311.8 1718.824 1506.92 -433.676 0.6 51 0.43 6.73
MU6-069     1716.168 1523.545 -443.366 0.45 73 0.41 22.60
MU6-069     1716.589 1530.003 -445.899 3.45 68 3.17 16.16
MU6-069     1723.273 1607.883 -474.993 0.9 N/A   6.38
MU6-070 12/12/2016 340.4 1714.006 1374.881 -381.108 7 N/A   7.99
MU6-070     1720.978 1437.457 -424.775 0.25 69 0.21 18.70
MU6-070     1741.021 1564.173 -502.624 0.85 35 0.44 19.80
MU6-070     1744.442 1581.601 -512.3 1 N/A   42.80
MU6-070     1754.051 1627.992 -537.043 2.1 79 2.05 3.37
MU6-071 21/12/2016 350.3 1739.422 1439.671 -413.75 0.75 N/A   6.24
MU6-071     1750.379 1467.493 -426.922 0.4 31 0.15 21.60
MU6-072 18/11/2016 599.5 1430.577 1675.934 -446.524 0.6 42 0.35 17.85
MU6-072     1437.989 1698.592 -460.826 0.4 47 0.25 18.45
MU6-072     1497.714 1854.884 -550.758 2.55 32 1.30 1.94
MU6-072     1506.72 1875.128 -561.095 0.35 33 0.14 25.30
MU7-001 14/01/2017 377.6 1824.955 1383.995 -414.309 1.75 45 1.2 2.05
MU7-001     1832.121 1378.609 -418.685 0.9 53 0.7 8.61
MU7-001     1842.647 1370.509 -425.1 1.6 N/A   7.93
MU7-001     1896.033 1326.777 -456.425 1 57 0.8 3.04
MU7-001     1939.963 1287.573 -480.587 0.3 71 0.26 30.90
MU7-001     1968.374 1260.845 -495.396 0.25 54 0.16 93.20
MU7-001     1977.574 1251.836 -500.147 7.1 81 7 2.02
MU7-001     1987.39 1241.938 -505.264 5.1 26 2.18 1.66
MU7-001     2012.844 1214.602 -518.928 3.05 77 2.96 7.92
MU7-002 19/01/2017 270.01 1866.588 1223.837 -349.876 0.5 45 0.31 20.60
MU7-002     1864.349 1266.938 -370.305 1.2 N/A   5.57
MU7-002     1862.518 1306.287 -389.282 1.35 60 1.14 2.90
MU7-002     1860.959 1351.482 -411.306 0.85 67 0.76 3.93
MU7-002     1859.667 1424.56 -447.305 2 53 1.56 1.79
MU7-030 09/06/2017 251.8 1386.102 1714.776 -455.691 6.3 28 2.9 18.01
MU7-031 31/05/2017 265.7 1397.277 1708.159 -437.563 5.4 39 3.35 27.88
MU7-031     1407.144 1733.875 -446.951 0.8 57 0.64 4.59
MU7-031     1446.028 1828.25 -478.483 0.5 41 0.28 9.64
MU7-033 04/05/2017 291 1519.263 1586.389 -421.277 3.8 25 1.55 2.24
MU7-033     1519.715 1601.397 -427.358 12.8 54 10.32 21.70
MU7-033     1520.445 1622.041 -435.825 3.45 40 2.17 1.42
MU7-034 17/05/2017 389 1520.129 1588.872 -425.564 3.05 26 1.28 10.547
MU7-034     1533.653 1700.021 -511.05 0.7 46 0.46 7.98
MU7-034     1536.174 1719.395 -525.751 0.4 53 0.28 10.3
MU7-034     1559.817 1884.95 -648.916 1 81 0.98 4.66
MU7-035 01/06/2017 375 1522.302 1593.006 -430.086 0.7 21 0.19 18.30
MU7-035     1530.44 1626.838 -460.095 1 25 0.37 9.13
MU7-035     1539.078 1661.131 -490.249 0.95 31 0.43 9.00
MU7-035     1551.922 1708.887 -531.696 1 21 0.30 13.50
MU7-035*     1571.396 1775.828 -589.123 1.15 31 0.54 6.13
MU7-035*     1577.136 1794.894 -605.333 1 N/A   2.54
MU7-035*     1590.231 1837.95 -641.92 3 N/A   2.47
MU7-036 20/05/2017 350.8 1580.338 1632.394 -498.678 2.75 42 1.79 1.73
MU7-036     1574.824 1672.071 -528.974 0.8 52 0.59 26.85
MU7-037 28/04/2017 217.4 1606.82 1537.132 -416.557 0.6 67 0.53 5.59
MU7-037*     1611.089 1611.888 -451.9 1 25 0.37 6.60
MU7-037*     1612.087 1629.067 -459.955 29 25 12.20 26.99
MU7-038 07/05/2017 343.8 1626.061 1642.152 -516.151 2.45 44 1.66 5.29
MU7-038     1629.399 1661.203 -531.833 11.75 50 8.96 2.29

Table 3: Björkdal underground infill drilling results

Significant new underground core-drilling intercepts from infill drilling. Note: Only intercepts included with Au grade that is greater than resource cut-off grade (i.e. greater than underground resource cut-off grade once diluted to minimum mining width of 3 metres).

 

Hole ID
Hole
Completion
Date
Total
Hole
Depth
(m)
Intercept
Easting
(Mine Grid)
Intercept
Northing
(Mine Grid)
Intercept
RL
(Mine Grid)
Drilled
Width
(m)
Intercept
Angle (˚)
True
Width
(m)
Au
Grade
(g/t)
MU7-004 30/01/2017 335.1 1846.703 1179.6 -400.478 1 N/A   2.55
MU7-005 08/02/2017 376 1896.943 1194.468 -351.859 0.35 57 0.26 10.6
MU7-005     1975.912 1150.358 -377.229 0.65 51 0.47 7.24
MU7-005     1986.196 1144.33 -380.644 1.35 71 1.26 2.28
MU7-005     2023.949 1121.674 -393.32 1 N/A   634.00
MU7-005     2121.92 1058.502 -428.071 3.1 50 2.33 5.72
MU7-007 23/02/2017 271.6 1898.314 1195.12 -353.543 0.3 54 0.21 738
MU7-008 06/02/2017 301.25 1894.748 1156.804 -413.354 0.4 26 0.12 29.9
MU7-009 16/02/2017 252 1813.792 1376.136 -421.646 1.5 50 1.12 204.88
MU7-011 20/02/2017 270 1955.253 1099.576 -340.695 0.5 55 0.37 132.00
MU7-011     1980.936 1085.876 -360.705 0.95 45 0.63 21.55
MU7-011     1998.354 1075.954 -374.704 0.65 51 0.47 31.60
MU7-011     2021.441 1062.039 -393.738 0.65 61 0.54 77.20
MU7-011     2033.239 1054.581 -403.66 8.9 51 6.88 2.10
MU7-012 23/02/2017 150.4 2048.184 1016.739 -388.607 0.65 61 0.54 47.4
MU7-012     2034.575 1024.096 -395.835 2.4 57 1.98 2.93
MU7-013 06/04/2017 291.7 1873.58 1222.569 -434.781 0.9 37 0.49 5.19
MU7-013     1865.567 1247.085 -457.392 2.6 50 1.95 4.70
MU7-015 15/04/2017 224.8 1870.76 1147.178 -385.949 0.8 39 0.45 10.1
MU7-016B 15/03/2017 290 1933.282 1262.917 -480.271 0.55 49 0.37 22.8
MU7-016B     1935.746 1260.086 -482.211 0.8 51 0.58 4.24
MU7-016B     1943.905 1250.624 -488.639 0.8 51 0.58 5.87
MU7-017 24/03/2017 311.1 1820.236 1305.575 -417.048 0.75 85 0.74 63.1
MU7-017     1824.181 1294.782 -422.031 1 N/A   8.68
MU7-017     1836.648 1259.058 -438.457 0.4 73 0.36 9.15
MU7-019 17/04/2017 176.43 1337.556 1681.1 -368.273 1.3 72 1.22 2.65
MU7-020 11/03/2017 132.2 1380.474 1671.151 -423.877 1.05 N/A   2.35
MU7-020     1378.622 1691.647 -435.882 1.10 43 0.7 4.09
MU7-020     1377.411 1705.943 -444.282 3.75 35 2.10 5.37
MU7-020     1376.9 1712.455 -448.118 0.50 67 0.44 31.20
MU7-020     1373.91 1762.628 -477.604 2.05 54 1.62 2.04
MU7-020     1373.265 1779.263 -487.368 1.45 48 1.04 11.54
MU7-021 16/03/2017 161.9 1366.773 1734.506 -491.879 2.15 44 1.45 1.81
MU7-021     1359.85 1777.309 -536.403 0.95 N/A   5.32
MU7-022 20/03/2017 161.7 1341.436 1733.652 -496.817 1.1 20 0.32 9.77
MU7-024 24/04/2017 140 1748.02 1443.057 -418.291 0.3 38 0.13 47.2
MU7-025 25/03/2017 180.22 1259.047 1651.169 -421.352 1.6 N/A   3.87
MU7-025     1236.075 1712.466 -435.007 2.75 39 1.68 4.55
MU7-026 29/03/2017 220.5 1251.417 1651.545 -431.202 1.1 72 1.03 3.79
MU7-027 03/04/2017 203.85 1270.764 1618.071 -416.621 0.65 N/A   7.24
MU7-027     1261.567 1626.647 -425.07 1.15 78 1.11 7.29

Table 4: Björkdal significant new open pit core-drilling (MP-7 series) and reverse circulation (MR-7 series) intercepts from extensional drilling

Note: only Au grade is displayed that is greater than resource cut-off grade (i.e. greater than underground resource cut-off grade once diluted to minimum mining width of 2 metres). Drill holes labelled with italics and "*" are skarn intercepts.

 

Hole ID
Hole
Completion
Date
Total
Hole
Depth
(m)
Intercept
Easting
(Mine Grid)
Intercept
Northing
(Mine Grid)
Intercept
RL
(Mine Grid)
Drilled
Width
(m)
Intercept
Angle

(˚)
True
Width
(m)
Au
Grade
(g/t)
MP7-001* 05/04/2017 334.7 1177.216 1103.243 -147.036 1 74 0.94 0.59
MP7-001*     1175.349 1071.053 -178.425 1 70 0.92 0.38
MP7-001     1174.308 1053.506 -195.348 0.8 52 0.59 3.81
MP7-001     1173.974 1048.026 -200.604 1 43 0.64 1.11
MP7-001     1163.788 923.028 -312.084 0.8 10 0.08 0.66
MP7-002 28/04/2017 207 1103.665 1091.724 -106.725 0.25 70 0.21 0.49
MP7-003 15/05/2017 123 1154.536 970.694 -158.279 4.75 55 3.85 1.04
MP7-003     1154.689 973.191 -161.073 1.25 45 0.84 0.32
MP7-003     1155.179 979.876 -168.561 0.65 70 0.59 0.80
MP7-003     1155.431 982.781 -171.822 0.3 52 0.2 4.40
MP7-003     1155.721 985.867 -175.288 4.9 33 2.62 1.58
MP7-003     1156.091 989.616 -179.5 1 18 0.25 2.35
MP7-003     1158.025 1007.084 -199.132 0.9 19 0.23 3.78
MP7-005 13/04/2017 206 1125.888 1004.607 -197.756 0.6 11 0.05 0.63
MP7-005     1126.304 1000.981 -201.318 0.4 69 0.35 54.40
MP7-006* 12/05/2017 195 1070.101 1038.092 -157.083 1.2 33 0.6 0.62
MP7-006     1071.873 1057.457 -181.513 2.75 47 1.97 1.93
MP7-007 01/05/2017 210 1030.711 1030.437 -162.227 2.15 33 1.12 4.74
MP7-007*     1027.451 1035.466 -169.758 2.5 54 1.99 0.71
MP7-007     1022.124 1043.992 -182.333 0.4 56 0.3 0.30
MP7-007     1017.632 1051.529 -193.21 0.45 43 0.26 1.84
MP7-007     1014.888 1056.301 -199.98 1 40 0.59 0.58
MP7-007     1006.864 1071.043 -220.324 0.55 29 0.21 0.57
MP7-008 23/04/2017 284 960.193 946.619 -134.539 0.3 53 0.2 0.49
MR7-001* 26/05/2017 160 1258 978.38 -139.131 8     0.67
MR7-001     1260.203 1008.328 -179.731 1     0.45
MR7-001     1260.336 1010.459 -182.505 2     0.96
MR7-001     1260.755 1017.563 -191.538 1     0.48
MR7-001     1260.9 1020.067 -194.654 1     0.40
MR7-001     1260.972 1021.327 -196.206 1     0.57
MR7-001     1261.529 1034.088 -211.594 1     0.37
MR7-002* 27/05/2017 150 1238.994 975.585 -133.403 1     10.90
MR7-002     1233.989 1013.096 -173.31 5     5.39
MR7-002     1232.394 1024.34 -185.28 2     3.15
MR7-002     1231.245 1032.197 -193.599 1     0.57
MR7-002     1228.933 1048.104 -210.048 1     0.85
MR7-003 06/06/2017 105 1116.65 938.584 -147.02 1     0.43
MR7-003     1116.271 942.496 -151.554 1     0.61
MR7-003     1115.376 953.021 -164.228 2     0.40
MR7-004 30/05/2017 110 1069.322 897.567 -124.853 1     3.11

Table 5: Costerfield H1 2017 drilling summary

CATEGORY Metres No. Holes   ZONE Metres No. Holes
Infill 3,013 16   Brunswick 12,018 60
Extension 2,507 28   Costerfield 2,063 4
New Target
Testing
12,969 58   Opportunistic (including N
Lode, Alison south and K
Lode)
3,580 33
  18,489 102   Augusta East 828 5
          18,489 102

Table 6: Brunswick lode significant intercepts

Hole ID Hole
Completion
Date
Total hole
Depth
(m)
Intercept
Easting
(Mine Grid)
Intercept
Northing
(Mine Grid)
Intercept
Elevation
(Mine Grid)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Sb
Grade
(%)
AuEq
(g/t)
Target
BD291 6/06/2017 200.8 14660 5155 1084 2.07 1.56 2.7 0.6 3.9 Brunswick South
BD274W1 20/03/2017 31.5 14678 5234 1088 1.27 0.83 6.5 3.1 13.1 Brunswick South
BD289 8/06/2017 250.7 14678 5242 1056 0.82 0.63 17.4 4.7 27.4 Brunswick South
BD272 9/03/2017 224.4 14683 5303 1070 0.93 0.72 10.7 5.8 23.0 Brunswick South
BD275 20/04/2017 326.8 14681 5303 1032 1.85 1.60 2.0 1.3 4.7 Brunswick South
BD271 28/02/2017 249.0 14698 5355 1078 1.62 1.15 7.9 2.0 12.1 Brunswick South
BD276 27/03/2017 170.1 14697 5356 1117 2.29 1.75 3.3 0.0 3.3 Brunswick South
BD277 7/04/2017 311.6 14700 5406 1028 2.30 1.48 2.5 0.1 2.6 Brunswick South
BD280 8/05/2017 458.1 14766 5714 951 0.43 0.25 9.8 3.8 17.9 PK Panel
BD282B 19/04/2017 380.3 14773 5738 959 1.63 1.29 5.4 4.5 14.9 PK Panel
BD283 30/03/2017 350.2 14781 5766 994 2.21 1.82 1.6 15.9 35.4 PK Panel
BD278W2 28/04/2017 29.4 14785 5790 967 4.82 2.01 24.4 6.1 37.4 PK Panel
BD284W2 24/05/2017 15.0 14744 5794 902 1.42 1.40 1.8 0.2 2.3 KR Panel
BD284 12/04/2017 440.9 14785 5801 945 3.47 2.23 3.9 1.1 6.1 PK Panel
BD269W3 3/03/2017 267.9 14748 5822 892 1.99 1.32 1.9 6.1 14.8 KR Panel
BD285 22/03/2017 392.9 14774 5860 937 3.07 0.79 14.7 3.1 21.4 Kiwi Fault
BD285 22/03/2017 392.9 14753 5862 915 1.22 1.00 12.4 3.4 19.6 KR Panel
BD266 16/02/2017 264.8 14811 5878 1012 2.20 1.82 10.2 3.7 18.1 Brunswick Main
BD296 11/06/2017 419.4 14759 5896 910 2.11 1.73 2.6 1.3 5.4 KR Panel
BD293 29/05/2017 410.1 14798 5906 948 1.54 0.88 2.9 0.5 3.8 PK Panel
BD273W1 12/03/2017 26.7 14763 5945 890 3.35 1.73 0.5 2.5 5.8 KR Panel
BD268 17/01/2017 395.4 14771 5955 932 2.20 1.56 9.3 2.5 14.6 KR Panel
BD297 23/06/2017 432.1 14771 5974 902 2.70 1.74 8.8 0.0 8.8 KR Panel

Note:
- Raw, undiluted assay intervals are reported that occur within diluted intervals that contain greater than 1 AuEq g/t over a minimum mining width of 1.8 m.
- True width is preliminary estimate only and may not reflect final true width used in resource estimation
- AuEq (g/t) = Au (g) + Sb (%) x (Price per 10 Sb(kg) × Sb Recovery(%))/(Price per 1 Au(g) × Au Recovery (%))

Table 7: Costerfield lode significant intercepts

Hole ID Hole
Completion
Date
Total
hole
Depth
(m)
Intercept
Easting
(Mine
Grid)
Intercept
Northing
(Mine Grid)
Intercept
Elevation
(Mine Grid)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Sb
Grade
(%)
AuEq
(g/t)
Target
BC007w1 5/06/2017 779.5 15394 6700 857 0.12 0.12 0.1 13.2 28.2 Kendal Extension
BC007w1 5/06/2017 779.5 15260 6767 805 0.32 0.09 3.4 6.0 16.3 Costerfield LQ
BC006w1 8/06/2017 250.7 15362 6979 828 1.01 0.56 59.8 3.2 66.7 Costerfield LQ

Note:
- True width is preliminary estimate only and may not reflect final true width used in resource estimation
- AuEq (g/t) = Au (g) + Sb (%) x (Price per 10 Sb(kg) × Sb Recovery(%))/(Price per 1 Au(g) × Au Recovery (%))

Table 8: Opportunistic drilling significant intercepts

Hole ID Hole
Completion
Date
Total hole
Depth
(m)
Intercept
Easting
(Mine Grid)
Intercept
Northing
(Mine Grid)
Intercept
Elevation
(Mine Grid)
Drilled
Width
(m)
True
Width
(m)
Au
Grade
(g/t)
Sb
Grade
(%)
AuEq
(g/t)
Target
KD338 15/12/2016 28.0 15309 4649 1050 0.07 0.06 12.6 11.3 36.7 K Lode
KD345 27/01/2017 31.5 15325 4665 1087 0.23 0.12 28.2 20.3 71.5 K Lode
KD340 21/12/2016 33.3 15316 4678 1075 0.43 0.40 26.1 17.4 63.2 K Lode
KD364 8/03/2017 9.5 15329 4681 1098 0.30 0.29 26.6 6.6 40.7 K Lode
KD339 19/12/2016 31.2 15307 4681 1056 0.14 0.13 22.6 9.0 41.7 K Lode
KD354 22/02/2017 35.1 15315 4686 1077 0.90 0.70 35.8 21.7 82.1 K Lode
KD356 28/02/2017 30.5 15316 4709 1072 0.71 0.40 45.6 20.9 90.2 K Lode
KD357 6/03/2017 57.1 15321 4715 1085 0.35 0.22 13.4 10.9 36.6 K Lode
KD369 7/04/2017 78.9 15299 4729 1060 0.35 0.25 24.1 11.8 49.3 K Lode
KD370 14/04/2017 84.0 15306 4744 1081 0.78 0.46 11.5 6.2 24.8 K Lode
AD168 30/01/2017 116.8 15172 4793 1014 0.36 0.35 71.1 0.5 72.1 Alison South
AD170W1 9/02/2017 80.2 15173 4810 1009 0.25 0.25 36.7 2.9 42.8 Alison South
MH407W1 5/07/2017 122.3 15344 4790 1105 0.97 0.58 4.4 7.6 20.6 N Lode Upper
MH406 27/03/2017 279.1 15376 4401 1008 0.30 0.21 18.8 13.3 47.2 N Lode Upper

Note:
- Raw, undiluted assay intervals are reported that occur within diluted intervals that contain greater than 1 AuEq g/t over a minimum mining width of 1.8 m.
- True width is preliminary estimate only and may not reflect final true width used in resource estimation
- AuEq (g/t) = Au (g) + Sb (%) x (Price per 10 Sb(kg) × Sb Recovery(%))/(Price per 1 Au(g) × Au Recovery (%))

Table 9: Challacollo pump test results

Hole Water Level
(m)
Pumping test
(l/s)
Total Length
(m)
Aquifer
LWH-01 45 14 l/s  102 Sand, gravel and clays
LWH-02 36 28 l/s 96.5 Gravel with Coarse sand, no clays
LWH-03 45 6 l/s 91.5 Gravel with Coarse sand – clays
LWH-04 57 7 l/s 126.50 Gravel with Coarse sand – clays and gypsum

 

For further information:

Mark Sander
Chief Executive Officer

Greg DiTomaso 
Investor Relations

Contact
647.260.1566

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