TORONTO, January 7, 2013 /PRNewswire/ --Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) is pleased to provide drilling results from its 100%-owned Costerfield gold-antimony mine in Victoria, Australia. Results presented here were acquired between the cutoff date for the Company's previous exploration update for Costerfield on July 9, 2012 and December 31, 2012.
Brad Mills, CEO of Mandalay, commented, "We continue to achieve significant exploration success at Costerfield. In extending the drilled areas of high-grade gold and antimony mineralization in the N-Lode to the north and Cuffley to the south, we have not only demonstrated the potential for a larger resource than previously estimated, but also shown at least 300 m of strike length overlap of the two veins. This new geometry requires careful reconsideration of capital development and mine design for Costerfield, which we expect will ultimately support significant improvements in the amount, timing, and rate of mill feed relative to previous concepts. Given this rapidly changing picture, we have postponed completion of the Preliminary Economic Analysis on the Cuffley project. We will incorporate all of the currently reported drilling, plus further infill and extension drilling planned on Cuffley over the next two quarters, into a capital development plan and decision by mid-year 2013, accompanied by a determination of the optimum mining and processing rate."
Costerfield drilling, sampling, and assaying
During the second half of 2012, Mandalay drilled 11,712 m in 50 holes for a total investment of approximately US$2.3 million. In addition, the Company completed 2,726 m of on-vein operating development and associated sampling of the E-, W- and N-Lodes in the Augusta mine.
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.
Source: Mandalay Resources Corporation