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$MANDALAY RESOURCES CORPORATION DISCOVERS NEW GOLD
RICH STRUCTURAL DOMAIN BELOW THE YOULE MINE

Newly-discovered Shepherd Zone contains coarse visible gold in two major
veining horizons
TORONTO, ON, April 26, 2021 –

https://mandalayresources.com/news/mandalay-resources-corporation-discovers-new-gold-rich-structural-domain-below-the-youle-mine-1/


https://www.mandalayresources.com

Mandalay Resources Corporation ("Mandalay" or the
"Company") (TSX: MND, OTCQB: MNDJF) is pleased to provide preliminary details on the newlydiscovered structural domain below the Youle deposit named the Shepherd Zone at its
Costerfield Operation (Victoria, Australia), containing coarse visible gold in two major veining
horizons.
Drilling highlights:
Eastern Veining

• 23.6 g/t gold over true width of 6.27 m in BC187; and

• 426.7 g/t gold over a true width of 0.77 m in BC193
Western Veining

• 231.0 g/t gold over a true width of 0.18 m in BC187; and

• 460.5 g/t gold over a true width of 0.11 m in BC176 (previously reported)

Note: Further intercept details including a breakdown of the aggregated 6.27m intercept in BC187 can be found
in Table 1 in the Appendix to this document.
Dominic Duffy, President and CEO of Mandalay, commented: “Follow-up drilling on the recently
released Youle depth discovery has yielded extremely exciting results, which verified the grade
and continuity of the initial discovery, and also intercepted further significant-grade veining just
below the currently planned depth extent of Youle development.”
Mr. Duffy continued, “The orientation of the new veins is east dipping and due to the location
of Youle’s access development, this target although anticipated, had not been able to be
adequately tested until now from newly developed drilling platforms to the east of Youle.”
Mr. Duffy continued, “This discovery could mark yet another step change for Costerfield, which
is already one of the world’s highest-grade producing gold mines with a Proven and Probable
Mineral Reserves grade of 12.8 g/t gold and 3.5% antimony. With this discovery, we see that
the endowment of gold increases within the diffuse fracture network, and the system continues
to grade towards comparable veining at the nearby, word-class Fosterville deposit.”
Mr. Duffy continued, “In light of these results, we are accelerating our underground drilling to
expedite our understanding of this veining along strike and at depth. Our mine engineering
team has accessed additional underground drilling platforms within the Youle infrastructure,
which will allow us to increase the number of underground drill rigs in the coming months.”
Mr Duffy concluded, “Alongside this exploration release, a video has been prepared by Mr. Chris
Davis, Vice President of Operational Geology and Exploration, to further explain the information
in this release. The video can be found on Mandalay’s website or by clicking here.”
A New Structural Domain – Shepherd Zone
In January 2021, an initial step-out hole intercepted what the Company now refers to as the
Western Veining within the Shepherd Zone. This initial intercept in BC176 (0.11 m @ 460.5 g/t
gold) was a subvertical to east dipping quartz vein. Follow-up drilling was undertaken, however,
due to its orientation the vein could not be properly targeted until another underground drilling
platform was developed in March (Figure 1). BC187 was the first hole drilled from this new
footwall location and, while it confirmed the targeted Western Vein (0.18m @ 231.0 g/t gold),
it also intercepted a parallel swarm of veins proximal and adjacent to the Youle orebody. This
new horizon currently consists of 5 major quartz veins, all exhibiting coarse gold with intense
sulphide alteration surrounding the veins. The composite grade of this veining is 23.6 g/t gold
over a true width of 6.27 m.
The presence and orientation of this veining is an exciting discovery that confirms Mandalay’s
targeting strategy, which was updated following completion of the 2019 Costerfield Deeps
drilling. This ambitious program completed a 1.7 km drillhole (CD001) that swept underneath
the Youle orebody, with the objective of developing a better understanding of the relationship
between geological structure and mineralization at depth. Detailed geochemical analysis and
mineralogical speciation of this drill hole identified a large hydrothermal zone at a vertical depth
of ~900 m (300RL). Structurally this system is interpreted to be the feeder zone to the new
discovery and the Youle orebody. This updated interpretation directly led to the new discovery,
and with this understanding the Company can infer an additional 300 m depth potential to this
find.