Mandalay Resources Drills Multiple High-Grade Intercepts Beneath Historic Costerfield Mine, Victoria, Australia

TORONTO, April 03, 2018 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) is pleased to provide results from recent diamond drilling at its Costerfield Operations in Victoria, Australia.

This press release refers to tables and figures. The accompanying Table 2 can be found at the end of this press release, whereas the accompanying Figures 1, 2 and 3 can be found in an exploration presentation posted on the Company's website at the following address: http://www.mandalayresources.com/investor-presentations/#Technical_Presentations

Mandalay's recent and ongoing exploration drilling campaign on the property targets projections of veins beneath the historic Kendall and Costerfield mine, which was the largest historical producer in the district from 1864 to 1938 (Figure 1). Resulting intercepts demonstrate gold-antimony mineralization along a strike length of approximately 600 m and a dip length of approximately 200 m (Figures 2 and 3).

Highlights from drilling include the following six intercepts, which delineate a high-grade core of mineralization along the Costerfield Deeps projection measuring approximately 400 in strike by 150 m down-dip. The Company has named this emerging shoot the Youle vein after one of the three original prospectors in the district.

Table 1: Highlights of drill intercepts on the Youle Vein

*Using metal prices of $1,400/oz Au and $10,000/t Sb
- AuEq(g/t) = Au(g) + Sb(%) x (Price per 10 Sb(kg) × Sb Recovery(%) )/(Price per 1 Au(g) × Au Recovery (%))

Mark Sander, President and Chief Executive Officer of Mandalay commented, "We are encouraged by the high-grade cluster of drill intercepts defining the core of the emerging Youle vein beneath the historic Costerfield mine. This setting is similar to the locations of the Augusta Lodes, the Cuffley Lode and the Brunswick Lode beneath other historic mines of the district, all of which Mandalay has converted to Mineral Reserves and has either mined or is preparing to mine.

"The drill hole intercepts of Youle reported in this press release contain some extraordinary Gold and antimony grades that dilute to potentially minable gold equivalent grades over our minimum mining width of 1.8 m. As well, the strike length (400-600 m) and depth extent (150-200 m) of the intercepts are entirely consistent with the dimensions of orebodies we have found beneath the other historic mines in the district that have proved very profitable for Mandalay."   

Mr. Sander concluded, "There is room to grow this discovery along strike and down dip. The fact that Youle lies just several hundred metres to one kilometre from the Brunswick Lode, to which capital development access will be created later this quarter, suggests that there is potential to access the shoot quickly and for limited development capital. We plan to add additional surface rigs to the Youle drilling program to expand and infill high-grade mineralization as quickly as possible, with the goal of adding significantly to the Company's Mineral Resources and Reserves by the end of 2018."

Youle Drill Campaign History

Mandalay has drilled 27 diamond holes into the historic Costerfield mine area in three campaigns (2011, 2014 and 2017-2018). The Company reported significant early results from the Youle drill program in July, 2017 (see Mandalay July 24, 2017, press release).  Drilling accelerated in late 2017 after it was clear that Mandalay would commit to developing the Brunswick Lode, which will halve the distance to access Youle from then-limits of mining at Cuffley, and after significant advances were made in the understanding of the local mineralization. This program continued into 2018 with new results reported here leading to preliminary interpretation of Youle mineralization as a downward offset of the historically mined Costerfield Lode (Figures 2 and 3).

Drilling and Assaying

Diamond drill core was logged and sampled by Costerfield geologists. 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 March 29, 2018, Technical Report entitled "Costerfield Operation, Victoria, Australia NI 43-101 Report", available on SEDAR (www.sedar.com), which contains a complete description of drilling, sampling, and assaying procedures.)

Table 2: Significant Drill Intercepts at Youle

Notes:
* Inclusive of other BC011 intercept.
- Using metal prices of $1,400/oz Au and $10,000/t Sb
- True width is preliminary estimate only and may not reflect final true width used in resource
- AuEq(g/t) = Au(g) + Sb(%) x (Price per 10 Sb(kg) × Sb Recovery(%) )/(Price per 1 Au(g) × Au Recovery (%))

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 in this release.

For Further Information:

Mark Sander
President and Chief Executive Officer

Greg DiTomaso
Director of Investor Relations

Contact: 647.260.1566

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development 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. 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 29, 2018, 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.