TORONTO, July 3, 2012 /CNW/ - Mandalay Resources Corporation ("Mandalay"
or the "Company") (TSX: MND, MND.WT) is pleased to announce the results
of the initial resource estimate for the Casa de Piedra section of its
La Quebrada copper-silver project in northern Chile, 26 kilometres
("km") east of La Serena. The initial resource estimate was prepared
by Mandalay and independently reviewed and verified; it will be fully
documented by an independent National Instrument 43-101 ("NI 43-101")
report filed under the Company's profile on www.sedar.com within 45 days of this press release and on the Mandalay website (www.mandalayresources.com).
Table 1: Initial Resource Estimate; Casa de Piedra Section of the La
Project, Effective June 30, 2012
CIM definitions were followed for Mineral Resources.
The La Quebrada Mineral Resource estimate was prepared under the
supervision of Ronald Luethe, an Idaho registered Professional
Geologist, an American Institute of Professional Geologists ("AIPG")
Certified Professional Geologist and a Qualified Person under NI
43-101; it was reviewed and verified by Michael Easdon, an Oregon
Registered Professional Geologist (No. 243), an AIPG Member
(CPG-07646), and an Independent Qualified Person under NI 43-101.
Mineral Resources are estimated using Inverse Distance Cubed
interpolation into 25m*25m*manto (as defined below) thickness blocks,
with grade estimates for each manto based only on composites from the
Inferred resource is defined by a minimum of one drill hole within a
search radius of 300 metres ("m") in the same manto.
Indicated resource is defined by at least two drill holes within a
search radius of 300 m in the same manto.
Mineral Resources are reported at a cut-off grade and thickness of 0.3%
Cu over 3 m.
A bulk density of 2.71 t/m3 was used.
Numbers may not add due to rounding.
Brad Mills, CEO of Mandalay, commented, "Our expectations for the size
and tenor of the Casa de Piedra portion of the La Quebrada project have
been confirmed by this initial resource estimate. The high proportion
of Indicated Resource relative to Inferred is due to excellent
continuity of mineralization within the mineralized horizons. This
significant resource occurs on just four square kilometres of our 7,418
hectare property. We believe that there is substantial exploration
potential remaining on our property and in the district in general.
Our next phase of district exploration will focus on better defining
the previously announced, higher-grade Leoncita discovery (see Mandalay
press release dated August 9, 2011) as well as extensions of the Casa
de Piedra deposit."
Mr. Mills further commented, "Our next steps on the Casa de Piedra
deposit will be to:
perform initial metallurgical tests, basic mine planning and design,
preliminary capital estimates and cut-off studies for both open pit and
underground mining to better understand the economic potential of the
Casa de Piedra deposit in preparation for completing a Preliminary
Economic Assessment; and
explore possibilities of combining the project with adjacent land
owners, thereby consolidating the district into a single project that
could support a larger, more cost-efficient mine and plant."
La Quebrada Exploration and Initial Resource Estimate
Geological mapping, trenching and drilling have defined three
superposed, nearly horizontal, bedded copper-silver deposits ("mantos")
at the Casa de Piedra portion of the La Quebrada project. These mantos
each range in thickness from 1 to 12 m, with intervening intervals of
thin, discontinuous mineralization. Mineralization in the mantos
consists primarily of finely disseminated bornite and chalcopyrite
hosted by calcareous sedimentary rocks, along with traces of
chalcocite, digenite, covellite, tennantite and galena. Rare, thin
barite-quartz veins with minor bornite and chalcopyrite occur in the
overlying basalts and conglomerates as well as in the underlying
A total of 41 core holes for 7,430 m were drilled by Mandalay during
2011 and 2012 in the Casa de Piedra target; 17 holes for 2,932 m in
2011 (see Mandalay press release dated August 9, 2011) and 26 holes for
4,498 m in 2012. A continuous sample of HQTW-sized core was extracted
from each hole. All core was logged by Mandalay geologists, who
selected the favourable sedimentary sections for sawing and analysis by
the independent ALS laboratory in La Serena. Half of the sawn core was
crushed and pulped for analysis and the other half was returned to
Mandalay for archiving. Pulps were analyzed for copper and silver by
high-grade aqua regia digestion with ICP-AES finish. A program of
Mandalay blanks and ALS laboratory standards and duplicates was
implemented for quality control with 10% of pulps sent to Activation
Labs in La Serena for check assay.
Resources were estimated by Mandalay using Vulcan v.8.1 software.
Wireframe solids were manually generated for each manto based on drill
hole assays constrained vertically by rock type and horizontally by
interpreted limits of the respective mantos. Within each manto, assays
were composited to a length equal to the apparent manto thickness then
corrected to true manto thickness for each drill hole intercept.
Subsequently, blocks measuring 25 m by 25 m horizontally by true manto
thickness vertically were generated within each manto wireframe
domain. Grades were estimated for blocks within each manto by the
inverse distance cubed method, using only drill intercepts from within
the manually defined limits for each manto. Based on a variogram model
of drill hole composites, a search radius of 300 m was selected for the
interpolation. Resources were classified as Indicated if two or more
composites were encountered within the search radius and Inferred if
only one composite was encountered. Resources were estimated for
various copper cutoff grades, using a minimum 3 m diluted thickness
assuming zero grade for diluting material. Density for tonnage
conversion was assumed to be 2.71 t/m3 based on multiple specific gravity measurements of drill core.
Ronald Luethe, General Manager of Mandalay Chile Ltda. is an Idaho
registered Professional Geologist and an AIPG Certified Professional
Geologist. As a Qualified Person defined by NI 43-101, he supervised
the collection and interpretation of the technical and scientific
information on La Quebrada; he has reviewed and approved the technical
and scientific information contained in this press release.
Michael Easdon, consultant, is an Oregon Registered Professional
Geologist (No. 243) and AIPG Member (CPG-07646) in good standing. As
an Independent Qualified Person defined by NI 43-101, he reviewed and
verified the data and mineral resource estimate on La Quebrada; he has
reviewed and approved the technical information contained in this press
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.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, including statements regarding
future exploration activities at the Company's La Quebrada project and
future exploration activities at the Casa de Piedra deposit. 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 30, 2012, a
copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any current or future
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
SOURCE Mandalay Resources Corporation
For further information:
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