Metals miner Mandalay Resources Corp (CVE:MND) says the discovery of the high-grade Youle deposit at its Australian Costerfield mine has 'revitalized' the asset, as it updated its resources and reserves for the property for 2018.
The update includes the Youle Lode and in the higher confidence measured and indicated category, contained gold increased by around 34%, and contained antimony increased by 13%.
Mandalay's gold reserve grade increased by 46%.
"We are pleased to have added to the reserves and resources at Costerfield. Our exploration efforts in 2018 more than replaced depletion from production last year, boosted the reserve grade, and extended the mine life, while building a pipeline of mineral resources that we will be working to convert to mineral reserves in 2019," said Dominic Duffy, the president and CEO of Mandalay.
"Most importantly, our exploration in 2018 resulted in the inclusion of the high-grade Youle lode to mineral reserves. At Youle, we added 94,282 ounces of gold and 7,042 tonnes of antimony to our mineral reserves, at grades of 11.2 g/t Au (gold) and 2.7% Sb (antimony), respectively.
"We also added (inclusive of mineral reserves) 130,000 ounces of gold and 9,700 tonnes of antimony to our measured and indicated mineral resources at grades of 22.1 g/t Au and 5.2% Sb, respectively."
Duffy pointed out that the Youle deposit had significant potential for Mandalay in the coming years due to its high grades, as the Costerfield operation's performance is largely grade-driven.
"We envision bringing Youle into production by year-end 2019. We began developing toward Youle from the Brunswick lode workings in the second quarter of 2018 and are on track to reach the lode toward the end of the second quarter of 2019. We expect to initiate on-vein development following dewatering of the vein, which is expected to take several months."
The company CEO added that Mandalay expects to add further mineral reserves over the course of 2019 as drilling continues to infill and extend to the newly established Youle mineral resources.
"We will also continue to follow up on a high-potential inventory of exploration targets peripheral to Youle. Looking ahead, we will be using this new technical report and the substantial geological understanding gained from 2018 exploration as the basis for our three-year guidance which the company expects to release later this month."
Mandalay shares advanced 15% in Toronto to stand at $0.11.
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