Mandalay Resources Corporation (MND) Earnings Call Transcript & Summary

I'm Chris Davis, and I would like to give you an update on the exploration program at Costerfield Brown prospect, including some of the highest-grade intercepts yet seen in the program. For further detailed descriptions, including a table of significant intercepts, please check out the accompanying release that you can find on our website. The Brown line sits approximately 2 kilometers east central corridor, which has been in continuous production for the past 15 years. Like the central corridor, mineralization and the historically mined gold reefs are centered around a double plunging anticlinal structure that is approximately 2 kilometers long at surface. Two historic underground mines were in operation along the line in the 1890s, alongside numerous alluvial and surface hard rock workings. Exploration efforts over the last year have been focused on investigating the depth and strike extensions to the Felix veining mined within the Felix Brown mine to the north of the line. Early success was met in this program in 2020 with the successful downdip extension returning 14.5 grams per tonne gold over a true width of 1.27 meters. From this point, a further 23 holes were drilled into the system. To date, this drilling has identified multiple high-grade intercepts in a sequence of tightly folded sandstone-dominated turbidites crosscut by 3 main thrust faults. Gold is concentrated in the middle trust panel within fault hosted breccias veining along 2 dominant mineralized trends. The Felix Trend runs roughly parallel to the actual pain of the main Brown's anticline, including the Felix load. Mineralized structures associated with this trend are typically steeply dipping quartz-stibnite bearing fault hosted breccias, with associated stockwork veining and wide pyrite halos. Visible gold is present in several intercepts along this trend and has been traced for approximately 200 meters vertical extent. The anticipated potential for upgrade in the zone was demonstrated with an intercept of the highest grade yet seen at Brown's, comprising an integrating 19.9 grams per tonne gold with trace amounts of antimony over a true thickness of 1.7 meters. This includes 2 veins of 158.4 grams per tonne gold over 9 centimeters and 110.8 grams per tonne gold over 16 centimeters. The Western trend is a broadly subvertical corridor mineralization developed across a secondary antiformal structure within the western limb of the Brown's anticline. Like the Felix Trend, the intercepts are characterized by quartz-stibnite fault-hosted breccias and veins with large pyrite alteration halos and in some cases, visible gold. While mineralization along this trend has been identified over a vertical extent of approximately 100 meters, the strike extent remained open and poorly constrained. A highlight of this trend is 19.5 grams per tonne gold and 2.4% antimony over a true thickness of 1.01 meters. The significant fault within the thrust system are mineralized with the Luna fault at depth exhibiting intense sericitic alteration characteristic of a gold-bearing hydrothermal feeder system. Above the Western trend, the middle mark fault is mineralized with an intercept returning 9.1 grams per tonne gold over a true width of 63 centimeters. Encouragingly, the significant grades found in the Brown's drilling program may only represent the most sufficial expression of a much more extensive mineral system at depth. District-scale, structural and litho-stratigraphic modeling suggests that the geological setting of the central corridor exists at about 600 meters depth under the tightly folded sequence of the Wapentake Formation turbidites. The depth continuation of the Brown's mineral system may therefore extend into and be hosted in the same favorable environment that host the classic Costerfield-style mineralization of the Youle and Cuffley ore bodies. With the Costerfield corridor hosting over 2 million gold equivalent ounces and currently one of the highest grade producing mines, this untouched environment at depth will be a focus of exploration in 2022. Thanks for your time.