As gold prices march back toward record highs, investors are constantly looking for “the next big thing” in terms of who is successfully extracting the precious metal from the most promising projects.
Mandalay Resources (TSX:MND) has already proven the value of its asset, having recently released impressive high-grade drill results from its True Blue prospect, located next to its operating Costerfield gold-antimony mine in Victoria, Australia.
These results highlight the potential for significant expansion and point directly to the investment appeal of Mandalay Resources.
True Blue Prospect highlights
- High grade intercepts:
- 578.0 g/t gold and 20.5 per cent antimony over 0.47 m (estimated true width 0.33 m) in TB031
- 16.8 g/t gold and 2.4 per cent antimony over 3.98 m (estimated true width 2.56 m) in TB027, including 172.0 g/t gold and 19.2 per cent antimony over 0.37 m
- 161.0 g/t gold over 0.19 m (estimated true width 0.15 m) in TB029
- Extensive system potential: Drill testing and soil geochemistry indicate an extensive system with the potential to replicate Costerfield’s Central Corridor, which has been home to continuous mining operations for the past 20 years with mining dating back to historic discovery in the 1860’s
- Structural continuity: Interpreted on 600 m of strike, leaving 3.4 km of the system yet to be tested.
- Follow-up drilling: Two drill rigs have been mobilized to further define mineralization and increase deposit confidence.
Drill program
The True Blue prospect is roughly 2 km west of the Youle and Shepherd deposits currently being mined by Mandalay. Since acquiring the project in December 2009, Mandalay has mined 577,000 ounces of gold and 65,000 tonnes of antimony at an overall grade of 9.1 g/t gold and 3.3 per cent antimony from the Costerfield mineral field.
Following the commencement of mining at Youle, Mandalay conducted a comprehensive assessment of the Costerfield mineral field, identifying several targets, including True Blue. Initial drilling in late 2022 intercepted antimony mineralization, leading to further drilling in 2023-2024.
This phase confirmed lower-grade southern structural continuity and a high-grade up-dip extension, with notable intercepts such as 16.8 g/t gold and 2.4 per cent antimony over 3.98 m in TB027 and 578.0 g/t gold and 20.5 per cent antimony over 0.47 m in TB031.
The geometry of True Blue is similar to the Youle deposit, with subvertical to west-dipping veins hosted in the western limb of an anticline. Structural continuity of the mineralized veins is consistent over the drill-tested area, attributed to being in the same lithology as the central corridor.
Leadership insights
“Mandalay has been producing gold and antimony at Costerfield since we acquired the project 15 years ago,” the company’s president and CEO, Frazer Bourchier, commented in a news release on these results. “We are excited to see True Blue emerging as a potential new frontier for Costerfield, marking an exciting new chapter for Mandalay. This development reinforces our standing position as a growing gold producer and as the leading Western source of the strategic mineral antimony. Exploration continues to be a key strategic pillar for growth, with a minimum of $9 million allocated for the first half of 2025.”
“These results represent a significant breakthrough, intercepting high-grade mineralization with visible gold and stibnite (antimony mineral) veins,” Chris Davis, VP of exploration and operational geology, added. “Mineralization extends 130 metres along strike with strong potential for expansion.”
In an exclusive interview with The Market Online Watchlist, CEO Bourchier called this the “Manifestation of the early results of a drill program,” he went on to call this the start of a growing resource, True Blue.
“We have a budget of US$9 million just for the first half of the year,” he said. “We will stage-gate that, as we get more and more success. Exploration is a core strategic pillar to our growth.” Click the video below to watch the interview in full.
Mandalay’s place in Australia’s gold mining industry
Australia remains the second-largest gold producer globally, contributing US$23 billion to the economy in 2021. The latest Resources and Energy Quarterly (REQ) from the Federal Government’s Department of Industry, Science, Energy and Resources projects Australia’s gold mine production to rise at an average of 6.8 per cent annually over the next three years, reaching its peak next year.
Investment corner
Mandalay Resources’ recent high-grade drill results at True Blue highlight the company’s potential for significant growth.
MND stock has traded in a range between C$3.32 to C$4.76 since November 2024 on the TSX. Its stock has climbed 211.33 per cent since this time last year, reflecting investor confidence.
With ongoing exploration and a strong presence in Australia’s robust gold mining industry, Mandalay Resources presents a compelling investment opportunity. Investors are encouraged to conduct further due diligence to fully understand the potential of this promising stock.
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