- Mandalay Resources (TSX:MND) announced promising exploration results from the Brunswick South extension at its operating Costerfield gold-antimony mine in Victoria, Australia
- These intercepts span a strike length of 175 metres and extend 50 metres down dip, indicating a robust mineralized structure
- Underground drilling is underway, supported by a surface rig scheduled to arrive in August 2025
- Mandalay Resources stock (TSX:MND) last traded at C$4.86
Mandalay Resources (TSX:MND) announced promising exploration results from the Brunswick South extension at its operating Costerfield gold-antimony mine in Victoria, Australia. The discovery, located just 300 metres from the active Brunswick access drive, could significantly enhance near-term production potential, according to the company.
This content has been prepared as part of a partnership with Mandalay Resources Corp. and is intended for informational purposes only.
The company reported high-grade gold intercepts from all three drillholes in the newly identified zone:
- BD387: 76.6 g/t gold over 0.49 metres (estimated true width: 0.44 m)
- BD388: 265.0 g/t gold and 0.7% antimony over 0.29 metres (estimated true width: 0.17 m)
- BD391: 52.3 g/t gold over 1.69 metres (estimated true width: 1.58 m)
These intercepts span a strike length of 175 metres and extend 50 metres down dip, indicating a robust mineralized structure. Extension drilling has already commenced to further delineate the zone.
What’s golden
The Brunswick deposit lies between the historically productive Cuffley and Youle deposits and is directly connected to the Brunswick Processing facility. Previously mined via open pit in the 1990s and underground since 2018, Brunswick has shown consistent high-grade mineralization, particularly in the K-R Panel zone.
The newly discovered Brunswick South zone is structurally distinct, occupying the hinge of an open syncline—unlike the anticlinal setting of the Brunswick Main lode. This structural variation, combined with the proximity to existing infrastructure, positions the new zone as a high-value target for rapid development.
Geological insights
The Brunswick vein is known for its linearity and high stibnite content relative to quartz, with minimal offsetting faults. The new intercepts suggest that flat-lying faults and northeast-trending shears may have created localized enrichment zones, like bonanza-grade shoots seen elsewhere in the deposit.
Historical drilling had hinted at deeper mineralization, but reinterpretation of ambiguous low-grade intercepts led to the current successful drill program. The results validate the hypothesis of fault interference and open up new exploration avenues.
Leadership commentary
“Brunswick South is within 300 metres of existing underground infrastructure, providing potential near term mine life extension of Costerfield. The company will ramp up drilling from both surface and underground to advance this discovery rapidly,” Frazer Bourchier, President and CEO of Mandalay, commented in a news release. “When added to the ongoing drilling at the True Blue discovery, Costerfield is delivering value to shareholders through the drill bit. Costerfield is expected to be a strong cash-flow generator for the combined Alkane–Mandalay following the anticipated closing of the merger of the two companies on August 5, 2025.”
This comes nearly two weeks after the company’s news of a significant exploration breakthrough at its Björkdal gold mine in northern Sweden.
Next steps
Mandalay has initiated follow-up drilling to explore both strike and down-dip extensions of the new high-grade zone. The program will also assess the up-dip connection to the existing Brunswick South resource. Underground drilling is underway, supported by a surface rig scheduled to arrive in August 2025.
About Mandaly Resources
Mandalay Resources Corp. is a Canadian natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine).
Mandalay Resources stock (TSX:MND) last traded at C$4.86 and has risen 23.35 per cent since the year began and 100.83 per cent since this time last year.
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