Metals miner Mandalay Resources Corp (TSE:MND) said the Youle vein at its Costerfield project in Australia has the potential to be the next viable source for mining.
Updating on exploration, Mandalay said that the most recent drilling results further demonstrates that the mineralisation continues at depth.
The known strike of the Youle vein extends 600 metres and has a vertical depth of 150 metres.
"The Youle discovery is extremely exciting for Mandalay as our drilling campaign continues to demonstrate consistent, high-grade results that share a similar structural setting to the previously mined Augusta and Cuffley lodes," said Dominic Duffy, president and chief executive at Mandalay.
"Mandalay's current infill drilling programme and related studies are being undertaken with the intention of delivering mineral reserve additions from Youle in our 2018 year-end mineral resources and reserves update.
"The high grades, along with the fact that the Youle vein is in relatively close proximity to where we are currently mining, provides good potential for it to be the next viable ore source for Mandalay at Costerfield."
Duffy highlighted that Youle has the "strong potential" to continue Mandalay's trend of continuous mineral reserve replacement at Costerfield over the past eight years and demonstrates the remarkable prospectivity of the district.
"Mandalay will be looking to increase its brownfields exploration spending in 2019, with the aim of making further discoveries."
Highlight assays include 0.27 metre at 165.1 grams per tonne (g/t) gold and 20.7% antimony (30.2 g/t gold equivalent at 1.8 m mining width) in one hole.
Another hole showed 0.16 meters at 551 g/t gold and 25.6% antimony, at a 54.3 g/t AuEq (gold-equivalent) at 1.8 m mining width.
More drilling at Youle eyed
Looking ahead at Youle, Mandalay plans infill drilling over the next six months at the central portion of the vein, via drilling with hole spacings of around 40 metres.
The company also expects to carry out extension drilling along strike and at depth (with the goal of extending mineralization to a depth of 700 RL). This program is expected to comprise 37 holes.
Mandalay added 1.32% to stahd at C$0.19 in Toronto.