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Mandalay Resources Corp.

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Summary

Project:

Bjorkdal

Deposit:Bjorkdal, Norrberget
Location:Sweden
Commodities:Gold
Date:2/20/2018
Report Code:NI43-101
Report Type:Resource Estimation
Project Stage:Active Mining & Production
Report details:20-2-2018: Mandalay Resources Corp. announces a Resource Estimation report for its Bjorkdal, Norrberget deposit at the Bjorkdal project. Year-end 2017 mineral resources and ore reserves update for project. Roscoe Postle Associates Inc. (RPA) was retained
Resources:(Reserve, Prob.): 11.403Mt @ 1.60g/t Au for 587Koz Au contained at Bjorkdal Mine
CP/QP:[Resources]: Reno Pressacco (Roscoe Postle Associates Inc.)
ABSTRACT:Roscoe Postle Associates Inc. (RPA) was retained by Mandalay Resources Corporation (Mandalay) to prepare an independent Technical Report on the Björkdal Gold Mine (Björkdal or the Mine), located in Västerbotten County in northern Sweden. The purpose of this report is to support the disclosure of Mineral Resources and Mineral Reserves for Björkdal as well as the first time disclosure of Mineral Resources and Mineral Reserves for the satellite Norrberget deposit (Norrberget), located approximately four kilometres east-southeast of the Björkdal Mine. Mineral Resources and Mineral Reserves are estimated as of December 31, 2017, based on a drill hole database cut-off date of September 30, 2017 for both Björkdal and Norrberget and depleted through December 31, 2017. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects. RPA most recently visited the Björkdal Mine, including Norrberget, from September 22 to 25, 2017. Björkdal (“Birch Valley”) produces gold from a combined open pit and underground operation, with approximately 50% of plant feed currently delivered from the underground. Total mill feed for the January 1 to September 30, 2017 period was 1.26 million tonnes. The average reconciled grade for 2017 was 1.75 g/t Au. The Björkdal plant uses conventional crushing and grinding, followed by a combination of gravity and flotation processing techniques to recover gold to concentrates which are sold to smelters in Europe. The plant capacity is 3,700 tonnes per day (tpd) and the plant is currently operating at approximately 3,600 tpd. Gold recovery for 2017 averaged approximately 89.1%, and production totalled approximately 63,200 ounces of gold in concentrates. An expansion of the flotation circuit in the plant was completed in 2017. Plant recovery increased by 1.2% between 2016 and 2017.

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