08:28 AM EDT, 04/24/2024 (MT Newswires) -- Mandalay Resources Corporation ( MNDJF ) on Wednesday said it has expanded the Storheden gold deposit, 600 metres from the Bjorkdal mine, on-strike to over 1.6 kilometres and at depth of approximate 200 m with high-grade gold intercepts.

The details were provided in the first in a series of updates on its 2024 regional exploration progress at Bjorkdal.

Among program highlights, Mandalay said mineralization was characterized by high grade gold intercepts and a structural setting akin to the multi-million ounce Bjorkdal deposit was located 600m southwest. It noted a mining concession was secured in 2018 over a significant portion of the area.

On progress on its 2023 initiatives at Storheden, Mandalay said this deposit has not been thoroughly explored in comparison to its extensive Bjorkdal deposit. However it is showing "promising signs" of gold mineralization, it added.

"In 2023, about 5,150 m were drilled across 22 drillholes targeting two separate objectives: depth extension with verification of system geometries and strike extension of the shear system," said Chris Davis, VP of Exploration and Operational Geology, in a statement.

"This extensive drill testing program covered over 1.6 km and reached depths of approximately 100 m. It revealed many similarities to Bjorkdal and we are pleased to report success with high-grade gold discovered at depth and along strike. Moreover, this campaign also provided valuable insight into modelling the deposits.

"In 2024, efforts at Storheden will prioritize diamond drilling to test the downward extensions of the mineralized zones and will be supplemented by generating regional targets using field mapping, soil sampling, and reconnaissance base-of-till drilling. Additionally, ongoing analysis of existing prospects will contribute to the development of new drilling targets and the continuation of exploration efforts based on the findings from previous campaigns."

Assay highlights in Wednesday's statement show: 70.2 g/t gold over 0.45 m (ETW 0.15 m) in SH-06 at 136 m; and 39.7 g/t gold over 0.70 m (ETW 0.45 m) in SH-06 at 120 m; and 7.3 g/t gold over 3.05 m (ETW 1.96 m) in SH-11 at 225 m; and 33.0 g/t gold over 0.40 m (ETW 0.26m) in SH-21 at 90 m.