- Mandalay Resources (TSX:MND) announced a significant exploration breakthrough at its Björkdal gold mine in northern Sweden
- These results confirm the presence of a highly mineralised skarn body, interpreted as a continuation of the previously mined Lake Zone Skarn
- Mandalay has also launched its summer drilling campaign at the nearby Storheden deposit, targeting depth extensions of the shallow resource discovered earlier this year
- Mandalay Resources stock (TSX:MND) opened trading at C$4.61
Mandalay Resources (TSX:MND) announced a significant exploration breakthrough at its Björkdal gold mine in northern Sweden, with the discovery of a new high-grade underground skarn zone—dubbed the Lake Zone Skarn—located just 20 metres from existing mine infrastructure.
This content has been prepared as part of a partnership with Mandalay Resources Corp. and is intended for informational purposes only.
This near-mine find is expected to enhance short-term production potential and deliver higher-grade ore to the mill in the near future.
The Lake Zone Skarn discovery returned standout intercepts, including:
- 34.2 g/t gold over 9.20 m (ETW 3.15 m) in hole MU24-034
- 16.2 g/t gold over 19.00 m (ETW 4.92 m) and 53.5 g/t gold over 2.00 m (ETW 0.85 m) in MU24-033
- Additional intercepts include 10.8 g/t gold over 7.00 m and 4.4 g/t gold over 6.50 m
These results confirm the presence of a highly mineralised skarn body, interpreted as a continuation of the previously mined Lake Zone Skarn. Given its proximity to current workings, the zone could be fast-tracked into production following further grade control drilling.
Expanding the resource base
In parallel, Mandalay continues to advance its infill and extension drilling programs at the Main Zone (Eastern Extension) and North Zone. These efforts are aimed at upgrading Inferred Resources and expanding the known mineralized footprint.
Main Zone (Eastern Extension) drilling has confirmed consistent mineralisation down to 870 metres—the deepest intercepts to date in this zone. Highlights include:
- 10.8 g/t gold over 9.60 m (ETW 5.51 m) in MU25-008
- 15.2 g/t gold over 3.10 m (ETW 1.78 m)
- 12.6 g/t gold over 2.45 m and 16.7 g/t gold over 0.75 m in MU25-009 and MU25-010
North Zone Below Marble drilling has also delivered high-grade results, with mineralisation remaining open to the north and west. Notable intercepts include:
- 157.0 g/t gold over 0.60 m (ETW 0.42 m) in MU25-004
- 40.1 g/t gold over 0.70 m and 37.7 g/t gold over 0.60 m in adjacent holes
A new drill platform is scheduled for H2 2025 to improve access to the western extension of the North Zone.
Leadership insights
“The discovery of a high-grade skarn lens near mining infrastructure in Lake Zone has the potential to deliver higher-grade feed to the mill in the near term. Contiguous and near mine exploration momentum from 2024 has continued throughout 2025, with infill and extension drilling at the North and Main Zones yielding exceptional results.
With additional drilling and model refinement underway across all three zones, we are well-positioned to grow our robust mining inventory at Björkdal as well as targeting higher grade margins within the deposit for near-term plant processing,” Chris Davis, Mandalay’s VP of exploration and operational geology, explained in a news release.
“In the second half of 2025, our focus will be definition drilling at this newly discovered Lake Zone Skarn; ongoing programs at the Main Zone of Eastern Extension; further expansion of North Zone below marble; and an 8,000 metres drill campaign at Storheden to expand and upgrade this promising resource, located just 700 metres from existing underground development, back in 2023.”
Geological insights and next steps
The skarn mineralisation at Björkdal is hosted within and beneath a marble unit, where hydrothermal fluids have reacted with carbonate rocks to form gold-rich calc-silicate lenses. These zones are structurally and chemically favourable for gold deposition, often yielding high-grade ore.
With the Lake Zone Skarn now transitioned to the operational geology team, grade control drilling is underway to define its extent and prepare for near-term mining. Meanwhile, exploration continues at the Main and North Zones, with a focus on resource growth and conversion.
Mandalay has also launched its summer drilling campaign at the nearby Storheden deposit, targeting depth extensions of the shallow resource discovered earlier this year. Results from this 8,000-metre program are expected later in 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) opened trading at C$4.61 and has risen 15.23 per cent since the year began and 78.74 per cent since this time last year.
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