July 2016 - Mandalay Resources

Forward-looking Statements
This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of
mine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from
those contemplated by these statements depending on, among other things: exploration results or production results not meeting management’s
expectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market and
economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A
description of additional risks that could result in actual results and developments differing from those contemplated by forward looking
statements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016 and
in its final prospectus dated September 2, 2014, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay
has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Quality Control and Assurance
Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101.
The exploration programs at Costerfield and Björkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP of
Operational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfield
and Björkdal, and supervises the collection and interpretation of scientific and technical information contained in this presentation.
The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of Mandalay
Resources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved the
technical and scientific information on these projects contained in the presentation.
Dr. Mark Sander (Member: AusIMM), President and CEO of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal and
has supervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated
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Figure 1 – Costerfield
Location Map
Australia
H1 2016 drill targets
• Labelled in red- Targets at
which H1 results warrant
further work
• Labeled in black– Targets at
which H1 results do not
warrant further work
Costerfield
Mine Area
Melbourne
Brunswick
Sub-King Cobra
New Lode
N Lode
Cuffley South
Melbourne
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Margaret
Figure 2 – Costerfield H1 2016
Sub-King Cobra Western,
Central and East Zones drilling
WESTERN
Plan view– unlabeled dots represent H1 2016 intercepts
PLAN VIEW
Section views– labeled dots represent H1 2016 intercepts;
unlabeled dots represent pre-2016 intercepts
Areas in plane of zone with cluster of
intercepts >1.6 g/t Au Eq. over 1.8 m
minimum mining width
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 3 –
Costerfield
H1 2016
N-Lode
North
drilling
Plan view– unlabeled dots represent H1 2016 intercepts
Section views– labeled dots represent H1 2016 intercepts;
unlabeled dots represent pre-2016 intercepts
Areas in plane of zone with
cluster of intercepts >1.6
g/t Au Eq. over 1.8 m
minimum mining width
Figure to be read with
Mandalay Resources
News release dated
July 25, 2016
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Figure 4 – Costerfield
H1 2016 New Lode
drilling
Plan view– unlabeled dots represent H1 2016 intercepts
Section views– labeled dots represent H1 2016
intercepts; unlabeled dots represent pre-2016 intercepts
Taits
mine
Areas in plane of zone with cluster
of intercepts >1.6 g/t Au Eq. over 1.8
m minimum mining width
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 5– Costerfield H1 2016
Brunswick Lode drilling
Plan view– unlabeled dots represent H1 2016 intercepts
Areas in plane of zone with cluster
of intercepts >1.6 g/t Au over 1.8 m
minimum mining width
Section views– labeled dots represent H1
2016 intercepts; unlabeled dots represent
pre-2016 intercepts
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Figure 6 – Björkdal index map and Morbacken H1 2016
drilling
Scandinavia
Björkdal Mine Area
Bedrock Au Contour Map
Björkdal
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 7 –
Björkdal H1
2016
Underground
Drilling
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 8 – Björkdal H1 2016 southeast open pit drilling
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 9 – Cerro Bayo location map
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 10 –
Outcropping,
mined, and
drilled veins
in the Laguna
Verde area
•
•
Veins currently
being mined
circled in RED
Historic veins
mined out by
June 30, 2016
circled in BLACK
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 11 – Cerro Bayo H1 2016: drill results in
Coyita SE vein
• Dots without assay labels are
pre-2016 intercepts
• Dots with number and assay
labels are H1-2016 results
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Figure to be read with Mandalay Resources
News release dated July 25, 2016
Figure 12– Cerro Bayo H1 2016– map view of
Branca vein infill drill holes
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 13– Cerro Bayo H1 2016–Branca vein long
section showing new drill intercepts
• Dots without assay labels are
pre-2016 intercepts
• Dots with number and assay
labels are H1-2016 results
Figure to be read with Mandalay Resources
News release dated July 25, 2016
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Figure 14 –
Cerro Bayo H1
2016: map
view of
Brillantes
sector and
drill holes
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 15– Challacollo index map
PICA
10 Km
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 16 — Challacollo
H1 2016: Survey lines &
stations used to collect
self-potential telluric
measurements
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 17 –
Challacollo H1 2016:
Voltage profiles along
survey lines through
the Challacollo district
Distinct excursions (troughs)
match up well with known veins
in outcrop or subcrop
southern part of the moun-tain
range. Voltage excur-sions on
covered ground to the east of
Gladys IV and Lolon Sur
suggest the presence of “blind”
veins under colluvium.
Figure to be read with Mandalay Resources News release dated July 25, 2016
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Figure 18 —
Challacollo H1
2016: Isopleth
map of survey
results
Interpretation of anomalies by
geophysicist J. Skokan.
Anomaly “C” lies over the
stoped area on the historical
Lolon vein. The strong
anomalies “A”, “B”, “D” and
“E” covered by pediment
gravels or dune sands
although depth to bedrock in
these areas is thought to be
less than 100 m. The
electrical anomalies under
covered ground are
suggestive of buried sulfide
mineralization, but whether
such sulfide zones contain
base and/or precious metals
remains to be demonstrated
by drilling.
Figure to be read with Mandalay Resources News release dated July 25, 2016
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