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Mandalay Resources announces multiple high-grade drill intercepts on several veins and begins infill drilling at its Cerro Bayo Silver-Gold Mine, Chile

July 9, 2014

TORONTO, July 9, 2014 /CNW/ – Mandalay Resources Corporation (“Mandalay”
or the “Company”) (TSX: MND) is pleased to announce encouraging results
of its continuing wide-spaced core drilling program from underground
and surface platforms to probe for vein extensions and has recognized
two new veins under Laguna Verde (click here for Figure 1 – Laguna Verde Drill Plan View).

Highlights of the results during the first half of 2014 include:

        --  Coyita vein
            (Figure 2
            and Table 1)-- Thirteen new intercepts have defined the
            extension of the Coyita vein, establishing a strongly
            mineralized zone approximately 500 m along strike and at least
            200 m down dip on the vein. The best intercepts occur between
            the Laguna Verde fault and the Peninsula fault, although the
            vein continues to the northwest of the Laguna Verde fault,
            where the existing reserves are located, and to the southeast
            of the Peninsula fault.

        --  Yasna vein
            (Figure 3
            and Table 2) -- New drilling has not extended the
            previously disclosed 200 m by 50 m mineralized zone in Yasna
            under Laguna Verde, half of which lies in the hanging wall of
            the Laguna Verde fault. However, one drill hole between the two
            previously announced intercepts has confirmed the zone. The
            previously announced limit of reserves in the Yasna vein under
            the northwest lake shore has been extended to the southeast for
            approximately 75 m by underground development sampling on two
            levels which are still open, and by one new drill hole.

        --  Kasia vein
            (Figure 4
            and Table 3) --  Kasia is a new vein that has been
            recognized in eight intercepts.  The mineralized zone extends
            at least 300 m along strike, straddling the Laguna Verde fault,
            with the best intercepts located in the hanging wall of the
            fault. The top of the zone is well defined, whereas the bottom
            is open, with a dip dimension of at least 75 m.

        --  Irene vein
            (Figure 5
            and Table 4) --  Five intercepts in the newly recognized
            Irene vein include one very high-grade intercept in the hanging
            wall of the Laguna Verde fault and four low-grade intercepts in
            the footwall.

Brad Mills, CEO of Mandalay, commented, “Mandalay’s 2014 drilling to
follow up on the initial high-grade intercepts on Yasna and Fabiola
veins under Laguna Verde, reported on January 15, 2014, has been
rewarded with excellent results, particularly on the Coyita vein.
There, we have delineated a continuously mineralized zone 1 – 3 m wide
for more than 500 m along strike and as much as 200 m down dip. There
are some extraordinary intercepts reported in this zone, notably 1.47 m
of 32.9 g/t Au and 1,821 g/t Ag in hole DLV14-025; 3.61 m of 8.87 g/t
Au and 282 g/t Ag in hole DLV14-027; and 2.55 m of 4.47 g/t Au and 442
g/t Ag in hole DLV14-009.”

Mr. Mills continued, “While new geologic interpretations have closed off
extensions of the Fabiola vein under Laguna Verde, these
interpretations plus new drill intercepts have confirmed the previously
reported mineralized zone in Yasna and have defined two new mineralized
veins, Kasia and Irene.”

“All our drilling for the remainder of the year will be for the purpose
of infilling Coyita, Yasna, and Kasia veins in the footwall of the
Peninsula fault; we expect a significant addition to resources and
reserves in our year-end Technical Report. After this episode of infill
drilling, we can return in 2015 to wide-spaced drilling in the
hangingwall of the Peninsula Fault and elsewhere under Laguna Verde to
continue tracing the veins further along strike and probing for new
veins.”

Cerro Bayo drilling and assaying

A total of 9,327 m of diamond core in 34 holes were drilled at Cerro
Bayo in the first half of 2014. Of these, 6,617 m in 22 holes were
drilled under Laguna Verde from underground stations in the Dagny and
Yasna mines as well as from surface platforms around the lake. All
holes were directionally surveyed. Core was logged and sampled by
Mandalay geologists. Core samples, including blanks, standards, and
duplicates, were assayed on-site at the Compañia Minera Cerro Bayo
laboratory. The Cerro Bayo laboratory, which was audited in 2011 by SGS
Lakefield Research Ltd., routinely sends check samples to ALS
Laboratory (an ISO 9001:2008 and ISO/IEC 17025:2005 certified
laboratory) in La Serena, Chile, following QA/QC practices established
by Mandalay. See the Company’s previously filed technical report
entitled “Technical Report on the Cerro Bayo Project, Region XI
(Aisen), Chile”, dated March 28, 2014, for a full description of the
drilling, logging, assaying, and estimation processes, including data
verification measures.

Locations of the veins discussed in this press release appear in Figure 1, along with the locations and orientations of the drill holes.

Drilling results in the Laguna Verde area

The following tables report intercepts obtained through June 30, 2014,
by vein and according to current structural interpretations. These
interpretations are subject to revision as more closely spaced drilling
is completed.

Table 1- Summary intercepts of mineralization tentatively correlated
with the Coyita vein

     _________________________________________________________________________________________________________
    |         |    Hole  | Hole |         |          |Intercept|      |      |Intercept|Intercept|Gold |Silver|
    | Hole_ID |   Compl. |Total |Intercept|Intercept |Elevation| From |   To | Length  |  True   |Grade|Grade |
    |         |    Date  |Depth |  UTM_E  |  UTM_N   |   (m)   | (m)  |  (m) |   (m)   |  Width  |(g/t)|(g/t) |
    |         |          | (m)  |         |          |         |      |      |         |   (m)   |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-006|16/03/2014|      |272160.12|4840768.51|  163.77 |222.85|226.14|   3.29  |   2.92  |2.67 |   63 |
    |         |          |499.45|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-009|28/03/2014|      |272178.93|4840764.65|  125.52 |228.45|231.40|   2.95  |   2.55  |4.47 |  442 |
    |         |          |512.45|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-013|23/04/2014|      |272141.19|4840828.24|  162.58 |230.80|233.90|    3.1  |   2.26  |2.89 |  347 |
    |         |          |609.00|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-016|24/04/2014|      |271967.60|4841190.82|  122.46 |298.70|301.90|    3.2  |   2.45  |0.59 |  126 |
    |         |          |329.85|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-017|14/05/2014|      |272141.38|4840810.27|  169.43 |232.82|235.05|   2.23  |   1.75  |4.34 |  215 |
    |         |          |583.85|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-020|20/05/2014|      |272178.50|4840869.75|   16.02 |300.63|305.70|   5.07  |   2.50  |2.74 |   90 |
    |         |          |317.55|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-019|02/06/2014|      |272303.22|4840689.41|  -45.20 |350.50|353.62|   3.12  |   2.23  |2.04 |   30 |
    |         |          |647.55|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-021|06/06/2014|      |272022.55|4840931.12|  113.97 |372.40|376.85|   4.45  |   2.16  |0.85 |  183 |
    |         |          |452.20|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-022|17/06/2014|      |272194.95|4840663.26|  146.31 |166.27|167.15|   0.88  |   0.68  |0.05 |   1  |
    |         |          |465.05|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-023|20/06/2014|      |272278.00|4840625.01|   84.06 |262.36|264.50|   2.14  |   1.84  |0.51 |   38 |
    |         |          |341.30|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-024|17/06/2014|      |272143.40|4840912.31|   83.93 |344.75|347.06|   2.31  |   1.33  |0.75 |  221 |
    |         |          |371.50|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-025|24/06/2014|      |272184.46|4840840.32|  115.70 |254.62|256.90|   2.28  |   1.47  |32.9 | 1821 |
    |         |          |311.20|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-027|25/06/2014|      |272209.27|4840799.61|   58.97 |250.73|256.00|   5.27  |   3.61  |8.87 |  282 |
    |         |          |300.45|         |          |         |      |      |         |         |     |      |
    |_________|__________|______|_________|__________|_________|______|______|_________|_________|_____|______|

Table 2- Summary intercepts of mineralization tentatively correlated
with the Yasna vein

     _______________________________________________________________________________________________________
    |         |  Hole  | Hole |         |          |Intercept|      |      |Intercept|Intercept|Gold |Silver|
    | Hole_ID | Compl. |Total |Intercept|Intercept |Elevation| From |   To | Length  |  True   |Grade|Grade |
    |         |  Date  |Depth |  UTM_E  |  UTM_N   |   (m)   | (m)  |  (m) |   (m)   |  Width  |(g/t)|(g/t) |
    |         |        | (m)  |         |          |         |      |      |         |   (m)   |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-001|14/02/14|      |                                             NO VEIN INTERCEPT               |
    |         |        |496.80|                                                                             |
    |_________|________|______|_____________________________________________________________________________|
    |DLV14-002|14/02/14|      |271800.42|4840934.90|  152.28 |454.60|455.40|   0.80  |   0.73  |1.05 |  202 |
    |         |        |518.60|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-003|28/02/14|      |271767.07|4840892.92|   27.15 |415.70|419.15|   3.45  |   3.41  |1.18 |   21 |
    |         |        |530.75|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-006|16/03/14|      |                                             NO VEIN INTERCEPT               |
    |         |        |499.45|                                                                             |
    |_________|________|______|_____________________________________________________________________________|
    |DLV14-012|1/04/14 |      |271635.45|4841127.23|  137.99 |20.00 |24.85 |   4.85  |   0.97  |0.91 |  336 |
    |         |        |170.00|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-013|23/04/14|      |271808.65|4840836.04|   19.64 |593.56|595.30|   1.74  |   0.89  |1.77 |   93 |
    |         |        |609.00|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-017|14/05/14|      |271887.23|4840789.18|   78.20 |504.30|505.45|   1.15  |   0.72  |1.03 |  389 |
    |         |        |583.85|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-018|4/05/14 |      |271637.21|4841101.93|  122.93 |278.65|278.95|   0.30  |   0.23  |0.96 |  236 |
    |         |        |333.10|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-022|17/06/14|      |272054.50|4840617.30|  -17.33 |366.92|387.54|   0.62  |   0.25  |1.96 |  180 |
    |         |        |465.05|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|

Table 3- Summary intercepts of mineralization tentatively correlated
with the Kasia vein

     _______________________________________________________________________________________________________
    |         |  Hole  | Hole |         |          |Intercept|      |      |Intercept|Intercept|Gold |Silver|
    | Hole_ID | Compl. |Total |Intercept|Intercept |Elevation| From |   To | Length  |  True   |Grade|Grade |
    |         |  Date  |Depth |  UTM_E  |  UTM_N   |   (m)   | (m)  |  (m) |   (m)   |  Width  |(g/t)|(g/t) |
    |         |        | (m)  |         |          |         |      |      |         |   (m)   |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-001|14/02/14|      |272227.08|4840557.65|  -61.27 |461.20|462.90|   1.70  |   1.06  |0.66 |   20 |
    |         |        |496.80|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-002|14/02/14|      |271832.2 |4840954.93|  156.49 |492.60|492.95|   0.35  |   0.35  |0.05 |   1  |
    |         |        |518.60|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-003|28/02/14|      |271840.45|4840946.23|   3.93  |510.45|511.65|   1.20  |   1.14  |1.15 |  300 |
    |         |        |530.75|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-006|16/03/14|      |272010.21|4840723.71|   98.70 |393.00|394.90|   1.90  |   1.64  |0.05 |   1  |
    |         |        |499.45|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-009|28/03/14|      |272026.35|4840717.45|   25.39 |416.45|420.55|   4.10  |   3.33  |2.21 |  282 |
    |         |        |512.45|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-013|23/04/14|      |271931.23|4840831.97|   70.63 |461.00|462.20|   1.20  |   0.85  |2.13 |  359 |
    |         |        |609.00|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-017|14/05/14|      |                                             NO VEIN INTERCEPT               |
    |         |        |583.85|                                                                             |
    |_________|________|______|_____________________________________________________________________________|
    |DLV14-019|2/06/14 |      |272227.09|4840582.46| -242.45 |588.90|589.20|   0.30  |   0.18  |2.86 |   66 |
    |         |        |647.55|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-022|17/06/14|      |272130.94|4840641.72|   70.10 |268.38|268.70|   0.32  |   0.21  |2.99 |  101 |
    |         |        |465.05|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|

Table 4- Summary intercepts of mineralization tentatively correlated
with the Irene vein

     _______________________________________________________________________________________________________
    |         |  Hole  | Hole |         |          |Intercept|      |      |Intercept|Intercept|Gold |Silver|
    | Hole_ID | Compl. |Total |Intercept|Intercept |Elevation| From |   To | Length  |  True   |Grade|Grade |
    |         |  Date  |Depth |  UTM_E  |  UTM_N   |   (m)   | (m)  |  (m) |   (m)   |  Width  |(g/t)|(g/t) |
    |         |        | (m)  |         |          |         |      |      |         |   (m)   |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV13-056|30/10/13|      |271643.75|4840785.03|   108.62|242.20|242.50|     0.30|     0.28| 0.05|    11|
    |         |        |529.85|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV13-072| 1/12/13|      |271579.96|4840836.05|    90.86|228.85|229.55|     0.70|     0.70| 0.24|    39|
    |         |        |520.25|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV13-086|27/12/13|      |271710.51|4840724.54|    81.84|286.00|287.00|     1.00|     0.82| 9.42|  4026|
    |         |        |603.10|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-002|14/02/14|      |271624.98|4840813.79|   138.21|240.80|241.65|     0.85|     0.80| 0.05|     1|
    |         |        |518.60|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|
    |DLV14-003|28/02/14|      |271628.75|4840792.46|    71.14|240.70|241.10|     0.40|     0.39| 1.02|    83|
    |         |        |530.75|         |          |         |      |      |         |         |     |      |
    |_________|________|______|_________|__________|_________|______|______|_________|_________|_____|______|

Drilling results outside the Laguna Verde area

Approximately 2,700 m of core drilling was completed in 12 holes during
the first half of 2014 on targets outside the Laguna Verde area,
including the Cristal vein, the Esperanza system, and the Cerro
Amarillo zone. This “new target testing” drilling has returned
inconclusive results which are still undergoing evaluation.

Qualified Person

Scott Manske, Senior Geologist of Mandalay Resources, is 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 Cerro Bayo contained in this release.

About Mandalay Resources Corporation:

Mandalay is a Canadian-based natural resource company with producing
assets in Australia and producing and development projects in Chile.
The Company is focused on executing a roll-up strategy, creating
critical mass by aggregating advanced or in-production gold, copper,
silver and antimony projects in Australia and the Americas to generate
near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains “forward-looking statements” within the
meaning of applicable securities laws, including statements regarding
the Company’s Mineral Resources, Mineral Reserves (including
anticipated increases of each), ongoing exploration plans and goals.
Readers are cautioned not to place undue reliance on forward-looking
statements. Actual results and developments may differ materially from
those contemplated by these statements depending on, among other
things, 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 28, 2014, a
copy of which is available under Mandalay’s profile at www.sedar.com. In addition, there can be no assurance that any current or future
Inferred Resources that are discovered as a result of additional
drilling will ever be upgraded to Proven or Probable Reserves. Although
Mandalay has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking 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.

SOURCE Mandalay Resources Corporation


Source: PR Newswire



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