Mandalay Resources Corp.
TSX VENTURE : MLR

November 27, 2006 00:05 ET

Mandalay Announces Further Trenching Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 27, 2006) - Mandalay Resources Corp. (TSX VENTURE:MLR) (the "Company") is pleased to announce results from five hand-dug trenches from the Dalmatas Zone, on the Company's La Quebrada Project, a 15,000 hectare property located 25 kilometers northeast of La Serena, Chile.

A complete list of the most recent trench results is as follows:



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Copper Silver Est. True
Trench # (%) (g/t) Width (m.) Unit(s) Comments
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ZL - 99 0.182 2.7 10 K4
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ZL - 100 0.306 4.3 36 K4
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ZL - 101 0.570 5.4 34.5 K4/K2
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Including 0.922 8.5 15
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ZL - 102 No significant results.
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ZL - 103 0.295 6 9 K4/K2
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Mandalay has two field crews working on the Phase 2 geological mapping and hand trenching campaign. This program is designed to expand on results from the Leoncita and Casa de Piedra zones and continue to expand coverage in other zones on the property. Follow up work will also be performed at the Dalmatas zone, given that encouraging results have been encountered in the trenches reported above.

Ongoing exploration at La Quebrada is designed to target two favourable horizons; the K2 and K4, within the Lower Cretaceous Arqueros Formation. The K2 and K4 are sedimentary calcareous - sandstone snits that host disseminated primary chalcocite, covellite, minor bornite, and chalcopyrite. The primary chalcocite is the predominant copper mineral which is associated with silver mineralization. The dips of the units range from flat-lying to a maximum of 25 degrees. The K2 and K4 units are generally separated by 30 - 50 meters and continuous strata can be traced for several kilometers. In Las Dalmatas zone, the K2 and K4 units merge to, essentially, form one thick unit with two main target horizons. In some places in Las Dalmatas, both target horizons are completely exposed and both are encompassed in these trenches.

In addition, the Company is continuing with its previously announced (see November 17, 2006 news release) drilling program on the La Quebrada project. A total of 125 drill sites have been determined for this drill program. Results of the drilling will be announced as the Company receives and processes the assays.

The information contained in this news release, has been reviewed, approved, and deemed relevant by Stephen Kenwood P. Geo., a qualified person as defined under National Instrument 43-101.

On behalf of the Board of Directors:

MANDALAY RESOURCES CORPORATION

Karl Antonius, President

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Mandalay Resources Corp.
    Karl Antonius
    President
    (604) 682- 3613
    (604) 682-3615 (FAX)