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Mawson Resources Ltd
Symbol C : MAW
Shares Issued 142,391,593
Close 2019-06-12 C$ 0.18
Recent Sedar Documents

Mawson drills 32m of 1.4g/t Au, 1,556 ppm Co in Finland

2019-06-13 06:23 ET - News Release

Mr. Michael Hudson reports

MAWSON EXTENDS SOUTH PALOKAS WITH A 140 METRE STEP OUT DRILL INTERSECTION 32.0 METRES AT 1.4 G/T GOLD AND 1,556 PPM COBALT AT RAJAPALOT PROJECT, FINLAND

Mawson Resources Ltd. has released gold-cobalt results from five drill holes from the South Palokas prospect at the company's 100-per-cent-owned Rajapalot project in northern Finland. Nine holes with full assays remain to be reported from the 44-drill-hole winter program.

Key results:

  • PAL0197 intersected 32.0 metres at 3.9 grams per tonne gold equivalent (AuEq), 1.4 g/t gold, 1,556 parts per million cobalt from 294.3 metres, including 17.9 metres at 4.4 g/t AuEq, 1.0 g/t Au, 2,079 ppm Co from 294.3 metres and 9.4 metres at 5.0 g/t AuEq, 2.8 g/t Au, 1,320 ppm Co from 316.9 metres:
    • PAL0197 was drilled 140 metres down plunge from the deepest hole used in the inferred mineral resource calculation (December, 2018) and is now the deepest hole drilled at the prospect, intersecting the target 340 metres down plunge from surface.
  • PAL0198 intersected 9.8 metres at 6.1 g/t AuEq, 4.2 g/t Au, 1,208 ppm Co from 169.9 metres:
    • PAL0198 was drilled 40 metres across the plunge to the north of the closest drill hole.
  • PAL0193 intersected 11.0 metres at 2.1 g/t AuEq, 0.4 g/t Au, 1,044 ppm Co from 273.0 metres, respectively:
    • PAL0193 was drilled 65 metres down plunge from the deepest hole used in the inferred mineral resource calculation.
  • PAL0173 returned 17.0 metres at 4.3 g/t AuEq, 3.0 g/t Au, 827 ppm Co from 264.0 metres (gold assays for this hole were reported in March, 2019):
    • PAL0173 was drilled 40 metres across plunge to the south of PAL0193.
  • South Palokas is growing and improving at depth with four of the five holes completed this winter at South Palokas ranked in the top seven intersections for the prospect. South Palokas now forms a body over a 170-metre strike (30 metres wide) and has been tested to 340 metres down plunge to date with EM (electromagnetic) conductors continuing an additional 700 metres down plunge.

Michael Hudson, chairman and chief executive officer, stated: "Drill results reported over the last few months from Rajapalot have substantially upgraded the project potential, with numerous higher-grade hits and gold-cobalt mineralization discovered in significant stepouts across multiple prospect areas. At South Palokas three of five new holes with large stepouts returned more than 50 g/t metres gold equivalent while the deepest hole (PAL0197) returned the best result in the prospect of 32.0 metres at 3.9 g/t AuEq metres. Mineralization at all prospects remain open at depth and across strike."

Mawson completed 44 holes (PAL0159 to PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole) during the 2019 winter drill season. Results from five holes from South Palokas prospect are provided here (PAL0173, 193, 195, 197, 198). Nine holes with full assays remain to be reported, including holes drilled on the high-grade gold-cobalt trend at Raja (PAL0191 with visible gold) and PAL0199 from the Hut area (containing strongly sulphidic potassic scheelite-bearing rocks).

Noteworthy is the high cobalt content in PAL0198, with deeper drilling intersecting higher cobalt grades over wide zones compared with most holes on the property. The results tends to mimic the deeper drilling at the nearby Palokas prospect (where PAL0194 intersected 15.2 metres at 8.5 g/t AuEq, 4.3 g/t gold and 2,566 ppm cobalt from 418.7 metres) with an increased Co:Au ratio. It appears that higher cobalt forms on the margins of high-grade gold mineralization at depth. The Rajapalot project is a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with National Instrument 43-101 policy within Europe.

Targeting at South Palokas this winter was based on earlier drilling (in particular PAL0016, 12.4 metres at 4.0 g/t AuEq, 3.4 g/t Au, 368 ppm Co from 202.0 metres) and electromagnetic (EM) anomalies derived from both VTEMplus (airborne) and TEM (ground-based) surveys. Gold assays for PAL0173 were reported in March, 2019 (17 metres at 3.0 g/t Au from 276.0 metres), and formed the basis for planning further drill testing. Drill hole PAL0198 was drilled to test continuity of mineralization from depth to surface and allow mapping of the near-surface extent of the sulphides. South Palokas now forms a body over a 170-metre strike (30 metres wide) and has been tested to 340 metres down plunge to date with EM conductors continuing to at least 700 metres down plunge.

The drill intersections reported here are largely of the potassic-iron (K-Fe) type, similar to the Raja prospect. The South Palokas mineralization forms at a similar stratigraphic position to the structurally inverted sequence at Raja. The north-northwest termination of the modelled TEM plate at Raja now lies only 750 metres from South Palokas and, just as importantly, the Raja high-grade Au-Co trends directly under the South Palokas mineralization creating significant upside from surface prospects coalescing at depth.

Palokas and South Palokas share the same hydrothermal, postmetamorphic and structural-stratigraphic relationships, but are hosted by somewhat different rock types. Palokas is dominated by a magnesium-iron (Mg-Fe) host and South Palokas by the K-Fe host rocks although both are likely to be controlled by related, parallel to anastomosing subvertical faults and fractures. An upper poorly mineralized garnet-bearing iron-rich rock at South Palokas possibly reflects the Palokas host position. A lower mineralized footwall position at South Palokas may represent the source of mineralized boulders found 200 metres to the southwest at the Boardwalk prospect.

Further drilling on the linear high-grade trend at South Palokas and Palokas is required, but the similarities to the linear trend at Raja prospect, located at surface 1.4 kilometres south-southeast of the Palokas prospect, are immediately evident with north-northwest 100-metre-wide and 600-metre-long conductive plates trending 339 degrees below the existing mineral resources. Drilling on fans across the plunge of the Au-Co mineralization at Raja prospect has been the key to successfully targeting high-grade Au-Co mineralization.

On other matters, annual environmental inventory mapping, monitoring and area impact assessments are now under way at Rajapalot. Results will be utilized in future exploration planning and for the development of further low-impact drilling and sampling methods to continually improve Mawson's sustainable exploration outcomes.

Comment on gold equivalence calculation

The gold equivalent (AuEq) value used in the 2018 inferred resource and this press release was calculated using the formula: AuEq g/t equals Au g/t plus (Co ppm divided by 608) with assumed metal prices of Co $30/pound and Au $1,250/ounce. AuEq varies with gold and cobalt prices. Approximate spot prices for gold and cobalt are currently $1,330/ounce and $13/pound, respectively.

The cobalt price has fallen 60 per cent over the past year due mostly to an increase in supply from mines, many artisanal, in the Democratic Republic of the Congo. Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry continues to grow and, a long-term price of $20 to $30/pound cobalt (and $1,250/ounce Au) is therefore reasonable. Prices used in the 2018 inferred resource calculation have been maintained here to ensure consistency of reporting individual drill holes against prior news releases and the resource dated December, 2018, and will be reviewed once all data from the current drill program are released. Within the December, 2018, resource, cobalt contributes approximately 20 per cent of in situ value.

Technical and environmental background

Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90 per cent of the sampled thickness. Quality control duplicates for all holes show good repeatability of gold assays. Intersections are reported with a lower cut of 0.5 g/t gold or 304 ppm Co over two-metre lower cut, except where indicated. No upper cut-off was applied.

Four diamond drill rigs (K3 and K8) from the Arctic Drilling Company OY (ADC), Kati OY and MK Core Drilling OY, all with water recirculation and drill cuttings collection systems, were used for the drill program. Core diameter is NQ2 (50.7 millimetres). Core recoveries were excellent and average close to 100 per cent in fresh rock. After photographing and logging in Mawson's Rovaniemi facilities, core intervals averaging one metre for mineralized samples and two metres for barren samples were cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes. Analytical samples were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS (atomic absorption spectroscopy) equipment. Multielement assays, including cobalt, are determined using the ICP-MS (inductively coupled plasma mass spectrometry) method (IMS-230) of MS Analytical shipped directly from the CRS Minlab Oy facility. The quality assurance/quality control program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core and blanks the within interpreted mineralized rock. In addition, CRS and MS Analytical insert blanks and standards into the analytical process. The qualified person for Mawson's Finnish projects, Dr. Nick Cook, president for Mawson and a fellow of the Australasian Institute of Mining Metallurgy, has reviewed and verified the contents of this release.

NI 43-101 technical report

NI 43-101 technical report On Dec. 19, 2018, Mawson filed an independent National Instrument 43-101 technical report on the mineral resource estimate for the Raja and Palokas prospects, at the 100-per-cent-owned Rajapalot project in Finland, in support of the company's news release dated Dec. 17, 2018. The NI 43-101 technical report was authorized by Rod Webster of AMC Consultants Pty. Ltd. of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn Perspective of Surrey, England. Each of Mr. Webster and Dr. Forrester is an independent qualified person as defined by National Instrument 43-101. The NI 43-101 technical report may be found on the company's website or under the company's profile on SEDAR.

About Mawson Resources Ltd.

Mawson Resources is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold project in Finland.

 BETTER INTERSECTIONS REPORT FROM THE 2019 WINTER DRILL PROGRAM
  
Hole ID        From       To    Width       Au       Co     AuEq
                (m)      (m)      (m)    (g/t)      (%)    (g/t)

PAL0159       419.0    437.0     18.0      0.5      547      1.4
including     419.0    420.2      1.2      0.2      378      0.8
including     422.0    426.0      4.0      0.3    1,377      2.5
PAL0159       434.0    437.0      3.0      2.3      672      3.4
including     429.0    432.0      3.0      0.1      488      0.9
PAL0159       451.0    455.5      4.5      1.9      754      3.2
PAL0161       305.5    313.0      7.5      0.0      636      1.1
PAL0161       336.0    338.0      2.0      2.1      362      2.7
PAL0161       344.0    349.0      5.0      2.3      600      3.3
PAL0162       323.0    324.0      1.0      0.0      701      1.2
PAL0162       452.0    453.0      1.0      0.0      562      0.9
PAL0163       416.6    419.4      2.8      0.0    6,604     10.9
PAL0164       406.0    414.3      8.3      0.4      519      1.3
PAL0164       418.4    419.7      1.3      0.0      546      0.9
PAL0166        55.3     56.3      1.0      0.1      355      0.6
PAL0166        67.8     68.8      1.0      0.0      568      1.0
PAL0166        76.6     77.6      1.0      0.1      596      1.1
PAL0166        79.3     80.3      1.0      0.0      958      1.6
PAL0169       522.3    524.4      2.1      0.1      368      0.7
PAL0171       299.0    300.1      1.1      0.0      528      0.9
PAL0172       120.0    122.0      2.0      0.0      541      0.9
PAL0172       329.0    332.0      3.0      0.0      573      1.0
PAL0173       232.0    233.7      1.7      0.3      363      0.9
PAL0173       264.0    281.0     17.0      3.0      827      4.3
including     264.0    269.0      5.0      4.9      536      5.8
including     276.1    281.0      4.9      4.6    1,805      7.6
PAL0173       380.0    381.1      1.1      0.8      426      1.5
PAL0173       384.8    388.8      4.0      0.7      300      1.1
PAL0176        14.0     15.6      1.6      2.4       58      2.5
PAL0176        20.5     31.9     11.4      0.8      382      1.4
PAL0176        33.8     35.7      1.9      1.0      105      1.2
PAL0176        49.0     52.0      3.0      3.8       86      4.0
PAL0179         6.0     10.7      4.7      1.0      578      1.9
PAL0179        37.0     38.0      1.0      0.1      311      0.6
PAL0179        39.0     40.0      1.0      0.0      592      1.0
PAL0179        48.0     51.0      3.0      0.0      344      0.6
PAL0179        73.8     76.3      2.5      0.1      342      0.6
PAL0182        86.3     93.7      7.4      3.4      597      4.4
PAL0183        54.3     55.1      0.8      0.4      728      1.6
PAL0183       112.3    114.2      1.9      0.1      364      0.7
PAL0183       142.5    143.1      0.6      2.2      340      2.8
PAL0184       117.6    118.6      1.0      1.3      206      1.7
PAL0187       400.4    401.8      1.4      0.1    1,345      2.3
PAL0187       416.0    417.0      1.0      0.0      684      1.1
PAL0188       298.3    329.6     31.3      4.3    1,030      6.0
PAL0188       298.3    315.6     17.4      2.9    1,113      4.8
PAL0188       320.6    329.6      9.0      9.4    1,412     11.7
PAL0188       337.9    338.9      1.0      3.1       35      3.1
PAL0189       157.0    162.0      5.0      0.1      344      0.7
PAL0189       165.0    165.8      0.8      1.1      143      1.3
PAL0189       182.9    186.0      3.2      4.5       11      4.6
PAL0189       194.0    195.0      1.0      1.1       90      1.2
PAL0189       200.0    205.0      5.0      2.7      581      3.7
PAL0189       210.0    214.3      4.3      2.3      931      3.8
PAL0189       218.6    222.6      4.0      0.3      506      1.1
PAL0190**     359.2    390.7     31.5      4.8      724      5.9
including     359.2    368.0      8.8      0.5      521      1.4
Including     371.0    390.7     19.7      7.4      908      8.9
PAL0193       273.0    284.0     11.0      0.4    1,044      2.1
PAL0194       418.7    433.9     15.2      4.3    2,566      8.5
PAL0195       126.9    133.0      6.1      0.7      235      1.1
PAL0195       171.3    177.0      5.7      0.7      398      1.4
                                          less
                                          than
PAL0195       181.3    184.0      2.7     0.05      726      1.2
PAL0197**     294.3    326.3     32.0      1.4    1,556      3.9
including     294.3    312.2     17.9      1.0    2,079      4.4
including     316.9    326.3      9.4      2.8    1,320      5.7
PAL0198       169.7    179.7      9.8      4.2    1,208      6.1

Intersections are reported with a lower cut of 0.5 g/t gold 
over two-metre lower cut except where highlighted with **. 
No upper cut-off was applied.
  
 INDIVIDUAL ASSAY DATA FROM KEY DRILL HOLES REPORTED IN THIS RELEASE
  
Hole ID         From       To      Width      Au       Co        AuEq
                 (m)      (m)        (m)   (g/t)    (ppm)       (g/t)

PAL0173        232.0    232.8        0.8     0.1      349         0.7
PAL0173        232.8    233.7        0.9     0.5      375         1.1
PAL0173        264.0    265.0        1.0     1.8       83         2.0
PAL0173        265.0    266.0        1.0     1.0      925         2.5
PAL0173        266.0    267.0        1.0     2.0      306         2.5
PAL0173        267.0    268.0        1.0    19.9    1,142        21.8
PAL0173        268.0    269.0        1.1     0.7      266         1.1
PAL0173        269.0    270.0        1.0     0.5      261         0.9
PAL0173        270.0    271.0        1.0     0.2      292         0.6
PAL0173        271.0    272.0        1.0     0.1      464         0.9
PAL0173        272.0    273.0        1.0     0.3      406         1.0
PAL0173        273.0    274.0        1.0     0.2      274         0.7
PAL0173        274.0    275.0        1.0     1.1      413         1.7
PAL0173        275.0    276.1        1.1     0.4      322         0.9
PAL0173        276.1    277.0        1.0     8.6    1,841        11.7
PAL0173        277.0    278.0        1.0     8.7    2,704        13.1
PAL0173        278.0    279.0        1.0     1.4    2,149         4.9
PAL0173        279.0    280.0        1.0     1.1    1,869         4.1
PAL0173        280.0    281.0        1.1     3.4      532         4.3
PAL0173        370.7    371.2        0.5     0.1      308         0.6
                                            less 
                                            than
PAL0173        371.2    372.2        1.0     0.1        5         0.0
                                            less 
                                            than
PAL0173        372.2    373.2        1.0     0.1      399         0.7
PAL0173        380.0    381.1        1.1     0.8      426         1.5
PAL0173        384.8    385.8        1.0     2.0      810         3.3
PAL0173        385.8    386.8        1.0     0.1      298         0.6
PAL0173        386.8    387.8        1.0     0.1       24         0.1
PAL0173        387.8    388.8        1.0     0.4       66         0.5
PAL0173        401.3    402.3        1.0     0.5      896         2.0
PAL0173        402.3    403.0        0.8     0.1       45         0.1
PAL0173        403.0    404.0        1.0     0.2      473         1.0
PAL0173        404.0    404.8        0.8     0.1      596         1.0
PAL0193        266.0    267.0        1.0     0.2      314         0.7
PAL0193        267.0    268.2        1.2     0.1      287         0.6
PAL0193        273.0    274.0        1.0     0.1      959         1.7
PAL0193        274.0    275.0        1.0     0.5    2,103         3.9
PAL0193        275.0    276.0        1.0     0.1    1,357         2.4
PAL0193        276.0    277.0        1.0     0.1      486         0.9
PAL0193        277.0    278.0        1.0     0.1      284         0.6
PAL0193        278.0    279.0        1.0     0.7    1,080         2.5
PAL0193        279.0    280.0        1.0     0.8      929         2.3
PAL0193        280.0    281.0        1.0     0.7    1,522         3.2
PAL0193        281.0    282.0        1.0     0.4    1,384         2.6
PAL0193        282.0    283.0        1.0     0.1      776         1.4
PAL0193        283.0    284.0        1.0     0.2      607         1.2
PAL0193        287.0    288.0        1.0     0.1    1,155         2.0
                                            less 
                                            than
PAL0193        317.0    318.0        1.0     0.1      449         0.7
PAL0195        126.9    128.0        1.2     0.3      200         0.6
PAL0195        128.0    129.0        1.0     0.6      382         1.2
PAL0195        129.0    130.0        1.0     0.5      378         1.1
PAL0195        130.0    131.0        1.0     0.7      314         1.2
PAL0195        131.0    132.2        1.2     1.6       72         1.7
PAL0195        132.2    133.0        0.9     0.4       70         0.5
PAL0195        168.0    169.0        1.0     0.6      487         1.4
PAL0195        171.3    172.0        0.8     2.1      172         2.4
PAL0195        172.0    173.0        1.0     0.3      330         0.9
PAL0195        173.0    174.0        1.0     0.2      457         1.0
PAL0195        174.0    175.0        1.0     0.5      345         1.1
PAL0195        175.0    176.0        1.0     1.0      702         2.1
PAL0195        176.0    177.0        1.0     0.5      325         1.0
PAL0195        181.3    182.0        0.7     0.1    1,324         2.3
                                            less 
                                            than
PAL0195        182.0    183.0        1.0     0.1      258         0.4
PAL0195        183.0    184.0        1.0     0.1      775         1.3
PAL0197        246.8    247.6        0.8     0.8       50         0.9
PAL0197        250.0    251.0        1.0     0.5      119         0.7
PAL0197        254.8    255.8        1.0     0.4      120         0.5
PAL0197        282.3    283.4        1.1     0.2      323         0.7
PAL0197        294.3    295.3        1.0     0.1      749         1.3
PAL0197        295.3    296.3        1.0     0.2    1,560         2.7
PAL0197        296.3    297.3        1.0     0.2    2,423         4.2
PAL0197        297.3    298.0        0.8     0.3    1,777         3.2
PAL0197        298.0    298.8        0.8     0.3    1,418         2.6
PAL0197        298.8    299.8        1.0     1.8    2,662         6.2
PAL0197        299.8    300.8        1.0     0.4      923         1.9
PAL0197        300.8    301.8        1.1     0.3    2,064         3.7
PAL0197        301.8    302.7        0.9     0.2    2,581         4.4
PAL0197        302.7    303.5        0.8     0.4    2,055         3.8
PAL0197        303.5    304.3        0.8     0.7    3,271         6.0
PAL0197        304.3    305.3        1.0     0.5    2,222         4.1
PAL0197        305.3    306.3        1.0     0.6    2,602         4.9
PAL0197        306.3    307.3        1.0     0.4    2,720         4.8
PAL0197        307.3    308.2        1.0     3.1    3,795         9.3
PAL0197        308.2    309.2        1.0     0.5    2,324         4.3
PAL0197        309.2    310.2        1.0     1.8    1,410         4.1
PAL0197        310.2    311.2        1.0     4.3    1,668         7.1
PAL0197        311.2    312.2        1.0     1.9    1,429         4.3
PAL0197        316.9    317.9        1.0     0.8    1,557         3.3
PAL0197        317.9    319.0        1.1     3.0    1,421         5.3
PAL0197        319.0    320.0        1.0     8.3    1,633        11.0
PAL0197        320.0    321.0        1.0     2.1    1,581         4.7
PAL0197        321.0    322.0        1.0     0.5    1,388         2.7
PAL0197        322.0    322.9        0.9     0.4    1,370         2.7
PAL0197        322.9    323.5        0.6    -0.1       32         0.1
PAL0197        323.5    324.5        1.0     5.4    1,073         7.2
PAL0197        324.5    325.5        1.0     0.7    1,523         3.2
PAL0197        325.5    326.3        0.8     6.0    1,063         7.7
PAL0198        169.9    171.2        1.4     1.5      262         2.0
PAL0198        171.2    172.0        0.8     3.3    1,170         5.2
PAL0198        172.0    173.0        1.0     1.2    1,108         3.0
PAL0198        173.0    173.9        0.9     1.3    1,515         3.8
PAL0198        173.9    174.9        1.0     6.7    1,642         9.4
PAL0198        174.9    175.5        0.6     5.4      976         7.0
PAL0198        175.5    176.7        1.2     5.3    1,104         7.1
PAL0198        176.7    177.8        1.1     3.9    2,297         7.6
PAL0198        177.8    178.8        1.1    12.3    1,691        15.1
PAL0198        178.8    179.7        0.9     0.9      364         1.5

            COMPILATION OF SOUTH PALOKAS INTERSECTIONS 
                 GREATER THAN 10 G/T METRES (AUEQ) 
  
Hole ID       From      To     Width      Au      Co         AuEq
               (m)     (m)       (m)   (g/t)   (ppm)        (g/t)

PAL0197      294.3   326.3      32.0     1.4   1,556          3.9
PAL0173      264.0   281.0      17.0     3.0     827          4.3
PAL0198      169.9   179.7       9.8     4.2   1,208          6.1
PAL0016      202.0   214.4      12.4     3.4     368          4.0
PAL0091      144.9   160.5      15.6     1.7     364          2.3
PRAJ0070      25.4    31.1       5.7     3.3     583          4.3
PAL0193      273.0   284.0      11.0     0.4   1,044          2.1
PRAJ0073       7.7    14.6       7.0     2.4     480          3.2
PAL0018      172.0   173.0       1.0    19.2      49         19.2
PRAJ0072      16.3    20.0       3.7     4.1     642          5.2
PRAJ0075      12.4    24.0      11.6     1.0     349          1.6
PAL0013      132.0   140.8       8.8     0.3     838          1.7
PAL0091      245.7   252.8       7.1     1.1     240          1.5

Note that three of the top seven are reported here 
for the first time.
  

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