IN 100 Metre Step Out Hole, Exceeds South Palokas Best Intercept
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE FEBRUARY 28, 2020
MAWSON DRILLS 17.7 METRES @ 4.3 g/t AuEq AND 6.0 METRES @ 10.0 g/t AuEq
IN 100 METRE STEP OUT HOLE, EXCEEDS SOUTH PALOKAS BEST INTERCEPT
Vancouver, Canada — Mawson Resou rces Limited (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces assay results from 2 drill holes for gold and cobalt and 6 holes
for cobalt (gold previously reported) from the 2020 winter prog ram at the Company’s 100% owned Rajapalot Project in
Northern Finland. Drill hole PAL0213, reported here from South Palokas, is now the best drill hole drilled at that prospect.
Highlights from the South Palokas prospect:
South Palokas remains open at depth (Figure 3), with results fr om the current program indicating grades of both
gold and cobalt are increasing down plunge;
Drill hole PAL0213, a down-plunge step out of 100 metres from the December 2018 resource area, intersected
17.7 metres @ 3.8 g/t gold (“Au”), 880 ppm cobalt (“Co”), 4.3 g/t gold equivalent (“AuEq”) from 293.0
metres and 6.0 metres @ 9.2 g/t Au, 1,364ppm Co, 10.0 g/t AuEq from 317.0 metres (Tables 1-3, Figures
1-3; AuEq three month price average prices used);
PAL0213 is now the best drill hole drilled at that prospect and improves on the previous best gold intersection
(PAL0203) returned from South Palokas announced on February 5, 2020;
Mineralization has now been drilled over 60 metres width in the PAL0213 cross section (Figure 2), which also
includes PAL0203 and PAL0197 (32.0 metres @ 1.4 g/t Au, 1,556 ppm Co from 294.3 metres, drilled during
2019)
PAL0203, previously reported for gold only, returned the highest cobalt reported to date from South Palokas with
12.0 metres @ 5.4 g/t Au, 2,221 ppm Co , 6.8 g/t AuEq from 303.0 metres, a 29% increase from "Au g/t x
width" to "AuEq x width" at quoted cut-offs;
PAL0204, previously reported for gold only, drilled on the north-eastern edge of the 2018 resource returned 10.3
metres @ 5.7 g/t Au, 961 ppm Co, 6.3 g/t AuEq from 93.7 metres, a 14% increase from "Au g/t x width" to
"AuEq x width" at quoted cut-offs;
Highlights from the Palokas prospect:
Drill hole PAL0210, on the lower southwestern edge of the resou rce area returned 23.4 metres @ 1.0 g/t Au,
565 ppm Co, 1.4 g/t AuEq from 128.3 metres and 4.5 metres @ 3.9 g/t Au, 302 ppm Co, 4.1 g/t AuEq
from 153.6 metres;
This wide mineralized interval shows the upside potential in the untested area between this hole and the South
Palokas mineralization, some 370 metres to the southwest.
PAL0205, previously reported for gold only, returned 12.9 metres @ 1.8 g/t Au, 590 ppm Co , 2.2 g/t AuEq
from 95.0 metres, a 15% increase from "Au g/t x width" to "AuEq x width" at quoted cut-offs;
PAL0207 returned 7.6 metres @ 1.6 g/t Au, 506 ppm Co, 2.0 g/t AuEq from 150.8 metres within a broad
26.8 metre downhole Au-Co anomalous zone from 145.2–172.0 metres.
Mr. Hudson, Chairman and CEO, states, "With yet another drill h ole exceeding 100 Au g/t time s width at Rajapalot, our
winter drill program continues to deliver. Improving grade and continuity of high-grade gold-cobalt mineralization down
plunge from previously defined resource areas have been particularly encouraging. Strong news flow is expected to continue
over the coming months with only 9 holes reported from a total 26 holes drilled to date with drilling ongoing. Management
look forward to meeting shareholders and showing drill core fro m this winter program at Mawson’s PDAC 2020 Booth
#2389 between March 1st and 4th at the Toronto Convention Centre”
Resource expansion drilling at Rajapalot is ongoing with three diamond drill rigs completing the programs at Palokas, South
Palokas and Raja prospects. Owing to rig scheduling and good drill conditions this has been reduced from 5 rigs that were
operating during January and February. A total of 26 holes (PAL 0202–PAL0225; and completion of PAL0201D) for
9,721 metres have been completed, to schedule, out of a 15,000 metre planned program. Mawson has now released results
from 9 drill holes in releases today, and on 20th January and 5th February 2020. The current drill program aims to extend
and infill mineralization (Figure 1) and provide data for an up dated resource estimate to be delivered by the end of Q3
2020.
Drill hole PAL0213 at South Palokas, returned 17.7 metres @ 3.8 g/t Au, 880 ppm Co, 4.3 g/t AuEq from 293.0 metres
AND 6.0 metres @ 9.2 g/t Au, 1364 ppm Co, 10.0 g/t AuEq from 317.0 metres. PAL0213 was drilled to intersect the
section including PAL0203 and PAL0197 (32 m @ 1.4 g/t Au, 1556 ppm Co from 294.3 metres; 2019 drill campaign).
PAL0203 (12.0 metres @ 5.4 g/t Au, 2,221 ppm Co, 6.8 g/t AuEq from 303.0 metres, including 8.0 metres @ 7.9
g/t Au, 2,672 ppm Co , 9.6 g/t AuEq from 303.0 metres returned the highest cobalt intersection to date at South
Palokas. The combination of high gold and cobalt results in the current program is particularly encouraging as these holes
are the deepest reported to date at South Palokas and grade is improving at depth (Figures 2 & 3).
Broad zones of sulphidic and strongly hydrothermally altered rocks enclose all of the Palokas drill intersections reported to
date. Drill holes PAL0205, PAL0206, PAL0207 and PAL0210 all inc rease the size of the mineralized footprint and drilling
continues to locate higher gold grades similar to the nearby PA L0030 (10.0 metres @ 9.9 g/t Au, 562 ppm Co, 10.2 g/t
AuEq from 110.2 metres,and the deepest high-grade intersection PAL0194 (15.2 metres @ 4.3 g/t Au, 2566 ppm Co, 5.9
g/t AuEq from 418.7 metres. Drill hole PAL0202A, previously reported for gold only, and drilled 370 metres down-plunge
from the resource boundary (2g/t gold equivalent "AuEQ" lower cut) at 600 metres below surface intersected 10.1 metres
@ 0.6 g/t Au, 317 ppm Co, 0.8g/t AuEq from 771.7 metres. Although lower grades were encountered, confirmation of
the gold and cobalt mineralization 600 metres down plunge from surface is considered significant and indicates the system
is predictable and continues to depth.
The scale of the mineralized system at Palokas-South Palokas is now becoming evident with thick zones of gold-cobalt
mineralized rocks intersected across the two prospects. Drillin g continues to identify the highest-grade parts of the two
prospects, with a large area between the prospects remaining open for testing.
A plan view of the completed drill holes and the locations of d rill hole targeting for this program are shown in Figure 1,
including an enlarged plan view of the Palokas and South Paloka s area. The section perpendicular to plunge including
PAL0213, PAL0203 and PAL0197 shows the width of the mineralized zone. Palokas prospect host rocks are in the same
reduced stratabound host package as South Palokas (Figure 2). When viewed in a down-plunge orientation, mineralization,
conductive electromagnetic plates and their enclosing rock packages also shows their similarity in style to the Raja prospect
(Figure 1). The projected locations (Figure 3) of the drill hol es reported in this release on a “grade times width” plan
indicates the potential growth of the resource area based on 20 19 and 2020 drill results. Tables 1-3 include all relevant
collar and assay information. Assuming a predominant stratabound control, the true thickness of the mineralized interval is
interpreted to be approximately 90% of the sampled thickness. C obalt data are typically returned three weeks after the
gold assays. Gold-only intersections are reported with a lower-cut of 0.5 g/t gold over 1 metre lower cut. No upper cut-off
was applied. Where cobalt data are included, a lower cut of 0.3 g/t AuEq is used, based on modifying the pit optimized
open pit lower cut-off grade of 0.37 g/t AuEq developed for the 2018 resource recalculated to a dollar value per tonne
against current averaged prices (and therefore the 2018 resource cutoff 0.37 g/t AuEq is the same value per tonne as 0.30
g/t AuEq today).
Technical and Environmental Background
Up to five diamond drill rigs from the Arctic Drilling Company OY (“ADC”) and Kati OY (“Kati”) all with water recirculation and drill cuttings
collection systems are used in the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are excellent and average cl ose to
100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for min eralized
samples and 2 metres for barren samples are cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi , Finland.
The remaining half core is retained for verification and refere nce purposes. Analytical samples are transported by 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 gol d in
solution with flame AAS equipment. Samples for multi-element analysis (including cobalt) are pulped at CRS Minlab, then transported by
air to the MSA labs in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. The QA/QC 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 inserts blanks and standards into the analytical process.
Three month average gold and cobalt prices have been used to calculate AuEq values according to the following:
Average gold price $1580 per oz
Average cobalt price $14.50 per pound
Resulting in gold equivalent formula of AuEq g/t = Au g/t + (Co ppm/1589).
The host rocks to the gold and cobalt mineralization comprise s ulphides (pyrrhotite>>pyrite) with biotite-muscovite-chlorite schists at
South Palokas and Mg-Fe amphibole-biotite-chlorite rocks at Palokas. Veining and fracture fill minerals include pyrrhotite, magnetite and
magnetite-pyrrhotite (+/- quartz, tourmaline). Retrograde chlorite after biotite, generations of secondary muscovite (“sericite”) and vein-
controlled chlorite+/- tourmaline and magnetite are also present. Preliminary hand-held XRF analysis confirms the presence of associated
scheelite and molybdenite, the former visible under UV light as tiny veinlets and disseminations. The minerals associated with the gold
are clearly post-metamorphic, reduced, and most likely driven by hydrothermal fluids from nearby granitoid intrusions. Chlorite and fine
muscovite are regarded as the lowest temperature silicate minerals with gold, structurally controlled in apparent spatial association with
quartz and/or K-feldspar veins. Altered rocks enclosing the mineralized package contain locally abundant talc and tourmaline.
The qualified person for Mawson's Finnish projects, Dr. Nick Co ok, President for Mawson and a Fellow of the Australasian Insti tute of
Mining Metallurgy has reviewed and verified the contents of this release.
NI 43-101 Technical Report:
On December 19, 2018, Mawson filed an independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”)
on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the “NI 43-101
Technical Report ” ) , i n s u p p o r t o f t h e C o m p a n y ’ s n e w s r e l e a s e d a t e d December 17, 2018 . The NI 43-101 Technical Report was
authorized by Mr. Rod Webster of AMC Consultants Pty Ltd (“AMC” ) of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn
Perspective of Surrey, England. Each of Mr. Webster and Dr. For rester are independent “qualified persons” as defined by Nation al
Instrument 43-101. The NI 43-101 Te chnical Report may be found on the Company’s website at www.mawsonresources.com or under
the Company’s profile on SEDAR at www.sedar.com. For the 2018 resource, the gold equivalent ("AuEq") value was c alculated using
averaged prices of the time, resulting in the following formula : AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $3 0/lb;
and Au $1,250/oz. AuEq varies with Au and Co prices.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and developmen t company. Mawson has distingui shed itself as a leading Nordic Arctic
exploration company with a focus on the flagship Rajapalot gold project in Finland.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Further Information
www.mawsonresources.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary, +1 (604) 685 9316,
Forward-Looking Statement
T h i s n e ws r e l e as e c o n t a i ns f o r w ar d - l o ok i n g s t a t e m e n t s o r f o r w a rd-looking information within the meaning of applicable securiti es laws (collectively,
"forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes
that such statements are reasonable, it can give no assurance t hat such expectations will prove to be correct. Forward-lookin g statements are typically
identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to
future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results
may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, capital and other costs varying
significantly from estimates, changes in world metal markets, c hanges in equity markets, planned drill programs and results va rying from expectations,
delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations,
delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in
Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether
as a result of new information, future events or results or otherwise.
Figure 1: Plan of Rajapalot showing historic drilling and high-grade intersections, outline of 2018 NI43-101 resource, new drill holes reported (note PAL0213)
and modelled ground TEM plates. Purple outline represents test area for drilling this program.
Figure 2: Cross section of Palokas and South Palokas prospects looking towards 330° showing continuity of reduced, mineralized host package. Drill hole PAL0213, reported here lies down plunge of the
existing South Palokas resource. Folds drawn in this view show relatively constant vergence (antiformal closure to the NE) and plunge away from the viewer at approximately 54°.
Figure 3: Long section showing outline of 2018 resource and significant intersections over grade-width contours showing new results from PAL0213 and PAL0210, and including cobalt results from
PAL0203, PAL0204, PAL0206 and PAL0207 extending mineralization beyond the current resource areas. Data from 2020 in bold type. The view is looking onto mineralized surface at Palokas and South
Palokas (this view is looking at 60 degrees towards 110). Red dotted outline represents the current estimated limits to mineralized rocks, although testing between Palokas and South Palokas is restricted
to just four drill holes.
Table 1: Collar Information from 2019-20 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3; the “A” postscript refers to a daughter
hole off the primary hole and the depth range of the drill hole is indicated)
HoleID East North Azimuth Dip RL Depth (m) Prospect Comment
PAL0201D 3408545.6 7372603.2 56.0 -67.2 179.3 524.6 Raja Results awaited
PAL0202 3408978.0 7374402.6 229 -45 175.9 769.6 Palokas No significant
assays
PAL0202A 3408978.0 7374402.6 229 -45 175.9 451 to 826.7 Palokas Reported 5 Feb,
2020, Co here
PAL0203 3408272.5 7373630.5 058 -63 173.6 420.0 South Palokas Reported 5 Feb,
2020, Co here
PAL0204 3408522.0 7373604.3 235 -85 173.4 149.2 South Palokas
Reported 20
Jan, 2020, Co
here
PAL0205 3408586.2 7373802.7 058 -49 173.5 191.5 Palokas
Reported 20
Jan, 2020, Co
here
PAL0206 3408463.5 7373917.2 063 -57 173.7 326.2 Palokas Reported 5 Feb,
2020, Co here
PAL0207 3408609.8 7373894.5 057 -76 173.7 200.2 Palokas Reported 5 Feb,
2020, Co here
PAL0208 3408540.7 7372692.8 052 -75 179.1 555.4 Raja Results awaited
PAL0209 3408471.1 7373638.3 058 -82 173.5 200.7 South Palokas R esults awaited
PAL0210 3408609.8 7373894.5 054 -86 173.7 198.0 Palokas Reported here
PAL0211 3408463.5 7373917.2 063 -50 173.7 232.2 Palokas Results awaited
PAL0212 3408255.2 7373708.2 059 -75.5 172.5 492.5 South Palokas Results awaited
PAL0213 3408272.5 7373630.5 060 -73. 5 173.6 509.3 South Palokas Reported here
PAL0214 3408609.8 7373894.5 057 -52 173.7 154.3 Palokas Results awaited
PAL0215 3408676.1 7374105.0 237 -77. 5 173.8 395.5 Palokas Resul ts awaited
PAL0216 3408463.5 7373917.2 062 -65 173.7 344.6 Palokas Results awaited
PAL0217 3408540.7 7372692.8 052 -79.5 179.1 519.2 Raja Results awaited
PAL0218 3408310.5 7373979.7 075 -58 173.8 469.4 Palokas Results awaited
PAL0219 3408272.5 7373630.5 059 -57.9 173.6 419.7 South Palokas Results awaited
PAL0220 3408255.2 7373708.2 062 -80 172.5 501.1 South Palokas Results awaited
PAL0221 3408463.5 7373917.2 096 -53.5 173.7 280.4 Palokas Results awaited
PAL0222 3408463.5 7373917.2 066 -71.5 173.7 355.1 Palokas Results awaited
PAL0223 3408272.5 7373630. 5 061 -79 173.6 404.1 South Palokas Results awaited
PAL0224 3408168.5 7373753.6 063 -78.5 171.4 560.6 South Palokas Results awaited
PAL0225 3408255.2 7373708. 2 070 -85 172.5 490.9 South Palokas Results awaited
Table 2: Intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.3g/t AuEq (using updated gold and cobalt
prices of $1580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied.
Prospect hole_id From (m) To (m) width (m) Au g/t Co
ppm
AuEq
Palokas PAL0202A 771.4 781.5 10.1 0.6 317 8.0
South Palokas PAL0203 303.0 315.0 12.0 5.4 2221 6.8
including 303.0 311.0 8.0 7.9 2672 9.6
South Palokas PAL0204 88.2 89.1 0.9 1.7 881 2.3
South Palokas PAL0204 93.7 103.0 10.3 5.7 961 6.3
including 97.0 103.0 6.1 8.4 901 8.9
Palokas PAL0205 101.0 105.5 12.9 1.8 590 2.2
including 101.0 104.0 3.0 6.4 606 6.8
Palokas PAL0205 114.0 118.0 4.0 <0.05 820 0.5
Palokas PAL0206 249.8 255.2 5.4 0.1 1189 0.8
Palokas PAL0206 262.2 264.2 2.0 14.1 370 14.4
Palokas PAL0206 296.4 299.2 2.8 0.8 880 1.3
Palokas PAL0206 395.3 308.3 3.0 <0.05 2324 1.5
Palokas PAL0207 117.3 119.3 2.0 <0.05 678 0.4
Palokas PAL0207 121.6 125.6 4.0 0.3 383 0.6
Palokas PAL0207 145.2 148.6 3.4 0.7 552 1.1
Palokas PAL0207 150.8 158.4 7.6 1.6 506 2.0
Palokas PAL0207 164.0 166.0 2.0 <0.05 578 0.4
Palokas PAL0207 170.8 172.0 1.2 <0.05 1398 0.9
Palokas PAL0210 128.3 151.7 23.4 1.0 565 1.4
Palokas PAL0210 153.6 158.1 4.5 3.9 302 4.1
South Palokas PAL0213 250.2 252.0 1.8 2.8 150 2.9
South Palokas PAL0213 256.0 257.0 1.0 2.2 222 2.3
South Palokas PAL0213 261.0 263.0 2.0 0.8 257 1.0
South Palokas PAL0213 293.0 310.7 17.7 3.8 880 4.3
including 294.0 304.0 10.0 6.5 1012 7.2
South Palokas PAL0213 317.0 323.0 6.0 9.2 1364 10.0