Increasing with Depth at Sunday Creek, Victoria, Australia
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE May 16, 2023
Mawson’s Subsidiary SXG Intersects 1.2 m @ 121.8 g/t Au in Deepest Hole with Visible Gold
Increasing with Depth at Sunday Creek, Victoria, Australia
Vancouver, Canada — Mawson Gold Limited (“Mawson” or the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces results from drillhole SDDSC064 (1.2 m @ 121.8 g/t
Au from 889.6 m ) from the deepest mineralization (830 m vertically below surface) and one of the
two highest grade intersections to date, and a 115 m down-dip extension from SDDSC061 (12.0 m
@ 7.4 g/t AuEq incl 0.3 m @ 249.5 g/t AuEq) at the Sunday Creek Project in Victoria , Australia (Figure 1).
Of major importance is the increasing abundance of visible gold at depth at Sunday Creek (Photos 1 -4), as
is typical for epizonal deposits.
Sunday Creek is 100% owned by Southern Cross Gold (“SXG”), which is an ASX listed company owned 51%
by Mawson. Four rigs continue to drill both in the main drill area and up to 7.5 km along strike at the Tonstal
prospect with 16 holes being processed and analyzed and four drill rigs operating. Mineralization now extends
in the main drill area over 1,350 m from Christina in the far west to SDDSC063.
Highlights:
• SDDSC064 (Figs 3-6) drilled the deepest mineralization (830 m vertically below surface) and
one of the two highest grade intersections on the Sunday Creek project with increasing
abundance of visible gold (Photos 1-4). Highlights from five separate mineralized veins include:
• 0.4 m @ 48.5 g/t AuEq (44.6 g/t Au, 2.5 %Sb) from 715.8 m
• 0.3 m @ 16.3 g/t AuEq (15.6 g/t Au, 0.4 %Sb) from 725.8 m
• 0.9 m @ 5.6 g/t AuEq (5.2 g/t Au, 0.2 %Sb) from 882.7 m
• 1.2 m @ 121.8 g/t AuEq (121.8 g/t Au, 0.1 %Sb) from 889.6 m including:
0.5 m @ 158.5 g/t Au and 0.4 m @ 177.5 g/t Au
• 0.6 m @ 12.6 g/t AuEq (8.6 g/t Au, 2.5 %Sb) from 907.3 m
• As well as being the deepest mineralization on project, SDDSC064 extended mineralization
significantly, being a 115 m down-dip extension from SDDSC061 (12.0 m @ 7.4 g/t AuEq incl
0.3 m @ 249.5 g/t AuEq).
• Of major importance is the abundance of visible gold becoming increasingly significant at depth.
• Mawson owns 93,750,000 shares of SXG (51%), valuing its stake at A$52.5 million (C$47.3 million)
based on SXG’s closing price on May 16, 2023 AEST.
Noora Ahola, Mawson Interim CEO, states: “This is an exceptional result from team at Southern
Cross Gold. Not only is this the deepest hole SXG has drilled at Sunday Creek terminating at
1,013.5 m down hole, but it also produced the deepest mineralization at 830 m vertical depth
and the second highest grade intersection on the property. We are greatly encouraged by the
presence of visible gold at depths typical in other high quality epizonal deposits in the region and
that SDDSC064 extended mineralization with a 115 m down-dip extension from SDDSC061 (12.0
m @ 7.4 g/t AuEq incl 0.3 m @ 249.5 g/t AuEq).
Sunday Creek is proving to show great continuity and predictability in the vein sets that intersect
the host breccia dyke that runs 11 kms through the property . Increased strike lengths of up to
60 m of individual veins that recur with predicta ble frequency as demonstrated in this release
confirm our confidence in the ability of the project to deliver results that are comparable on a
global scale.”
Results Discussion
The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 19,365 hectares of
granted exploration tenements. SXG is also the freehold landholder of 133 hectares that forms the key portion
in and around the drilled area at the Sunday Creek Project.
Sunday Creek has a n 11 km mineralized trend that extends beyond the main drill area and is defined by
historic workings and soil sampling which is being drill tested for the very first time with the fourth drill rig
which mobilized to the Tonstal prospect 7.5 kms to the northeast a month ago.
SDDSC064 (collar azimuth 239.6 degrees), drilled in the Rising Sun area of Sunday Creek, was designed to
extend mineralization to depth as a scissor hole (drilled in an opposite direction) to SDDSC050 (collar azimuth
077 degrees) (305.8 m @ 2.4 g/t AuEq). It achieved this and delivered new and exciting data on multiple
levels:
1. Discovered the deepest mineral ization on project (830 m vertically below surface), with
SDDSC064 the first hole to exceed 1 km in length on the project, terminating at 1,013.5 m.
2. One of the two highest grade intersections on project (after SDDSC046 @ 2.1 m @ 121.6 g/t
AuEq).
3. Defined significant extensions to known mineralization:
a. At its lower levels SDDSC064 (1.2 m @ 121.8 g/t AuEq) was a 115 m down dip extension
from SDDSC061 (12.0 m @ 7.4 g/t AuEq incl 0.3 m @ 249.5 g/t AuEq)
4. Demonstrated the high frequency of mineralized veins:
a. Five high-grade NW veins intersected over 100 m hor izontal true thickness (within 192 m
down hole width), implying a vein frequency each 20 m on average.
5. Demonstrated continuity across multiple high -grade veins in a 430 m (down dip) x 180
m (wide) and 60 m (strike) area beneath drill hole SDDSC050:
a. At its upper levels SDDSC064 (0.4 m @ 48.5 g/t AuEq from 715.8 m and 0.3 m @ 16.3 g/t
AuEq from 725.8 m) showed the NW mineralized veins strike length increases at depth with
the same vein drilled in SDDSC050 (9.0 m @ 7.3 g/t AuEq from 712.0 m including 1.5 m @
41.5 g/t AuEq) located 60 m along strike to the northwest.
6. Drilled a broad and extensive halo to high grade gold with low antimony and higher
arsenopyrite:
a. 212.8 m @ 1.0 g/t Au 0.04% Sb from 715.8 (no lower cut).
Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG
website at www.southerncrossgold.com.au
Figures 1-6 show project location, plan, longitudinal and cross -sectional views of drill results reported here
and Tables 1–3 provide collar and assay data. The true thickness of the mineralized intervals reported are
interpreted to be approximately 60-70% of the sampled thickness. Lower grades were cut at 0.3 g/t Au lower
cutoff over a maximum width of 3 m with higher grades cut at 5.0 g/t Au cutoff over a maximum of 1 m
width, unless otherwise stated.
Update on Current Drilling
Drilling with four rigs is in progress at Sunday Creek at the Rising Sun and Apollo prospects and also 7.5 km
north-east at the Tonstal prospect. Sixteen new holes (SDDSC066 - 75 and SDDTS001-6) are currently being
geologically processed and analyzed, with three holes (SDDSC070, 7 3, 74, and SDDTS007) in drill progress
(Figure 2). SDDSC068 has been temporarily halted at 959.4 m below Apollo, awaiting an upgrade to a new
drill feed rail to allow deeper drilling to continue.
Technical Background and Qualified Person
The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of
the Australasian Institute of Mining and Metallurgy, has reviewed , verified and approved the technical
contents of this release.
Analytical samples are transported to the Bendigo facility of On Site Laboratory Services (“On Site”) which
operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold
using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution
with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required)
use aqua regia digestion and ICP -MS analysis. The QA/QC program of Southern Cross Gold consists of the
systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock
and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.
MAW considers that both gold and antimony that a re included in the gold equivalent calculation (“AuEq")
have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding,
historic production statistics and geologically analogous mining operations. Historically, ore from Sunday
Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project,
for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains
two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade
global underground mine and a top 5 global producer of antimony.
SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd
in its Mandalay Technical Report, 2022 dated 25 March 2022. The gold equivalence formula used by Mandalay
Resources was calculated using recoveries achieved at the Costerfield Property Brunswick Processing Plant
during 2020, using a gold price of US$1,700 per ounce, an antimony price of US$8,500 per tonne and 2021
total year metal recoveries of 93% for gold and 95% for antimony, and is as follows: 𝐴𝑢𝐸𝑞 = 𝐴𝑢 (𝑔/𝑡) +
1.58 × 𝑆𝑏 (%).
Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment
of Sunday Creek mineralization at Costerfield, SXG considers that a 𝐴𝑢𝐸𝑞 = 𝐴𝑢 (𝑔/𝑡) + 1.58 × 𝑆𝑏 (%) is
appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.
For previously reported exploration results referenced in this news release, refer to the following:
March 30, 2023 SDDSC061
About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)
Mawson Gold Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic exploration
company with its 100% owned flagship Rajapalot gold -cobalt project in Finland, and right to earn into the Skellefteå North gold
project in Sweden. Ma wson also currently owns 51% of Southern Cross Gold Ltd (ASX:SXG) which in turn owns or controls three
high-grade, historic epizonal goldfields covering 470 km2 in Victoria, Australia.
About Southern Cross Gold Ltd (ASX:SXG)
Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and
Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which
grants SXG a Right of First Refusal over a 3,300 square kilometer tenement package held by NAG in Victoria.
On behalf of the Board,
"Noora Ahola"
Noora Ahola, Interim CEO
Further Information
www.mawsongold.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary
+1 (604) 685 9316 [email protected]
Forward-Looking Statement
This news release contains forward -looking statements or forward -looking information within the meaning of applicable securities
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 that such expectations wil l
prove to be correct. Forward-looking 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 t hat any
forward-looking statements are not guarantees of future results or performance, and that actual results m ay differ materially from
those in forward-looking statements as a result of various factors, including, Mawson’s expectations regarding its ownership interest
in Southern Cross Gold, capital and other costs varying significantly from estimates, changes in world metal markets, changes in
equity markets, the potential impact of epidemics, pandemics or other public health crises, including the current pandemic known as
COVID-19 on the Company’s business, risks related to negative publicity with respect to the Company or the mining industry in
general; exploration potential being conceptual in nature, there being insufficient exploration to define a mineral resource on the
Australian-projects owned by SXG, and uncertainty if further exploration will result in the determination of a mineral resource; planned
drill programs and results varying 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.
Photo 1: SDDSC064 716.0 m showing visible gold along stibnite and arsenopyrite veinlets within quartz carbonate vein. Ticks show mm scale.
Photo 2: SDDSC064 725.8 m showing visible gold on the margin of a quartz carbonate vein with arsenopyrite. Ticks show mm scale.
Photo 3: SDDSC064 between 890.2-890.7 m showing visible gold within a quartz carbonate vein stockwork hosted by albitized and sericitized dioritic dyke. Minor fuchsite
(lime green) alteration in dyke. Field of view 30mm.
Photo 4: SDDSC064 between 890.2-890.7 m showing visible gold within a quartz carbonate vein hosted by albitized and sericitized dioritic dyke.
Drill core (NQ) is 47.6 mm wide.