Mawson Announces over 1 Million Ounces GOLD Equivalent at Rajapalot, Finland GOLD Ounces up 47%, GOLD Grade up 19%
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE AUGUST 26, 2021
MAWSON ANNOUNCES OVER 1 MILLION OUNCES GOLD EQUIVALENT AT RAJAPALOT, FINLAND
GOLD OUNCES UP 47%, GOLD GRADE UP 19%
Vancouver, Canada – Mawson Gold Limited (“Mawson”) or (the “Com pany”) (TSX:MAW) (Frankfurt:MXR)
(PINKSHEETS: MWSNF) is pleased to announce an independently verified update of the t h i r d c o n s t r a i n e d I n f e r r e d
Mineral Resource estimate at its 100% owned Rajapalot project in Finland.
The estimate was completed by Qualified Persons from AFRY Finland Oy, a European leader in e ngineering, design, and
advisory services. Mineral Resources are calculated using a lon g-term gold price of US$1,590/oz and a cobalt price of
US$23.07/lb and using 0.3 g/t gold equivalent “AuEq” open pit c ut-off and 1.1 g/t AuEq underground cut-off (Table 1).
AuEq values were calculated using the following formula: AuEq g/t = Au g/t + (Co ppm/1005).
Key Points:
Base case Mineral Resource estimate 10.91 Mt @ 3.0 g/t gold equivalent (“AuEq”), 2.5 g/t gold (“Au”),
443 ppm cobalt (“Co”) for 887 koz Au, 4.8 kt Co equating to 1.04 Moz AuEq in the inferred category;
Compared to the previous Rajapalot resource estimation published on September 14, 2020 (Figure 4):
o Gold grade increased by 19% (AuEq grade by 12%);
o Contained gold ounces increased by 47% (contained gold equivalent ounces by 35%);
Gold camp now comprises 8 distinct prospects, doubling the 4 pr eviously contained in the 2020 Rajapalot
Inferred Mineral Resource estimate (Figures 5 and 6);
Substantial increases in existing resources demonstrate continuity within the deposits and expansion potential at
depth and along strike (Figure 7):
o All resource areas remain open to depth and the Company has dev eloped a strong geological and exploration
model to target mineralization;
Growth potential remains strong:
o Drilling covers only 20% of the mineralization-host package at Rajapalot (Figure 8);
o Rajapalot camp represents only 5% of 100 square kilometre Rompa s-Rajapalot Finnish project area owned
100% by Mawson.
Mr. Hudson, Chairman and CEO, states, “Following a significant drilling effort, we are delighted to hit a milestone of 1.04 Moz
AuEq, while delivering a year-on-year gold grade increase of 19 % with contained gold up 47% from our last resource
upgrade in 2020. Rarely does substantial resource growth come t ogether with grade increases, and the robustness of
Rajapalot at different cut-offs and constraining models is impressive. This year we doubled the number of prospects within
the resource area, and our annual winter campaigns have been adding 300-400 koz AuEq resource growth in a predominant
10-week drilling window. We have developed a strong geological and exploration model to target high-grades, and excitingly
it remains early days at Rajapalot with 80% of the target untested, which is just 5% of Mawson’s larger 100 square kilometre
Finnish project — all from a project that is one of the few in Finland that enjoys majority local support.”
Table 1: Total Inferred Mineral Resources estimate as of August 26, 2021, at the listed cut-offs for constrained open pit
and underground resources at Rajapalot.
Zone Cut-off
(AuEq)
Tonnes
(kt)
Au
(g/t)
Co (ppm) AuEq
(g/t)
Au
(oz)
Co
(tonnes)
AuEq
(oz)
Palokas Pit 0.3 1,228 2.2 382 2.5 85,513 469 100,511
Palokas UG 1.1 4,878 2.7 501 3.2 427,797 2,443 505,941
Palokas total 6,106 2.6 477 3.1 513,310 2,911 606,451
Raja Pit 0.3 485 1.3 289 1.6 19,722 140 24,206
Raja UG 1.1 2,492 3.2 401 3.6 254,600 999 286,574
Raja total 2,977 2.9 383 3.2 274,322 1,140 310,780
East Joki (no pit)
East Joki UG 1.1 299 4.5 363 4.9 43,378 109 46,859
East Joki total 299 4.5 363 4.9 43,378 109 46,859
Hut Pit 0.3 61 0.1 874 1.0 214 54 1,928
Hut UG 1.1 816 1.4 411 1.8 35,943 336 46,682
Hut total 877 1.3 444 1.7 36,157 389 48,610
Rumajärvi Pit 0.3 401 0.6 496 1.1 8,107 199 14,467
Rumajärvi UG 1.1 246 1.5 356 1.9 12,009 88 14,813
Rumajärvi total
647 1.0 443 1.4 20,116 286 29,279
Total Pit 0.3 2,175 1.6 396 2.0 113,556 861 141,112
Total UG 1.1 8,732 2.7 455 3.2 773,728 3,974 900,868
Total
10,907 2.5 443 3.0 887,284 4,836 1,041,980
CIM Definition Standards (2014) were used for Mineral Resource classifications. AuEq=Au+Co/1,005 based on assumed prices of Co US$23.07/lb and Au US$1,590/oz.
Rounding of grades and tonnes may introduce apparent errors in averages and contained metals. Drilling results to 20 June 2021. These are Mineral Resources that are not
Mineral Reserves and do not have demonstrated economic viability.
Resource Methodology
1. Mineral Resource estimation reporting follows the Canadian Institute of Mining, Metallurgy and Petroleum
("CIM") definitions standards (2014) for mineral resources and reserves and have been completed in
accordance with the Standards of Disclosure for Mineral Project s as defined by National Instrument 43-
101;
2. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy
of the estimate. Minor variations may occur during the addition of rounded numbers;
3. Constrained Resources are presen ted undiluted and in-situ and a re considered to have reasonable
prospects for eventual economic extraction. The Qualified Perso n considers that the reported Mineral
Resource has reasonable prospects for eventual economic extract ion by the open pit and underground
mining method at the specified cut-off grades. An assessment of w h e t h e r t h e p r o j e c t a s a w h o l e i s
economically viable has not been made under this analysis. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability. Whittle software (version 4.7.3) was used in the optimization
on Palokas, South Palokas, Raja, Hut, Rumajärvi, Uusisaari, Terry’s Hammer and Joki prospect wireframes
to define the mineralization falling within the confines of an open pit (demonstrating reasonable prospects
for eventual economic extraction, “RPEEE”). Five block models were created covering the eight prospects.
Mineralization falling outside the pits above the cut-off grade of 1.1 g/t AuEq was then defined as
underground resources with RPEEE.
4. Optimized open pit constrained resources are reported at a cut- off grade of 0.3 g /t AuEq. Underground
resources are reported at a cut-off grade of 1.1 g/t AuEq (Figu res 1-3). The cut-off grades used for
reporting were based on up to date third party metal price rese arch, forecasting of long-term gold and
cobalt prices, and a cost structure from benching marking Finni sh mining, metallurgical and G&A
operational costs. Costs include mining, processing and general and administration (“G&A”). Net Smelter
Return (“NSR”) includes metallurgical recoveries and selling co sts inclusive government royalties. Gold
equivalent “AuEq” = Au+(Co/1005) based on assumed prices of cobalt US$23.07/lb and gold US$1,590/oz.
The optimization process was conducted considering three scenarios:
The first using Whittle optimization for a pit of Revenue Factor 1 (Rev-F-1);
The second optimization utilised the changeover from open cut ( OC) to underground (UG) based
on the estimated differential operating expenses of OC and UG ( model termed OC-UG or “base
case”);
The third was an underground sce nario where a depth of 20 metre s below the top of solid rock
was regarded as the near-surface limit of potential mining (UG only).
These three scenarios were devel oped to allow consideration of r e a s o n a b l e p r o s p e c t s f o r e v e n t u a l
economic extraction (RPEEE). Without further consideration of economic viability, the second optimization
(OC-UG) is regarded as the most reasonable. The Pit Optimizatio n section provides details of the three
scenarios considered.
Table 2: Grade/tonnage relationships for alternate constraining models for Rajapalot
Model Tonnes
(kt) Au (g/t) Co (ppm) AuEq (g/t) AuEq (oz)
RF= 1 Whittle 13,395 2.1 423 2.5 1,094,125
Base Case 10,907 2.5 443 3.0 1,041,980
All UG 9,780 2.8 441 3.2 1,004,732
5. A gold top cut of 50 g/t Au was used for the gold domains. A cobalt top cut was not applied.
6. Bulk density values were calculated for each block within the w ireframes based on 3,345 density
measurements (linear relationship of iron oxide to density was used to make an Ordinary Kriged estimate
of density for each wireframe).
7. Wireframe models were generated using gold and cobalt shells se parately. Forty-eight separate gold and
cobalt wireframes were constructed in Leapfrog Geo and grade distributions independently estimated using
Ordinary Kriging in Leapfrog Edge.
8. Sub-block triggers in each case were created using the gold and cobalt wireframes, the base of till and
lidar surface wireframes were also used to control the density model for “air” and till blocks (till density is
set to 2 t/m3. Parent blocks were used in all cases for grade estimation. A range of parent block sizes was
tested with an optimal 12 m x 12 m x 4 m size determined (>20% of the drill hole spacing) as suitable.
Sub-blocking down to 4 m x 4 m x 0.5 m was optimal for geologic control on volumes, thinner and
moderately dipping wireframes (testing of options up to the parent block size showed less than 5% overall
variation in the Mineral Resource estimate).
For creation of the SMU model for pit optimization, the sub-blo ck model was copied and controlled to
regular 5 m x 5 m x 2.5 m blocks. There was less than 0.5% diff erence in the total Mineral Resource
estimate created during the change to regularized blocks.
9. AFRY created the Rajapalot Mineral Resource estimate using the drill results available to 20 June 2021.
10. Additional metals were estimated using ordinary kriging in the resource base case. The average contents
of these metals were arsenic (234 ppm), copper (198 ppm), iron oxide (11.0%), nickel (108 ppm), sulphur
(2.2%), uranium (31 ppm) and tungsten (100 ppm). From a resourc e efficiency point of view, it appears
that only gold (2.5 g/t) and cobalt (443 ppm) have the potential to be extracted economically, considering
the low background values of the other metals. Certain environm ental opportunities potentially exist to
extract and capture some of the other metals to produce a cleaner tailings product.
A National Instrument 43-101 Technical Report will be filed on SEDAR shortly.
About the Rajapalot Project
Diamond Drilling
Mawson completed 76 holes for 19,422 metres during the 2020/21 winter drill season. At the completion of the 2020/21
winter drill program a total of 544 drillholes for 84,507 metre s had been drilled at the Rajapalot project with an average
depth of 155 metres. Key results from the program are outlined below. The 100% owned gold-cobalt Rajapalot discovery
hosts numerous hydrothermal gold-cobalt prospects drilled between 2013 and April 2020 within a 3 by 4-kilometre area. A
total of 76,155 drilling metres (90% of total) has been completed since 2017. A total of 330 holes for 72.8 kilometres and
an average depth of 250 metres were used in the upgraded August 2021 resource estimation. In comparison, a total of
257 holes for 53.8 km and an average depth of 209 metres were used the upgraded September 2020 resource estimation
and a total of 178 holes for 24.0 km with an average depth of 1 35 metres were used within the December 2018 maiden
resource estimation.
Geology
The host sequence comprises a polydeformed, isoclinally folded package of amphibolite facies metamorphosed
Paleoproterozoic supracrustal rocks of the Peräpohja belt. The Paleoproterozoic of northern Finland is highly prospective
for gold and cobalt, and include the Europe’s largest gold mine, Kittilä, operated by Agnico Eagle Finland Oy.
Stratabound gold-cobalt mineralization occurs near the boundary of the Kivalo and Paakkola groups with two contrasting
host rocks, either iron-magnesium or potassic-iron types. Multi -stage development of the mineralization is evident, with
early-formed cobalt and a post-tectonic hydrothermal gold event.
Prospects with high-grade gold and cobalt at Rajapalot occur ac ross 3 km (east-west) by 2 km (north-south) area within
the larger Rajapalot project exploration area measuring 4 km by 4 km with multiple mineralized boulders, base-of-till (BOT)
and rare outcrops. High-grade Au-Co mineralization at Rajapalot has been drilled to 540 metres deep at Raja and South
Palokas prospects, but is not closed out at depth in any prospect. The only surface exposure of mineralization is at Palokas,
however except for East Joki, all mineralization comes to the top of the bedrock below the till, less than 6 metres below the
surface. East Joki is 110 metres from the surface at its shallowest, but is not drilled yet in the up-dip direction.
Mawson’s primary target type across the whole Rajapalot-Rompas area is the disseminated Au-Co style, with Mawson’s
geological team in Finland devoted to uncovering more prospects based on their increased understanding of the host
sequence.
Two distinct styles of gold mineralization dominate the Rajapalot area. The first, is a variably sulphidic magnesian-iron host,
previously referred to internally as “Palokas” style. The magnesian-iron host is most likely an ultramafic volcanic (komatiitic)
and occurs within approximately 100 vertical metres of the infe rred Kivalo-Paakkola boundary (that is, near the incoming
of pelites, calc-pelites and qua rtz muscovite rocks). A largely retrograde mineral alteration assemblage includes chlorite,
Fe-Mg amphiboles (anthophyllite and cummingtonite series), tourmaline and pyrrhotite commonly associated with quartz-
veining. Subordinate almandine garnet, magnetite and pyrite occ ur with bismuth tellurides, scheelite, ilmenite and gold,
cobalt pentlandite and cobaltite. Metallurgical testing at Palokas reveals the gold to be non-refractory and 95% pure (with
minor Ag and Cu) with excellent recoveries by gravitational circuit with conventional cyanidation and/or flotation. QEMSCAN
studies also show that the gold occurs as native grains, found both on grain boundaries and within minerals. Detailed work
by Jukka Pekka Ranta of the University of Oulu (plus co-workers ) on fluid inclusions and the host rocks to the Fe-Mg
mineralization at Palokas indicates weakly saline, methane-bear ing fluids at depths as shallow as 5 km and temperatures
of approximately 250 degrees were responsible for deposition of the gold.
The second style of gold-cobalt mineralization at Rajapalot, a potassic-iron (K-Fe) style (formerly referred to internally as
“Rumajärvi” type) is characteristically associated with muscovite and / or biotite and chlorite in a diverse range of fabrics.
Gold grades of more than 1 g/t Au are associated with pyrrhotite and contained within muscovite-biotite schists, muscovite
and biotite-bearing albitic granofels and brecciated, variably micaceous albitic rocks. Magnetite is a common mineral, but
not a necessity for anomalous gold grades. The host rocks are g rey to white owing to their reduced nature and may be
enclosed by light pink to red calcsilicate-bearing albitites. T o date, the K-Fe gold-cobalt mineralization style has been
intersected near the muscovite-bearing quartzite at Raja and Ru majärvi, but as other rock types are also mineralized and
the clear strong structural control on grade, stratigraphic constraints may locally not be relevant.
Exploration for Palokas and Rumajärvi style gold prospects is not restricted to the Rajapalot area. Recognition of the host
stratigraphic package (near the boundary of the Kivalo-Paakkola Group boundary) enclosing the 6 km long vein-hosted
Rompas Au-U system increases the search space for the pyrrhotite-Au-Co systems to cover Mawson’s full permit area. The
geochemical characteristics of the ultramafic volcanics and rel ated intrusives are not only present in the southern drill
section at South Rompas but have more than 50 km of strike length in Rompas-Rajapalot. It is the interaction of this reactive
rock package with late gold-bearing hydrothermal systems driven by ca. 1.8 Ga granitoids, that now form the most highly
prospective targets away from the Rajapalot area. The cobalt component of the system is largely stratabound and formed
much earlier, most likely from oxidized saline basinal fluids interacting with reduced strata.
Metallurgy
Preliminary metallurgical testing on drill core from the Rajapa lot prospect demonstrate excellent gold extraction results of
b e t w e e n 9 5 % a n d 9 9 % ( a v e r a g e 9 7 % ) b y a c o m b i n a t i o n o f g r a v i t y separation and conventional cyanidation and
or/flotation. Metallurgical test work indicates gold recovery and processing are potentially amenable to conventional industry
standards with a viable flowsheet which could include crushing and grinding, gravity recovery, and cyanide leaching with
gold recovery via a carbon-in-pulp circuit for production of on site gold doré. Further metallurgical test work is currently
underway, with Mawson a participant of Finland’s BATCircle cons ortium, a program designed to value-add to the Finnish
battery metals circular economy. Initial indications suggest the cobalt minerals present (cobaltite and linnaeite) can float or
be separated by magnetic separation methods.
Strategic Cobalt
Rajapalot is a significant and strategic gold-cobalt resource a nd one of Finland’s largest gold resources by grade and
contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.
Finland refines half the world’s cobalt outside China. The worl d’s largest cobalt refinery is located 400 kilometres south of
Rajapalot, where CRU estimates annual refining of 22,734 tonnes of cobalt (approximately 18% of world refined cobalt
production), 90% of which was sourced from Chinese-owned mines in the Democratic Republic of Congo. Finland mines
only 650 tonnes or 0.5% of the world's cobalt per year. The Rajapalot resource has the potential to support Finland’s desire
to source ethical and sustainable cobalt.
ESG
Mawson acknowledges that Environmental, Social and Governance ( " E S G " ) f o r m s a c o m p r e h e n s i v e f r a m e w o r k f o r o u r
Company to successfully navigate and balance the benefits of ou r projects to the planet, people and profit. Mawson has
had an active ESG program operating for many years, and we are constantly developing and adding to it as our projects
grow and develop.
Mawson appreciates the overwhelmingly strong support it receive s from local stakeholders in Finland. The Ylitornio
municipality, which hosts the Rajapalot project, is a sparsely populated area with a decreasing population. The Rajapalot
project could create many opportunities for both the current population and those in the future who settle within the area.
During late 2020, Mawson Oy, Mawson’s 100%-owned subsidiary in Finland, requested the Lapland Centre for Economic
Development, Transport and the Environment (“ELY”) to arrange a preliminary consultation in accordance with section 8 of
the Environmental Impact Assessment (“EIA”) Procedure Act. The EIA procedure identifies, assesses, and describes the
significant environmental effects of a project and subsequently allows Mawson to consult with the authorities and those
whose conditions or interests may be affected by the project. T he EIA procedure is not a permit procedure, but provides
information on the environmental effects of a project that will subsequently be taken into account by official authorities
during mine permitting. Mawson has also proposed to the regional municipality of Ylitornio and the city of Rovaniemi that
these bodies request the Regional Lapland Council (“Lapin Liitt o”) to initiate regional land use planning for the Rajapalot
project.
I n c o m b i n a t i o n w i t h t h e E I A , t h e t w o m u n i c i p a l a r e a s w h e r e t h e Rajapalot gold-cobalt project is located, the City of
Rovaniemi and Municipality of Ylitornio, at the request of Mawson, have formally decided to start the sub-area Local Master
land use planning processes. Both municipalities have made decisions to propose to the Regional Council of Lapland (“Lapin
Liitto”) to start the phased provincial land use plan for the Rajapalot gold-cobalt project.
Technical Background
Qualified Persons – Mineral Resources: The Mineral Resources di sclosed in this press release have been estimated by Eemeli Ran tala,
AFRY – P.Geo, Ville-Matti Seppä, AFRY – EurGeol of Finland and the metallurgical sections by Cra ig Brown, Mining Associates P/ L –
FAusIMM of Australia . All authors are independent “qualified persons” as defined by NI 43-101. The NI 43-101 technical report is entitled
“Mineral Resource Estimate NI 43-101 Technical Report — Rajapalot Property”. By virtue of their education and relevant experience, all
authors are “Qualified Persons” for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance
with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). All authors have read and approved the contents
of this news release as it pertains to the disclosed Mineral Re source estimates. The Qualified Person, Dr Nick Cook, Mawson’s Chief
Geologist, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical conten ts of this
release.
About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Gold Limited is a gold exploration and development company and has distinguished itself as a leading exploration company with
a focus on the flagship Rajapalot gold-cobalt project in Finland and its Victorian gold properties in Australia.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Further Information
www.mawsongold.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary, +1 (604) 685 9316,
Forward-Looking Statement
This news release contains forward-looking statements or forward-looking information within the meaning of applicable Canadian securities laws
(collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements and are
based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company
can access financing, appropriate equipment and sufficient labor. 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
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; changes in equity markets; ability to achieve goals; that the political environment in which the Company operates will
continue to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases, including
the novel COVID-19 virus; risks related to negative publicity with respect to the Company or the mining industry in general; reliance on a single asset;
planned drill programs and results varying from expectations; 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. While these factors and assumptions are
considered reasonable by Mawson, in light of management’s experience and perception of current conditions and expected developments, Mawson can
give no assurance that such expectations will prove to be correct. 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: Grade/tonnage relationships at different AuEq g/t cut-off grades for the combined open pit portion of the
Rajapalot constrained base case (“OC-UG”) inferred resource
Figure 2: Grade/tonnage relationships at different AuEq g/t cut-off grades for the combined underground portion of the
Rajapalot constrained base case (“OC-UG”) inferred resource
Figure 3: Grade/tonnage relationships at different AuEq g/t cut-off grades for the Rajapalot underground only (“All
Underground”) inferred constrained resource. This is not the base case.
Figure 4: Resource growth at Rajapalot, highlighting August 2021 grade increase