Mawson Commences Major Resource Expansion Drill Program at Rajapalot
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE November 07, 2019
MAWSON COMMENCES MAJOR RESOURCE EXPANSION DRILL PROGRAM AT RAJAPALOT
Vancouver, Canada – Mawson Resources Limited (“Ma wson” or “the Company”) (TSX:MAW; Frankfurt:MXR;
PINKSHEETS: MWSNF) is pleased to announce the commencement of the 2019-2020 resource expansion drilling program
at the Rajapalot gold-cobalt project in northern Finland, with the arrival of the first diamond drill rig on site. A 15,000 met re
drill program is planned over the next 6 months.
Key Points:
Updated Resource Planned: The drill program aims to infill and exte nd the Palokas, South Palokas and Raja
resource areas (Figure 1) delivering the data for an updated resource estimate at the end of Q2 2020;
Substantial Exploration Target: Prior to this program an exploration target of 0.8-1.0 million ounces between 3-5
g/t gold equivalent ("AuEq") is estimated to exist at the Rajapalot project. The potentia l quantity and grade of the
exploration target is conceptual in nature. There has be en insufficient exploration drilling to increase the mineral
resource and it is uncertain if further exploration will resu lt in the exploration target being delineated as a mineral
resource.
Effective Drill Targeting: Based on discovery success from earlier this year, drilling will be directed by geologic
controls of high-grade gold zones and fixed loop electromagnetic (“EM”) conductors, with further targeting refined by
down hole EM (“DHEM”);
Drilling Commencing Immediately: The first diamond rig has been mobilized to the Palokas prospect to drill a
high-priority target below PAL0194 that intersected 15.2 metres @ 4.3 g/t Au and 2,566 ppm Co (8.5 g/t AuEq) from
418.7 metres. Drill hole PAL0194, drilled in early 2019, was a 275 metre down-plunge step out from the 2018 inferred
mineral resource at Palokas;
Mr. Michael Hudson, CEO, states: “We thank our shareholders both old and new for supporting Mawson’s C$7.9 million brokered
financing that closed last week. We are now fully permitted and funded, and have wasted no time with a drill rig already on
site. Our 6-month, 15,000 m planned drill program will take us through to April 2020 and deliver an updated resource calculation
in Q2 next year. The detailed geological understanding of hi gh-grade gold mineralization combined with the geophysical
response of the host rocks has enabled tightly defined drill ta rgets. We are confident that new drilling down-plunge from the
known inferred mineral resources will locate further minera lization. For the past decade, Mawson has been a safe and
sustainable investor and mineral explorer in the Ylitornio region and at its peak, this program will employ up to 70 people to
execute the approximate €3 million program.”
Drill targets for the program are well constrained, given the continuity of the linear high-grade gold and cobalt mineralization
within EM conductors. Fixed loop EM surveys aid in defining further blind mineralized bodies and DHEM will be used to refine
precise drill targets. A geophysical gravity survey will define fundamental geologic and structural controls. Directional drill ing
combined with downhole wedges will be utilized for the first time on the project to accurately control targeting and aid in drill
efficiency.
In December 2018 Mawson announced a maiden resource for Rajapalot comprising a pit and underground Constrained Inferred
Mineral Resource of 424,000 ounces of gold at 3.1 g/t AuEq (4.3 million tonnes at 2.3 g/t Au, 430 ppm Co) at 0.37 g/t AuEq
cut-off open pit and 2 g/t AuEq underground was calculated, within a combined Unconstrained Inferred Mineral Inventory for
the Palokas, South Palokas and Raja prospe cts of 482,000 ounces gold equivalent ("AuEq") at a grade of 2.4 g/t AuEq (6.2
million tonnes at 1.7 g/t Au, 410 ppm Co) at 0.4 g/t AuEq cut-off.
Following a 15 kilometre 2019 drill program earlier this year, the Company doubled the metres into the resource areas, and an
exploration target of 0.8-1.0 million ounces between 3-5 g/t AuEq is now estimated (Figure 1). The current drill program aims
to infill the volume between the exploration target and inferred resource and also to extend the Palokas, South Palokas and
Raja prospects down plunge (Figure 1) to expand existing resources. The potential quantity and grade of the exploration target
is conceptual in nature. There has been insufficient exploration drilling to increase the mineral resource and it is uncertain if
further exploration will result in the exploration target being delineated as a mineral resource.
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Mawson is permitted within 4 exploration permit areas (4,263 hectares) for all-year-round drilling. Additionally, the Company
is currently permitted via enforcement of a 3-year permit (f rom January 2019) to drill from 200 platforms (from 529 optional
sites) plus 76 existing drill platforms within the 1,462 hectare Kairamaat 2-3 exploration permit area. This is the longest and
best permit the Company has received in this area and provid es a runway to drill and define further resources during this
period. Drilling is restricted to winter in Kairamaat 2-3, althou gh it is possible to drill for resource extensions at Palokas from
dry ground in all-year permitted areas.
NI 43-101 Technical Report:
On December 19, 2018, Mawson filed an independent National In strument 43-101 Technical Report (the “NI 43-101 Technical Report”) on
the Mineral Resource Estimate for the Raja and Palokas Prospe cts, at the 100% owned Rajapalo t Project in Finland, (the “ NI 43-101
Technical Report”), in support of the Company’s news release dated 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. Forrester are independent “qualified persons” as defined by National Instrument 43-101. The NI 43-
101 Technical 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.
The gold equivalent ("AuEq") value used in the 2018 inferred resource was calculated using the formula: AuEq g/t = Au g/t + (Co ppm/608)
with assumed metal prices of Co $30/lb; and Au $1,250/oz. AuEq varies with gold and co balt prices. Approximate spot prices for gold and
cobalt are currently $1,504/oz and $14.30/lb respectively.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
The qualified person for Mawson's Finnish projects, Dr. Nick C ook, President for Mawson and Fellow of the Australasian Institute of Mining
Metallurgy has reviewed and verified the contents of this release.
Mawson Resources Limited 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.
Drilling at Rajapalot will be commenced with one diamond drill rig from Arctic Drilling Company (“ADC”). The core is oriented and marked for
RQD and logged by Mawson staff. Half of the drill core is diamond sawn by GTK in Rova niemi and bagged for assay. The same half of the
drill core is consistently sampled to prevent any sampling bias.
The true thickness of mineralized intervals at Palokas, South Palo kas and Raja is interpreted to be approximately 80-85% of the sampled
thickness.
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
This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-
looking statements"). All st atements herein, other than statem ents of historical fact, are fo rward-looking statements. Although Mawson believes that such
statements are reasonable, it can give no as surance that such expectations will prove to be correct. Forward-looking statement s 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 guar antees of future results or performance, and that act ual 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, planned drill programs and results varying from expectations, delays in obtaining
results, equipment failure, unexpected geological conditions, loca l community relations, dealings with non-governmental organiz ations, delays in operations
due to permit grants, environmen tal and safety risks, and other risks and uncertainties disclosed under the heading "Risk Facto rs" in Mawson's most recent
Annual Information Form filed on www.sedar.com. Any forward-looking statemen t speaks only as of the da te on which it is made an d, except as may be
required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whet her as a result of new
information, future events or results or otherwise.
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Figure 1: Location of Palokas, South Palokas and Raja prospects within the Rajapalot Project in Finland. Note the conductors (green) defining the sulphidic
hosts to the gold mineralization, the 2018 inferred resource areas in red, the 2019 exploration target expansion in brown and the undrilled extensions in pink
that are the target of the down-plunge drilling in this campaign.