Mawson Extends South Palokas Mineralization with Shallow Intercept Grading 6.3 G/T GOLD over 9 Metres from 93.7 Metres
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE January 20, 2020
MAWSON EXTENDS SOUTH PALOKAS MINERALIZATION WITH SHALLOW INTERCEPT GRADING
6.3 g/t GOLD OVER 9 METRES FROM 93.7 METRES
Vancouver, Canada — Mawson Resou rces Limited (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces assay results from the first two diamond drill holes reported from
the 15,000 metre 2020 winter drill program at the Company’s 100% owned Rajapalot Project in Northern Finland.
Resource expansion drilling commenced late in 2019 and after a Christmas and New Year break, restarted on January 09,
2020 with five diamond drill rigs focused at Palokas, South Palokas and Raja prospects. Seven drill holes have been
completed totaling 1865 metres.
The drill program aims to infill an d extend the Palokas, South Palokas and Raja resource areas (Figure 1) delivering the
data for an updated resource estimate at the end of Q2-Q3 2020;
Highlights:
At the South Palokas prospect, drill hole PAL0204 intersected 9.0 metres @ 6.3 g/t gold from 93.7 metres
(Tables 1-3, Figures 1-2):
PAL0204 extends mineralization at a significantly higher grade than the adjacent blocks 25 metres northeast of
the inferred South Palokas resource published in December 2018;
At the Palokas prospect, drill hole PAL0205 intersected 4.5 metres @ 4.5 g/t gold from 101.0 metres:
PAL0205 is located 60 metres southwest of earlier high-grade in tersections (PAL0027 6.8 metres @ 14.7 g/t
gold from 34.4 metres);
Cobalt and multi-element assays remain pending;
Drilling continues with two drill rigs at each of Palokas and South Palokas prospects and one at Raja prospect.
Mr. Hudson, Chairman and CEO, states, "With both drill holes extending the Palokas and South Palokas resource areas, this
is a solid start to our winter drilling. It is a testament to the increased geological understanding of the controls on Rajapalot
mineralization that we are obtaining high-grade intersections at the start of the program which will further aid drill targeting
the high-grade gold mineralization to depth. We welcome all to Mawson's Core Shack at AME Roundup 2020 from
22nd to 23 rd January, to discuss our work pr ograms and view representative samples of drill core, including these new
results. Drill results will conti nue to be reported over the ne xt four months as the planned 15,000 metre drill program
continues.”
A plan view of the completed drill holes and the locations of d rill hole targeting for this program are shown in Figure 1. A
long section including Palokas and South Palokas is shown in Figure 2, with the locations of PAL0204 and PAL0205. 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. Cobalt data will be provided when
multi-element assays are reported by the laboratory. Intersections are reported with a lower-cut of 0.5g/t gold over 1 metre
lower cut. No upper cut-off was applied.
The hosts rocks to the gold and cobalt mineralization comprise sulphides (pyrrhotite>>pyrite) with biotite-muscovite-
chlorite schists at South Paloka s and Mg-Fe amphibole-biotite-c hlorite rocks at Palokas. Veining and fracture fill minerals
include pyrrhotite, magnetite and magnetite-pyrrhotite (+/- qua rtz, 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.
Downhole electro-magnetic (“DHEM”) surveys on drill holes in th e deep Palokas area have also been completed over the
last week to target down-plunge sulphidic mineralization and mise-a-la-masse surveys to confirm cross-hole and continuity
to surface of mineralization are ongoing.
Technical and Environmental Background
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. 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.
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 suppo rt o f the Company’s new s rel ease 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. 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 a t www.sedar.com. The gold equiv alent ("AuEq") value was calculated using the following formula :
AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $30/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 43-101 resource, new drill holes reported and modelled
ground TEM plates. Purple outline represents area to be drilled this program.
Figure 2: Long section showing outline of 2018 resource and significant intersections over grade-width contours showing new results from PAL0204 and PAL0205 extending mineralization beyond the
current resource areas. The view is looking onto mineralized surface at Palokas and South Palokas (this is looking at 60 degrees towards 150).
Table 1: Collar Information from 2019-20 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3; the “A” postscript refers to a wedge off
the primary hole and the depth range of the drill hole is indicated)
HoleID East North Azimuth Dip RL Depth (m) Prospect Comment
PAL0202 3408978.0 7374402.6 229 -45 175.9 769.6 Palokas Results
Awaited
PAL0202A 3408978.0 7374402.6 229 -45 175.9 450 to
826.7 Palokas Results
Awaited
PAL0203 3408272.5 7373630.5 058 -63 173.6 420.0 South
Palokas
Results
Awaited
PAL0204 3408522.0 7373604. 3 235 -85 173.4 149.2 South
Palokas Reported Here
PAL0205 3408586.2 7373802.7 058 -49 173.5 191.5 Palokas Reported Here
PAL0206 3408463.5 7373917.2 063 -57 173.7 326.2 Palokas Results
Awaited
PAL0207 3408609.8 7373894.5 057 -76 173.7 200.2 Palokas Results
Awaited
PAL0208 3408540.7 7372692.8 052 -75 179.1 Raja Hole in
progress
PAL0209 3408471.1 7373638.3 058 -82 173.5 200.7 South
Palokas
Results
awaited
Table 2: First intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.5g/t gold over 1 metre lower cut. No
upper cut-off was applied.
Prospect hole_id From
(m)
To (m) width
(m)
Au g/t
South Palokas PAL0204 88.2 89.1 0.9 1.7
South Palokas PAL0204 93.7 103.0 9.3 6.3
Palokas PAL0205 101.0 105.5 4.5 4.5
Table 3: Individual assay data from drill holes PAL0204 and PAL0205 (cobalt and multi-element assays outstanding).
Hole_ID From (m) To (m) Width
(m)
Au
g/t
PAL0204 88.2 89.1 0.9 1.7
PAL0204 93.7 94.8 1.1 3.5
PAL0204 94.8 95.9 1.1 1.7
PAL0204 95.9 97.0 1.1 1.8
PAL0204 97.0 98.0 1.0 4.5
PAL0204 98.0 99.0 1.0 4.5
PAL0204 99.0 100.0 1.0 6.0
PAL0204 100.0 101.4 1.4 10.1
PAL0204 101.4 102.0 0.6 21.9
PAL0204 102.0 103.0 1.0 6.9
PAL0205 101.0 102.0 1.0 4.7
PAL0205 102.0 103.0 1.0 8.1
PAL0205 103.0 104.0 1.0 6.6
PAL0205 104.0 105.5 1.5 1.0