Mawson Extends South Palokas with a 140 Metre Step Out Drill Intersection 32.0 Metres at 1.4 G/T GOLD and 1,556 PPM Cobalt at Rajapalot Project, Finland
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE June 13, 2019
MAWSON EXTENDS SOUTH PALOKAS WITH A 140 METRE STEP OUT DRILL INTERSECTION
32.0 METRES at 1.4 g/t GOLD and 1,556 ppm COBALT AT RAJAPALOT PROJECT, FINLAND
Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces gold-cobalt results from 5 drill holes from the South Palokas
prospect at the Company’s 100% owned Rajapalot Project in northern Finland. Nine holes with full assays remain to be
reported from the 44 drill hole winter program.
Key results:
➢ PAL0197 intersected 32.0 metres @ 3.9 g/t gold equivalent (“AuEq”), 1.4 g/t Au, 1,556 ppm Co from 294.3
metres, including 17.9 metres @ 4.4 g/t AuEq , 1.0 g/t Au, 2,079 ppm Co from 294.3 metres and 9.4 metres
@ 5.0 g/t AuEq, 2.8 g/t Au, 1,320 ppm Co from 316.9 metres (Tables 1-3):
o PAL0197 was drilled 140 metres down plunge from the deepest hole used in the inferred mineral resource
calculation (December, 2018) and is now the deepest hole drilled at the prospect, intersecting the target
340 metres down plunge from surface;
➢ PAL0198 intersected 9.8 metres @ 6.1 g/t AuEq, 4.2 g/t Au, 1,208 ppm Co from 169.9 metres
o PAL0198 was drilled 40 metres across the plunge to the north of the closest drill hole;
➢ PAL0193 intersected 11.0 metres @ 2.1 g/t AuEq, 0.4 g/t Au, 1,044 ppm Co from 273.0 metres respectively.
o PAL0193 was drilled 65 metres down plunge from the deepest hole used in the inferred mineral resource
calculation;
➢ PAL0173 returned 17.0 metres @ 4.3 g/t AuEq, 3.0 g/t Au, 827 ppm Co from 264.0 metres (gold assays for
this hole were reported in March, 2019).
o PAL0173 was drilled 40 metres across plunge to the south of PAL0193;
➢ South Palokas is growing and improving at de pth with 4 of the 5 holes completed this winter at South Palokas
ranked in the top 7 intersections for the prospect (Table 4, Figures 1-3). South Palokas now forms a body over a
170 metres strike, 30 metres wide and has been tested to 340 metres down plunge to date with EM conductors
continuing a further 700 metres down plunge.
Mr. Michael Hudson, Chai rman and CEO states: “ Drill results reported over the last few months from Rajapalot have
substantially upgraded the project potential, with numerous higher-grade hits and gold-cobalt mineralization discovered in
significant step outs across multiple prospect areas. At South Palokas 3 of 5 new holes with large step outs returned more
than 50 g/t-metres gold equivalent while the deepest hole (PAL0197) returned the best result in the prospect of 32.0 metres
@ 3.9 g/t AuEq metres. Mineralization at all prospects remain open at depth and across strike.”
Mawson completed 44 holes (P AL0159–PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole)
during the 2019 winter drill season. Results from 5 holes from Sout h Palokas prospect are provided her e (PAL0173, 193,
195, 197, 198, Tables 1 -4). Nine holes with full assays remain to be reported, including holes drilled on the high -grade
gold-cobalt trend at Raja (PAL0191 with visible gold) and PAL0199 from The Hut area (containing strongly sulphidic potassic
scheelite-bearing rocks).
Noteworthy is the high cobalt content in PAL0198, with deeper drilling intersecting higher cobalt grades over wide zones
compared to most holes on the property. The results tends to mimic th e deeper drilling at the nearby Pa lokas prospect
(where PAL0194 intersected 15.2 metres @ 8.5 g/t AuEq , 4.3 g/t gold (“Au”) and 2,566 p pm cobalt (“Co”) from 418.7
metres) with an increased Co:Au ratio. It appears that higher cobalt forms on the margins of high-grade gold mineralization
at depth. The Rajapalot project is a signific ant and strategic gold -cobalt resource for Finland with the maiden resource
positioned as one of Finland's current top three 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.
Targeting at South Palokas this winter was based on earlier drilling (in particular PAL0016, 12.4 metres @ 4.0 g/t AuEq, 3.4
g/t Au, 368 ppm Co from 202.0 metres ) and electromagnetic (EM) anomalies derived from both VTEMplus (airborne) and
TEM (ground-based) surveys. Gold assays for PAL0173 were reported in March, 2019 (17 metres @ 3.0 g/t Au from 276.0
metres) and formed the basis for planning further drill testing. D rill hole PAL0198 was drilled to test continuity of
mineralization from depth to surface and allow mapping of the near -surface extent of the sulphides (see Figure 1 with
MALM geophysics). South Palokas now forms a body over a 170 metres strike, 30 metres wide and has been tested to 340
metres down plunge to date with EM conductors continuing to at least 700 metres down plunge.
The drill intersections reported here are largely of the potassic -iron (K-Fe) type, similar to the Raja prospect. The South
Palokas mineralization forms at a similar stratigraphic position to the structurally inverted sequence at Raja. The NNW
termination of the modelled TEM plate at Raja now lies only 750 metres from South Palokas and just as importantly, the
Raja high -grade Au -Co tr ends directly under the South Palokas mineralization creating significant upside from surface
prospects coalescing at depth.
Palokas and South Palokas share the same hydrothermal, post -metamorphic and structural-stratigraphic relationships, but
are hosted by somewhat different rock types. Palokas is dominated by a magnesium -iron (Mg-Fe) host and South Palokas
by the K-Fe host rocks although both are likely to be controlled by related, parallel to anastomosing subvertical faults and
fractures. An upper, poor ly mineralized garnet -bearing iron-rich rock at South Palokas possibly reflects the Palokas host
position. A lower mineralize d “footwall” position at South Palokas (see Figure 2) may represent the source of mineralized
boulders found 200 metres to the southwest at the Boardwalk prospect.
Further drilling on the linear high grade trend at South Palokas and Palokas is required, bu t the similarities to the linear
trend at Raja prospect, located at surface 1.4 kilometr es SSE of the Palokas prospect, are immediately evident with NNW
100 metres wide and 600 metres long conductive plates trending 339 degrees below the existing mineral resources. Drilling
on fans across the plunge of the Au -Co mineralization at Raja prospect has been the key to successfully targeting high -
grade Au-Co mineralization.
On other matters, annual environmental inventory mapping, monitoring and area impact assessments are now underway
at Rajapalot. Results will be utilized in future exploration planning and for the development of further low impact drilling
and sampling methods to continually improve Mawson’s sustainable exploration outcomes.
Comment on Gold Equivalence Calculation
The gold equivalent ("AuEq") value used in the 2018 inferred resource and this press release 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 cobalt prices. Approximate
spot prices for gold and cobalt are currently $1,330/oz and $13/lb respectively.
The cobalt price has fallen 60% over the past year due mostly to an increase in supply from mines, many artisanal, in the Democratic
Republic of Congo. Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry
continues to grow and, a long-term price of $20 to $30 /lb cobalt (and $1250/oz Au) is therefore reasonable. Prices used in the 2018
inferred resource calculation have been maintained here to ensure consistency of reporting individual dril l holes against prior news
releases and the resource dated December 2018, and will be reviewed once all data from the current drill program is released. Within
the December 2018 resource, cobalt contributes approximately 20% of in-situ value.
Technical and Environmental Background
Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of
the sampled thickness. Quality control duplicates for all holes show good repeatability of gold assays. Intersections are reported with a
lower-cut of 0.5 g/t gold or 304 ppm Co over 2 metre lower cut, except where indicated. No upper cut-off was applied.
Four diamond drill rigs (K3 & K8) from the Arctic Drilling Company OY (“ADC”), Kati OY (“Kati”) and MK Core Drilling OY (“MK”), all with
water recirculation and drill cuttings collection systems were used for the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries
were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals
averaging 1 metre for mineralized samples and 2 metres for barren samples were cut in half at the Geological Survey of Finland (GTK)
core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes. Analytical samples were
transported by Mawson personnel or 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 gold in solution with flame AAS equipment. Multi-element assays, including cobalt are
determined using the ICP-MS method (IMS-230) of MS Analytical shipped directly from the CRS Minlab Oy facility. The QA/QC program
of Mawson consists of the systematic insertion of certifi ed standards of known gold content, duplicate samples by quartering the core,
and blanks the within interpreted mineralized rock. In ad dition, CRS and MS Analytical insert blanks and standards into the analytical
process. The qualified person for Mawson's Finnish projects, Dr. Nick Cook , President for Mawson and a Fellow of the Australasian
Institute 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 ”), in support o f the Company’s news relea se dated December 17, 2018 . The NI 43 -101 Tec hnical 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 independ ent “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.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is a sustainable and ethical exploration and development company. Mawson has distinguished itself as a
leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold-cobalt project in Finland, a significant and strategic
gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three 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.
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 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 will 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 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 met al markets, changes in equity markets, planned d rill 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.
Figure 1: Plan of South Palokas prospect area indicating drill results, the outline of 43 -101 resource (blocks above 2 g/t AuEq), modelled ground TEM
plates over Lidar background with superimposed mise -á-la-masse contours (note the strong co rrelation of width of near -surface conductor and 2018
resource boundary). For more detailed location information, refer to press release of April 23, 2019. Note that Figure 3 is essentially a view down onto
the plane of the northwest dipping TEM conductors.
Figure 2: Longitudinal section at South Palokas prospect showing the considerable area (hatched pattern) to be tested with future drill programs. The view is towards 063 degrees. The outlines of the high-
grade resources are shown along with the modelled TEM plates. See Figure 1 for plan view location of the section.
Figure 3: Contoured projection of grade-width intersections in gold equivalent terms made onto a northwesterly dipping plane (i.e. the view is looking down on an angle (60 degrees) from the northwest
towards the southeast). Note the large hatched area in this projection showing the area to the north (left) and down plunge to the NW with just a single drill hole. The TEM conductors have been removed
for simplicity, but lie within the surface of this image.
Table 1: Collar Information from 2019 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3)
Hole ID East North Azimuth Dip RL Depth Prospect Comment
PAL0159 3408545.8 7372603.5 56 -71 179.162 473.8 Raja Au results Mar 04 2019
Co results Apr 23 2019
PAL0160 3408485.8 7372581.1 67 -79 177.865 447 Raja Au and Co results Apr
23 2019
PAL0161 3408696.1 7372556.6 57 -75 179.24 405.8 Raja Au results Mar 04 2019
Co results Apr 23 2019
PAL0162 3408446.4 7372648.4 46 -84.5 180.158 482.9 Raja Au results Mar 04 2019
Co results Apr 23 2019
PAL0163 3408487.0 7372587.9 65 -73.5 178.218 470.05 Raja Au results Mar 04 2019
Co results Apr 23 2019
PAL0164 3408545.4 7372603.2 61.1 -75.6 178.586 441.7 Raja Au and Co results Apr
23 2019
PAL0165 3408612.7 7372312.2 60 -79 176.25 167.9 Raja Au results Mar 04 2019
Co results Apr 23 2019
PAL0166 3408897.7 7372385.3 240 -83 170.452 238.6 Raja Au and Co results Apr
23 2019
PAL0167 3408486.0 7372587.0 96 -85 178 398.6 Raja Au results Mar 04 2019
Co results May 28 2019
PAL0168 3408554.5 7372806.4 233 -83 173.987 45.6 Raja Abandoned hole
PAL0169 3408553.5 7372806.4 233 -83 173.987 545.8 Raja Au and Co results Apr
23 2019
PAL0170 3408713.0 7372255.4 60 -79 172.803 200.2 Raja Results Awaited
PAL0171 3408603.8 7372636.0 58 -73 179.753 497.6 Raja Au and Co results Apr
23 2019
PAL0172 3408447.4 7372648.4 47 -79.5 180.158 491.9 Raja Au and Co results Apr
23 2019
PAL0173 3408255.8 7373707.9 116 -56 173.48 427.9 South Palokas Au results Mar 04 2019
Co results here
VG
PAL0174 3408255.8 7373707.9 116 -69.5 173.48 8.3 South Palokas Abandoned hole
PAL0175 3408830.5 7372237.5 60 -74 172.071 120.1 Raja Au and Co results May
28 2019
PAL0176 3408937.3 7372300.3 240 -79.5 173.012 140.0 Raja Au and Co results Apr
23 2019
PAL0177 3408434.0 7372388.0 240 -60 176.1 250.5 Rumajärvi Au and Co results May
13 2019
PAL0178 3408225.9 7372340.1 60 -75 177.064 237.2 Rumajärvi Results awaited
PAL0179 3408105.5 7372350.5 60 -80 180.572 209.0 Rumajärvi Au and Co results May
13 2019
PAL0180 3408128.3 7372706.1 41 -61 173.634 778.65 Terry's
Hammer
Results Awaited
PAL0181 3407954.6 7372245.0 150 -60 177.834 161.7 Rumajärvi Au and Co results May
13 2019
PAL0182 3407944.8 7372476.5 60 -70 176.8 439.65 Rumajärvi Au and Co results May
13 2019
PAL0183 3408094.0 7372422.1 160 -70 178.624 170.0 Rumajärvi Au and Co results May
13 2019
PAL0184 3407754.4 7372867.6 120 -50 173.07 211.8 Rumajärvi Au and Co results May
13 2019
PAL0185 3407900.4 7372519.6 60 -68 173.064 381.1 Rumajärvi Results Awaited
PAL0186 3407905.2 7372446.2 55 -75 174.386 341.85 Rumajärvi Results Awaited
PAL0187 3408547.0 7372492.4 47 -63.5 176.807 474 Raja Au and Co results May
28 2019
PAL0188 3408630.2 7372440.6 53 -63.5 176.974 379.4 Raja Au and Co results Apr
23 2019
PAL0189 3408768.8 7372378.8 48 -77 173.301 245.5 Raja Co results May 28 2019
PAL0190 3408576.2 7372512.8 63 -65 177.732 427.9 Raja Au and Co results May
28 2019
PAL0191 3408547.0 7372492.4 44 -58.5 176.807 492.1 Raja Results Awaited
VG
PAL0192 3408221.8 7373180.6 130 -60 171.892 203.2 Hut Results Awaited
PAL0193 3408255.3 7373706.4 104 -53 173.478 427.15 South Palokas Results here
PAL0194 3408312.2 7373980.0 74 -57 173.8 497.8 Palokas Au and Co results June
3 2019; VG
PAL0195 3408353.9 7373580.2 65 -77 174.918 245.6 South Palokas Results here
PAL0196 3408089.1 7373031.9 90.5 -60 172.308 317.4 Hut Results Awaited
PAL0197 3408271.4 7373630.1 63 -66.5 173.603 466.8 South Palokas Results here
PAL0198 3408414.1 7373660.3 117 -70 174.417 296.2 South Palokas Results here
VG
PAL0199 3408126.6 7373140.2 215 -80 173.042 386.7 Hut Results Awaited
PAL0200 3408312.2 7373979.0 62 -61.8 173.8 536.8 Palokas Au and Co results June
3 2019
PAL0201 3408545.8 7372603.5 57 -67.25 179.162 281.0 Raja Results Awaited
PAL0201D1 3408545.8 7372603.5 57 -67.25 179.162 195.0-
392.2
Raja Results Awaited