Mawson Identifies Extensive Cobalt Mineralization at Rajapalot, Finland
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NEWS RELEASE MAY 14, 2018
MAWSON IDENTIFIES EXTENSIVE COBALT MINERALIZATION AT RAJAPALOT, FINLAND
Vancouver, Canada – Mawson Resources Limite d (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces the discovery of highly significant cobalt enrichment associated
with previously identified gold mineralization at the Company’s 100% owned Rajapalot project in northern Finland. Following
an extensive multi-element drill core re-assay program, followed by a mineralogical QEMSCAN study led by the Geological
Survey of Finland (“GTK”) to determine mineral associatio n, numerous intervals have been identified which mirror and
extend gold mineralized zones. These drill results are consider ed highly encouraging in the context of existing high-grade
gold mineralization.
Cobalt is a key component in the cathode of most lithium-ion ba tteries and is considered crucial in the switch to electric
mobility and greener generation and storage of energy. As a result, the cobalt price has escalated approximately 300%
within the past two years. Cobalt is on the European Commission’s critical raw minerals list, delivering a strong mandate
to discover and develop local and ethically produced supply alternatives.
With the world’s largest cobalt refinery, Freeport Cobalt, located only 400 kilometres south in Kokkola, Rajapalot is ideally
positioned to play an important role as a potential sustainable and transparent supplier to the fast-growing European lithium
ion battery supply chain.
Key Points:
➢ A newly identified cobalt association with previously known gold mineralization at the Rajapalot project.
Significant cobalt has been initially discovered in association with and peripheral to gold mineralization across an area
of 3 kilometres by 4 kilometres that remains open in all directions;
➢ Cobalt is an essential part of the cathode within lithium ion batteries. Owing to the rapid increase in
electrification of transport, the price of cobalt has jumped 300% in the past 2 years;
➢ Significant assays received to date include (full assay table shown in Table 1):
● PAL0075: 10.8 metres @ 1,299 ppm Co, 6.2g/t Au (8.7g/t AuEq) from 8.7 metres
● PRAJ0009: 30.8 metres @ 525 ppm Co, 7.1g/t Au (8.2g/t AuEq) from 2.5 metres
● PRAJ0006: 19.5 metres @ 696 ppm Co, 7.1g/t Au (8.5g/t AuEq) from 1.3 metres
● PRAJ0107: 15.0 metres @ 602 ppm Co, 8.7g/t Au (9.9g/t AuEq) from 24.7 metres
➢ Combined gold-cobalt mineralized intersections display increased widths and often show better continuity.
➢ Mineralogical studies on selected Raja palot samples indicates that sulphide cobalt mineralization is hosted in
cobaltite and cobalt pentlandite that are conventionally mined and processed in other deposits;
➢ Results indicate the cobalt has the potential to add significant value as a by-product. Results received to date
show gold equivalent (“AuEq”) assays that incorporate cobalt are 20-30% higher than gold only (“Au”) assays;
➢ Finland is an attractive jurisdiction for the discovery and development of cobalt. Finland presently refines
half of the world’s cobalt outside of China, relying on predominantly imported feedstock from a Chinese-owned
mine in the Democratic Republic of Congo. A future dome stic Finnish source of cobalt would satisfy the recent
announcements by Finland and Sweden that the countries will work together on a traceable ledger for sustainable
minerals, considered crucial for achieving climate goals.
Mr. Hudson, Chairman and CEO, states, "This re-assay program of drill holes from Rajapalot has highlighted a significant
opportunity for Mawson in the battery metals sector. Gold remains the key commodity at Rajapalot by value, however the
identification of widespread cobalt enrichment in minerals that are the source of most cobalt mined today, has the potential
to add a significant by-product credit to the project. Owing to Finland’s strong position in the processing of cobalt sulphide
concentrates, Rajapalot presents as an a ttractive option for future ethically-sourced cobalt for Europe. To date, less than
half the holes drilled at Rajapalot have b een assayed for cobalt. Based on this ea rly success, Mawson is now undertaking
an extensive re-assay program with the results released in the coming months. Further mineralogical and metallurgical
testwork is also planned.”
Although the exploration focus will remain for gold at Rajapalot, cobalt adds significant value as a potential by-product with
a 20-30% increase in calculated gold equivalent (“AuEq”) grade over gold (“Au”) grade when incorporating cobalt. Cobalt
distribution is strongly correlated with gold. However, cobalt appears to be more widespread in and around gold intervals
and grades appear more consistent than gold (Table 1, Figures 1, 2 and 3). Cobalt-only zones also form peripheral to the
gold-bearing zones (i.e. PAL0048 7.9 m @ 1081 ppm cobalt and 0.1 g/t Au).
Assuming a predominant stratabound control, the true thic kness of the mineralized interval is interpreted to be
approximately 90-95% of the sampled thickness. Intersections are reported with a lower cut of 0.5 g/t AuEq over 1 metre
minimum width, no upper cut-off was applied. The gold equivalent (AuEq) value was calculated using the following formula:
AuEq g/t = Au g/t + (Co_ppm/481) with assumed prices of Co $88,185/t; and Au $1,320/oz, where 1 g/t Au is equivalent
to 0.048 % Co.
Assay Studies
Approximately half of the Rajapalot drill core remains to be assayed for cobalt (Figure 1). Mawson expects to submit over
3,000 samples for assay in the next 3 mont hs for determination of cobalt and associated metals. Additional gold-cobalt
results are shown in Table 1 and strip logs showing rock types and multi-element geochemistry are shown in Figures 2 and
3.
Mineralogical Studies
Mawson engaged the Geological Survey of Finland (“GTK”) and Camborne School of Mines, University of Exeter (UK), to
undertake mineralogical studies of cobalt at Rajapalot. Optical petrography, X-ray tomography and QEMSCAN suggest that
cobalt is contained within the minerals cobaltite and cobalt pentlandite, which have metallurgical properties that are
potentially favourable for future recovery. Both cobalt-beari ng minerals are mined and processed in other deposits, and
supply much of the world’s current cobalt demand. At Rajapalot, cobaltite occurs as equant crystals with well-defined grain
sizes, while cobalt pentlandite occurs only as exsolution flames in pyrrhotite with highly variable grain sizes. Further work
is required to understand the spatial and grade distribution of cobalt-bearing minerals and their likely metallurgical behavior.
Cobalt in Finland
Finland plays a significant role in the global cobalt supp ly chain. The Democratic Republic of the Congo (“DRC”) produced
54% of the world’s cobalt in 2016 whilst 80% of cobalt used in lithium-ion batteries is refined in China.
Half of the world’s non-Chinese production (10% of total production) comes from Freeport Cobalt, the world’s largest single
cobalt refinery, located only 400 kilometres from Mawson’s Rajapalot project in Kokkola, Finland. Freeport Cobalt is a joint
venture between Freeport-McMoRan (56%), Lundin Mining Corporation (24%) and La Générale des Carrières et des Mines
(20%) (or Gécamines, the DRC state mining company). A significant amount of feedstock for Freeport Cobalt comes via a
long-term supply agreement with the Chinese-owned Tenke Fungurume mine in the DRC. A future Finnish domestic source
of cobalt from Rajapalot would satisfy the recent announcements by Finland and Sweden that the countries will work
together on a traceable ledger for sustainable minerals, which are considered crucial for achieving climate goals.
Owing to the growth in the electrification of transport and n eed for storage of renewable energy, the battery sector has
become an important driver of cobalt demand. Demand for lit hium-ion batteries is surging, and this demand is expected
to support both price and volume for the cobalt market for years to come. With cobalt on the European Commission’s critical
raw minerals list, there is a strong mandate to secure local and ethical supplies of cobalt, which are likely to contribute to
further tightened supply.
In other news, reporting of assays from the winter drill program at Rajapalot will soon continue, where 14 holes out of 75
holes have already been made.
Technical Background
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 commercial laboratories. The QA/QC program of Mawson consists of the systematic insertion of certified
standards of known gold content, with blanks at the beginning of each batch. Inter-laboratory comparisons of gold assays have a lso been made by
Mawson.
CRS Minlab Oy facility in Kempele, Finland were used for gold only assays for drill holes PAL0008–0026; 0028–0036; 0038–0049; 0051–0063; 0065–0069;
0071; 0074; 0076–0082 and PAL series drill holes reported 2018. Samples were prepared and analyzed for gold at Kempele 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. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, d uplicate samples by
quartering the core, and blanks the within interpreted mineralized rock. In addition, CRS inserts blanks and standards into the analytical process.
ALS Global’s sample preparation facilities in Piteå, Sweden or Sodankyla, Finland were used for drill holes PRAJ0001-0002; 0020; 0022-0108 and PAL0001–
0007; 0027; 0037; 0050; 0064; 0070; 0073; 0075. Samp les were then sent to ALS Global’s analytical laboratories in Vancouver, Ca nada or Loughrea,
Ireland to be analyzed by Au-ICP21, GRA-21 (over-range gold), ME -MS41u and ME-MS61u and ME-MS61 techniques. Where multi-element techniques
reached upper detection limits, over-range measurements were made using the OG62 method.
Labtium Oy ("Labtium") laboratory in Rovaniemi, Finland were used for gold and multi-element assays for drill holes PRAJ0003-0018; 0021. Samples were
prepared and analyzed for Au by method 705P (fire assay) and multi-element analysis by XRF technique (pellet), method +175X.
The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and Fellow of the Australasian Institute of Mining Metallurgy has
reviewed and verified the contents of this release.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and development company. Mawson ha s distinguished itself as a leading Nordic Arctic
exploration company with a focus on the flagship Rompas and Rajapalot gold projects 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
This news release contains forward-looking statements or forward-looking information within the meaning of applicable securitie s 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 metal markets, ch anges in equity markets, planned drill programs and results var ying 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 o n 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.
Table 1: Significant gold-cobalt intersections from Rajapalot. 0. 5 g/t AuEq lower-cut applied over 1 metre minimum width. Note: The gold equivalent
(AuEq) value was calculated using the following formula: AuEq g/t = Au g/t + (Co_ppm/481) with assumed prices of Co $88,185/t; and Au $1320/oz,
where 1g/t Au is equivalent to 0.047% Co.
Original Intersection New Intersection
Drill Hole from
(m)
to
(m)
Width
(m)
Co
ppm
Au
ppm
AuEq
ppm
Prospect
PRAJ0009 5.4m @ 37.6 g/t gold from 2.5m 2.5 33.3 30.8 525 7.1 8.2 Palokas
PRAJ0006 19.5m @ 7.4 g/t gold from 1.3m 1.3 21.8 20.5 696 7.1 8.5 Palokas
PRAJ0107 19.6m @ 7.5 g/t gold from 18.1m 24.7 39.7 15.0 602 8.7 9.9 Palokas
PAL0027 6.8 m @ 14.7 g/t gold from 34.4m 27.5 48.7 21.3 482 5.4 6.4 Palokas
PRAJ0003 9 m at 10.2 g/t gold from 0m 0 13.0 13.0 577 7.1 8.3 Palokas
PAL0075 8.8 m @ 7.5 g/t gold from 82.2m 82.2 93.0 10.8 1,200 6.2 8.7 Raja
PAL0062 13.5 m @ 4.0 g/t gold from 180m 180 193.5 13.5 272 4.0 4.5 Raja
PRAJ0004 8.3m @ 6.0 g/t gold from 2m 0.8 19.6 18.8 533 2.7 3.8 Palokas
PRAJ0005 12.6m @ 3.6 g/t gold from 6.7m 4.2 19.2 15.0 495 3.0 4.0 Palokas
PAL0016 8.4 m @ 4.2 g/t gold from 206.0m 206 214.4 8.4 471 4.9 5.9 South
Palokas
PAL0048 13.7 m @ 2.0 g/t gold from 82m 82.0 95.7 13.7 747 2.0 3.6 Raja
PAL0075 3.0 m @ 2.9 g/t gold from 64m, 2.0m
@ 5.6 g/t gold from 70.0m
55.0 75.0 20.0 525 1.2 2.3 Raja
PRAJ0108 5.1m @ 3.8 g/t gold from 18.3m 14.0 33.7 19.8 783 1.1 2.8 Palokas
PAL0037 56m @ 0.53 g/t gold from 5m 20.5 40.0 19.5 659 0.7 2.1 Rumajärvi
PAL0048 No significant assays quoted 104.0 111.9 7.9 1,081 0.1 2.3 Raja
Figure 1: Plan of cobalt and gold intersections in drill core at Rajapalot. Note <50% of drillholes assayed to date for cobalt.
Figure 2: Strip log for drillhole PAL0075 at the Raja prospect, Rajapalot, Finland. Note cobalt assays mirror and extend gold mineralized zones.
Figure 3: Strip log for drillhole PAL0048 at the Raja prospect, Rajapalot, Finland. Note cobalt assays mirror and extend gold mineralized zones.