Mawson Provides Resource Expansion Drill Program Update from Finland
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE DECEMBER 04, 2019
MAWSON PROVIDES RESOURCE EXPANSION DRILL PROGRAM UPDATE FROM FINLAND
Vancouver, Canada – Mawson Resources Limited (“Ma wson” or “the Company”) (TSX:MAW; Frankfurt:MXR;
PINKSHEETS: MWSNF) announces an update of the resource expans ion drill program from the 100% owned Rajapalot
project in Finland.
Key Points:
Major 15 kilometre resource expansion drill program ongoing:
The first drill hole at Palokas is nearing target depth of 680 metres. This is a high-priority target down-plunge
of 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;
Four drill rigs will be operating by early January 2020 when winter conditions allow:
The drill program aims to infill and extend the Palokas, South Palokas and Raja resource areas delivering the
data for an updated resource estimate at the end of Q2 2020;
Multiple geophysical surveys underway:
Electromagnetic surveys: down-hole electromagnetic (DHEM) surveys and ground-based electromagnetic
(“TEM”) surveys, which have been a key part of th e understanding of the distribution of gold-cobalt
mineralisation at Rajapalot are underway;
A large ground-based 1,070 station gravity survey ov er 41,700 hectares is now in progress over the
Rajapalot and Rompas areas;
Metallurgical studies ongoing:
Work under the BATCircle research program continues with geomet allurgical studies, batch flotation and
leach tests to aid in the design of refined flowsheet for upcoming locked cycle test work.
Mr. Michael Hudson, CEO, states: “ With the first of four drill rigs mobilized and drilling, our 15 kilometre drill program, in
combination with further geophysical and metallurgical work, is underway. This program will take us through to May 2020, to
build on existing resources and deliver an updated resour ce calculation in Q2 next year. The detailed geological
understanding of high-grade gold minera lization combined with the geophysical re sponse of the host rocks has enabled
tightly defined drill targets, and will result in a regular stream of news flow over the next half year.”
The resource expansion drill program has already commenced with drilling with one drill rig at Palokas. Four drill rigs will be
operating by early January 2020 when winter conditions allow. The drill program budget is for 15 kilometres of drilling, but
may be reduced if the required number of mineralization inte rsections is reached through shorter (but more expensive)
directional drill holes. Drill targets for the program are tightly constrained. Given the continuity of the linear high-grade g old
and cobalt mineralization within TEM conductors, fixed loop TE M surveys aid in defining further blind mineralized bodies and
DHEM will be used to refine precise drill targets. Drill fans will be created on 1 20 metre spaced sections down plunge from
known mineralization, with wedging and directional drilling from primary drill holes to be used to intersect mineralization at
multiple points for resource estimation purposes.
A large ground-based 1,070 station gravity survey over 41,7 00 hectares is now in progress. The survey will aim to
understand deeper structural and intrusive controls on gold-cobalt mineralization. The survey is divided in two parts, firstly a
detailed survey on a 400 metre grid and secondly, a semi-r egional 1,300 to 1,500 metre grid outside the detailed area.
Approximately 50% of the detailed area has been covered to date. Preliminary data from the gravity survey indicate
fundamental geologic and structural controls are visible. Significant gravity gradients have been observed, which are
interpreted to reflect both mafic to ultramafic and granitic intrusions and basin-controlling structures beneath the Rajapalot
and Rompas project areas. The gravity survey is 50% funded by the BATCircle research program.
Mawson is permitted for all-year-round drilling within 4 exploration permit areas (4,263 hectares). 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 with in the 1,462-hectare Kairamaat 2-3 explorat ion permit area. This is the strongest
drill permit position the Company has ever had and pro vides the ability to drill and define further resources as
required. Drilling is restricted to winter conditions in Kairam aat 2-3, although it is possib le to drill for resource extensio ns at
Palokas from dry ground in all-year permitted areas.
Mawson is thankful for the support of the local communiti es surrounding the Rajapalot project. The Company has
demonstrated its credentials over a long period by working wi th and within the local communities, and has been a safe and
sustainable investor and mineral explorer in the region. Mawson team members recently held one of its regular visits with the
Ylitornio municipality leaders and also attended the Meltosjä rvi village association annual meeting. Both groups again
provided their full support for the project with this season’s drill results being highly anticipated. Local stakeholders will
continue to be updated on the progress of project during the drilling season through meetings and the regular Spring open
field day.
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 Rajapalot 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 “q ualified persons” as defined by Nationa l
Instrument 43-101. The NI 43-101 Technical Re port 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 maiden resource for Rajapalot comprises a pit and unde rground Constrained Inferred Mineral Re source 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 prospects 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.
The gold equivalent ("AuEq") value used in the 2018 inferred reso urce 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 $1,504/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 ha s 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 a nd marked
for RQD and logged by Mawson staff. Half of the drill core is di amond sawn by GTK in Rovaniemi and bagged for assay. The same h alf of
the drill core is consistently sampled to prevent any sampling bi as. The true thickness of mineralized intervals at Palokas, So uth Palokas
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 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, expe ct, anticipate, intend, estimate, postulate, and similar expressions, or are those, w hich, by their nature, refer to
future events. Mawson cautions investors that any forward-lookin g statements are not guarantees of future results or performanc e, and that actual results
may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, c apital and othe r costs varying
significantly from estimates, changes in world metal markets, changes in equity markets, planned drill programs and results var ying from expectations,
delays in obtaining results, equipment failure, unexpected geol ogical 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 th e heading "Risk Factors" in
Mawson's most recent Annual Information Form filed on www.sedar.c om. 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-l ooking statement, whether
as a result of new information, future events or results or otherwise.