Mawson Reports Further GOLD-Cobalt Drill Results at Rajapalot, Northern Finland and Commences Resource and Metallurgical Studies
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE September 04, 2018
MAWSON REPORTS FURTHER GOLD-COBALT DRILL RESULTS AT RAJAPALOT, NORTHERN FINLAND AND
COMMENCES RESOURCE AND METALLURGICAL STUDIES
Vancouver, Canada — Mawson Resources Limited (“Ma wson”) or (the “Company”) (TSX:MAW) (Frankfurt:
MXR) (PINKSHEETS: MWSNF) is pleased to announce additional gold and/or multi-element drill results from 43 holes
from 6 prospects at the Rajapalot project in Finland.
The addition of cobalt values to previously reported gold intersections continues to provide significant improvements in both
continuity and width when compared to gold-only intersections, especially at the Raja and Palokas prospects. On the basis
of this increased confidence in mineralization continuity, the Company has commenced metallurgical test work and is in the
process of engaging an independent qualified person to undertake a maiden resource calculation at Rajapalot.
Key Points:
Results from 43 diamond drill holes are reported from the Rajapalot project across 6 prospect areas;
Cobalt assays continue to improve width, continuity and grade within the gold-cobalt mineralized zone. For seven
of the best mineralized drill holes reported, the average in crease in gold equivalent (“Au Eq”) grade x width over
the previously reported gold-only result was 92%. Au-only values consistently received a 1-2 g/t addition in Au Eq
from Co, but with substantially greater thicknesses (Table 1, Figures 4-10);
Metallurgical studies area now underway and the Company will soon engage an independent qualified person to
complete a maiden resource calculation at Rajapalot;
Highlight results from the Palokas prospect include:
o 33.0 metres @ 4.2 g/t AuEq, 3.1 g/t Au, 547 ppm Co from 38.7 metres (PRAJ0109)
o 34.6 metres @ 2.6 g/t AuEq, 1.2g/t Au, 693 ppm Co from 30.3 metres (PRAJ0111)
Highlight results from the Raja prospect include:
o 20.7 metres @ 5.6 g/t AuEq, 3.6 g/t Au, 956 ppm Co from 365.2 metres (PAL0118)
o 5.0 metres @ 16.1 g/t AuEq, 14.2 g/t Au, 938 ppm Co from 245.0 metres (PAL0092)
Electromagnetic studies are ongoing at Raja, with the aim to define northerly extensions to mineralization where
drilling has defined a 470-metre plunging shoot from near surface (Figure 3);
Mr. Hudson, Chairman and CEO, states, "With the growing recognition of the significance of cobalt within the gold
mineralized zones, Rajapalot is quickly progressing from discovery to a more advanced stage with resource and metallurgical
testwork studies now commencing. This is an exciting milestone for the project as a large new mineral camp emerges. It
is an excellent outcome for Finland, with potential for a significant and strategic cobalt deposit just 400 kilometres from the
world’s single largest cobalt refinery at Kokkola, whic h produces 50% of global non-Chinese production ( 10% of total
production).”
All assays reported are shown in Table 3, with the most significant seven holes (from 43 holes reported) from the Palokas
and Raja prospects reported in Table 1. A plan view of drill results and named prospects is provided in Figure 1. Cross and
longitudinal sectional views for Raja are included in Figures 2–3. Tables 2 shows all relevant collar information. Assuming
a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90%
of the sampled thickness. Intersections are reported with a lower cut of 0.5 g/t gold or 0.5 g/t gold equivalent when cobalt
assays were available, over 1 metre width and no upper cu t-off was applied. The gold equivalent (Au Eq) value was
calculated using the following formula: Au Eq 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. Au Eq varies with Au and Co prices.
Table 1: Highlighted new multi-element results from the Raja and Palokas prospects. Note average increase in AuEq grade x width over the gold-only
result was 92% from earlier reported results.
Hole_id From
(m)
To
(m)
Width
(m)
Au Eq
g/t
Au
g/t
Co
ppm
Prospect % increase
g/t * m
PRAJ0109 38.7 71.7 33.0 4.2 3.1 547 PALOKAS 38
PRAJ0110 70.2 92.2 22.0 2.9 1.5 664 PALOKAS 114
PRAJ0111 30.3 64.9 34.6 2.6 1.2 693 PALOKAS 152
PAL0085 124.0 134.9 10.9 5.0 3.8 569 RAJA 34
PAL0092 245.0 250.0 5.0 16.1 14.2 938 RAJA 14
PAL0097 276.3 287.2 11.0 2.6 0.8 880 RAJA 281
PAL0118 322.0 331.6 9.6 3.2 2.1 534 RAJA 56
PAL0118 365.3 386.0 20.7 5.6 3.6 956 RAJA 47
Two main areas of work continue at the Rompas-Rajapalot project areas:
Geological modelling of Palokas, Raja, South Palokas and Rumajärvi prospects, in addition to assay data validation
is a focus for Mawson’s technical team to feed into upcoming independent resource studies. Metallurgical testwork
for cobalt and gold has also commenced with liberation studies and QEMSCAN work to investigate the relationships
of the cobalt minerals (cobaltite, linnaeite and cobalt pentlandite) to the gold, sulphide and silicate minerals. These
studies are being conducted with the Geological Survey of Finland (GTK) and the Camborne School of Mines
(University of Exeter).
A second component of Mawson’s exploration remains the testing of base of till drill hole and geophysical targets,
with a diamond drill program comprising approximately 2,000 metres to commence in late September.
Cobalt in Finland
Finland plays a significant role in the global cobalt supply chain. The Democratic Republic of the Congo (“DRC”) mined 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 lithi um-ion batteries is surging, which is expected to support
both price and volume for the cobalt market for years to co me. 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.
Technical and Environmental Background
Variable core diameters are reported with PAL holes NQ2 (50.7 mm), WL76 (57.5mm) or NTW (56.0 mm), and PRAJ holes EW (25.2
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 ba rren samples were cut in half at the Ge ological
Survey of Finland (GTK) core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes.
Three laboratories are being used to conduct gold and multi-elem ent assay work. Samples were transported by Mawson personnel or
commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland, or to the AL SGlobal sample preparation facili ty at
Sodankylä, Finland. Samples submitted to Kempele were prepared and analyzed for go ld 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. In order to improve the detection limit of the PAL1000 technique from 0.05 g/t Au to 0.01 g/t Au for a 1 kg sample, gold
concentration using the DiBK (di-isobutyle ke tone) extraction method was also used. Sa mples transported for gold assay to Sodan kylä
were analysed using 50 g fire assay and ICP finish method Au-ICP22.
Multi-element analytical work was conducte d by MS Analytical and ALSGlobal using me thods IMS-230 and ME-MS61 respectively, both
using four acid digest followed by ICP analysis.
The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold and cobalt content, dupli cate
samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, all three laboratories insert blanks and
standards during the analytical process.
The qualified person for Mawson's Finnish projects, Dr. Nick Cook , President for Mawson and a Fell ow of the Australasian Instit ute 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.
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