Mawson Update ON the Redcastle Epizonal GOLD Project, Victoria, Australia
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE FEBRUARY 22, 2022
MAWSON UPDATE ON THE REDCASTLE EPIZONAL GOLD PROJECT, VICTORIA, AUSTRALIA
Vancouver, Canada — Mawson Gold Limited (“Mawson” or the “Compa n y ” ) ( T S X : M A W ) ( F r a n k f u r t : M X R )
(PINKSHEETS: MWSNF) is pleased to announce results and future plans for the Redcastle epizonal gold -antimony (“Au-
Sb”) joint venture project in the Victorian Goldfields of Australia. The project is located 120 km north of Melbourne (Figure
1) within 56.7 sq. km of granted exploration tenements, immedia tely along strike from Mandalay Resources’ Costerfield
mine (Figure 2), the sixth highest-grade global underground mine in 2020.
Work at Redcastle during the 70% earn-in period has been undertaken by Mawson Victoria Pty Ltd (“Mawson Victoria”).
Mawson Victoria was recently tran sferred from Mawson Gold Ltd t o Southern Cross Gold Pty Ltd (“ Southern Cross”) as
part of a larger internal reorganization. Southern Cross holds three historic epizonal gold fields (Sunday Creek, Whroo and
R e d c a s t l e ) a n d i s w o r k i n g t o w a r d s a p r o p o s e d i n i t i a l p u b l i c o f f e r i n g ( “IPO”) on the Australian Securities Exchange
(“ASX”). As at the date of this news release, Mawson holds 84.62% of Southern Cross’ issued shares after recently raising
A$2.725 million privately into Southern Cross to fund ongoing exploration and IPO costs.
Highlights:
Mawson Victoria has explored below historic mines with deep dri lling and modern exploration techniques, with
highlights from a 16-hole diamond drill program including:
o 0.5 metres @ 9.1 g/t Au from 76.3 metres in hole MDDRE010 from the Mullocky prospect;
o 0.1 metres @ 7.2 g/t Au from 148.2 metres in hole MDDRE008 from the Clarke’s prospect;
o 0.3 metres @ 4.2 g/t Au and 1.2% Sb from 52.7 metres in hole MDDRE009a from the Redcastle
North prospect.
1-km-long 3D induced polarization anomaly (“3DIP”) defined under the Welcome Group of mines where
8,669.5 tonnes at 103.6 g/t Au for 28,850 oz were produced from 19th century mines.
Sampled 73 g/t Au/3,500 ppm Sb, 0.2 g/t Au/26 ppm Sb and 5.0 g/t Au/3,2 00 ppm Sb from rock
chips at Black Squall coincident with a 750 metre x 500 metre Sb soil anomaly.
Six drill ready targets: the Welcome Group of Mines, Clarke’s Mine, Redcastle North, Mullocky, Beautiful Venus
and Mitchell’s Dam.
Seventeen kilometres of mineralized structures with historic mining, along strike from Costerfield,
remain to be tested (Figure 3).
Mawson Victoria Earning in 70%, having provided notice of achie ving its earn-in commitment (>A$1m
expenditure)
Michael Hudson, Executive Chairman of Mawson and Managing Direc tor for Southern Cross,
states: ”Redcastle is one of those uniquely Victorian opportunities where significant historically mined epizonal
gold sy stem s remain p oor ly explor ed to depth . Despite being im mediately along strike from the 2 million
ounces of equivalent gold Costerfield mine corridor (pers. comm . Mandalay Q3 2021 Results), the property
has previously only seen 40 m average depth for drilling, and never a test below historic workings that extend
over tens of kilometres. Our 16 holes have now more than quadru pled the search space, with almost every
hole intersecting gold at depth. Furthermore, across the property we have a 1 km geophysical target, a large
antimony soil anomaly with a 73 g/t gold grab sample, and 17 km of structures that remain untested. With
Mawson Victoria notifying our JV partners of achieving our 70% earn-in and with six fully permitted, walk-up
drill targets, Redcastle remains a priority project.”
Mawson Victoria’s exploration strategy at Redcastle during the 70% earn-in period has focused on searching for high-grade
epizonal gold at depth beneath historic mines. The approach was to compile all historical mining and exploration data into
a 3D model and apply large scale geophysical and remote sensing m e t h o d s t o i d e n t i f y m i n e r a l s y s t e m s b e l o w 5 0
metres depth, followed by oriented diamond drilling to test targets.
Mawson Victoria has drilled 16 drillholes for 2,786.9 metres across total of eight prospects at Redcastle (for an average hole
depth of 174.2 metres). Thin to moderate grades and widths of gold were discovered in all drill holes, except those that hit
historic mine workings. Many targets require follow-up drilling. A chronological summary of Mawson Victoria’s drill program
on each of the prospects comprising Redcastle follows.
Why Not Prospect : Two drillholes (MDDRE001 and M DDRE002) under shallow historic workings with better
results of 0.3 metres @ 1.4 g/t Au from 61.3 metres and 0.4 metres @ 1.6 g/t Au from 92.6 metres in hole
MDDRE001. No immediate follow up is warranted.
Pioneer Prospect: Two drillholes (MDDRE003 and MDDRE004) under shallow historic workings with better results
of 0.1 metres @ 4.4 g/t Au from 55.7 metres in hole MDDRE003 and 0.4 metres @ 2.2 g/t Au from 40.2
metres in hole MDDRE004. No immediate follow up is warranted.
Mitchell’s Prospect: Two drillholes (MDDRE005 and MDDRE006) into a mineralized dio ritic dyke with better
results of 0.2 metres @ 1.6 g/t Au from 73.2 metres within a wider lower grade zone (no lower cut) of 13.3
metres @ 0.3 g/t Au from 72.8 metres in hole MDDRE005. An additional arsenic-rich mineralized dyke was found
in the same hole with a wide lower grade zone (no lower cut) as saying 9.4 metres @ 0.2 g/t Au from 100.9
metres. The second hole at Mitchell’s also had a wide lower grade dyke intersected (no lower cut) of 10.0 metres
@ 0.4 g/t Au from 50.0 metres. Further analysis is required to determine if the dyke-hosted mineralization, which
is interpreted to have been the source for the initial rich all uvial gold rush into Staffordshire Flats in 1859, hosted
potential ore-grade mineralization below the base of weathering.
Clarke’s Mine: Two drillholes were drilled at Clarke’s mine (MDDRE007, MDDRE 008) below historic workings.
Interpretation of structures in drillholes MDDRE007 and MDDRE008 revealed that MDDRE007 had drilled parallel to
the Clarke’s Lode and had failed to intersect it at depth. MDDR E008 intersected the mineralized lode structure
(returning 0.1 m at 7.2 g/t Au from 148.2 metres ) below an east-dipping structure recorded in mine reports
and intersected in MDDRE008 and MDDRE007. These reports suggest that the main lode was enriched above the
east-dipping structure. The intersection of the mineralized str ucture and the east-dipping structure has a shallow
plunge to the north, which has not been tested by drilling. Follow-up drilling is planned.
Redcastle North Prospect: Two twinned holes (MDDRE009/9a), were drilled at Redcastle North (MDDRE009 was
redrilled as MDDRE009a due to poor core recovery). The target was the extension of the highest-grade historic drill
hole assay in the Redcastle database being 1 metre @ 16.7 g/t Au in RRC41. MDDRE009a intersected 0.3 metres
@ 4.2 g/t Au and 1.2% Sb from 52.7 metres and 0.7 metres @ 1.9 g/t Au from 62.3 metres. Although the
intersection is thin, structural readings show that the interse ction lies within a north-striking axial surface of the
north-plunging anticline, untested to depth and further drilling is warranted.
Mullocky Prospect: Two holes (MDDRE010 and MDDRE011) were drilled at Mullocky where interpretation of the
structural data in drilling shows mineralization is hosted by f aults on the eastern shoulder of a north-plunging
anticline. Historic holes in the area returned elevated gold and these intercepts, as well as 1.2 metres @ 4.3 g/t
Au from 75.7 metres including 0.5 metres @ 9.1 g/t Au from 76.3 metres in hole MDDRE010. All these intercepts
are located on the eastern shoulder of an anticline. The northerly plunge of the structure remains untested at depth
and further drilling is warranted.
Welcome Prospect: Two drillholes (MDDRE012 and MDDRE013) under shallow historic workings that extend for
600m strike. Better results included 0.4 metres @ 2.1 g/t Au from 121.9 metres from MDDRE012. No immediate
follow-up is warranted.
Beautiful Venus Prospect : One drill hole, MDDRE014 was drilled to target mineralization below the historic
working at Beautiful Venus. Unfortunately, the drillhole intersected historic workings that were mined deeper than
predicted. The project remains untested and warrants further drilling.
Welcome Group Prospect : One drillhole, MDDRE015, was at the Welcome Group targeting a 1 km-long
coherent induced polarization (“IP”) chargeability anomaly generated by Mawson Victoria’s 3D offset array
IP geophysical survey that coincides with the Welcome Group of mines (of which Clarke’s was one mine in that
cluster). This is considered hig hly prospective as there are at l e a s t 9 m i n e d s t r u c t u r e s a b o v e t h e g e o p h y s i c a l
anomaly where the Welcome Group of mines reported to have extracted 20,583 oz at 254.6 g/t Au over
2 km strike length down to a maximum depth of 125 metres (in the period 1859 to 1865). Drillhole
MDDRE015 did not intersect the mineralized lode and nor did it explain the IP anomaly leaving an opportunity to
target the IP anomaly from the opposite direction over the majority of the 1 km strike. Further drilling is planned.
Interpretation of historic soil sampling data at the Black Squall project revealed a large number of soil samples collected
in the early 1970s were not assayed for gold but were highly anomalous in antimony. These samples occur at the intersection
of an anticlinal hinge and a NE-trending structure identified in the LiDAR interpretation (Figure 3). To validate the anomaly,
three orientation soil and three orientation rock chip samples were collected from the area. Two of the soil samples were
highly anomalous in gold and antimony (0.36 g/t Au/63 ppm Sb an d 0.19 g/t Au/34 ppm Sb), and float from nearby hard
rock workings was also anomalous in both gold and antimony (73 g/t Au/3,500 ppm Sb, 0.2 g/t Au/26 ppm Sb and 5.0 g/t
Au/3,200 ppm Sb). These results indicate that the Black Squall area forms an immediate follow up for further soil sampling
and drilling.
Mawson Victoria has also conducted a variety of geophysical and remote sensing surveys:
Ground magnetics (5.6 sq. km) over the southern part of the per mit area collected continuously along 50 metre
spaced east-west oriented lines;
High density ground gravity (23 sq. km) survey over the central permit area on 200 metre spaced east-west oriented
lines with stations spaced at 100 metres.
Induced polarization (“IP”) surveys:
o A 22 sq. km gradient array induced polarization survey collected over 32 gradient blocks each 800 metres
x 800 metres optimised around 32 channel receivers, with 25 met re station spacing and 100 metre east-
west line spacing was undertaken to map geology and mineralizing structure.
o 1.7 sq. km offset dipole-dipole induced polarization over the Welcome Group area following up a gradient
array IP chargeability anomaly.
A 58 sq. km LiDAR survey flown and was used to map geology and target old workings, with over 40,000 hard rock and
alluvial working being identified using machine learning from t he survey from the Redcastle tenement area. An Optech
Galaxy sensor was employed to gather the data from 950 metre elevation, delivering swath widths of 580 metres. The laser
pulse rate was of the order of 500 kHz. The quality of the grou nd return data was high with ground return averaging 12-
15 points per metre and as a result, the LiDAR images enabled location of unknown old workings and interpretation of rock
types, bedding and structures.
Mandalay Resources’ Costerfield mine and exploration leases are located 2km south of Mawson Victoria’ Redcastle EL5546.
Costerfield is the target model sought at Redcastle. The Coster field mine corridor contains 2 million ounces of equivalent
gold (pers. comm. Mandalay Q3 2021 Results), and in 2020 was th e sixth highest-grade global underground mine and a
top 5 global producer of antimony. Average drill hole widths and grades at Costerfield are: Brunswick lode (0.7m @ 9.0 g/t
Au and 4.0% Sb), Youle lode (0.4 metres @ 47.7 g/t Au and 11.4% Sb), Kendal Splay (0.3 m @ 92.8 g/t Au and 41.3%
Sb) and Peacock lode (0.4m @ 13.0 g/t Au and 6.0% Sb). The aver age vein width at Augusta is 0.3 m, while the Cuffley
lode averaged 0.4 m. Average mined widths at Costerfield are 2.0 metres (Mandalay Technical Report, 2021).
Mawson Victoria, Southern Cross Gold and Nagambie Resources
All work at Redcastle over the last 18 months has been undertak en by Mawson Victoria. Mawson Victoria was recently
transferred from Mawson Gold Ltd to Southern Cross as part of a larger internal reorganization. Southern Cross is working
towards a proposed IPO on the ASX. Mawson currently holds 93,750,000 ordinary shares of Southern Cross or 84.62% of
Southern Cross’ issued shares after recently raising A$2.725 mi llion privately into Southern Cross to fund ongoing
exploration and IPO costs.
Mawson Victoria is party to an Option and Joint Venture Agreement with Nagambie Resources Limited (“Nagambie”) for
the Redcastle JV tenements. Mawson Victoria has an option over 70% of the Redcastle properties subject to undertaking
A$1 million exploration by March 25, 2025, following which a jo int venture between the parties will be formed. Nagambie
may then contribute its 30% share of further exploration expenditures or, if it chooses to not contribute, dilute its interest.
Should Nagambie’s interest be reduced to less than 5.0%, it will be deemed to have forfeited its interest in the joint venture
to Mawson Victoria in exchange for a 1.5% net smelter return ro yalty (“NSR”) on gold revenue. Should Nagambie be
granted the NSR, Mawson Victoria will have the right to acquire the NSR for A$4,000,000.
As of the date of this news release, Mawson Victoria has formal ly earnt 50% and has also provided Nagambie notice of
achieving its 70% earn in and the companies will proceed to form a joint venture.
Technical and Environmental Background: Tables 1–3 provide collar and assay data. The true thickness of the mineralized interval
is interpreted to be approximately 60% of the sampled thickness . All drill results quoted have a lower cut of 0.3 g/t Au cut o ver a 1.0
metre width, with higher grades reported with a 5 g/t Au cut over 1.0 metre applied unless otherwise stated. Lab duplicates demonstrate
that mineralization is homogenous with a low nugget effect evident. A diamond drill rig from contractor Starwest Pty Ltd was used in the
program. Core diameter is HQ (63.5 mm) and oriented with excellent core recoveries averaging close to 100% in both oxidized and fresh
rock. After photographing and logging in Mawson Victoria’s core logging facilities in Nagambie, intervals were diamond sawn in half by
Mawson Victoria personnel. Half core is retained for verification and reference purposes. Analytical samples are transported to the Bendigo
facility of On Site Laboratory Services (“On Site”) which opera tes under both an ISO 9001 and NATA quality systems. Samples we re
prepared and analyzed for gold using the fire assay technique ( PE01S method; 25 gram charge), followed by measuring the gold i n
solution with flame AAS equipment . Samples for multi-element an alysis (BM011 and over-range methods as required) use aqua regi a
digestion and ICP-MS analysis. The QA/QC program of Mawson Vict oria consists of the systematic insertion of certified standard s of
known gold content and blanks within interpreted mineralized rock. In addition, On Site inserts blanks and standards into the analytical
process.
Qualified Person: Michael Hudson (FAusMM), Executive Chairman and a director of Mawson and Managing Director of Southern Cross,
is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has prepared or reviewed
the preparation of the scientific and technical information in this press release.
About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)
Mawson Gold Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration
company with a focus on the flagship Rajapalot gold-cobalt proj ect in Finland and is well placed to add to its already signifi cant gold-
cobalt resource there. Through its 84.62% ownership of Southern Cross Gold Pty Ltd, Mawson has a significant interest in the ownership
or JVs of three high-grade, historic epizonal goldfields covering 471 sq km in Victoria, Australia.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Executive Chairman
Further Information
www.mawsongold.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 forwar d-looking information within the meaning of applicable securiti es laws
(collectively, "forward-looking statements"). All statements he rein, other than statements of h istorical fact, are forward-loo king
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 fo rward-
looking statements as a result of various factors, including, b ut not limited to, timing and successful completion of explorat ion and drill
programs planned, IPO and listing of Southern Cross Gold’s comm on shares on ASX, capital and ot her costs varying significantly from
estimates, changes in world metal markets, changes in equity ma rkets, the potential impact of epidemics, pandemics or other pu blic
health crises, including the current pandemic known as COVID-19 on the Company’s business, risks related to negative publicity with
respect to the Company or the mining industry in general; plann ed drill programs and results varying from expectations, delays in
obtaining results, equipment fai lure, unexpected geological con ditions, local community relatio ns, dealings with non-governmen tal
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 Infor mation Form filed on www.sedar.com. Any forward-looking stateme nt
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 location of the Southern Cross Gold’s Permit Areas in Victoria
Figure 2: Plan location of the Redcastle project immediately along strike from the Costerfield mine corridor, that hosts over 2 million ounces of equivalent gold (pers. Comm.
Mandalay Q3 2021 Results).
Figure 3: Plan showing significant historic drilling, rock chips and soils and Mawson Victoria’s drill location and results.
Table 1: Collar information from Mawson Victoria’s drilling at the Redcastle Project
Coordinate Reference System GDA94, Zone 55 (EPSG:28355)
Prospect Hole_ID Easting Northing RL (m) Azimuth Dip Depth (m)
Why Not MDDRE001 305705 5928227 211 221 -51 152.6
Why Not MDDRE002 305694 5928046 219 38 -51 150.1
Pioneer MDDRE003 305734 5929137 209 218 -41 152.7
Pioneer MDDRE004 305789 5929100 210 216 -40 151.8
Mitchell’s MDDRE005 306613 5927768 206 234 -51 156.6
Mitchell’s MDDRE006 306647 5927731 207 235 -50 205.9
Clarke’s MDDRE007 303092 5926683 207 273 -50 254.0
Clarke’s MDDRE008 302803 5926752 205 95 -55 251.9
Redcastle North MDDRE009 302595 5928086 198 90 -45 110.4
Redcastle North MDDRE009a 302592 5928086 198 92 -45 100.4
Mullocky MDDRE010 304274 5928322 200 90 -45 143.3
Mullocky MDDRE011 304274 5928322 200 80 -65 153.0
Welcome MDDRE012 306110 5927424 219 37 -50 152.7
Welcome MDDRE013 306453 5927361 217 250 -45 148.7
Beautiful Venus MDDRE014 305444 5926623 220 90 -55 152.5
Clarkes MDDRE015 302904 5926870 210 90 -65 350.3
Note: (1) The true thickness of t he mineralized interval is interpreted to be approximately 60-70% of the sampled thickness.