Mawson’s Subsidiary SXG Drills Highest Grades at Apollo 3 new vein sets extend mineralisation a further 150 m east at Sunday Creek Mineralisation also extended a further 150 m deeper at Apollo
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE February 28, 2024
Mawson’s Subsidiary SXG Drills Highest Grades at Apollo
3 new vein sets extend mineralisation a further 150 m east at Sunday Creek
Mineralisation also extended a further 150 m deeper at Apollo
Vancouver, Canada — Mawson Gold Limited (“Mawson” or the “Company”) (TSX V:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces Southern Cross Gold Ltd. (“Southern Cross Gold” or
“SXG”) has released one drillhole SDDSC108A from the Apollo area at its 100%-owned Sunday Creek Project
in Victoria, Australia (Figures 1 - 5).
Highlights:
• SDDSC108A drilled eight high-grade vein sets at Apollo Deep over a 445 m down-hole interval and
delivered on multiple levels (Figure 4):
o The highest grades of gold found at Apollo to date, including 0.2 m @ 576 g/t Au;
o Three new vein sets, extending mineralisation 150 m east; and
o Extensions of known mineralisation 150 m below prior drilling from SDDSC066.
• SDDSC108A hosts seven intervals > 15 g/t Au (up to 576 g/t Au) and six intervals of > 5 % Sb
(up to 15.1 % Sb). Selected highlights include:
Three new vein sets that extend mineralisation 150 m east, including:
o 11.0 m @ 5.0 g/t AuEq (1.9 g/t Au, 2.0 % Sb) from 354.1 m, including:
0.8 m @ 21.0 g/t AuEq (12.0 g/t Au, 5.7 % Sb) from 357.6 m
1.0 m @ 15.0 g/t AuEq (1.0 g/t Au, 8.9 % Sb) from 359.5 m
1.4 m @ 8.8 g/t AuEq (3.3 g/t Au, 3.5 % Sb) from 363.0 m
Down-dip extension of mineralisation 150 m below Apollo, including:
o 7.8 m @ 2.6 g/t AuEq (1.0 g/t Au, 1.0 % Sb) from 636.2 m, including:
1.1 m @ 5.9 g/t AuEq (1.7 g/t Au, 2.6 % Sb) from 636.9 m
o 9.8 m @ 3.9 g/t AuEq (1.8 g/t Au, 1.3 % Sb) from 655.6 m, including:
1.2 m @ 19.4 g/t AuEq (8.6 g/t Au, 6.8 % Sb) from 657.8 m
o 0.2 m @ 576.1 g/t AuEq (576.0 g/t Au, 0.1 % Sb) from 762.9 m
o 1.1 m @ 17.1 g/t AuEq (16.9 g/t Au, 0.1 % Sb) from 797.9 m
• Eight drillholes at Sunday Creek at are being processed and analysed, with three holes in progress (Figures
1 and 2).
• Mawson owns 93,750,000 shares of SXG (51%), valuing its stake at A$120.0 million (C$108.9 million) based
on SXG’s closing price on February 26, 2024 AEST.
Michael Hudson, Mawson Interim CEO and Executive Chairman , states: “Drill hole SDDSC108A
delivers on multiple levels, increasing both volume and grade at Sunday Creek in multiple dimensions. The
hole demonstrates the system at Sunday Creek continues to the east and to depth, and that it is predictable
and targetable.
“Firstly, three new veins were discovered in the upper parts of the hole and these extend mineralisation
another 150 m further east towards the nine km of regional strike that remains open for further discovery.
These add to the 42 vein sets already defined at Sunday Creek for a current total of 45 vein sets.
“Secondly, SDDSC108A extends mineralisation 150 m deeper than previous drilling at Apollo Deep proving
the continuity and persistency of mineralisation in the step-out areas.
“And thirdly, the hole drilled the highest grades of gold found at Apollo to date, including 0.2 m @ 576 g/t
Au. It continues to validate the opportunity to find even higher grades depth at Apollo Deep, as we have
found at Rising Sun 400 m to the west. Thi s high-grade intercept is interpreted to be located 150 m down -
dip from the previously highest-grade vein set drilled at Apollo in SDDSC066 (1.0 m @ 224 g/t AuEq) (Figure
4). This demonstrates the exciting opportunity to further define coherent and extremely high -grade bodies
at Sunday Creek with closer spaced drilling.
“Additionally, we continue to be pleased with the high grades of antimony intersected. Antimony is an
important potential by-product with its own economic and strategic value.
“With four drill rigs operating and assays from 11 holes awaited, there always remains imminent news flow
coming from Sunday Creek, which continues to produce some of the most exciting gold exploration results
globally.”
Drill Hole Discussion
SDDSC108A was drilled from the east to west, 150 m down -dip from SDDSC066 (released 1st
June, 2023) and tested multiple vein sets. SDDSC108A contains the highest -grade intercept drilled
at Apollo to date (0.2 m @ 576.0 g/t Au). This high-grade intercept is interpreted to be located
150 m down-dip from the highest-grade vein set drilled in SDDSC066 (1.0 m @ 224.3 g/t AuEq)
(Figure 3). This further demonstrates the well understood geological opportunity to find extremely
high grade “Cinderella Zones”, that form at dep th in the Victorian epizonal systems and
demonstrates the opportunity to define extremely high-grade bodies at Sunday Creek.
SDDSC108A hole traversed eight mineralised vein sets and contained seven intervals > 15 g/t
Au (up to 576 g/t Au) and six intervals of > 5 % Sb (up to 15.1 % Sb).
The three new veins sets discovered extend mineralisation 150 m east. These new veins sets are
interpreted to correlate with mineralisation previously identified by (Figure 3):
• Surface trenching located 260 m up dip, that included Trench 1: 14.0 m @ 12.0 g/t AuEq (11.5 g/t
Au and 0.3% Sb) including 8.0 m @ 20.2 g/t AuEq (19.6 g/t Au and 0.4% Sb) and Trench 2: 2 m @
5.2 g/t AuEq (4.9 g/t Au and 0.2% Sb); and
• Drilling, where a very shallow drill hole, SDDSC063 intersected 1.5 m @ 6.6 g/t AuEq (5.0 g/t Au, 1.0
% Sb) from 25.2 m depth.
Highlights from the three new vein discoveries in SDDSC108A include:
• 11.0 m @ 5.0 g/t AuEq (1.9 g/t Au, 2.0% Sb) from 354.1 m, including:
o 0.8 m @ 21.0 g/t AuEq (12.0 g/t Au, 5.7% Sb) from 357.6 m
o 1.0 m @ 15.0 g/t AuEq (1.0 g/t Au, 8.9% Sb) from 359.5 m
o 1.4 m @ 8.8 g/t AuEq (3.3 g/t Au, 3.5% Sb) from 363.0 m
• 2.4 m @ 6.1 g/t AuEq (5.6 g/t Au, 0.3% Sb) from 382.8 m, including:
o 0.4 m @ 13.0 g/t AuEq (12.6 g/t Au, 0.2% Sb) from 383.2 m
o 0.6 m @ 10.7 g/t AuEq (10.2 g/t Au, 0.3% Sb) from 384.6 m
• 0.3 m @ 23.7 g/t AuEq (19.6 g/t Au, 2.6% Sb) from 419.0 m
• 0.3 m @ 48.8 g/t AuEq (48.8 g/t Au, 0.0% Sb) from 438.4 m
• 9.8 m @ 1.8 g/t AuEq (1.6 g/t Au, 0.1% Sb) from 440.7 m
Highlights from the deep extension of Apollo Deep in SDDSC108A include:
• 7.8 m @ 2.6 g/t AuEq (1.0 g/t Au, 1.0% Sb) from 636.2 m, including:
o 1.1 m @ 5.9 g/t AuEq (1.7 g/t Au, 2.6% Sb) from 636.9 m
• 9.8 m @ 3.9 g/t AuEq (1.8 g/t Au, 1.3% Sb) from 655.6 m, including:
o 1.2 m @ 19.4 g/t AuEq (8.6 g/t Au, 6.8% Sb) from 657.8 m
• 5.5 m @ 1.2 g/t AuEq (0.7 g/t Au, 0.3% Sb) from 694.9 m
• 5.2 m @ 3.2 g/t AuEq (2.3 g/t Au, 0.6% Sb) from 707.6 m, including:
o 0.2 m @ 44.8 g/t AuEq (33.9 g/t Au, 6.9% Sb) from 707.8 m
• 0.2 m @ 576.1 g/t AuEq (576.0 g/t Au, 0.1% Sb) from 762.9 m
• 1.1 m @ 17.1 g/t AuEq (16.9 g/t Au, 0.1% Sb) from 797.9 m
Pending Results and Update
Eight holes (SDDSC107, 110-112, 112W1, 113, 114, 115A) are currently being processed and analysed, with
three holes (SDDSC116, 117, 118) in progress (Figures 1 and 2).
Further Information
Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG
website at www.southerncrossgold.com.au.
No upper gold grade cut is applied in the averaging and intervals are reported as drill thickness. During future
Mineral Resource studies, the requirement for assay top cutting will be assessed.
Figures 1-4 show project location, plan, longitudinal and cross -sectional views of drill results reported here
and Tables 1–3 provide collar and assay data. The true thickness of the mineralised intervals reported are
interpreted to be approximately 60% to 70% of the sampled thickness for other reported holes. Lower grades
were cut at 1.0 g/t Au lower cutoff over a maximum width of 2 m with higher grades cut at 5.0 g/t Au lower
cutoff over a maximum of 1 m width.
Technical Background and Qualified Person
The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of
the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical
contents of this release.
Analytical samples are transported to the Bendigo facility of On Site Laboratory Services (“On Site”) which
operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold
using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution
with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required)
use aqua regia digestion and ICP -MS analysis. The QA/QC program of Southern Cross Gold consi sts of the
systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock
and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.
MAW considers that both gold and antimony that are included in the gold equivalent calculation (“AuEq")
have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding,
historic production statistics and geologically analogous mining operations. Historic ally, ore from Sunday
Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project,
for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains
two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade
global underground mine and a top 5 global producer of antimony.
SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd
in its Mandalay Technical Report, 2022 dated 25 March 2022. The gold equivalence formula used by Mandalay
Resources was calculated using recoveries a chieved at the Costerfield Property Brunswick Processing Plant
during 2020, using a gold price of US$1,700 per ounce, an antimony price of US$8,500 per tonne and 2021
total year metal recoveries of 93% for gold and 95% for antimony, and is as follows:
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 = 𝐴𝐴𝐴𝐴 (𝑔𝑔/𝑡𝑡) + 1.58 × 𝑆𝑆𝑆𝑆 (%).
Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment
of Sunday Creek mineralization at Costerfield, SXG considers that a 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 = 𝐴𝐴𝐴𝐴 (𝑔𝑔/𝑡𝑡) + 1.58 × 𝑆𝑆𝑆𝑆 (%) is
appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.
About Mawson Gold Limited (TSXV:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)
Mawson Gold Limited has distinguished itself as a leading Nordic exploration company. Over the last decades, the team behind
Mawson has forged a long and successful record of discovering, financing, and advancing mineral projects in the Nordics and
Australia. Mawson holds the Skellefteå North gold discovery and a portfolio of historic uranium resources in Sweden. Mawson also
holds 51% of Southern Cross Gold Ltd. (ASX:SXG) which owns or controls three high-grade, historic epizonal goldfields covering 470
km2 in Victoria, Australia, including the exciting Sunday Creek Au-Sb discovery.
About Southern Cross Gold Ltd (ASX:SXG)
Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and
Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which
grants SXG a Right of First Refusal over a 3,300 square kilometer tenement package held by NAG in Victoria.
On behalf of the Board,
"Michael Hudson "
Michael Hudson , Interim CEO and 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 [email protected]
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 wil l
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 t hat any
forward-looking statements are not guarantees of future results or performance, and that actual results m ay differ materially from
those in forward-looking statements as a result of various factors, including, Mawson’s expectations regarding its ownership interest
in Southern Cross Gold, capital and other costs varying significantly from estimates, changes in world metal markets, changes in
equity markets, the potential impact of epidemics, pandemics or other public health crises, including COVID -19, on the Company’s
business, risks related to negative publicity with respect to the Company or the mining industry in general; exploration potential
being conceptual in nature, there being insufficient exploration to define a mineral resource on the Australian- projects owned by
SXG, and uncertainty if further exploration will result in the determination of a mineral resource; planned drill 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 SEDAR.
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 infor mation,
future events or results or otherwise.
ASX ANNOUNCEMENT
Figure 1: Sunday Creek plan view showing SDDSC108A9 reported here (grey box, blue highlight), selected prior reported drill holes and pending holes. For
location see Figure 5.
Figure 2: Sunday Creek longitudinal section across A-B in the plane of the dyke breccia/altered sediment host (see Figure 1) looking towards the north (striking
236 degrees) showing mineralized veins sets. Showing SDDSC108A reported here and prior reported drill holes. Location of Figure 3 (section C-D) marked with
red dashed box.
Figure 3: Sunday Creek cross section across C-D in the plane of drillhole SDDSC108A, looking towards the north (striking 092 degrees). Showing SDDSC108A
(orange trace) reported here and prior reported drill holes. Section influence is 50 metres.
Figure 4: Sunday Creek regional plan view showing LiDAR, soil sampling, structural framework, regional historic epizonal gold mining ar eas and broad regional
areas (Tonstal, Consols and Leviathan) tested by 12 holes for 2,383 m drill program. The regional drill ar eas are at Tonstal, Consols and Leviathan located
4,000-7,500 m along strike from the main drill area at Golden Dyke- Apollo.