SXG Commences Regional Geophysical Survey Over 6 km Strike
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE October 9, 2024
SXG Commences Regional Geophysical Survey Over 6 km Strike
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 initiated a regional scale induced polar ization (“IP”) geophysical survey at the 100% -owned
Sunday Creek Gold-Antimony Project in Victoria (Figure 3).
Highlights:
• A large-scale induced polarization (“IP”) geophysical survey has commenced at the Sunday Creek Project
with a view to define regional drill targets outside the core drill area.
• The IP survey extends over 12 km 2 and covers 6 km strike of the dyke and altered sediment hosted
gold mineralized trend to cover significant historical mining areas including Tonstal, Leviathan, Consols
and Aftermath.
• IP geophysics is a key exploratory tool at Sunday Creek as it successfully maps the gold- antimony
mineralized host sequence due to the higher amount of pyrite present as a halo around the vein sets
and main trend. The pyritic halo is up to several hundred metres wide in areas around Apollo and Rising
Sun and is a near 1:1 correlation with higher chargeability shells (Figure 2).
• Previous regional drilling up to 8 km along strike from the main drill area at Sunday Creek confirmed
the presence of the same dyke breccia host and crosscutting high grade gold-bearing veins as currently
being drilled within the main mineralized zone.
• Five drill rigs are operating at site, with 22 diamond drill holes currently being processed and analyzed
with an additional 5 holes in progress.
• Mawson owns 96,590,910 shares of SXG (48.7%), valuing its stake at A$298.5 million (C$274.7 million)
based on SXG’s closing price on October 8, 2024 AEDT.
Michael Hudson, Mawson Interim CEO and Executive Chairman, states : "While we have five drill
rigs constantly expanding and refining the core drill area over a 1.2 km strike between Christina to Apollo at
Sunday Creek, we must always keep our eye on the other 90% of the 11 km mineralized trend that has only
seen a fraction of the drilling focus to date.
“This IP survey, along with earlier soil sampling and mapping (that coincides with historic mining) is the next
step to derisk the regional trend. The survey will help define drill targets for a sixth drill rig that will be
dedicated to regional exploration. This rig is expected to be mobil ized during November. In the meanwhile
we are extremely excited to see what the IP survey may uncover along our regional trend.”
A large induced polarization (“IP”) geophysical survey has commenced at the Sunday Creek Project. The aim
of the program is to cover the significant historical occurrences and associated soil geochemical anomalies
at Tonstal, Leviathan, Consols and Aftermath with a view to defining regional drill targets at the project. The
survey will test over 6 km of dyke and altered sediment strike extent, covering a 12 km2 footprint of multiple
prospective trends along the same mineralized structure from the main drill area at the 100%-owned Sunday
Creek Project in Victoria (Figure 1).
IP has been a successful exploratory tool used at Sunday Creek due to the high amount of pyrite present as
a halo around the vein sets and main trend. The pyritic halo is up to several hundred metres wide in areas
around Apollo and Rising Sun and is a near 1:1 correlation with higher chargeability shells (Figure 2 ).
Additionally to the chargeability targets, low resistivity shallow targets form above the weathered sulphidic
halo.
Previous regional drilling (ASX Release 12th October 2023) up to 8 km along strike from the main drill area
at Sunday Creek confirmed the presence of the same dyke breccia host and crosscutting high grade gold -
bearing veins as currently being drilled within the main mineralized zone. These results were commensurate
with the very early drilling undertaken in what is now the core drill area at Sunday Creek. High grade gold,
with anomalous and broad (150 m) mineralized halo were discovered with highlights including 0.5 m @ 15.7
g/t Au from 87.0 m (including visible gold) in SDDLV003 at the Leviathan prospect.
Survey Description
The Induced Polarization (“IP) geophysical survey is to be carried out by Fender Geophysics. The survey
consists of a dipole-dipole 3D offset electrode configuration with 100 m spaced lines. Transmitter electrodes
are spaced every 100 m along the line while receiver spacing is 50 m. In this configuration data is recorded
over 3 lines simultaneously, providing ample current paths for 3D inversion and to maintain good depth
penetration. The length of the lines range between 0.65 km and 2.0 km, with 62 lines tracking the interpreted
regional strike extensions. The equipment consists of a GDD transmitter and 2 GDD receivers with 16 and
32 channels. The survey is expected to take 3 months to complete.
Pending Results and Update
Twenty-two holes (SDDSC129, 131-143, 146, 137W1, 137W2, 050W1, 050W2, 092W1, 092W2, 092W3) are
currently being processed and analyzed, with five holes (SDDSC120W1, 144, 145, 146W1, 147) in progress.
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.
Critical Metal Epizonal Gold-Antimony Deposits
Sunday Creek is an epizonal gold-antimony deposit formed in the late Devonian (like Fosterville, Costerfield
and Redcastle), 60 million years later than mesozonal gold systems formed in Victoria (for example Ballarat
and Bendigo). Epizonal deposits are a f orm of orogenic gold deposit classified according to their depth of
formation: epizonal (<6 km), mesozonal (6-12 km) and hypozonal (>12 km).
Epizonal deposits in Victoria often have associated high levels of the critical metal, antimony, and Sunday
Creek is no exception. China claims a 56 per cent share of global mined supplies of antimony, according to
a 2023 European Union study. Antimony fea tures highly on the critical minerals lists of many countries
including Australia, the United States of America, Canada, Japan and the European Union. Australia ranks
seventh for antimony production despite all production coming from a single mine at Costerfield in Victoria,
located nearby to all SXG projects. Antimony alloys with lead and tin which results in improved properties for
solders, munitions, bearings and batteries. Antimony is a prominent additive for halogen -containing flame
retardants. Adequate supplies of antimony are critical to the world's energy transition, and to the high -tech
industry, especially the semi -conductor and defence sectors where it is a critical additive to primers in
munitions.
In August 2024, the Chinese government announced it will place export limits on antimony and antimony
products. This will put pressure on Western defence supply chains and negatively affect the supply of the
metal and push up pricing given China’s dominance of the supply of the metal in the global markets. This is
positive for SXG as we are likely to have one of the very few large and high-quality projects of antimony in
the western world that can feed western demand into the future.
Antimony represents approximately 20% in situ recoverable value of Sunday Creek at an AuEq of 1.88.
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 consists 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 analogo us mining operations. Historically, 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.
MAW considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd
in its Mandalay Technical Report, 2024 dated March 28, 2024. The gold equivalence formula used by
Mandalay Resources was calculated using Costerfield’s 2023 production costs, using a gold price of US$1,900
per ounce, an antimony price of US$12,000 per tonne and 2023 total year metal recoveries of 94% for gold
and 89% for antimony, and is as follows:
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 = 𝐴𝐴𝐴𝐴 (𝑔𝑔/𝑡𝑡) + 1.88 × 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) + 1.88 × 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 48.7% of Southern Cross Gold Ltd. (ASX:SXG) which owns or controls two high-grade, historic epizonal goldfields 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 joint
venture in Victoria, Australia, and a strategic 6.7% 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 may 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 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 gran ts, environmental and safety risks, and other risks and uncertainties. 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 information ,
future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
ASX ANNOUNCEMENT
Figure 1: Sunday Creek regional plan view showing planned IP area, soil sampling, structural framework, regional historic epizonal gold mining areas and broad
regional areas tested in the reported 2,367 m diamond drill program. The regional drill areas are at Tonstal, Consols and Leviathan located 4- 7.5 km along
strike from the main drill area at Golden Dyke- Apollo.
Figure 2: Southern Cross Gold’s 2020 IP Geophysical survey showing chargeability isosurfaces in association with known mineralization at Apollo East, Apollo
and the single vein set that subcrops at Rising Sun.
Figure 3: Location of the Sunday Creek project, along with the Redcastle JV and simplified geology.