SXG Drills 473.0 g/t Gold Over 0.5 Metres at Sunday Creek Multiple High-Grade Structures Extend Mineralization Announces 60 km Drill Program Over Coming Year
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE May 30, 2024
SXG Drills 473.0 g/t Gold Over 0.5 Metres at Sunday Creek
Multiple High-Grade Structures Extend Mineralization
Announces 60 km Drill Program Over Coming Year
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 results from two diamond drillholes from the Rising Sun prospect at its 100%-owned
Sunday Creek Project in Victoria , Australia (Figures 1 to 6). Both holes intersected multiple high -grade
structures and were successful in extending mineralization beyond the bounds of the modelled mineral ized
domains as well as defining continuity in other areas.
Highlights:
• SDDSC115A intercepted eleven high-grade mineralized structures at Rising Sun over a downhole width of
365.7 m from 512.4 m. This hole contains six assayed intervals of > 50 g/t Au (up to 202 g/t Au),
and five assayed intervals > 5% Sb (up to 26.3% Sb) with drill highlights:
o 1.5 m @ 12.4 g/t AuEq (10.6 g/t Au, 1.0% Sb) from 532.6 m
o 3.3 m @ 6.4 g/t AuEq (2.6 g/t Au, 2.0% Sb) from 563.6 m
o 0.2 m @ 25.9 g/t AuEq (15.4 g/t Au, 5.6% Sb) from 573.7 m
o 10.4 m @ 3.0 g/t AuEq (1.2 g/t Au, 1.0% Sb) from 580.0 m
o 3.2 m @ 48.2 g/t AuEq (45.3 g/t Au, 1.5% Sb) from 643.4m (ETW 2.5 m)
o 0.3 m @ 87.2 g/t AuEq (86.4 g/t Au, 0.4% Sb) from 707.7 m
o 0.1 m @ 95.3 g/t AuEq (87.1 g/t Au, 4.3% Sb) from 719.5 m
• SDDSC117 was drilled to test strike continuity of two high-grade targets in the footwall of the mineralized
host and intercepted eight mineralized structures. This hole contains 3 assayed intervals of > 20 g/t Au
(up to 473.0 g/t Au) with drill highlights:
o 8.7 m @ 4.1 g/t AuEq (3.5 g/t Au, 0.3% Sb) from 741.9 m
o 0.5 m @ 473.1 g/t AuEq (473.0 g/t Au, 0.0% Sb) from 913.6 m (ETW 0.3 m)
• The SXG Board has approved plans to drill 60 km over the next year , with a fifth drill rig to commence
within weeks and a sixth rig to arrive during September 2024.
• SXG is commencing a specialized navigational (“NAVI”) downhole application utilizing down hole motors to
undertake detailed drilling (at approximately 20 m spacing) around super high-grade areas with the aim to
build further confidence of grade continuity between high-grade intersections.
• Seven drillholes at Sunday Creek are currently being processed and analyzed, with 4 holes in progress.
• Mawson owns 96,590,910 shares of SXG ( 49.6%), valuing its stake at A$270.5 million (C$245.3 million)
based on SXG’s closing price on May 29, 2024 AEST.
Michael Hudson, Mawson Executive Chairman, states: “Sunday Creek continues to produce impressive
news, release after release. Today’s announcement discloses another set of extremely strong high-grade drill
results from the Rising Sun project area. The holes were successful on multiple fronts as they extend
mineralization beyond the bounds of the exploration target area as well as define continuity in other areas.
“Both holes reported here also each delivered a >100 g/t AuEq x m intersection. The project now contains
a total of thirty -eight (38) of these significant hits. Importantly, the frequency of these significant hits
continues to increase as we drill towards depth and understand the controls on high -grade mineralization
better (Figure 7).
“With a 60 km drill program set to more than double the drill metres into the Sunday Creek project over the
next year, SXG will expand this globally significant gold discovery via logical step outs along strike to increase
volume along with the start of de tailed controlled downhole NAVI -drilling program that aims to target
continuity of super high-grade areas.
“Additionally, planning for a regional scale IP geophysical survey is underway that will test the 10 km long
trend along strike from the core drilled area to further demonstrate the district scale potential of Sunday
Creek.”
Drill Hole Discussion
Two drillholes (SDDSC115A and 117) are reported from the Rising Sun prospect. Both holes intersected high-
grade structures, extending mineralization beyond the bounds of the modelled mineralized domains as well
as reinforcing continuity in other areas.
SDDSC115A was designed to test the footwall position of two high -grade vein sets and intercepted 11
mineralized structures, five of which are high-grade. This hole contains six assayed intervals of > 50 g/t
Au (up to 202 g/t Au), and five assayed intervals > 5% Sb (up to 26.3% Sb). The hole traversed
through the centre of the dyke/breccia host and provided continuity information in the plane of the 11 vein
sets. High-grade continuity is well demonstrated in vein set RS55_L (Figure 3) where SDDSC115A drilled 3.2
m (ETW 2.5 m) @ 48.2 g/t AuEq (45.3 g/t Au, 1.5% Sb) from 643.4m (2 m @ 0.5 g/t Au lower cut)
including 1.3 m @ 90.2 g/t AuEq from 643.4 m and 0.3 m @ 116.1 g/t AuEq from 646.3 m, which was
located 68 m down-plunge of previously reported SDDSC107 (4.7 m @ 76.6 g/t AuEq), suggesting the
possibility of a new high-grade mineralized domain.
Highlights from SDDSC115A include:
o 0.2 m @ 13.5 g/t AuEq (12.8 g/t Au, 0.4% Sb) from 455.9 m
o 5.5 m @ 1.7 g/t AuEq (0.8 g/t Au, 0.5% Sb) from 512.4 m, including:
0.3 m @ 6.1 g/t AuEq (2.4 g/t Au, 2.0% Sb) from 517.6 m
o 1.5 m @ 12.4 g/t AuEq (10.6 g/t Au, 1.0% Sb) from 532.6 m including:
1.2 m @ 15.3 g/t AuEq (13.2 g/t Au, 1.1% Sb) from 533.0 m
o 3.3 m @ 6.4 g/t AuEq (2.6 g/t Au, 2.0% Sb) from 563.6 m including:
0.8 m @ 6.7 g/t AuEq (5.1 g/t Au, 0.9% Sb) from 563.6 m
1.2 m @ 11.3 g/t AuEq (3.1 g/t Au, 4.4% Sb) from 565.7 m
o 0.2 m @ 25.9 g/t AuEq (15.4 g/t Au, 5.6% Sb) from 573.7 m
o 10.4 m @ 3.0 g/t AuEq (1.2 g/t Au, 1.0% Sb) from 580.0 m, including:
0.3 m @ 53.8 g/t AuEq (13.9 g/t Au, 21.2% Sb) from 580.2 m
0.2 m @ 7.2 g/t AuEq (3.1 g/t Au, 2.2% Sb) from 587.7 m
o 3.2 m @ 48.2 g/t AuEq (45.3 g/t Au, 1.5% Sb) from 643.4m (ETW 2.5 m), including:
1.3 m @ 90.2 g/t AuEq (84.9 g/t Au, 2.8% Sb) from 643.4 m
0.3 m @ 116.1 g/t AuEq (109.0 g/t Au, 3.8% Sb) from 646.3 m
o 0.3 m @ 87.2 g/t AuEq (86.4 g/t Au, 0.4% Sb) from 707.7 m
o 0.1 m @ 95.3 g/t AuEq (87.1 g/t Au, 4.3% Sb) from 719.5 m
o 3.4 m @ 2.8 g/t AuEq (2.7 g/t Au, 0.1% Sb) from 746.0 m, including:
0.3 m @ 15.4 g/t AuEq (15.3 g/t Au, 0.1% Sb) from 747.3 m
o 3.8 m @ 4.0 g/t AuEq (3.2 g/t Au, 0.5% Sb) from 874.3 m, including:
0.4 m @ 12.9 g/t AuEq (12.9 g/t Au, 0.0% Sb) from 875.6 m
SDDSC117 was designed to test the strike continuity of two high -grade targets in the footwall of the
mineralized host and intercepted seven mineralized structures. This hole contains 3 assayed intervals of
> 20 g/t Au (up to 473.0 g/t Au). SDDSC117 drilled along the footwall contact at a high intersection
angle to mineralized vein sets. The high-grade intercept in the RS110 location (0.5 m @ 473.1 g/t AuEq)
highlights the potential for high grade internal shoots and linking features within known planes of
mineralization. Highlights from SDDSC117 include:
o 13.3 m @ 1.2 g/t AuEq (0.6 g/t Au, 0.3% Sb) from 606.6 m, including:
0.2 m @ 7.9 g/t AuEq (0.9 g/t Au, 3.7% Sb) from 606.6 m
o 3.5 m @ 1.4 g/t AuEq (0.6 g/t Au, 0.4% Sb) from 644.4 m
o 0.5 m @ 6.0 g/t AuEq (3.6 g/t Au, 1.3% Sb) from 652.1 m
o 2.0 m @ 5.6 g/t AuEq (5.6 g/t Au, 0.0% Sb) from 715.4 m
o 8.7 m @ 4.1 g/t AuEq (3.5 g/t Au, 0.3% Sb) from 741.9 m, including:
1.1 m @ 21.5 g/t AuEq (20.9 g/t Au, 0.3% Sb) from 745.8 m
o 0.5 m @ 473.1 g/t AuEq (473.0 g/t Au, 0.0% Sb) from 913.6 m
o 2.5 m @ 2.4 g/t AuEq (2.4 g/t Au, 0.0% Sb) from 934.7 m, including:
0.2 m @ 11.3 g/t AuEq (11.3 g/t Au, 0.0% Sb) from 934.7 m
0.4 m @ 9.1 g/t AuEq (9.1 g/t Au, 0.0% Sb) from 936.8 m
Pending Results and Update
Seven holes (SDDSC114W1, 118, 119, 119W1, 120, 121, 123) are currently being processed and analyzed,
with four holes (SDDSC121W1, 122, 124, 125) in progress (Figures 1 and 2).
Increasing Drilling Program
The SXG Board has approved plans to drill 60 km over the next year, with the fifth drill rig to commence
within weeks and a sixth rig to arrive during September 2024.
Over the next week SXG will commence a NAVI drilling program. NAVI drilling is a special ized drilling
application utilizing down hole motors to make alterations to the direction of a diamond core drill hole.
Detailed drilling (at approximately 20 m spacing) will be undertaken around super high-grade areas with the
aim to build further confidence of grade continuity between high-grade intersections by drilling branch holes
off an already drilled ‘parent hole’.
Regional Programs
A large regional induced polarization survey over the 10km district-scale strike is now being planned to test
the regional trend beyond the core drill area at Sunday Creek. The survey is planned to start in September
2024.
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 to 6 show project location, plan and longitudinal views of drill results reported here and Tables 1
to 3 provide collar and assay data. The true thickness of the mineralised intervals reported individually as
estimated true widths (“ETW”), otherwise they are interpreted to be approximately 60-70% of the sampled
thickness for other reported holes. Lower grades were cut at 1.0 g/t AuEq 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 unless specified.
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 analogous 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 49.6% 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 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 will prove to be correct. Forwa rd-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, Mawson’s expectations
regarding its ownership 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, risk s related to negative
publicity with respect to the Company or the mining industry in general; exploration potential being conceptual in nature, 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 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 Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release.
ASX ANNOUNCEMENT
Figure 1: Sunday Creek plan view showing SDDSC115A and 117 reported here (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 SDDSC115A and 117 reported here and prior reported drill holes.
Figure 3: Sunday Creek longitudinal section across C-D in the plane of the modelled vein set RS55_L, looking towards the north-east (striking 139.9 degrees).
Showing SDDSC115A and 117 (orange trace) reported here and prior reported drill holes.