Under the Balaclava Open Pit at Whroo, Victoria, Australia
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE FEBRUARY 17, 2022
MAWSON DRILLS 0.6 METRES @ 49.7 g/t GOLD
UNDER THE BALACLAVA OPEN PIT AT WHROO, 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 assay results from its Whroo Joint Vent ure project (the “Whroo JV”).
Two diamond drill holes totalling 903 metres were drilled under the Balaclava Hill open pit, the deepest drilling to date
across the entire Whroo goldfield. Whroo is one of the largest historic epizonal goldfields in Victoria, Australia located 130
km north of Melbourne, within 221 sq. km of exploration tenements.
The regional exploration work at Whroo over the last 18 months has been undertaken by Mawson Victoria Pty Ltd (“Mawson
Victoria”). Mawson Victoria was recently transferred from Mawson Gold L td to Southern Cross Gold Pty Ltd (“ Southern
Cross”) as part of a larger internal reorganization ahead of Southern Cross’ proposed IPO expected to be completed in Q2
2022.
Highlights:
Drilling intersected the deepest and highest grades ever drille d on the project to date (Tables 1-2,
Figures 1-3)
Drill hole MDDBC001 intersected a broad 200-metre-wide down hole zone of gold and antimony (with an uncut
zone of 44.8 metres @ 0.8 g/t Au and 0.1% Sb) (Table 1). Higher grade highlights include:
o 0.5 metres @ 16.5 g/t Au from 201.5 metres
o 0.4 metres @ 1.4 g/t Au and 10.5% Sb from 262.4 metres
o 0.6 metres @ 49.7 g/t Au from 324.9 metres
o 0.2 metres @ 0.2 g/t Au and 16.5% Sb from 359.6 metres
o 0.2 metres @ 3.8 g/t Au and 6.3% Sb from 362.8 metres
o 0.3 metres @ 1.0 g/t Au and 3.3% Sb from 365.0 metres
Drill hole MDDBC002 drilled 150 metres west of MDDBC001 intersected:
o 0.7 metres @ 5.0 g/t Au from 332.1 metres
Michael Hudson, Executive Chairm an of Mawson and Managing Direc tor for Southern Cross, states : “There
remains a lot of gold to be found in Victoria. Our drilling bel ow one of the largest historic epizonal mines in Victoria, at
Balaclava Hill, has produced the best drill result on the field since hard rock mining commenced 167 years ago. Grades up
to 49.7 g/t gold over 0.6 metres are impressive as are the antimony grades including 0.2 metres @ 16.5% antimony, and
the +200-metre-wide zone of anomalous “mine sandstone” host. These results provide Southern Cross Gold with its second
bona fide high-grade drill project after Sunday Creek, as we head towards the initial public offering on the ASX.”
Since historic mining took place, modern exploration at Whroo has been relatively limited with few drill holes testing below
the level of oxidation, and a paucity of geophysical exploratio n. In the early 1970s ICI Aust ralia and Newmont diamond
drilled the single and only diamond drill hole ever drilled at depth in the field (Whroo 1) and intersected 63 metres @ 0.35
g/t gold from 140 metres beneath the Balaclava open pit including 1.5 metre @ 6.1 g/t gold from 108.0 metres,
1.5 metres @ 1.8 g/t gold from 149.5 metres and 1.5 metres @ 5.3 g/t gold from 179.5 m. Visible stibnite was
recorded but antimony and arsenic were not assayed. MDDBC001 wa s drilled 120 metres vertically below Whroo 1. New
Holland Mining in the mid-1990s drilled 42 reverse circulation drill holes for 3,259 metres (77.6 metres average depth) to
test for near surface oxide-gold mineralization.
Drilling by Mawson Victoria intersected the deepest and highest grades ever drilled on the project to date. Drill hole
MDDBC001 intersected a broad 200-metre-wide down hole zone of gold and antimony (with an uncut zone of 44.8 metres
@ 0.8 g/t Au and 0.1% Sb). High grade intersections are predomi nantly located on the edges of the massive, pyritic
sandstone including 0.5 metres @ 16.5 g/t Au from 201.5 metres, 0.4 metres @ 1.4 g/t Au and 10.5% Sb from
262.4 metres and 0.6 metres @ 49.7 g/t Au from 324.9 metres. Drill hole MDDBC002, drilled 150 metres west of
MDDBC001 intersected 0.7 metres @ 5.0 g/t Au from 332.1 metres.
The 14-km long Whroo goldfield is one of the largest historic e pizonal goldfields in Victoria, Australia (Figure 3). Whroo’s
Balaclava Mine is hosted by Devonian turbidites consisting of interbedded siltstones, sandstones and mudstones, the latter
strongly bioturbated. Whroo lies to the east of the Heathcote-M t William Fault Zone, 35 km northeast of the Costerfield
gold-antimony mine and 40 km east of Fosterville gold mine (Fig ure 1). The regional map depicts gentle folding about E-
W-trending axis however at Whroo the sedimentary sequence is st eeply dipping and locally overturned. Numerous tight
folds with faulted and overturned limbs are observed in the fie ld. There has been no detailed geophysical data collected
over the goldfield, but the regional Bouguer Anomaly image show s Whroo is located above a local gravity high, as is the
Fosterville mine. Detailed LiDAR surveying by Mawson Victoria extended the previously mapped Whroo historic mining field
from 10 kilometres strike to 14 kilometres long. GIS-based data analytics also identified 34,500 individual workings within
63 km2 (~550 per km2) and classified the data as alluvial vs hard rock in character (Figure 2). The main stratigraphic and
structural orientation at Whroo is east-west, with mineralization observed in E-W, NNE and flat dipping veins.
Whroo consists of the Balaclava Hill area which contains thirte en named reefs mined from an open pit and 137m deep
shaft, while shallow workings extend across the trend over 14 km. Total production from Whroo was estimated at 40,000 oz
gold, at grades varying from 5 g/t gold to >700 g/t gold from r eefs and spurs within an E-W- striking pyritic sandstone.
Gold at Whroo appears closely associated with quartz veins, arsenian-pyrite and stibnite.
Whroo is an epizonal gold deposit with high antimony formed in the late Devonian (ie Fosterville, Costerfield, Sunday Creek,
Whroo), 60 million years later than mesozonal gold systems formed in Victoria (ie Ballarat and Bendigo). Epizonal deposits
are a form of orogenic gold deposits classified according to th eir depth of formation: epizonal (<6 km), mesozonal (6-12
km) and hypozonal (>12 km). Antimony is a critical metal, where China produces approximately 53% of the raw material
and processes 80% of global production. Antimony alloys with lead and tin which results in improved properties for solders,
bullets, bearings and batteries. Antimony is a prominent additive for halogen-containing flame retardants. Antimony is also
used as a dopant in semiconductor devices.
Mandalay Resources’ Costerfield mine is the target model sought at Whroo, widths and grades observed in Mawson Victoria’s
initial drilling are consistent with those observed from Costerfield, which is located 35 km SW from Whroo. The Costerfield
mine corridor contains 2 million ounces of equivalent gold (pers. comm. Mandalay Q3 2021 Results), and in 2020 was the
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 average 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 the Whroo JV over the last 18 months has been under taken by Mawson Victoria. Mawson Victoria was recently transferred
from Mawson Gold to Southern Cross as part of a larger internal reorganization. Southern Cross is working towards a proposed initial
public offering (“IPO”) on the Australian Securities Exchange (“ ASX”). Today, Mawson holds 93,750,000 ordinary shares of Southern
Cross or 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.
Mawson Victoria is party to the Whroo JV pursuant to an Amended and Restated Option and Joint Venture Agreement with Nagambie .
The Amended and Restated Agreement, with an effective date of 2 December 2020, amended and restated the option agreement dated
March 24, 2020, (the “Original Agreement”) between Mawson and Nagambie relating to the Doctors Gully retention licence. The Whroo
JV substantially expands the area under option from that contai ned in the Original Agreement from 4 square kilometres to 199 s quare
kilometres of mineral tenure and includes the 9 kilometre long Whroo gold mineralized trend. Mawson Victoria has the option to earn an
up to 70% joint venture interest in the Whroo JV.
As of the date of this press release, Mawson Victoria has met its minimum first year commitments of A$400,000 and is working towards
meeting its second year commitment by December 02, 2022.
Technical Background
Tables 1 and 2 provide collar and assay data. The true thicknes s of the mineralized interval is interpreted to be approximatel y 70% of
the sampled thickness. All drill results quoted have a lower cut of 0.5 g/t Au cut over a 2.0 metre width.
A diamond drill rig from contractor Starwest Pty Ltd was used i n the Doctors Gully program. Cor e diameter was HQ (63.5 mm) and
oriented with excellent core recoveries averaging close to 100% in both oxidized and fresh rock. After photographing and loggi ng in
Mawson Victoria’s core logging f acilities in Nagambie, interval s 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 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 b y measuring the gold in solution with flame AAS equipment. Samples
for multi-element analysis (BM011 and over-range methods as req uired) use aqua regia digestion and ICP-MS analysis. The QA/QC
program of Mawson Victoria consists of the systematic insertion of certified standards of known gold content, blanks within in terpreted
mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.
Qualified Person
Mr. Michael Hudson (FAusIMM), Executive Chairman for the Company, 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 infor mation in
this press release. None of the historic drill and mine data have been independently verified by Mawson at this time. The historical data
pre-date the implementation of NI 43-101 and are quoted for information purposes only.
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, [email protected]
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, the Company’s expectations regarding: (a) te rms, timing
and closing of the Southern Cross IPO; (b) approval from ASX of Southern Cross’ proposed listin g of its ordinary shares; (c) r eceipt of
requisite regulatory approvals, customary for these types of tr ansactions; (d) Mawson’s intentions regarding its ownership in Southern
Cross; (e) Mawson Victoria intentions regarding its option interest in the Whroo JV, including timing and achievement of the second year
Whroo JV commitments; and (f) the following additional factors: capital and other costs varying significantly from estimates, changes in
world metal markets, changes in equity markets, the potential i mpact of epidemics, pandemics or other public health crises, in cluding
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; planned drill programs and resu lts varying from expectations, delays in obtaining results, equ ipment
failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations
due to permit grants, environmen tal and safety risks, and other risks and uncertainties disclosed under the heading "Risk Fact ors" in
Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable s ecurities 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 Area in Victoria
Figure 2: Plan showing detailed LiDAR survey which extended the previously mapped Whroo historic mining field from 10 kilometres strike to 14 kilometres. GIS
based data analytics also identified 34.5 k individual workings over 63 km2 (~550 per km2) and classified the data as alluvial vs hard rock in character.
Figure 3: Cross section below the Whroo Open Pit showing planned hole MDDBC001 and historic drill hole Whroo1.
Table 1: Collar information from Mawson Victoria’s drilling at the Balaclava Open Pit
Coordinate Reference System GDA94, Zone 55 (EPSG:28355)
Area Hole_ID Easting Northing Dip Azimuth RL (m) Depth (m) Date Reported
Balaclava Hill MDDBC001 323223 5942899 -50 145 184.54 456 Here
Balaclava Hill MDDBC002 323223 5942899 -50 185 184.54 447 Here
Table 2: Intersections from Mawson Victoria’s drilling from the Balaclava Hill. Higher grade intersections are reported with a
lower cut of 0.5 g/t Au cut over 1.0 metre width.
hole_id from to width Au g/t Sb%
MDDBC001 201 202 1.0 8.4 0.0
including 201.5 202 0.5 16.5 0.0
MDDBC001 228 239 11 0.4 0.0
including 236 237.5 1.5 1.2 0.0
MDDBC001 262.4 262.8 0.4 1.4 10.5
MDDBC001 323 367.8 44.8 0.8 0.1
MDDBC001 324.9 325.5 0.6 49.7 0.0
MDDBC001 359.6 359.8 0.2 0.2 16.5
MDDBC001 362.8 363 0.2 3.8 6.3
MDDBC001 365 365.3 0.3 1.0 3.3
MDDBC001 403 416.2 13.2 0.3 0.0
MDDBC001 403.5 403.7 0.2 2.2 0.0
MDDBC001 409.8 410.5 0.7 1.5 0.0
MDDBC002 69 70 1 1.1 0.0
MDDBC002 212.6 227 14.4 0.4 0.0
including 214.6 215.4 0.8 0.9 0.0
including 225 226 1 2.2 0.0
MDDBC002 332.1 332.8 0.7 5.0 0.0