Mawson Resou rces Limited (“
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE APRIL 20, 2020
Mawson Intersects New High-Grade Zone 19.5 metres @ 7.1 g/t Gold, 1,006 ppm Cobalt
Includes 7 metres @ 17.0 g/t Gold, 2,168 ppm Cobalt
Vancouver, Canada — Mawson Resou rces Limited (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) is pleased to announce further high-grade results from the recent 14.1
kilometre drill program at the Company’s 100%-owned Rajapalot project in Finland. These results continue to extend gold
and cobalt mineralization beyond previously defined resources.
Highlights:
Drill hole PAL0228 at Palokas, located 120 metres from 2018 inferred resource (>2 g/t lower-cut), intersected
19.5 metres @ 7.1 g/t gold, 1,006 ppm cobalt, 7.8 g/t gold equi valent (“AuEq”) from 241.8 metres,
including 7.0 metres @ 17.0 g/t gold, 2,168 ppm cobalt, 18.4 g/t AuEq from 251.4 metres (Tables 1-4,
Figures 1-3);
Drill hole PAL0222 at Palokas (previously reported for gold only ), drilled 75 metres north of PAL0228, returned
12.2 metres @ 13.2 g/t gold, 1,326 ppm cobalt, 14.0 g/t AuEq from 266.9 metres, including 8.2 metres
@ 19.1 g/t Au, 1,572 ppm cobalt, 20.1 g/t AuEq from 266.9 metres (Tables 1-3, Figures 1-3);
New high-grade zone: drill holes PAL0222, PAL0228, together with PAL0194 ( 7.8 metres @ 5.1 g/t Au, 4,454
ppm cobalt, 7.9 g/t AuEq from 425.1 metres) define a newly interpreted 190 metre long higher-grade zone on the
south western edge of Palokas, which remains open down plunge to the north and to the south towards the South
Palokas prospect (Figures 2 & 3);
Mr. Hudson, Chairman and CEO, states, "More stunning results from Palokas with PAL0228 intersecting 19.5 metres @ 7.1
g/t gold and 1,006 ppm cobalt, highlighting the consistency of high-grade gold mineralization. Importantly, the reported
holes define a new higher-grade z one that has considerable room for expansion. Core logging and assaying remains on
schedule to deliver an updated resource at Rajapalot at the start of Q3 2020.”
Mawson completed the winter drill program with 37 drill holes f or 14,132 metres (including one wedged drill hole and
deepening an existing hole), and has released results from 24 d rill holes on 20th January, 5th and 28th February 2020, 9th
March 2020 and here. Thirteen drill holes remain to be reported. Gol d and cobalt assay results from 11 drill holes across
the three project areas (Palokas, South Palokas and Raja) are r eleased here, including two of the drill holes from which
gold assays had been previously reported (PAL0221 & PAL0222).
The significance of distinct high-grade zones within the mineralized footprint is becoming evident. Table 4 provides the high
grade (2 g/t gold lower cut) intersections drilled to date at Rajapalot. The plan view map in Figure 2 shows the distribution
at Palokas and South Palokas of these trends. New drilling appears to define a higher-grade, 190 metre long zone that has
considerable room for expansion on the south western edge of Palokas. This zone appears to have a north-south orientation
and is defined by drill holes PAL0222 ( 12.2 metres @ 13.2 g/t gold, 1,326 ppm cobalt, 14.0 g/t AuEq) , PAL0228
(19.5 metres @ 7.1 g/t gold, 1,006 ppm cobalt, 7.8 g/t gold equi valent), together with PAL0194 ( 7.8 metres @
5.1 g/t Au, 4,454 ppm cobalt, 7.9 g/t AuEq from 425.1 metres ). The continuity of these elongate high-grade trends is
encouraging as the Company learns more about the detailed distr ibution of mineralization. All three prospect areas with
inferred resources at Rajapalot remain open, with further drilling required.
The regional upside potential of the Rajapalot project outside Palokas, South Palokas and Raja prospects is considerable.
Coincident high chargeability (IP) and recently discovered (2020) electromagnetic conductors, combined with initial drilling
of high-grade gold-cobalt mineralization at The Hut and Rumajärvi prospects (Figure 1b), provides strong impetus for testing
near surface mineralization during the next drill season.
Mineralization has now been drilled down plunge for 560 metres at Raja, 500 metres at South Palokas and 590 metres at
Palokas. Electromagnetic (EM) co nductors indicate mineralized s ulphidic host rocks at Palokas, South Palokas and Raja
continue to at least 700-800 metres down plunge, which is the limit of this surface geophysical technique.
Further results reported here from the Palokas prospect include:
PAL0218 intersected 1.0 metre @ 4.0 g/t gold, 378 ppm cobalt, 4.2 g/t AuEq from 432 .4 metres was
drilled 30 metres down dip and to the west of PAL0194;
PAL0221, previously reported for gold only intersected 2.6 metres @ 6.2 g/t gold, 304 ppm cobalt, 6.4 g/t
AuEq from 234.3 metres, was drilled 70 metres to the ENE of PAL0228.
Further results from a line of 3 holes drilled down plunge at South Palokas prospect indicates the better developed gold
zone lies further the WSW, where the mineralization horizon remains open beyond PAL0225.
PAL0225 intersected 15 metres @ 0.9 g/t gold, 246 ppm cobalt, 1.1 g/t AuEq from 344 .0 metres and 5
metres @ 1.3 g/t gold, 363 ppm cobalt, 1.5 g/t AuEq from 415.8 metres and was drilled 120 metres down
plunge from PAL0213 which intersected 17.7 metres @ 3.8 g/t gold (“Au”), 880 ppm cobalt (“Co”), 4.3 g /t gold
equivalent (“AuEq”).
PAL0220 intersected 0.7 metres @ 3.9 g/t gold, 189 ppm cobalt, 4.0 g/t AuEq from 37 6.0 metres, and
was drilled 30 metres to the ENE of PAL0225.
PAL0212 drilled 40 metres ENE from PAL220 hit a broad zone of h ost rock but contained no significant gold
mineralization.
Results from the Raja prospect indicate the host package is continuous, but the current trend (>450 metres long) of higher-
grade mineralization appears to terminate. The termination of high-grade mineralization also coincides with the end of the
EM conductor that is then offset to the NW (Figures 1a and 1b), which requires testing in f uture seasons. Drill results
returned:
PAL0201D1 intersected 1.1 metres @ 3.8 g/t gold, 2,041 ppm cobalt, 5.1 g/t AuEq from 450.8 metres
and was drilled 15 metres east of previously reported drill hol e PAL0159, which intersected 3.0 metres @ 2.3 g/t
gold, 672 ppm cobalt, 2.7 g/t AuEq from 434.0 metres and 4.5 metres @ 1.9 g/t gold, 754 ppm cobalt , 2.4 g/t
AuEq from 451.0 metres.
Drill holes PAL0208, PAL0217 and PAL0226 were drilled as a fan of holes 35-45 metres apart and located 120
metres down plunge from PAL0159. PAL0226 intersected 1.0 metre @ 1.0 g/t gold, 431 ppm cobalt, 1.2 g/t
AuEq from 450.6 metres) or 5.0 metres @ 0.4 g/t gold, 694 ppm cobalt , 0.8 g/t AuEq from 450.6 metres, while
both PAL0208 and PAL0217 returned no significant results.
A plan view of the completed drill holes and the locations of d rill holes reported here are shown in Figures 1-3 with
corresponding collar and assay data in Tables 1-3. Intersections in the plan view and cross section in Figure 3 are coloured
by AuEq grade to show the high-grade trends at Palokas. Figure 1b shows the upside potential outside the Palokas, South
Palokas and Raja resource areas indicated by the strong electro magnetic conductors (EM) and the host sulphidic package
indicated by the induced polarization (IP) chargeability image. Host rocks at Palokas are in the same reduced stratabound
host package as South Palokas showing up with the combination of the modelled EM plates and the chargeability response
(IP). When viewed in a down-plunge orientation, mineralization, conductive electromagnetic plates and their enclosing rock
packages show a similarity across all prospects.
During the COVID-19 pandemic, Mawson has implemented safety and physical distancing procedures, including working
from home where possible and ceased all travel as recommended b y the Finnish government. The Company recently
completed its 2020 winter drilling program at the Rajapalot Gold Project in Finland. Core logging and assaying of drill data
at Rajapalot remains on schedule to update the current inferred resource at the start of Q3 2020. The December 2018
resource included approximately 15,000 metres of drilling. A fu rther 29,000 metres has now been drilled since December
2018 and will be available for inclusion in the new resource update.
Tables 1–3 provide collar and assay data. Assuming a predominant stratabound control, the true thickness of the mineralized
interval is interpreted to be approximately 90% of the sampled thickness. Gold-only intersections are reported with a lower-
cut of 0.5 g/t gold over a 1 metre width. No upper cut-off was applied. Where cobalt data becomes available, a lower cut
of 0.3 g/t AuEq is used, based on modifying the open pit WhittleTM optimized open pit lower cut-off grade of 0.37 g/t AuEq
developed for the 2018 resource r ecalculated to a dollar value per tonne against current averaged gold and cobalt prices
(and therefore the 2018 resource cutoff 0.37 g/t AuEq is the same value per tonne as 0.30 g/t AuEq today). Where gold is
below detection limit, half the cutoff grade is used in calcula ting the average grade for an interval and in determining the
gold equivalent value.
Technical and Environmental Background
Up to five diamond drill rigs from the Arctic Drilling Company OY (“ADC”) and Kati OY (“Kati”) all with water recirculation and drill cuttings
collection systems are used in the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are excellent and average cl ose to
100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for min eralized
samples and 2 metres for barren samples are cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi , Finland.
The remaining half core is retained for verification and refere nce purposes. Analytical samples are transported by commercial transport
from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique
which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gol d in
solution with flame AAS equipment. Samples for multi-element analysis (including cobalt) are pulped at CRS Minlab, then transported by
air to the MSA labs in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. The QA/QC program of Mawson consists
of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks the within
interpreted mineralized rock. In addition, CRS inserts blanks and standards into the analytical process.
Three-month average gold and cobalt prices have been used to calculate AuEq values according to the following:
Average gold price $1580 per oz
Average cobalt price $14.50 per pound
Resulting in gold equivalent formula of AuEq g/t = Au g/t + (Co ppm/1589).
The host rocks to the gold and cobalt mineralization comprise s ulphides (pyrrhotite>>pyrite) with biotite-muscovite-chlorite schists at
South Palokas and Mg-Fe amphibole-biotite-chlorite rocks at Palokas. Veining and fracture fill minerals include pyrrhotite, magnetite and
magnetite-pyrrhotite (+/- quartz, tourmaline). Retrograde chlorite after biotite, generations of secondary muscovite (“sericite”) and vein-
controlled chlorite+/- tourmaline and magnetite are also present. Preliminary hand-held XRF analysis confirms the presence of associated
scheelite and molybdenite, the former visible under UV light as tiny veinlets and disseminations. The minerals associated with the gold
are clearly post-metamorphic, reduced, and most likely driven by hydrothermal fluids from nearby granitoid intrusions. Chlorite and fine
muscovite are regarded as the lowest temperature silicate minerals with gold, structurally controlled in apparent spatial association with
quartz and/or K-feldspar veins. Altered rocks enclosing the mineralized package contain locally abundant talc and tourmaline.
All maps have been created within the KKJ3/Finland Uniform Coordinate System (EPSG:2393).
The qualified person for Mawson's Finnish projects, Dr. Nick Co ok, President for Mawson and a Fellow of the Australasian Insti tute of
Mining Metallurgy has reviewed and verified the contents of this release.
NI 43-101 Technical Report:
On December 19, 2018, Mawson filed an independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”)
on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the “NI 43-101
Technical Report ” ) , i n s u p p o r t o f t h e C o m p a n y ’ s n e w s r e l e a s e d a t e d December 17, 2018 . The NI 43-101 Technical Report was
authorized by Mr. Rod Webster of AMC Consultants Pty Ltd (“AMC” ) of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn
Perspective of Surrey, England. Each of Mr. Webster and Dr. For rester are independent “qualified persons” as defined by Nation al
Instrument 43-101. The NI 43-101 Te chnical Report may be found on the Company’s website at www.mawsonresources.com or under
the Company’s profile on SEDAR at www.sedar.com. For the 2018 r esource, the gold equivalent ("AuEq") value was calculated usin g
averaged prices of the time, resulting in the following formula : AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $3 0/lb;
and Au $1,250/oz. AuEq varies with Au and Co prices.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and developmen t company. Mawson has distingui shed itself as a leading Nordic Arctic
exploration company with a focus on the flagship Rajapalot gold project in Finland.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Further Information
www.mawsonresources.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary, +1 (604) 685 9316,
Forward-Looking Statement
T h i s n e ws r e l e as e c o n t a i ns f o r w ar d - l o ok i n g s t a t e m e n t s o r f o r w a rd-looking information within the meaning of applicable securiti es 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 t hat such expectations will prove to be correct. Forward-lookin g 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, but not limited to, capital and other costs varying
significantly from estimates, changes in world metal markets, c hanges in equity markets, planned drill programs and results va rying 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 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 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 1a: Plan of Rajapalot showing historic drilling and high-grade intersections drilled outside or subsequent to the 2018 NI43-101
resource (surface projection of these resources shown here; 0.37 g/t AuEq lower-cut).The map includes new drill holes reported and
modelled ground TEM plates.
Figure 1b: Plan of Rajapalot showing IP Chargeability overlain with historic drilling and high-grade intersections drilled outside or
subsequent to the 2018 NI43-101 resource (surface projection of these resources shown here; 0.37 g/t AuEq lower-cut). Note the
coincidence of the sulphidic (chargeable) host package and the EM conductors – there remain many conductive and chargeable areas to
be drill tested.
Figure 2: Plan view of Palokas and South Palokas prospects with significant drill intersections reported from areas largely outside the projection of the 2018 Inferred Resource..
Figure 3: Long section showing outline of 2018 resource (>2 g/t AuEq lower-cut) and significant grade-width intersections (coloured dots) showing new results from PAL0220, 222, 225, and 228
extending mineralization beyond the current resource areas (red dashed outlines). Interpreted north-south high-grade zones are shown in darker pink raking across the 340 degree plunging mineralized
host sequence. The view is looking onto mineralized surface at Palokas and South Palokas (this view is looking at 60 degrees towards 120). Red dotted outline represents the current estimated limits to
mineralized rocks, although testing between Palokas and South Palokas is restricted to just four shallow drill holes.
Table 1: Collar Information from 2019-20 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3; the “A” postscript refers to a daughter
hole off the primary hole and the depth range of the drill hole is indicated)
HoleID East North Azimuth Dip RL Depth (m) Prospect Comment
PAL0201D, extended 3408545.6 7372603.2 56.0 -67.2 179.3 392.2 to 524.6 Raja Au & Co reported here
PAL0202 3408978.0 7374402.6 229 -45 175.9 769.6 Palokas No significant assays
28 Feb, 2020
PAL0202A 3408978.0 7374402.6 229 -45 175.9 451.0 to 826.7 Palokas Au reported 5 Feb, 2020, Co 28
Feb, 2020
PAL0203 3408272.5 7373630. 5 058 -63 173.6 415.5 South
Palokas
Au reported 5 Feb, 2020, Co 28
Feb, 2020
PAL0204 3408522.0 7373604.3 235 -85 173.4 149.2 South
Palokas
Au reported 20 Jan, 2020; Co Feb
28, 2020
PAL0205 3408586.2 7373802.7 058 -49 173.5 191.5 Palokas Au reported 20 Jan, 2020; Co Feb
28, 2020
PAL0206 3408463.5 7373917.2 063 -57 173.7 326.2 Palokas Au reported 5 Feb, 2020, Co 28
Feb, 2020
PAL0207 3408609.8 7373894.5 057 -76 173.7 200.2 Palokas Au reported 5 Feb, 2020, Co 28
Feb, 2020
PAL0208 3408540.7 7372692.8 052 -75 179.1 555.4 Raja No significant assays
Reported here
PAL0209 3408471.1 7373638. 3 058 -82 173.5 200.8 South
Palokas Results awaited
PAL0210 3408609.8 7373894.5 054 -86 173.7 198.0 Palokas Au & Co reported 28 Feb 2020
PAL0211 3408463.5 7373917.2 063 -50 173.7 232.2 Palokas Au & Co reported 09 Mar 2020
PAL0212 3408255.2 7373708.2 059 -75.5 172.5 492.6 South
Palokas
No significant assays
Reported here
PAL0213 3408272.5 7373630.5 060 -73.5 173.6 509.3 South
Palokas Au & Co reported 28 Feb 2020
PAL0214 3408609.8 7373894.5 057 -52 173.7 154.3 Palokas Au & Co reported 09 Mar 2020
PAL0215 3408676.1 7374105.0 237 -77. 5 173.8 395.5 Palokas Resul ts awaited
PAL0216 3408463.5 7373917.2 062 -65 173.7 344.6 Palokas Results awaited
PAL0217 3408540.7 7372692.8 052 -79.5 179.1 519.2 Raja No significant assays. Reported
here
PAL0218 3408310.5 7373979.7 075 -58 173.8 469.4 Palokas Au & Co reported here
PAL0219 3408272.5 7373630.5 059 -57.9 173.6 419.7 South
Palokas Results awaited
PAL0220 3408255.2 7373708.2 062 -80 172.5 501.1 South
Palokas Au & Co reported here
PAL0221 3408463.5 7373917.2 096 - 53.5 173.7 280.4 Palokas Au reported 09 Mar 2020,
Co here
PAL0222 3408463.5 7373917.2 066 -71.5 173.7 355.1 Palokas Au reported 09 Mar 2020,
Co here
PAL0223 3408272.5 7373630. 5 061 -79 173.6 404.1 South
Palokas Results awaited
PAL0224 3408168.5 7373753.6 063 -78.5 171.4 560.6 South
Palokas Results awaited
PAL0225 3408255.2 7373708. 2 070 -85 172.5 490.9 South
Palokas Au & Co reported here
PAL0226 3408540.7 7372692.8 053 -83.5 179.1 487.8 Raja Au & Co reported here
PAL0227 3408463.5 7373917.2 069 -77. 5 173.7 359.4 Palokas Resul ts awaited
PAL0228 3408463.5 7373917.2 110 -67 173.7 311.4 Palokas Au & Co reported here
PAL0229 3408168.5 7373753.6 056 -81. 2 171.4 635.5 South
Palokas Results awaited
PAL0230 3408486.6 7372775.8 047 -82 177.0 631.4 Raja Results awaited
PAL0231 3408463.5 7373917.2 073 -82. 7 173.7 395.6 Palokas Resul ts awaited
PAL0232 3408270.3 7373875.9 057 -60 173.8 524.0 Palokas Results awaited
PAL0233 3408585.8 7373802.5 058 -70 173.5 167.5 Palokas Results awaited
PAL0234 3408270.3 7373875.9 054 -56 173.8 178.7 Palokas Hole aborted
PAL0235 3408207.9 7373667.6 047 -81 173.0 176.9 South
Palokas Results awaited
PAL0236 3408270.3 7373875.9 049 -56 173.8 530.0 Palokas Results awaited