Mawson Resources Limite d (“Mawson”) or (the “Company”)
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE MAY 27, 2020
Mawson Drills 4.9 metres @ 18.0 g/t Gold and 1,236 ppm Cobalt
in Deepest Intersection at Palokas, Finland
Vancouver, Canada — Mawson Resources Limite d (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) is pleased to announce further high-grade gold and cobalt results from five
additional holes from the Palokas prospect, drilled during the recent 14.1 kilometre winter drill program at the Company’s
100%-owned Rajapalot project in Finland.
Highlights:
The deepest mineralized intersection drilled at Palokas to date, PAL0236, intersected 4.9 metres @ 18.0 g/t
gold, 1,236 ppm cobalt, 18.8 g/t gold equivalent (“AuEq”) from 449.7 metres including 2.0 metres at
31.2 g/t gold from 452.6 metres (Tables 1-4, Figures 1-3);
PAL0236 is located 360 metres vertically and 450 metres down plunge from the surface, 250 metres from the
2018 inferred resource (>2 g/t lower-cut) and 140 metres NW and down plunge from previously reported drill
hole PAL0222 8.2 metres @ 19.1 g/t Au, 1,572 ppm cobalt, 20.1 g/t AuEq from 266.9 metres and 190 metres
from PAL0228 7.0 metres @ 17.0 g/t gold, 2,168 ppm cobalt, 18.4 g/t AuEq from 251.4 metres;
Drill hole PAL0216 located 24 metres north east of PAL0222 at Palokas returned 4.0 metres @ 6.0 g/t gold,
456 ppm cobalt, 6.3g/t AuEq from 262.0 metres, 1.0 metres @ 3.2 g/t gold from 273.9 metres and 2.0
metres @ 7.4 g/t gold from 319.0 metres (Tables 1-4, Figures 1-3);
Mr. Hudson, Chairman and CEO, states, "Drilling continues to return impressively high-grade intersections with 4.9 metres
@ 18.0 g/t gold and 1,236 ppm cobalt in our deepest intersec tion to date from Palokas. The project continues to
demonstrate grade and width with significant step-outs, while also demonstrating considerable room for expansion,
particularly down plunge and southwards towards the South Palokas prospect. Geological modelling based on core logging
and assaying remains on schedule to deliver an updated resource at Rajapalot at the start of Q3 2020.”
Gold and cobalt assay results from five drill holes from Palokas prospect are released here (PAL0215, 0216, 0231, 0233 and
0236). The 2020 winter drill program consisted of 37 drill ho les for 14,132 metres (including one wedged drill hole and
deepening an existing hole). To date Mawson and has released results from 29 drill holes on 20th January, 5th and 28th
February, 9th March, 20th April, 2020 and here. Eight drill holes remain to be reported.
Distinct high-grade zones within the larger mineralized foot print at Palokas-South Palokas are becoming more evident as
drill results are returned. PAL0236 adds more strength to the hi gh grade-width intersections of Table 4 (2 g/t gold lower
cut) intersections drilled to date at Rajapalot. The high-g rade intersections from the 2020 drill campaign are a significant
addition to the Palokas prospect (Figures 2 & 3). These include drill hole PAL0222 ( 8.2 metres @ 19.1 g/t Au, 1,572 ppm
cobalt, 20.1 g/t AuEq ), the plunge extent is defined from the shallower intersection in PAL0228 ( 7.0 metres @ 17.0 g/t
gold, 2,168 ppm cobalt, 18.4 g/t AuEq), towards PAL0236 and 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 high-grade trends is encouraging as the Company learns more about
the detailed distribution of mineralization. All three prospect areas with inferred resources at Rajapalot remain open, with
further drilling required.
Further results reported here from the Palokas prospect include PAL0215 intersected 3.8 metres @ 0.7 g/t gold, 194 ppm
cobalt, 0.9 g/t AuEq from 294.9 metres and PAL0231 inters ected 2.3 metres @ 3.1 g/t gold, 272 ppm Co, 3.1 g/t AuEq
from 342.0 metres. PAL0233 contained no significant mineralization.
A plan view of the completed drill holes and the locations of drill holes reported here are shown in Figures 1-3 with
corresponding collar and assay data in Tables 1-3. Intersections in the plan view (Figure 2) and oblique section in Figure 3
are coloured by AuEq grade to show the higher grade zones at Palokas and South Palokas.
Assuming a predominant stratabound control, the true thic kness of the mineralized interval is interpreted to be
approximately 90% of the sampled thickness. Gold-only intersecti ons are reported with a lower-cut of 0.5 g/t gold over a
1 metre width. No upper cut-off was applie d. 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 recalculated 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 toda y). Where gold is below detection limit,
half the cutoff grade is used in calculating 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 pr ogram. Core diameter is NQ2 (50.7 mm). Core recoveries are excellent and average clo se to
100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for mine ralized
samples and 2 metres for barren samples are cut in half at the Ge ological Survey of Finland (GTK) core facilities in Rovaniemi, Finland.
The remaining half core is retained for verification and reference 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 gold 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 $1,580 per oz
Average cobalt price $14.50 per pound
Resulting in gold equivalent formula of AuEq g/t = Au g/t + (Co ppm/1,589).
The host rocks to the gold and cobalt mine ralization comprise sulphides (pyrrhotite>>p yrite) with biotite-muscovite-chlorite sc hists 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 ti ny 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 Cook , President for Mawson and a Fell ow of the Australasian Instit ute 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 ”), in support of the Company’s news release dated 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. Forrester are independent “q ualified persons” as defined by Nationa l
Instrument 43-101. The NI 43-101 Technical Re port 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 resource, the gold equivalent ("AuEq") value was calculated using
averaged prices of the time, resulting in the following formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $30 /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 development company. Mawson ha s distinguished 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
This news release contains forward-looking statements or forward-looking information within the meaning of applicable securitie s 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. 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 forward-looking statements as a result of various factors, including, but not limited to, c apital and other costs varying
significantly from estimates, changes in world metal markets, ch anges in equity markets, planned drill programs and results var ying 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 1: Plan of Rajapalot showing historic drilling and high-grade intersections using a lower cut-off grade of 2 g/t gold. The plan view of the 2018 NI43-
101 resource is also indicated using a 0.37 g/t AuEq lower cut. Note the modelled ground TEM plates, virtually untested by drilling, form potential new target
areas.
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 (surface projection of these
resources shown here are 0.37 g/t AuEq lower-cut).
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 PAL0216, 0231, 0233 and 0236
extending mineralization beyond the current resource areas (red dashed outlines). 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 20 Apr, 2020
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
20 Apr, 2020
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
20 Apr, 2020
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 Au & Co reported here
PAL0216 3408463.5 7373917.2 062 -65 173.7 344.6 Palokas Au & Co reported here
PAL0217 3408540.7 7372692.8 052 -79.5 179.1 519.2 Raja No significant assays.
20 Apr, 2020
PAL0218 3408310.5 7373979.7 075 -58 173.8 469.4 Palokas Au & Co reported 20 Apr, 2020
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 20 Apr, 2020
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 20 Apr, 2020
PAL0226 3408540.7 7372692.8 053 -83.5 179.1 487.8 Raja Au & Co reported 20 Apr, 2020
PAL0227 3408463.5 7373917.2 069 -77.5 173. 7 359.4 Palokas Results awaited
PAL0228 3408463.5 7373917.2 110 -67 173.7 311.4 Palokas Au & Co reported 20 Apr, 2020
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 Au & Co reported here
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 No significant assays,
Reported here
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 Au & Co reported here
Table 2: Intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.3g/t AuEq (using updated gold and cobalt
prices of $1,580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied.
Prospect HoleID From (m) To (m) Width (m) Au g/t Co
ppm
AuEq
g/t
Raja PAL0201D1 450.75 451.85 1.10 3.82 2041 5.1
Raja PAL0201D 451.85 453.00 1.15 0.23 23 0.2
Palokas PAL0202A 771.4 781.5 10.1 0.6 317 0.8
South Palokas PAL0203 303.0 315.0 12.0 5.4 2221 6.8
including 303.0 311.0 8.0 7.9 2672 9.6
South Palokas PAL0204 88.2 89.1 0.9 1.7 881 2.3
South Palokas PAL0204 93.7 104.0 10.3 5.7 961 6.3
including 97.0 103.0 6.0 8.4 901 8.9
Palokas PAL0205 95.0 107.9 12.9 1.8 590 2.2
including 101.0 104.0 3.0 6.4 606 6.8
Palokas PAL0205 114.0 118.0 4.0 <0.05 820 0.5
Palokas PAL0206 249.8 255.2 5.4 0.1 1189 0.8
Palokas PAL0206 262.2 264.2 2.0 14.1 370 14.4
Palokas PAL0206 296.4 299.2 2.8 0.8 880 1.3
Palokas PAL0206 305.3 308.3 3.0 <0.05 2324 1.5
Palokas PAL0207 117.3 119.3 2.0 <0.05 678 0.4
Palokas PAL0207 121.6 125.6 4.0 0.3 383 0.6
Palokas PAL0207 145.2 148.6 3.4 0.7 552 1.1
Palokas PAL0207 150.8 158.4 7.6 1.6 506 2.0
Palokas PAL0207 164.0 166.0 2.0 <0.05 578 0.4
Palokas PAL0207 170.8 172.0 1.2 <0.05 1398 0.9
Palokas PAL0210 128.3 151.7 23.4 1.0 565 1.4
Palokas PAL0210 153.6 158.1 4.5 3.9 302 4.1
Palokas PAL0211 246.4 254.3 7.9 0.1 1482 1.0
Palokas PAL0211 293.9 296.8 2.9 0.9 159 1.0
South Palokas PAL0213 250.2 252.0 1.8 2.8 150 2.9
South Palokas PAL0213 256.0 257.0 1.0 2.2 222 2.3
South Palokas PAL0213 261.0 263.0 2.0 0.8 257 1.0
South Palokas PAL0213 293.0 310.7 17.7 3.8 880 4.3
including 294.0 304.0 10.0 6.5 1012 7.2
South Palokas PAL0213 317.0 323.0 6.0 9.2 1364 10.0
Palokas PAL0214 119.9 124.7 4.8 2.4 894 2.9
including 122.0 123.7 1.7 6.4 761 6.8
Palokas PAL0215 294.9 298.6 3.7 0.7 194 0.9
Palokas PAL0216 259.0 266.0 7.0 3.5 731 3.9
including 262.0 266.0 4.0 6.0 456 6.3
Palokas PAL0216 273.9 274.9 1.0 3.2 99 3.2
Palokas PAL0216 319.0 321.0 2.0 7.4 3 7.4
Palokas PAL0218 403.0 410.0 7.0 0.2 504 0.5