Mawson Resources Limited (“
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE FEBRUARY 05, 2020
MAWSON DRILLS BEST SOUTH PALOKAS INTERCEPT: 8 METRES @ 7.9 g/t GOLD
Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces assay results from an additional 5 drill holes from the 2020 winter
program at the Company’s 100% owned Rajapalot Project in Northern Finland. The highlight is drill hole PAL0203 at South
Palokas, where an 80 metre step out returned 8 metres @ 7.9 g/t gold from 303.0 metres, the best gold intersection
to date from this prospect. In addition, hole PAL02020A drilled 370 metres down plunge from the resource boundary at
Palokas, demonstrated the mineralized system is predictable and continues to significant depth.
Resource expansion drilling at Rajapalot is ongoing with five diamond drill rigs testing Palokas, South Palokas and Raja
prospects. A total of 16 holes (PAL0202–PAL0216) for 5,520 metres have been completed , to schedule, out of a 15,000
metre planned program. The drill program aims to infill and extend mineralization (Figure 1) and provide the data for an
updated resource estimate to be delivered by the end of Q3 2020. Cobalt and multi-element assays remain pending.
Drilling continues with two drill rigs at each of Palokas and South Palokas prospects and one at Raja prospect.
Highlights from the South Palokas prospect:
➢ Drill hole PAL0203 intersected 8.0 metres @ 7.9 g/t gold from 303.0 metres (Tables 1-3, Figures 1-3)
➢ This is an 80 metre down-plunge step out from the December 2018 resource area and the best gold intersection
returned from South Palokas;
Highlights from the Palokas prospect:
➢ Drill hole PAL0207 intersected 7.6 metres @ 1.6 g/t gold from 150.8 metres
➢ Hole was drilled 30 metres to the southwest of PAL0030 (10 metres @ 10.6 g/t gold from 110.2 metres)
➢ Drill hole PAL0206 intersected 1 metre @ 28 g/t gold from 262.2 metres:
➢ This high-grade intersection is the first hole drilled on the next section 145 metres down -plunge from the
PAL0030 section;
➢ Drill hole PAL0202 tested 370 metres down-plunge from the resource boundary (2g/t gold equivalent “AuEQ”
lower cut) at 600 metres below surface, while daughter drill hole PAL0202A was wedged at 451 metres to test a
slightly deeper target:
➢ Drill hole PAL0202A intersected 10.1 metres @ 0.6 g/t gold (no lower cut) from 771.7 metres. Although
lower grades were encountered (Table 3), confirmation of the mineralized structure 600 metres down plunge
from surface is considered significant and indicates the system is predictable and continues to depth;
➢ Follow-up downhole electromagnetics (“DHEM”) detected strongly conductive bodies lying immediately off both
holes, helping to refine further drill targets;
Mr. Hudson, Chairman and CEO, states, " Each new drill program we have undertaken at Rajapalot sets new highs for
discovery, this time delivering the best gold intersection recorded at South Palokas. These drill results continue to
significantly extend mineralization beyond the Palokas and South Palokas inferred resource areas, while a large step out at
Palokas has shown the mineralized system extends for more than 600 metres down plunge from surface.”
A plan view of the completed drill holes and the locations of drill hole targeting for this program are shown in Figure 1 ,
including an enlarged plan view of the Palokas and South Palokas area. A section perpendicular to plunge including PAL0203
indicates the relationship between the Palokas and South Palokas prospects (Figure 2). New geologic interpretations indicate
Palokas and South Palokas prospects are hosted in the same reduced stratabound host package (Figure 2) , opening up a
significant undrilled search space that is 350-400 metres wide between the two mineralized bodies. When viewed in a down-
plunge orientation, mineralization, conductive electromagnetic plates and their enclosing rock packages also shows their
similarity in style to the R aja prospect (Figure 1). The projected locations of the drill holes reported in this release on a
gram x metre contoured plan demonstrates the potential growth in the resource based on intersections received during this
drill program (Figure 3). Tables 1-3 include all relevant collar and assay information. Assuming a predominant stratabound
control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness.
Cobalt data will be provided when multi -element assays are reported by the laboratory. Intersections are reported with a
lower-cut of 0.5g/t gold over 1 metre lower cut. No upper cut-off was applied.
The hosts rocks to the gold and cobalt mineralization comprise sulphides (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 .
Downhole electro-magnetic (“DHEM”) surveys on drill holes in the deep Palokas area have also been completed over the
last week to target down-plunge sulphidic mineralization and mise-a-la-masse surveys to confirm cross-hole and continuity
to surface of mineralization are ongoing.
Technical and Environmental Background
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 close to
100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for mi neralized
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 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 g old in
solution with flame AAS equipment. 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.
The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasian Institute 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. R od 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 “qualif ied persons” as defined by National
Instrument 43-101. The NI 43-101 Technical 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. The gold equivalent ("AuEq") value was calculated using 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 has 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 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. 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, capital and other costs varying
significantly from estimates, changes in world metal markets, changes in equity markets, planned d rill 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 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, outline of 43-101 resource, new drill holes reported and modelled ground TEM plates. Purple outline represents area to be
drilled this program.
Figure 2: Cross section of Palokas and South Palokas prospects looking towards 330° showing continuity of reduced, mineralized host package. Drill hole PAL0203, reported here lies down plunge of the
existing South Palokas resource. Folds drawn in this view show relatively constant vergence (antiformal closure to the NE) and plunge away from the viewer at approximately 54°.
Figure 3: Long section showing outline of 2018 resource and significant intersections over grade-width contours showing new results (red text, larger filled dots) from PAL0203, PAL0206 and PAL0207
extending mineralization beyond the current resource areas. The view is looking onto mineralized surface at Palokas and South Palokas (this view is looking at 60 degrees towards 110).
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
PAL0202 3408978.0 7374402.6 229 -45 175.9 769.6 Palokas No significant
assays
PAL0202A 3408978.0 7374402.6 229 -45 175.9 450 to
826.7 Palokas Reported Here
PAL0203 3408272.5 7373630.5 058 -63 173.6 420.0 South
Palokas Reported Here
PAL0204 3408522.0 7373604.3 235 -85 173.4 149.2 South
Palokas
Reported 20
Jan, 2020
PAL0205 3408586.2 7373802.7 058 -49 173.5 191.5 Palokas Reported 20
Jan, 2020
PAL0206 3408463.5 7373917.2 063 -57 173.7 326.2 Palokas Reported Here
PAL0207 3408609.8 7373894.5 057 -76 173.7 200.2 Palokas Reported Here
PAL0208 3408540.7 7372692.8 052 -75 179.1 555.4 Raja Results
awaited
PAL0209 3408471.1 7373638.3 058 -82 173.5 200.7 South
Palokas
Results
awaited
PAL0210 3408609.8 7373894.5 054 -86 173.7 198.0 Palokas Results
awaited
PAL0211 3408463.5 7373917.2 063 -50 173.7 232.2 Palokas Results
awaited
PAL0212 3408255.2 7373708.2 059 -75.5 172.5 492.5 South
Palokas
Results
awaited
PAL0213 3408272.5 7373630.5 060 -73.5 173.6 509.3 South
Palokas
Results
awaited
PAL0214 3408609.8 7373894.5 057 -52 173.7 154.3 Palokas Results
awaited
PAL0215 3408676.1 7374105.0 237 -77.5 173.8 395.5 Palokas Results
awaited
PAL0216 3408463.5 7373917.2 062 -65 173.7 344.6 Palokas Results
awaited
Table 2: Intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.5g/t gold over 1 metre lower cut. No
upper cut-off was applied.
Prospect hole_id From
(m)
To (m) width
(m)
Au g/t
Palokas PAL0202A 775.4 777.7 2.3 1.0
South Palokas PAL0203 303.0 311.0 8.0 7.9
South Palokas PAL0204 88.2 89.1 0.9 1.7
South Palokas PAL0204 93.7 103.0 9.3 6.3
Palokas PAL0205 101.0 105.5 4.5 4.5
Palokas PAL0206 262.2 263.2 1.0 28.0
Palokas PAL0207 148.0 148.6 0.6 2.0
Palokas PAL0207 150.8 158.4 7.6 2.0
Table 3: Individual assay data from drill holes PAL0202A, PAL0203, PAL0206, PAL0207 (cobalt and multi-element assays outstanding).
Hole_ID From (m) To (m) Width
(m)
Au
g/t
PAL0202A 771.7 772.3 0.6 1.2
PAL0202A 772.3 773.7 1.4 <0.05
PAL0202A 773.7 774.4 0.7 0.4
PAL0202A 774.4 775.4 1.0 0.4
PAL0202A 775.4 776.4 1.0 1.1
PAL0202A 776.4 776.9 0.6 1.5
PAL0202A 776.9 777.7 0.8 0.6
PAL0202A 777.7 778.2 0.6 0.1
PAL0202A 778.2 779.2 1.0 0.2
PAL0202A 779.2 780.0 0.8 0.2
PAL0202A 780.0 780.8 0.8 1.6
PAL0203 264.0 265.0 1.0 2.3
PAL0203 303.0 304.0 1.0 2.2
PAL0203 304.0 305.0 1.0 11.3
PAL0203 305.0 306.0 1.0 1.7
PAL0203 306.0 307.0 1.0 0.9
PAL0203 307.0 308.0 1.0 0.5
PAL0203 308.0 309.0 1.0 0.6
PAL0203 309.0 310.0 1.0 37.0
PAL0203 310.0 311.0 1.0 9.0
PAL0203 311.0 312.0 1.0 0.2
PAL0203 312.0 313.0 1.0 0.4
PAL0203 313.0 314.0 1.0 0.8
PAL0203 314.0 315.0 1.0 0.4
PAL0203 324.0 325.0 1.0 0.6
PAL0206 262.2 263.2 1.0 28.0
PAL0206 297.5 297.9 0.4 0.8
PAL0206 297.9 299.2 1.3 1.4
PAL0207 124.7 125.6 0.9 0.7
PAL0207 145.2 146.0 0.9 0.6
PAL0207 146.0 147.0 1.0 0.3
PAL0207 147.0 148.0 1.0 0.6
PAL0207 148.0 148.6 0.6 2.0
PAL0207 148.6 149.7 1.1 -0.1
PAL0207 149.7 150.8 1.1 0.1
PAL0207 150.8 151.8 1.0 0.7
PAL0207 151.8 152.8 1.0 1.0
PAL0207 152.8 153.8 1.0 0.1
PAL0207 153.8 154.8 1.1 1.9
PAL0207 154.8 155.9 1.1 1.2
PAL0207 155.9 156.6 0.8 0.8
PAL0207 156.6 157.4 0.8 4.6
PAL0207 157.4 158.4 1.0 3.3