Mawson Completes Successful Winter Drill Program at Rajapalot Gold Project, Finland

 

Exceptional Gold Hit Rate, Project Poised for Further Drilling and Discovery

VANCOUVER, July 5, 2017 /CNW/ - Mawson Resources Limited ("Mawson") or (the "Company") (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) provides a summary of the Company's successful winter drilling program at the 100% owned Rajapalot Project in Northern Finland.In total, 55 diamond drill holes for 11,056 metres and 1,801 base-of-till ("BOT") drill holes were completed, greatly expanding the Company's knowledge of the region.

Key Points:

• The winter exploration program represents the first large scale drilling on the project with the following work completed:
• 55 diamond drill holes for 11,056 metres of diamond drill core, averaging 210 metres;
• 1,801 BOT holes, for 7,983 metres, averaging 4.4 metres, and
• 105 km of infill and extension ground magnetics collected on lines spaced at 50 metres.
• Drilling confirmed the presence of a large gold-mineralized hydrothermal system within a 4.5 sq km area while testing only a small fraction (5%) of the 27-kilometre strike of the interpreted host sequence in the Rajapalot area (Figure 1);
• Exceptional rate of drill success with 42% of holes (58 out of the total 137 holes drilled in the Rajapalot project) hitting geochemically significant gold (greater than 1g/t-m). Furthermore, 28% of drill holes (39 out of a total of 137) have recorded greater than 5 g/t-m intersections. The total average drill depth on the project remains shallow at 109 metres.
• Best results include:
• PAL0030: 10.0 metres @ 11.6 g/t gold from 110.2 metres; plus 2.9 metres @ 1.0 g/t gold from 135.7 metres; and 3.0 metres @ 5.3 g/t gold from 143.9 metres at the Palokas prospect;
• PAL0027: 6.8 metres @ 14.7 g/t gold from 34.4 metres at the Palokas prospect intersected, and;
• PAL0075: 27.0 metres @ 3.3 g/t gold (no lower cut) from 64.0 metres, including 3.0 metres @ 2.9 g/t gold from 64 metres, 2.0 metres @ 5.6 g/t gold from 70.0 metres and 8.8 metres @ 7.5 g/t gold from 82.2 metres at the Raja prospect, 1.75km from Palokas.
• Planning is now underway for a significant winter drill program commencing late 2017 or early 2018 dependent on winter conditions.

Mr. Hudson, Chairman and CEO, states, "The winter drill program confirmed the presence of a large, gold-mineralized hydrothermal system at Rompas-Rajapalot, delivering one of Finland's most significant gold discoveries. The high hit rate of gold over regional-scale areas, the discovery of multiple high grade mineralized bodies and an extensive gold-footprint provided by BOT drilling, all in the first year of systematic, yet regional scale drill testing is impressive. Planning is now underway for a significant winter drill program commencing late 2017 or early 2018 dependent on winter conditions."

A plan view of the drill results is provided in Figures 1 and 2. Tables 1, 2 and 3 include all relevant collar and assay information. The true thickness of mineralized intervals at Palokas is interpreted to be approximately 90% of the sampled thickness. The true thickness of the mineralized intervals at Raja and South Rajapalot, will require additional drilling to determine due to the complicated structural controls.

Results from most drill holes have now been received (Tables 2 and 3). Thin mineralization was intersected in the remaining holes. Of note, outside the Kairamaat 2-3 permit and 2 kilometres east of Palokas, drill hole PAL0050 intersected 1 metre @ 323 g/t silver from 24.7 metres. Silver has not been identified in the system earlier and its context is under review.

Table 1: Select intersections from the 2017 Winter Drill Program reported. 0.5g/t Au over 1m lower cut (unless stated - see table 3), no upper cut-off

A broad area of 4 by 6 kilometres was drill tested by the 1,801 base-of-till ("BOT") drill hole program. The program was successful in defining known mineralization and also defined multiple new drill targets over an extensive area. The Rajapalot gold mineralizing system now covers more than 4.5 sq km based on diamond drill results, and is most likely to extend much further based on anomalous gold values in the BOT data.

Next Steps:

To aid in understanding and targeting, the next steps for the project are to build a comprehensive three dimensional structural and stratigraphic model from drill results, rock geochemistry and geophysics. Dr. Laurent Ailleres of PGN Geoscience, an expert in the building of 3D structural-geophysical models, and Dr. Nick Oliver of Holcombe Coughlin Oliver Valenta Global, a renowned Proterozoic structural and hydrothermal specialist are now involved with Mawson to create a full 3D model across a 4 x 4 kilometre area to aid in targeting in the 2017-18 winter drill season. A significant drilling program will resume at Rajapalot in late 2017/early 2018 when winter conditions allow access.

Geological Overview:

Drilling has confirmed the presence of a large, gold-bearing, sulphide-bearing hydrothermal system associated with granitoid intrusions dated at 1.8 billion years, making the project similar in age to the Agnico Eagle's 7.8Moz Kittila project that lies 150km north of Rompas-Rajapalot. Gold mineralization is controlled by a combination of granitoids and structurally-controlled fluid flow systems interacting with stratabound iron-rich rocks (Palokas-type). A new style of mineralization has also been discovered in the Rumajarvi area in where sulfides and gold occur in brecciated and fractured schists. Given the wide variety of controls on gold, the drill success rate remains exceptional.

The source of gold mineralization uncovered in boulders at the "Boardwalk" prospect has not been yet discovered by drilling. However, zones up to 20 metres thick zones of anomalous gold in iron formations has been intersected and are reported here for the first time (best intersection of 1 metre @ 3.19 g/t gold from 32 metres in PAL0074).These rocks further validate the "Homestake" geological model.

A full technical and geological overview of the program can be viewed HERE.

Technical and Environmental Background

Two diamond drill rigs (K1 & K2) from the Arctic Drilling Company OY (ADC) with water recirculation and drill cuttings collection systems were used for the drill results reported here. Core diameter is NQ2 (50.6 mm) diameter core. Core recoveries were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson's Rovaniemi facilities, core intervals averaging 1 metre for mineralized samples and 2 m for barren samples were 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 were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared at Kempele and analyzed for gold at Raahe 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. 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. Interlaboratory comparisons are also conducted by Mawson, using fire assay techniques. 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 Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

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 Rompas and Rajapalot gold projects in Finland.

On behalf of the Board,

"Michael Hudson"
Michael Hudson, Chairman & CEO

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 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 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 view of the Rajapalot area (Kairamaat 2-3 lease area) showing gold host horizon and gold distribution found in diamond drill holes and outcrop

Figure 2:Plan view of the Rajapalot area (Kairamaat 2-3 lease area) showing sequence stratigraphy, gold distribution in diamond drill holes and outcrop, and BOT drilling

Table 2:Collar Information from 2017 Winter drilling at the Rajapalot Project

Table 3: Intersections from the 2017 Winter Drill Program reported. 0.5g/t Au over 1m lower cut (unless stated), no upper cut-off

SOURCEMawson Resources Ltd.

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