Mawson drills 8.8 metres at 7.5 g/t gold at Rajapalot, Finland

 

VANCOUVER, May 2, 2017 /CNW/ - Mawson Resources Limited ("Mawson") or (the "Company") (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces drill results from ten additional diamond drill holes from the 2017 winter program at the Company's 100% owned Rajapalot Project in Northern Finland. A new zone of gold mineralization has been discovered at shallow depth at the Raja prospect, with a strike length of at least 200 metres, and remains open.The Raja prospect is located 1.75 kilometres from Palokas, and is the easternmost prospect tested to date in the Rajapalot area.

Key Points:

• PAL0075 intersected:
• 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;
• PAL0062 drilled 200 metres north of PAL0075 intersected:
• 13.5 metres @ 4.0 ppm gold from 180 metres;

Mr. Hudson, Chairman and CEO, states, "A blind discovery of this grade and thickness made in multiple drill holes, 1.75 kilometres from Palokas is a significant result for the Rajapalot project. By applying our understanding on the controls on mineralization, we are now successfully intersecting multiple high-grade gold mineralized zones under the thin glacial soil cover.This first systematic season of drill testing has proven the scale of the system, and is defining a wide range of exciting targets.With approximately 50% of assays still to come from the winter program, we look forward to substantial further news flow."

A plan view of the drill results is provided in Figure 1 and Figure 2 while a cross section of the Raja area is provided in Figure 3.Tables 1, 2 and 3 include all relevant collar and assay information.The winter drilling program is now complete, with 55 holes (PAL0027-PAL0082) totaling 11,056 metres of diamond drill core. With this release, assay results from 28 holes have been reported, while results are pending for an additional 26 holes.

PAL0075 (3.9 metres @ 1.3 g/t gold from 30.6 metres, 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) displayed fine visible gold in schistose muscovite-quartz-pyrrhotite alteration at 83.5 metres and 90.8 metres (Photo 1).The hole was drilled in an opposite direction to PAL0048 (42.7 metres @ 1.0 g/t gold from 53.0 metres (Mawson News Release April 06 2017) to test for continuity and thickness of the gold mineralization.Together with PAL0062 (13.5 m @ 4.0 ppm gold from 180 metres), drilled 200 metres down plunge, a lobate or cigar shaped mineralized body has been broadly defined, that is at least 200 metres long and approximately 50 metres wide.

Mineralization appears to be structurally controlled, and is hosted by a variably silicified and brecciated grey to pink and red albitite to foliated quartz-muscovite-biotite-pyrrhotite schist. Quartz with minor tourmaline, pyrrhotite and chalcopyrite forms veins and the matrix of breccias apparently synchronous with silicification within the mineralized rocks (for example, from 72 to 77 metres in PAL0075).Sulphide, quartz, muscovite and biotite are dominant in the mineralized rocks, with subordinate magnetite, tourmaline, scheelite, chlorite and calcite.Pyrrhotite predominates over pyrite with subordinate chalcopyrite noted where grades exceed 0.5 g/t Au. Pyrite becomes the dominant sulphide in lower grade intersections, and typically forms a halo around the pyrrhotite-bearing rocks.The host albitites, where oxidized (pale pink to red), contain <0.1 g/t Au and appear overprinted by the sulphide-gold event.All textures associated with gold mineralization overprint the metamorphic minerals and rock fabrics and are indicative of widespread hydrothermal fluid movement. Host rock compositional controls appear the key to formation of the best gold intersections in the Rajapalot project.

Assay results from drill holes PAL0042, 47, 51, 52, 53, 58, 63 and 66 were also received.Although most of these holes show consistent hydrothermal alteration, only minor or no significant gold mineralization was returned.Owing to the complex three dimensional structural controls and brecciation, combined with the stratabound nature of the albitic host rock, the true thickness of the mineralized interval is, at this stage, unknown.

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.

Table 1:Collar Information from 2017 Winter drilling at the Palokas Prospect

Table 2: Better intersections from the 2017 Winter Drill Program reported. 0.5g/t Au over 1m lower cut (unless stated), no upper cut-off

^*0.5g/t Au over 2m lower cut in PAL0043.True thickness

⁺Owing to the complex three dimensional structural controls and brecciation, combined with the stratabound nature of the albitic host rock, the true thickness of the mineralized interval is, at this stage, unknown for PAL0048, PAL0062 and PLA0075.

Table 3: Individual assay data from drill holes PAL0062, PAL0075

SOURCEMawson Resources Ltd.

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