Mawson Resources Limited (TSX:MAW) (Frankfurt: MXR) (PINKSHEETS: MWSNF) is pleased to announce additional gold and/or multi-element drill results from 43 holes from 6 prospects at the Rajapalot project in Finland.

The addition of cobalt values to previously reported gold intersections continues to provide significant improvements in both continuity and width when compared to gold-only intersections, especially at the Raja and Palokas prospects.  On the basis of this increased confidence in mineralization continuity, the Company has commenced metallurgical test work and is in the process of engaging an independent qualified person to undertake a maiden resource calculation at Rajapalot. 

Key Points:

• Results from 43 diamond drill holes are reported from the Rajapalot project across 6 prospect areas;
• Cobalt assays continue to improve width, continuity and grade within the gold-cobalt mineralized zone. For seven of the best mineralized drill holes reported, the average increase in gold equivalent (“Au Eq”) grade x width over the previously reported gold-only result was 92%. Au-only values consistently received a 1-2 g/t addition in Au Eq from Co, but with substantially greater thicknesses (Table 1, Figures 4-10);
• Metallurgical studies area now underway and the Company will soon engage an independent qualified person to complete a maiden resource calculation at Rajapalot;
• Highlight results from the Palokas prospect include:
  • 33.0 metres @ 4.2 g/t AuEq, 3.1 g/t Au, 547 ppm Co from 38.7 metres (PRAJ0109)
  • 34.6 metres @ 2.6 g/t AuEq, 1.2g/t Au, 693 ppm Co from 30.3 metres (PRAJ0111)
• Highlight results from the Raja prospect include:
  • 20.7 metres @ 5.6 g/t AuEq, 3.6 g/t Au, 956 ppm Co from 365.2 metres (PAL0118)
  • 5.0 metres @ 16.1 g/t AuEq, 14.2 g/t Au, 938 ppm Co from 245.0 metres (PAL0092)
• Electromagnetic studies are ongoing at Raja, with the aim to define northerly extensions to mineralization where drilling has defined a 470-metre plunging shoot from near surface (Figure 3);

Mr. Hudson, Chairman and CEO, states, “With the growing recognition of the significance of cobalt within the gold mineralized zones, Rajapalot is quickly progressing from discovery to a more advanced stage with resource and metallurgical testwork studies now commencing.  This is an exciting milestone for the project as a large new mineral camp emerges.  It is an excellent outcome for Finland, with potential for a significant and strategic cobalt deposit just 400 kilometres from the world’s single largest cobalt refinery at Kokkola, which produces 50% of global non-Chinese production (10% of total production).”

All assays reported are shown in Table 3, with the most significant seven holes (from 43 holes reported) from the Palokas and Raja prospects reported in Table 1. A plan view of drill results and named prospects is provided in Figure 1. Cross and longitudinal sectional views for Raja are included in Figures 2–3. Tables 2 shows all relevant collar information. Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Intersections are reported with a lower cut of 0.5 g/t gold or 0.5 g/t gold equivalent when cobalt assays were available, over 1 metre width and no upper cut-off was applied. The gold equivalent (Au Eq) value was calculated using the following formula: Au Eq g/t = Au g/t + (Co ppm/481) with assumed prices of Co $88,185/t; and Au $1,320/oz, where 1 g/t Au is equivalent to 0.048 % Co.  Au Eq varies with Au and Co prices.

Table 1: Highlighted new multi-element results from the Raja and Palokas prospects. Note average increase in AuEq grade x width over the gold-only result was 92% from earlier reported results.

Two main areas of work continue at the Rompas-Rajapalot project areas:

• Geological modelling of Palokas, Raja, South Palokas and Rumajärvi prospects, in addition to assay data validation is a focus for Mawson’s technical team to feed into upcoming independent resource studies. Metallurgical testwork for cobalt and gold has also commenced with liberation studies and QEMSCAN work to investigate the relationships of the cobalt minerals (cobaltite, linnaeite and cobalt pentlandite) to the gold, sulphide and silicate minerals. These studies are being conducted with the Geological Survey of Finland (GTK) and the Camborne School of Mines (University of Exeter).
• A second component of Mawson’s exploration remains the testing of base of till drill hole and geophysical targets, with a diamond drill program comprising approximately 2,000 metres to commence in late September.

Cobalt in Finland

Finland plays a significant role in the global cobalt supply chain. The Democratic Republic of the Congo mined 54% of the world’s cobalt in 2016 whilst 80% of cobalt used in lithium-ion batteries is refined in China.  

Half of the world’s non-Chinese production (10% of total production) comes from Freeport Cobalt, the world’s largest single cobalt refinery, located only 400 kilometres from Mawson’s Rajapalot project in Kokkola, Finland. Freeport Cobalt is a joint venture between Freeport-McMoRan (56%), Lundin Mining Corporation (24%) and La Générale des Carrières et des Mines (20%) (or Gécamines, the DRC state mining company). A significant amount of feedstock for Freeport Cobalt comes via a long-term supply agreement with the Chinese-owned Tenke Fungurume mine in the DRC. A future Finnish domestic source of cobalt from Rajapalot would satisfy the recent announcements by Finland and Sweden that the countries will work together on a traceable ledger for sustainable minerals, which are considered crucial for achieving climate goals.

Owing to the growth in the electrification of transport and need for storage of renewable energy, the battery sector has become an important driver of cobalt demand. Demand for lithium-ion batteries is surging, which is expected to support both price and volume for the cobalt market for years to come. With cobalt on the European Commission’s critical raw minerals list, there is a strong mandate to secure local and ethical supplies of cobalt, which are likely to contribute to further tightened supply.

Technical and Environmental Background

Variable core diameters are reported with PAL holes NQ2 (50.7 mm), WL76 (57.5mm) or NTW (56.0 mm), and PRAJ holes EW (25.2 mm). 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 metres 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.

Three laboratories are being used to conduct gold and multi-element assay work. Samples were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland, or to the ALSGlobal sample preparation facility at Sodankylä, Finland. Samples submitted to Kempele 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. In order to improve the detection limit of the PAL1000 technique from 0.05 g/t Au to 0.01 g/t Au for a 1 kg sample, gold concentration using the DiBK (di-isobutyle ketone) extraction method was also used. Samples transported for gold assay to Sodankylä were analysed using 50 g fire assay and ICP finish method Au-ICP22.

Multi-element analytical work was conducted by MS Analytical and ALSGlobal using methods IMS-230 and ME-MS61 respectively, both using four acid digest followed by ICP analysis.

The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold and cobalt content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, all three laboratories insert blanks and standards during 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.

About Mawson Resources Limited 

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.