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  - 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
 
 

Hole ID

Depth From

(m)

Depth To (m)

Width (m)

Au g/t

PAL0027

27.46

31.01

3.6

2.5

and PAL0027

34.41

41.21

6.8

14.7

and PAL0027

44.20

47.20

3.0

3.2

PAL0028

37.60

39.25

1.7

3.9

PAL0030

110.20

120.20

10.0

11.6

and PAL0030

143.85

146.85

3.0

5.3

PAL0033

152.5

154.7

2.2

7.7

PAL0040

37.3

42.3

5.0

1.2

PAL0043

10.6

22.6

12.0

1.2

PAL0048

53.0

95.7

42.7

1.0

PAL0050

24.7

25.7

1.0

323g/t silver

PAL0062

180.0

193.5

13.5

4.0

PAL0075

30.6

34.5

3.9

1.3

and PAL0075

64.0

91.0

27.0

3.3

 

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

HoleID

East

North

Azimuth

Dip

RL

Depth

Comment

PAL0027

3408669.639

7373860.04

116

59

174.6

301.6

Feb 21, 2017

PAL0028

3408725.338

7373888.604

119

61

174.6

92.3

Feb 21, 2017

PAL0029

3408628.139

7373987.401

114

60

175.4

197.3

Feb 21, 2017

PAL0030

3408606.132

7373941.149

118

60

174.1

194.8

Feb 21, 2017

PAL0031

3408702.717

7373952.246

123

59

174.2

131

Mar 06, 2017

PAL0032

3408801.408

7374094.334

132

60

174.6

174.2

Mar 06, 2017

PAL0033

3408125.589

7373140.245

150

60

173.0

215.8

Mar 06, 2017

PAL0034

3408167.082

7373072.328

152

60

175.8

143.55

April 06, 2017

PAL0035

3408095.182

7372897.825

137

60

176.9

191.8

April 06, 2017

PAL0036

3408122.526

7372856.568

140

59

175.4

115.1

April 06, 2017

PAL0037

3408007.86

7372394.745

116

60

176.2

244.3

Mar 06, 2017

PAL0038

3407903.857

7372442.782

117

60

175.5

300.5

April 06, 2017

PAL0039

3408010.284

7372471.397

120

49

177.7

247.8

April 06, 2017

PAL0040

3407938.31

7372358.825

121

50

178.3

200.1

April 06, 2017

PAL0041

3407936.069

7372539.986

116

50

175.4

341.4

April 06, 2017

PAL0042

3407841.942

7372407.127

120

49

172.6

257.15

May 02, 2017

PAL0043

3407842.812

7372797.616

117

58

174.4

339

April 06, 2017

PAL0044

3407645.347

7372423.911

91

50

173.1

250.6

Reported here

PAL0045

3407532.893

7372697.417

116

50

174.5

352.1

April 06, 2017

PAL0046

3408153.125

7372322.051

139

60

179.5

108.05

April 06, 2017

PAL0047

3410582.111

7373350.003

150

50

161.4

100.3

May 02, 2017

PAL0048

3408816.228

7372268.354

94

49

173.4

188.2

April 06, 2017

PAL0049

3408267.745

7372633.021

182

60

174.5

254.7

Reported here

PAL0050

3410617.224

7373308.181

141

51

161.0

103.5

Reported here

PAL0051

3408809.759

7372199.893

96

50

172.9

153.85

May 02, 2017

PAL0052

3410567.894

7373391.888

152

48

160.3

100.2

May 02, 2017

PAL0053

3408283.5

7372531.98

184

60

175.3

260.8

May 02, 2017

PAL0054

3410651.161

7373254.172

150

51

163.0

154.5

Results awaited

PAL0055

3408380.415

7372318.676

152

51

176.3

190.7

Reported here

PAL0056

3408708.224

7372201.269

93

49

174.6

268.15

Reported here

PAL0057

3410688.214

7373200.638

147

50

165.2

144

Results awaited

PAL0058

3408714.601

7372254.157

95

50

173.9

258.25

May 02, 2017

PAL0059

3408090.591

7372460.662

151

59

177.1

157.1

Reported here

PAL0060

3410986.662

7371862.355

70

50

138.0

153

Reported here

PAL0061

3409764.363

7372752.822

151

60

158.2

259.7

Reported here

PAL0062

3408753.115

7372463.76

159

60

175.3

237

May 02, 2017

PAL0063

3407948.629

7372717.304

114

50

172.8

173.9

May 02, 2017

PAL0064

3411064.777

7371882.227

70

50

138.5

120

Reported here

PAL0065

3410951.181

7371899.575

70

52

138.1

97.5

Reported here

PAL0066

3408969.71

7372539.428

159

60

174.2

252.2

May 02, 2017

PAL0067

3410016.737

7373124.202

134

59

162.0

203

Results awaited

PAL0068

3409009.579

7372419.13

163

60

171.9

255.7

Reported here

PAL0069

3408449.917

7373348.288

112

58

172.1

85.7

Reported here

PAL0070

3410244.84

7372112.476

145

50

144.2

103.5

Reported here

PAL0071

3408572.505

7372275.837

154

50

175.8

152.8

Reported here

PAL0072

3410287.798

7372052.214

144

49

144.0

121.5

Results awaited

PAL0073

3408967.543

7374399.706

173

49

176.0

445.85

Results awaited

PAL0074

3408406.92

7373278.536

113

60

172.0

142.1

Reported here

PAL0075

3408930.193

7372244.533

289

49

172.7

178.15

May 02, 2017

PAL0076

3409032.235

7372290.43

182

50

169.8

254.4

Reported here

PAL0077

3408311.336

7373327.801

116

60

171.7

25.3

Hole abandoned

PAL0078

3408309.414

7373328.771

116

60

171.9

237.05

Reported here

PAL0079

3409673.294

7373283.055

301

50

172.7

206

Results awaited

PAL0080

3409415.534

7374395.871

160

48

178.3

161.5

Reported here

PAL0081

3409462.937

7374240.817

162

51

176.4

167.15

Reported here

PAL0082

3408298.575

7373424.906

112

60

173.9

292.4

Reported here

 

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

Hole ID

Depth From (m)

Depth To (m)

Width (m)

Au g/t

Date Reported

PAL0027

27.46

31.01

3.6

2.5

Feb 21, 2017

PAL0027

34.41

41.21

6.8

14.7

Feb 21, 2017

PAL0027

44.20

47.20

3.0

3.2

Feb 21, 2017

PAL0028

21.70

22.70

1.0

0.8

Feb 21, 2017

PAL0028

37.60

39.25

1.7

3.9

Feb 21, 2017

PAL0029

95.65

96.65

1.0

0.7

Feb 21, 2017

PAL0030

110.20

120.20

10.0

11.6

Feb 21, 2017

PAL0030

135.70

138.60

2.9

1.0

Feb 21, 2017

PAL0030

143.85

146.85

3.0

5.3

Feb 21, 2017

PAL0031

85.4

86.4

1.0

1.5

Mar 06, 2017

PAL0032

      

No significant results

Mar 06, 2017

PAL0033

152.5

154.7

2.2

7.7

Mar 06, 2017

PAL0034

      

No significant results

April 06, 2017

PAL0035

      

No significant results

April 06, 2017

PAL0036

      

No significant results

April 06, 2017

PAL0037

33.0

35.0

2.0

3.6

Mar 06, 2017

PAL0038

      

No significant results

April 06, 2017

PAL0039

112.8

113.1

0.4

2.9

April 06, 2017

PAL0040

37.3

42.3

5.0

1.2

April 06, 2017

PAL0041

179.0

180.0

1.0

1.3

April 06, 2017

PAL0041

242.6

243.6

1.0

1.2

April 06, 2017

PAL0042

      

No significant results

May 02, 2017

PAL0043*

10.6

22.6

12.0

1.2

April 06, 2017

PAL0044

      

No significant results

Reported here

PAL0045

      

No significant results

April 06, 2017

PAL0046

      

No significant results

April 06, 2017

PAL0047

      

No significant results

May 02, 2017

PAL0048+

53.0

59.0

6.0

2.0

April 06, 2017

PAL0048+

82.0

95.7

13.7

2.0

April 06, 2017

PAL0048

53.0

95.7

42.7

1.0

April 06, 2017 (No lower cut)

PAL0049

      

No significant results

Reported here

PAL0050

24.7

25.7

1.0

323g/t silver

Reported here

PAL0051

99.0

100.0

1.0

1.4

May 02, 2017

PAL0052

      

No significant results

May 02, 2017

PAL0053

65.7

66.7

1.0

0.5

May 02, 2017

PAL0053

68.7

69.7

1.0

1.1

May 02, 2017

PAL0055

      

No significant results

Reported here

PAL0056

      

No significant results

Reported here

PAL0059

      

No significant results

Reported here

PAL0060

      

No significant results

Reported here

PAL0061

      

No significant results

Reported here

PAL0062+

180.0

193.5

13.5

4.0

May 02, 2017

PAL0063

      

No significant results

May 02, 2017

PAL0066

      

No significant results

May 02, 2017

PAL0068

64.45

65.45

1

0.74

Reported here

PAL0069

      

No significant results

Reported here

PAL0070

      

No significant results

Reported here

PAL0071

      

No significant results

Reported here

PAL0074

32

33

1

3.19

Reported here

PAL0075+

30.6

34.5

3.9

1.3

May 02, 2017

PAL0075+

64.0

67.0

3.0

2.9

May 02, 2017

PAL0075+

70.0

72.0

2.0

5.6

May 02, 2017

PAL0075+

82.2

91.0

8.8

7.5

May 02, 2017

PAL0075+

64.0

91.0

27.0

3.3

May 02, 2017 (no lower cut)

PAL0076

      

No significant results

Reported here

PAL0077

      

Hole abandoned

May 02, 2017

PAL0078

      

No significant results

Reported here

PAL0080

      

No significant results

Reported here

PAL0081

      

No significant results

Reported here

PAL0082

      

No significant results

Reported here

*0.5g/t Au over 2m lower cut in PAL0043.  The true thickness of mineralized intervals at Palokas is interpreted to be approximately 90% of the sampled thickness. Owing to the complex three dimensional structural controls and brecciation, combined with the stratabound nature of the albitic host rock at Raja and South Rajapalot, the true thickness of the mineralized intervals is, at this stage, unknown.