Mawson shares completed 2019 drilling results for Rajapalot project

"Clear evidence for potential to expand the published resource at Rajapalot was confirmed during the past winter's drill campaign," said Michael Hudson, Chairman and CEO.

"The project has recently pivoted to a resource expansion focus, with 83% of the 49 km of drilling completed over the last 3 drill seasons. Nevertheless, we remain at an early stage of testing with drill hole depth averaging only just over 100 m. We are permitted to drill across the project area over the next 2.5 years with down-plunge electromagnetic conductors providing excellent potential for very substantial resource expansion. Drilling remains sparse at numerous pre-resource prospects where mapped conductors and gold and cobalt mineralisation provide unlimited upside of the total resource potential of the Rajapalot field. Our team is excited about the prospects for the next drill programme which will begin after financing has been secured."

Mawson completed 44 holes (PAL0159–PAL0201D1) for 15 059 m (two short holes abandoned, one wedged hole) during the 2019 winter drill season.

 

Following the 2019 drill programme an exploration target of 0.8 - 1.0 million oz between 3 - 5 g/t AuEq is estimated to exist within the three mineralised bodies of Palokas, South Palokas and Rajapalot. The potential quantity and grade of the exploration target is conceptual in nature, there has been insufficient exploration to increase the mineral resource and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource. Mawson is now working with a qualified resource professional to determine if a new resource calculation is justified.

Mawson is permitted within three exploration permit areas (3256 ha) to undertake all-year-round drilling. Additionally, the company is currently permitted via enforcement of a three year permit (from January 2019) to drill from 200 platforms (from 529 optional sites) plus 76 existing drill platforms within the 1462 ha Kairamaat 2-3 exploration permit area. This is the longest and best permit the company has received in this area and provides a runway to drill and define further resources during this period. Drilling is restricted to winter in Kairamaat 2-3, although it is possible to drill for resource extensions from summer permitted areas.

Ongoing metallurgical studies in conjunction with the BATCircle project will add to the understanding of the nature of the high-grade gold and cobalt and provide guidance on the next stages of testing to advance the project. Biological field mapping in preparation for planning the next drill season is nearing completion. Drill site preparation prior to the commencement of winter drilling is thus well advanced.

Technical notes from Rajapalot drill prospects

 

Palokas

The Palokas prospect provided one of the most significant advances made at the Rajapalot gold-cobalt project this year, with drill hole PAL0194, a 275 m down-plunge step-out, intersecting:

• 15.2 m @ 4.3 g/t Au and 2566 ppm Co, 8.5 g/t AuEq from 418.7 m (PAL0194).

The intersection, in which both visible gold and cobaltite were noted in the core, is located approximately 425 m down plunge from the surface, whereas the nearest previous high-grade drill hole (PAL0030, 10.0 m @ 9.9 g/t Au and 562 ppm Co, 10.8 g/t AuEq from 110.2 m) is located about 150 m down plunge from surface. This hole effectively tripled the potential high-grade gold-cobalt mineralisation trend at Palokas, which remains open at depth and to the north. This result shows the strong potential to significantly increase the known resources at Palokas.

Also noteworthy is the high cobalt content in PAL0194 compared to other holes on the property. The highest-grade interval in PAL0194 assayed 1 m @ 23.6 g/t Au and 1.5% Co (47.7 g/t AuEq). The Rajapalot project is a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.

South Palokas

At South Palokas drilling 140 m down plunge of the resource in PAL0197 intersected 32.0 m @ 1.4 g/t Au, 1556 ppm Co, 3.9 g/t AuEq from 294.3 m, including 17.9 m@ 1.0 g/t Au, 2079 ppm Co, 4.4 g/t AuEq from 294.3 m and 9.4 m @ 2.8 g/t Au, 1320 ppm Co, 5.0 g/t AuEq from 316.9 m. In addition:

• PAL0173 returned 17.0 m @ 3.0 g/t Au, 827 ppm Co, 4.3 g/t AuEq from 264.0 m.
• PAL0198 intersected 9.8 m @ 4.2 g/t Au, 1208 ppm Co, 6.1 g/t AuEq from 169.9 m.
• PAL0193 intersected 11.0 m @ 0.4 g/t Au, 1044 ppm Co, 2.1 g/t AuEq from 273.0 m respectively.

South Palokas now forms a body over a 170 m strike, 30 m wide and has been tested to 340 m down plunge to date with EM conductors continuing a further 700 m down plunge.

 

Raja

Drilling at Raja targeted high grade mineralisation to potentially increase volume and grade beyond the 17 December 2018 resource calculation, which now includes the following intersections:

 

• PAL0188 intersected 31.3 m @ 4.3 g/t Au, 1030 ppm Co, 6.0 g/t AuEq from 298.6 m.
• PAL0190 intersected 19.7 m @ 7.4 g/t Au, 908 ppm Co, 8.9 g/t AuEq from 371.0 m. Additionally, on the same section 30 m to the east of PAL0190, PAL0118 drilled in 2018 intersected 20.7 m @ 3.6 g/t Au, 956 ppm Co, 5.6 g/t AuEq from 365.2 m.
• PAL0191 intersected 21.0 m @ 3.2 g/t Au, 481 ppm Co, 4.0 g/t AuEq from 417.0 m, including 9.0 m @ 6.2 g/t Au, 647 ppm Co, 7.2 g/t AuEq from 421.0 m.
• PAL0093, drilled in the 2018, intersected 33.6 m@ 8.0 g/t Au, 823 ppm Co, 9.7 g/t AuEq from 243.0 m.

The Hut

PAL0199 is the westernmost drill hole completed at The Hut prospect and intersected multiple gold-cobalt intersections from surface to 280 m depth including:

 

• 3.0 m @ 6.4 g/t Au, 722 ppm Co, 7.6 g/t AuEq from 138.4 m; and
• 5.0 m @ 1.2 g/t Au from 289.0 m.

PAL0199 targetted the continuation of gold associated with sulphidic and conductive rocks intersected in a single earlier hole, PAL0033 (2.2 m @ 7.7 g/t Au, 94 ppm Co, 7.9 g/t AuEq from 153.5 m). A broad zone of low-grade gold in PAL0199 is associated with 91 m @ 2.2% sulfur from 27.4 m. A complex regional fold hinge evident in the magnetics is likely caused by magnetic mafic rocks structurally overlying sulfidic hosts to mineralisation.

Five electromagnetic conductors at The Hut prospect remain untested or with single drill holes and the mineralised 330 - 340° known trend is open to the west and northwest. These conductors correspond to high sulfide mineral contents, with over 150 m of sampled drill core containing more than 1% sulfur (from total drill metres at The Hut of only 1687 m completed in 13 drill holes since 2014).

Host rocks to mineralisation at The Hut contrast to the well-defined metasedimentary strata hosting mineralisation at the Raja and Palokas resource areas. At The Hut, thick and massive, variably grey to pale and deep red albite- and calcsilicate-bearing rocks are interpreted as altered intrusive diorite and granodiorite rocks and present a different target style. Although the stratabound control on mineralisation at Raja and Palokas is absent, a zonation of alteration associated with mineralised rocks with greater than 0.5 g/t gold is predictable. Progressive white to light grey massive albitisation with increasing biotite in fractures and breccia fill, is commonly followed by foliated biotite- and sulfide-rich rocks. This spatial and temporal zonation of sodic to potassic, sulfidic and gold-cobalt-bearing rocks is a unifying theme of all Rajapalot mineralisation. Of interest at The Hut is the potential for vertically extensive gold-cobalt mineralisation owing to the massive nature of the host.

Rumajärvi

The newly discovered gold-cobalt corridor at Rumajärvi lies on the western flank of the mineralised Rajapalot trend. The new Rumajärvi corridor is located 700 m west and 1.1 km south of the Raja and Palokas Inferred Mineral Resources and represents a new drill-defined mineralised area within the best-developed boulder field in Rajapalot where a total of 55 boulders and outcrops with >0.1 g/t gold have been discovered. Gold grades in boulders from a 10 ha area range from 0.1 g/t gold to 3870 g/t gold, with an average of 184 g/t gold and median of 0.6 g/t gold. Samples from boulders are grab samples, which are selective by nature and are unlikely to represent average grades on the property

The best drill holes from 2019 drilling include the following:

• PAL0182 intersected 7.4 m @ 3.4 g/t Au and 597 ppm Co, 4.4 g/t AuEq, from 86.3 m.
• PAL0179, drilled 200 m to the NE of PAL0182 intersected 4.7 m @ 1.0 g/t Au, 578 ppm Co, 1.9 g/t AuEq from 6.0 m.
• PAL0183 intersected 0.6 m @ 2.2 g/t Au, 340 ppm Co, 2.8 g/t AuEq, from 142.5 m.

Rumajärvi remains untested to the South, West and North.

Comment on gold equivalence calculation

The gold equivalent (AuEq) value used in the 2018 inferred resource and this press release was calculated using the formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed metal prices of Co US$30/lb; and Au US$1250/oz. AuEq varies with gold and cobalt prices. Approximate spot prices for gold and cobalt are currently US$1504/oz and US$14.30/lb respectively.

The cobalt price has fallen up to 60% over the past year due mostly to an increase in supply from mines, many artisanal, in the Democratic Republic of Congo. Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry continues to grow and, a long-term price of US$20 - US$30/lb cobalt (and US$1250/oz Au) is therefore reasonable. Prices used in the 2018 inferred resource calculation have been maintained here to ensure consistency of reporting individual drill holes against prior news releases and the resource dated December 2018, and will be reviewed once all data from the current drill programme is released. Within the December 2018 resource, cobalt contributes approximately 20% of in-situ value.

Read the article online at: https://www.globalminingreview.com/exploration-development/22082019/mawson-shares-completed-2019-drilling-results-at-rajapalot-project/