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Mawson Resources Announces Core Sampling Results from Palokas Gold Project

Mawson Resources Limited ("Mawson") or (the "Company") announces core sampling results from the Palokas gold project at Rompas in Finland.

Key Points:

  • The first core sampling from the Palokas prospect, within the Rajapalot area, has intersected 9 metres at 10.2 g/t gold from surface, including 3 metres at 27.5 g/t gold in hole PRAJ0003;
  • Results from the recent VTEM airborne electrical geophysical survey at Rajapalot indicates that mineralization discovered in PRAJ0003 is coincident with a conductor that extends for more than 500 metres through an area with <1% outcrop (Figures 1 and 2);
  • Sampling is continuing at Palokas with 6 holes completed to date, and assays pending.

Mr Hudson, the Company's President & CEO, states, "This is the first core test of the disseminated style of gold mineralization at the Rompas project. Palokas is part of the Rajapalot area, located 7 kilometres east of our drilling in the vein style mineralization at Rompas. This result has validated our prior limited surface sampling, with hole PRAJ0003 producing the widest and most consistent gold grades at Rompas to date. In context with the extensive VTEM geophysical anomaly, Palokas forms a strong exploration target. We look forward to receiving further assays results as our near-surface core sampling continues."

Six core sample holes have been completed to date over a 35 metres strike and a further 18 core holes are planned over 150 metres of strike at Palokas (Table 1; Figure 2). Fine disseminated gold mineralization in PRAJ0003 occurs within calcsilicate-biotite-tourmaline-pyrrhotite rocks in a contact zone between mafic rocks and relatively oxidized quartzites. The true thicknesses of the mineralized interval in PRAJ0003 is interpreted to be approximately 80% of the sampled thickness. PRAJ0003 was slightly offset from a previous sampled rock chip panel sample which averaged 13.4 g/t gold and 226 ppm uranium over 9 metres where mineralization was sampled to the overburden contact in both directions. Previous surface rock chip grab sampling within an area of 170 metres by 55 metres at Palokas averaged 20.7 g/t gold and 0.13% uranium and ranged from <0.01 g/t to 85.0 g/t Au and 2.5 ppm to 1.51% uranium (Mawson Press Release January 14, 2013). Grab samples are selective by nature and are unlikely to represent average grades on the property. To date, no multi-element assays have been received from PRAJ0003 (Table 2).

Core sample from holes PRAJ0004-0006 and PRAJ0008-0009 have been submitted to the laboratory. Core hole PRAJ0007 intersected more than 5 metres of glacial till soil overburden and did not intersect bedrock. PRAJ0009 contains visible gold within a calcsilicate-biotite-tourmaline-pyrrhotite rock at 7.5 metres downhole depth. PRAJ0003 was drilled to a depth of 21.3 metres, while the average of the core sample holes drilled to date is 15 metres depth.

Sampling is being completed with an environmentally-sensitive hand portable low impact diamond drill core sampler. The mining authority TUKES has confirmed that this form of exploration is considered minor sampling as stated in Mawson's current claim permit guidelines. Palokas is located in an EU defined biodiversity Natura 2000 area. At this stage of permitting the Company is entitled to 100% of the mineral rights, with certain limitations on exploration methods that can be completed including no larger scale drilling or mechanical trenching. Mawson has applied for a modification of this decision by conducting an environmental program (a Natura 2000 assessment) to address these observations in order to obtain permission to conduct larger scale drilling in these areas and a decision is not expected until Q1 2014. The year-long Natura 2000 Assessment mapped and reported in detail the floral distribution and natural habitat types of the area. The assessment also defined the impact that Mawson's exploration work will have on the biodiversity values. The key consultant who performed all the mapping was one of the biologists who mapped the Natura 2000 area when it was defined in the late 1990s. He is widely considered as the biodiversity expert for the project area. The report stated that at this stage of exploration, a managed program will have no significant environmental effects on the area. The Company formally submitted the study to the competent authority, the Centre for Economic Development, Transport and the Environment in Lapland on June 26, 2013. ELY have up to six months to comment on the Natura Assessment report, and provide their feedback to the mining authorities (TUKES). TUKES are the ultimate decision-makers to modify Mawson's claims to allow drilling in the Natura 2000 areas.

In other news 2 diamond drill holes have been completed at a high angle to previous drill orientations at South Rompas and diamond drilling is in progress at the Kaita prospect. To date, 3 holes have been completed. Assays are awaited for all diamond drill holes. Surface sampling will continue through October until the winter snow prevents further surface prospecting, however drilling will continue.


Mawson Resources Limited is a resource acquisition and development company. Mawson has distinguished itself as a leading Scandinavian exploration company with a focus on the flagship Rompas gold project in Finland.

Technical Background

The core sampling was undertaken by Mawson Staff who provided EW (25.2 mm) diameter core. Core recoveries were excellent and average close to 100% in fresh rock in PRAJ0003. After photographing and logging, core intervals averaging 1 metre in length were cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi, Finland. These half-core one metre samples weigh less than 0.7 kilograms. The remaining half core is retained on site for verification and reference purposes. Analytical samples were transported by Mawson personnel from GTK to the Labtium Oy ("Labtium") laboratory in Rovaniemi, Finland where they were prepared and analyzed for Au by 705P techniques. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, with blanks at the beginning of each batch. In addition, Labtium inserts a number of blanks and standards into the analytical process. The qualified person for Mawson's Finnish projects, Mr Michael Hudson, President & CEO for Mawson and Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

On behalf of the Board,

Michael Hudson, President & CEO



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