Mawson Resources Limited

TSX : MAW
FRANKFURT : MXR
PINKSHEETS : MWSNF


Mawson Resources Limited

February 18, 2014 07:45 ET

Mawson Continues to Expand Mineralization Along Trend at Rajapalot, Finland

Grab samples up to 3,220 g/t gold and 27.4% U3O8

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 18, 2014) - Mawson Resources Limited ("Mawson") or (the "Company") (TSX:MAW)(FRANKFURT:MXR)(PINKSHEETS:MWSNF) continues to expand the Rajapalot project in Finland with the discovery of two new project areas with high gold and uranium grades, with prospecting grab samples of disseminated mineralization returning up to 3,220 g/t gold. These results extend the mineralized trend, which remains open, by 650 metres at Rajapalot.

Highlights include:

- Seventy-four prospecting grab samples taken from outcrop and glacial boulders (Table 1), with better results including:

  • 3,220g/t gold and 0.3% U3O8;
  • 248 g/t gold and 0.7% U3O8;
  • 43.1 g/t gold and 27.4% U3O8;
  • 9.8 g/t gold and 1.2% U3O8;
  • 1.8 g/t gold and 1.7% U3O8;
  • 0.3 g/t gold and 1.5% U3O8;

- In total 9 project areas have now been defined at Rajapalot within an area extending over 2.5 kilometres by 3.5 kilometres (Figure 1).

- The new results are located immediately along strike and approximately 2 kilometres from recent core sampling holes which returned results including 19.5m @ 7.4 g/t gold from 1.3 metres from PRAJ0006 and 5.4m @ 37.6 g/t gold from 2.5 metres from PRAJ0009 (see Mawson Press Release dated Jan 20 2014).

- At least two styles of gold mineralization now exist at Rajapalot, the first with extremely low uranium grades (Palokas), the second with higher uranium grades as evidenced by the new surface sample results.

Mr Hudson states, "As we continue to build our business in Finland it is very pleasing that our Finnish technical team continues to deliver such spectacular results to our investors. We believe the project is one of the world's most prospective greenfield gold projects, and given the extensive glacial cover in the area, the results highlight the potential of what remains to be found when the first program of larger scale drilling can commence. We anticipate receiving our full drill permits for within the Natura 2000 biodiversity areas in Q3 this year. Next month we will mobilize a larger drill rig to test the Hirvimaa area, as well as the hand portable core sampler to Raja West, to follow up our surface sampling."

A summary of sample statistics from the new project areas are shown in Table 1 and all results received to date are shown in Figure 1 and Table 2. New samples are all prospecting grab samples which are selective by nature and are unlikely to represent average grades on the property.

Mineralization from the new area is hosted in sulphide and biotite rich metasedimentary and volcanic rocks, with gold occurring as a disseminated or replacement style. The glacial boulders sampled and reported are the same lithologies as nearby outcrops and appear to form boulder trains, and are thus considered to be proximal to their source. Of note are the high uranium grades discovered in these new areas, suggesting the presence of gold only and uranium-dominant mineralized styles at Rajapalot. Like most of the Rajapalot area, the new prospect areas are within a predominantly swampy terrain and therefore very little in-situ bedrock has been located.

Table 1: Summary statistics from new grab samples from Rajapalot, Finland
Prospect Number of Samples Area Max
Au
g/t
Min
Au
g/t
Average
Au
g/t
Max
U
3O8
ppm
Min
U
3O8
ppm
Average
U
3O8
ppm
Max
Co
ppm
Min
Co
ppm
Average
Co
ppm
Sample
Type
Rumajärvi East 58 270m x 160m 3,220 0.0 61.4 35,488 1.4 2,353 5,900 15 400 36 Boulders, 22 Outcrops
Raja West 16 250m x 70m 43.1 0.0 3.6 273,528 0.5 18,478 2,140 10 268 10 Boulders, 6 Outcrops

The Company also announces that a full suite of multi-element analyses have now been returned from all core sample holes from the Palokas project at Rajapalot (holes PRAJ0003 to PRAJ0025, Table 4). Of note is the consistently low uranium and high cobalt grades associated with gold mineralization. Cobalt also forms a broader halos around lower (>0.1 g/t) grade gold mineralized zones. The low uranium grades drilled at Palokas also support the concept of both gold-rich and uranium-rich styles occurring within the Rompas-Rajapalot mineral field.

In other news, Mawson has been dealing with certain Finnish environmental authorities in regards to work completed during the 2010 and 2011 field programs (refer to press release dated June 26, 2013). The issue involves allegations that the Company's hand dug trenches from these programs have affected the nature values of the area where the work was undertaken. The Company has now been informed that the investigative process is complete and the prosecutor has reviewed the investigative material and referred the matter to trial, with the case to be heard in the Kemi-Tornio District Court during Q3 2014. Mawson is pleased the case is advancing and will be handled through a formal legal process. Mawson believes the claims made are without merit and will vigorously defend itself and its employees. Mawson has always maintained that hand digging has no material impact on the nature values of the area in question. Mawson believes it conducted its operations within the intent and law of the Mining and Nature Conservation Acts.

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 Scandinavian exploration company with a focus on the flagship Rompas gold project in Finland.

Technical Background

Analytical samples were transported by Mawson or GTK personnel from GTK to the Labtium Oy ("Labtium") laboratory in Rovaniemi, Finland where they were prepared and analyzed for Au by 705P techniques and multi-element analysis by XRF technique (pellet), method +175X. Certain samples were also transported by Mawson personnel from site to ALS Chemex Ltd's laboratory in Pitea, Sweden where the samples were prepared and sent to ALS Chemex Ltd's laboratory in Vancouver, Canada to be analyzed by Au-ICP21, GRA-21, ME-MS41U, PGM-ICP27 and ME-MS61U techniques. Naturally occurring radioactive material ("NORM") samples were also analyzed at SRC Geoanalytical Laboratories, Saskatchewan, Canada, by ICP1 Partial Digestion except for gold which was analyzed by fire assay. 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, the laboratories also insert 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"
Michael Hudson, President & CEO

Forward Looking Statement

This press 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, including statements regarding the planned drill program and anticipated exploration results, 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, equipment failure, unexpected geological conditions, operational delays, 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 2: Summary statistics from all grab samples taken from the Rajapalot discovery to date.

Prospect Number of Samples Approximate Area Max
Au g/t
Min
Au g/t
Average
Au g/t
Max
U
ppm
Min
U
ppm
Average
U
ppm
Sample Type Reported
Joki 14 800m x 150m 2,817 0.0 453.7 81900 3.7 12544 6 Outcrops, 8 Boulders 14 Jan13
Palokas 17 170m x 55m 85.0 0.0 20.7 15100 2.5 1331 15 Outcrops, 2 Boulders 14 Jan13
Rumajärvi 32 700m x 250m 1,380 0.0 85.6 4870 2.7 732 8 Outcrops, 24 Boulders 14 Jan13
Hirvimaa 17 300m x 100m 1520 0.0 55.5 17300 0.1 2246 8 Outcrops, 9 Boulders 14 Jan13
Rumajärvi East 58 270m x 160m 3,220 0.0 61.4 35,488 1.4 2,353 36 Boulders, 22 Outcrops Here
Raja West 16 250m x 70m 43.1 0.0 3.6 273,528 0.5 18,478 10 Boulders, 6 Outcrops Here

Table 3: New assay results from prospecting grab samples from the Rajapalot area. Float = glacial boulder sample; Grab = prospecting grab sample from outcrop/sub-crop.


SampleID
Sample
Type
Au
ppm
U3O8
ppm
Co
ppm
228638 FLOAT 0.4 26 680
228639 FLOAT 0.3 10 138
228640 FLOAT 0.0 3 87
228641 FLOAT 0.1 6 197
237898 FLOAT 3220.0 3018 320
237899 FLOAT 0.0 5235 49
238277 FLOAT 0.2 2 28
238278 FLOAT 0.1 107 795
238279 FLOAT 0.1 6 212
238289 FLOAT 3.2 264 1440
238290 FLOAT 0.2 7 37
238291 FLOAT 5.2 7 20
238292 FLOAT 1.8 243 611
238293 FLOAT 0.3 825 360
238846 FLOAT 0.5 14 119
238849 FLOAT 8.9 205 111
238851 FLOAT 0.2 3950 365
238852 FLOAT 0.2 69 523
238853 FLOAT 0.2 4433 79
238854 FLOAT 0.3 14502 982
238856 FLOAT 0.0 226 83
238857 FLOAT 0.4 4 56
238860 FLOAT 0.1 943 1570
238861 FLOAT 0.0 1 19
238866 FLOAT 0.8 432 1270
238871 FLOAT 0.2 24 707
238872 FLOAT 248.0 7015 250
238883 FLOAT 0.1 8 254
238884 FLOAT 0.2 153 292
238885 FLOAT 0.3 96 130
238886 FLOAT 1.9 11 47
238887 FLOAT 0.1 1639 800
238888 FLOAT 0.6 126 144
238889 FLOAT 6.6 31 15
238891 FLOAT 1.8 17213 491
238894 FLOAT 32.7 2452 264
228642 GRAB 0.0 482 28
238855 GRAB 0.0 2 56
237894 GRAB 0.1 13 81
237895 GRAB 0.4 637 242
237896 GRAB 0.3 743 51
238845 GRAB 0.4 1804 433
238848 GRAB 2.0 229 47
238862 GRAB 0.1 10 109
238863 GRAB 0.1 22 165
238864 GRAB 0.2 24 139
238865 GRAB 10.6 78 292
238867 GRAB 0.1 13323 222
238868 GRAB 0.7 181 74
238869 GRAB 0.0 2240 235
238870 GRAB 0.2 802 80
238873 GRAB 0.7 1297 387
238882 GRAB 4.7 35488 5900
238890 GRAB 2.4 15327 392
238892 GRAB 0.7 297 118
238893 GRAB 0.6 149 214
238283 FLOAT 0.0 2 64
238284 FLOAT 0.0 2 63
238285 FLOAT 0.1 76 372
238286 FLOAT 2.4 7923 44
238287 FLOAT 43.1 273528 172
238288 FLOAT 0.8 59 37
238876 FLOAT 0.0 30 10
238878 FLOAT 9.8 11790 139
238879 FLOAT 0.0 1403 812
238880 FLOAT 0.7 116 152
237872 GRAB 0.0 27 15
238877 GRAB 0.0 4 64
237765 GRAB 0.1 0 64
238280 GRAB 0.5 531 2140
238281 GRAB 0.0 80 25
238282 GRAB 0.0 79 121

Table 4: Multi-element analyses from core sample holes PRAJ0003-PRAJ0025 from the Palokas Project, Rajapalot, Finland. Cobalt and uranium oxide reported for the first time.

Hole ID From
(m)
To
(m)
Width
(m)
Au
g/t
U3O8
ppm
Co
ppm
Comment Reported
PRAJ0003 0 9 9.0 10.2 43 587 3-Oct-13
PRAJ0003 12 13 1.0 0.6 29 532 3-Oct-13
PRAJ0004 2 10.25 8.3 5.9 44 454 16-Oct-13
PRAJ0005 6.65 19.22 12.6 3.6 18 522 Stopped in mineralization 16-Oct-13
PRAJ0006 1.3 20.8 19.5 7.6 35 711 16-Oct-13
PRAJ0008 0.3 8 7.7 1.4 25 610 16-Oct-13
PRAJ0009 2.5 7.9 5.4 37.6 33 953 16-Oct-13
PRAJ0009 13.9 14.7 0.8 0.6 14 1090 16-Oct-13
PRAJ0009 22.7 23.7 1.0 2.6 9 476 16-Oct-13
PRAJ0009 25.4 28.25 2.9 2.3 19 541 16-Oct-13
PRAJ0009 30.25 31.25 1.0 0.6 9 303 16-Oct-13
PRAJ0009 32.25 33.25 1.0 0.7 4 66 16-Oct-13
PRAJ0010 3.3 6.3 3.0 1.4 9 466 20-Jan-14
PRAJ0018 4.4 5.4 1.0 1.6 4 346 20-Jan-14
PRAJ0018 14.75 15.75 1.0 0.5 8 227 20-Jan-14
PRAJ0020 5.2 8.2 3.0 4.2 13 1035 20-Jan-14
PRAJ0020 11.2 13.2 2.0 4.4 26 655 20-Jan-14
PRAJ0020 22 24 2.0 2.2 13 456 20-Jan-14
PRAJ0020 26 27 1.0 0.9 9 1800 20-Jan-14
PRAJ0021 2.7 4.7 2.0 1.1 12 691 20-Jan-14
PRAJ0022 8 27 19.0 2.3 53 570 20-Jan-14
PRAJ0022 32.6 33.6 1.0 1.9 4 97 20-Jan-14
PRAJ0023 11.16 14.4 3.2 1 102 703 20-Jan-14
PRAJ0023 18.62 28.52 9.9 2.2 32 736 Stopped in mineralization 20-Jan-14
PRAJ0024 22.65 26.8 4.2 0.6 48 724 20-Jan-14
PRAJ0024 28.05 35.95 7.9 2.7 16 524 Stopped in mineralization 20-Jan-14
PRAJ0025 16.9 25.6 8.7 4.6 82 351 20-Jan-14

To view the figure accompanying this press release, please visit the following link:

http://media3.marketwire.com/docs/928048.pdf

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