Mawson Gold Ltd. [MAW-TSX, MWSNF-PINKSHEETS, MXR-Frankfurt] said the mineralized footprint has been extended at the Sunday Creek gold project in Victoria, Australia. The asset is being explored by Mawson’s 51%-owned affiliate Southern Cross Gold Ltd. [SXG-ASX].
“Today’s results from SXG’s 100%-owned Sunday Creek project confirms the proof of concept that the property is host to an extensive mineralized trend with significant upside beyond the excellent results the company has been producing at its main drill area eight kilometres to the southwest,’’ said Mawson interim CEO Noora Ahola.
She said the latest results are commensurate with very early drilling undertaken in what is now the core drill area at Sunday Creek and adds another level of confidence, in the company’s opinion, that the project is one of the best new discoveries on the market today.
Ahola was commenting on results from 12 diamond drill holes or 2,367 metres from regional drilling located between four kilometres and eight kilometres along the same mineralized structure as the main drill area. The company said the drilled mineralized footprint at Sunday Creek has been extended for more than eight kilometres in east-west strike, representing an eightfold increase in the previously drilled host to gold mineralization.
Mawson said high-grade gold, with an anomalous and broad (150 metres) mineralized halo, was discovered in the first holes ever drilled outside the main drilling area.
Drilling highlights include hole SDDLV003, which returned 0.5 metres of 15.7 g/t gold from 87 metres (including visible gold). SDDLV003 returned 0.3 metres of 5.6 g/t gold from 73.4 metres and 0.3 metres of 19.4 g/t gold from 100.7 metres.
SXG’s focus is now expected to return to the main drilling area, where they have a further 22,000 metres to complete in a fully-funded and permitted drill program to April, 2024.
Mawson shares were unchanged at 30 cents on Friday and trade in a 52-week range of 34.5 cents and 11.5 cents.
Mawson is a Nordic-focused exploration company, with a portfolio that includes the Rajapalot gold-cobalt project in Finland and the right to earn into the Skelleftea North gold project in Sweden.
In October, 2022, Mawson released results of a preliminary economic assessment for the company’s 100%-owned Rajapalot project. It said the PEA considers a targeted 1.2 million tonne-per-year underground mining operation over a nine-year lifespan, with an onsite processing facility producing gold dore and cobalt concentrate.
If in production today Rajapalot could be the European Union’s largest cobalt mine and sixth largest gold mine, the company has said.
The PEA envisages an operation that would produce 92,000 ounces of gold equivalent (AuEq) annually. Life of mine production is estimated at 700,000 ounces of gold and 2,800 tonnes of cobalt.
