Mawson Gold

Overview

Figure 1 Core ready for logging after drilling in Mawson’s Victorian goldfields holdings.
Figure 1 Core ready for logging after drilling in Mawson’s Victorian goldfields holdings.

Mawson Gold (TSX: MAW, FSE:MXR, PK:MWSNF) are a precious and base metals exploration company with significant assets in Tier 1 jurisdictions. Their flagship 100% owned Rompas-Rajapalot hydrothermal gold-cobalt project in Finland is the most advanced cobalt resource in the country and a significant deposit for the EU Raw Materials Alliance. Mawson’s Australian assets are located between the central Victorian goldfields and the Mt Isa region are a primary focus for the company and reflect the beginnings of new opportunity in gold exploration down under. Mawson also hold exploration options over a huge parcel of land in Oregon, USA, which is prospective for epithermal gold.

Victorian projects

Mawson’s main focus in Australia is the Victorian goldfields, a source of many mining legends in the great brown land.  Recent years have seen a dramatic improvement in the understanding of Victoria’s gold deposits, largely through the use of geophysical techniques.  Previously, the region was famous for its mesozonal deposits, which occurred in the state’s western Bendigo and Stawell Zones, and it was these areas that were targeted during the historic gold rush that occurred between the 1850s and 1860s. The eastern Melbourne Zone produced little nuggety or visible gold, and has therefore been under-explored to date, with most gold disseminated in sulfides. However, the increasing grades and appearance of visible gold in the Fosterville Mine (Kirkland Lake Gold, TSX: KL, NYSE:KL, ASX:KLA), which is located in the eastern Bendigo Zone but mineralised by the same processes as the Melbourne Zone, have announced the possibility of a massive resource waiting to be explored.

Figure 2 Recent work on the regional geology of Victoria has provided insights into the formation of its gold deposits, which were historically considered to be highly unpredictable and difficult to mine on a large scale.
Figure 2 Recent work on the regional geology of Victoria has provided insights into the formation of its gold deposits, which were historically considered to be highly unpredictable and difficult to mine on a large scale.

Mawson has teamed up with Nagambie Resources (ASX:NAG) in this region to take advantage of the enormous potential that has just been identified.  In March 2020, Mawson bought a 10% stake in Nagambie, as well as securing a right of first refusal over 3.6km2 of Nagambie tenements in the area.  At the same time Mawson obtained a 100% stake in the Clonbinane Tenements (now Sunday Creek), a site of historical gold production with structurally controlled gold that remains almost completely undrilled. Mawson are currently engaged in drilling and 3D modelling to ascertain how large the mineralised area might be.  Highlights of the early results include a maximum of 42.5 g/t gold and 1.0% antimony over a 2m interval.

Figure 3 Regional geological map of Victoria, highlighting Mawson’s projects in the context of other gold deposits, especially the Fosterville-type epizonal deposits that are more amenable to modern extraction.
Figure 3 Regional geological map of Victoria, highlighting Mawson’s projects in the context of other gold deposits, especially the Fosterville-type epizonal deposits that are more amenable to modern extraction.

In addition, Mawson secured up to a 70% joint venture interest in Nagambie’s Fosterville-style Redcastle and Doctor’s Gully projects. Redcastle is 7 km along strike from the Costerfield mine (Mandalay Resources, TSX:MND), and a site of historic high-grade shallow mining; a positive sign in a region where grades frequently increase with depth.  The Doctor’s Gully area is also untested at depth, and Mawson are currently engaged in 3D modelling, historic data compilation, and drilling to further their understanding of these properties.

Figure 4 A closer look at Mawson’s Victorian gold holdings, showing their proximity to important historical and present-day deposits.
Figure 4 A closer look at Mawson’s Victorian gold holdings, showing their proximity to important historical and present-day deposits.

Mt Isa Projects

As part of its strategy to obtain licenses along-strike from major mines, Mawson acquired five exploration licenses strike-parallel to the Cannington silver-lead mine (South 32, ASX:S32, LSE:S32, JSE:S32), which is the ninth largest silver producer globally.  Mawson is focussing on the F11 target, and has received $200,000AUD from the Queensland state government to drill the site.  It has also flown airborne magnetics and performed a ground-based gravity survey on its holdings, which were also heavily supported by the state government.   Mawson considers the area highly prospective for either a Cannington-style silver-base metal deposit, or a highly-sought-after iron-oxide-copper-gold deposit.

Figure 5 Mawson’s Mt. Isa holdings (magenta) and their proximity to exploration areas held by major companies, as well as the world-class Cannington mine.
Figure 5 Mawson’s Mt. Isa holdings (magenta) and their proximity to exploration areas held by major companies, as well as the world-class Cannington mine.

Mawson has a dedicated community engagement specialist for its Australian operations.  The company’s environmental and safety commitments can be viewed here, and to date it has managed to avoid the type of ethical scandals that have plagued the mining industry in recent years, which can only be a good sign for its future as a responsible corporate citizen in Australia’s mining community. Further, in 2020 the company were invited to join the EU Critical Raw Materials Alliance in recognition of the significance of Rompas-Rajapalot. Cobalt has been declared a critical metal by the EU and as such Mawson’s work in Finland is an important contribution to the development of a sustainable critical materials supply chain in Europe.

Figure 6 The Mt. Isa region, where Mawson hopes to replicate South 32’s Cannington bonanza.
Figure 6 The Mt. Isa region, where Mawson hopes to replicate South 32’s Cannington bonanza.

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