Rajapalot Disseminated Gold Project

Rajapalot is located 8 kilometres to the east of the Rompas vein trend. The style of mineralization at Rajapalot is predominately sulphidic and of a disseminated or replacement style, which differs from the nuggety vein style observed at Rompas. Rajapalot is the primary target area for the Company.

Surface sample highlights Rajapalot include prospecting grab samples taken from outcrop that returned 2,817 g/t gold, 2,196 g/t gold, 1,245 g/t gold, 933 g/t gold, 151 g/t gold and 135.5 g/t gold. A total of 52 grab samples from the Rajapalot prospect to date average 152.8 g/t gold and range from 0.001 g/t to 2,817 g/t gold. All samples are prospecting grab samples. These are selective by nature and are unlikely to represent average grades on the property.

Discovery grab samples from the Rajapalot project returned gold mineralization from three distinct areas, namely the Palokas, Joki and Rumajärvi prospects. The areas were targeted with regional geophysics and surface soil geochemistry. Rumajärvi lies 1.5 kilometres south of Palokas, while Joki is located 1 kilometre southeast of Palokas. Each prospect area is characterized by minor outcrop on a topographic high, within a predominantly swampy terrain and therefore very little in situ bedrock has been located. Little outcrop has been found between the prospect areas. As the same mineralized rock types occur in outcrop, the glacial boulders sampled and reported here are considered to be proximal to their source.

In October 2013, Mawson announced the first core test of Rajapalot from the Palokas prospect. Drilling intersected:

  • 9 metres at 10.2 g/t gold from surface, including 3 metres at 27.5 g/t gold from PRAJ0003;
Palokas is part of the Rajapalot area, located 8 kilometres east of our drilling in the vein style mineralization at Rompas. Further high grade, thick and near-surface core sample results in November 2013 and January 2014 included:
  • 19.5m @ 7.4 g/t gold from 1.3 metres from PRAJ0006;
  • 5.4m @ 37.6 g/t gold from 2.5 metres from PRAJ0009 (including 1.0m @ 189.0 g/t gold from 6.9 metres);
  • 12.6m @ 3.6 g/t gold from 6.7 metres in PRAJ0005;
  • 19.0m @ 2.3 g/t gold from 8.0 metres from PRAJ0022;
  • 8.7m @ 4.6 g/t gold from 16.9 metres from PRAJ0025;
Multi-element analyses from all core sample holes from the Palokas project at Rajapalot (holes PRAJ0003 to PRAJ0025) shows consistently low uranium (weighted average through quoted intersections is 36ppm uranium and 5.2g/t gold) 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 early September 2014 the Company was permitted to drill across the entire Palokas trend at Rajapalot in Finland with a hand portable core sampler. Drilling commenced approximately 300 metres south of Palokas prospect. Results from the first 6 shallow drill holes were made available in early October 2014. These results tripled the drilled gold mineralized footprint at Palokas, with 5 holes out of 6 holes intersecting significant gold mineralization. All discoveries made under 4-5 metre thick glacial till deposits and remains open in all directions. Drill hole PRAJ00075 stopped in mineralization. Highlighted intersections included:

  • 2.0m @ 9.1 g/t gold from 25.4 metres from PRAJ0070;
  • 3.0m @ 5.1 g/t gold from 8.7 metres from PRAJ0073;
  • 1.0m @ 14.7 g/t gold from 16.3 metres from PRAJ0072;
During December 2014 new results extended drilled gold mineralization over 1.2 kilometres from Palokas, and highlights included:
  • 3.9m @ 3.2 g/t gold from 23.0 metres in hole PRAJ0076;
  • 3.4m @ 2.0 g/t gold from 14.0 metres in hole PRAJ0080;
  • 3.0m @ 1.4 g/t gold from 35.9 metres in hole PRAJ0080;
Across strike width of mineralization increased up to 120 metres, suggesting possible multiple horizons across strike (previous drilled thickness was 20 metres true width at Palokas). All discoveries are blind, and covered by 2-5 metre thick glacial till deposits, and are open along strike and at depth

The bulk weighted average of geochemical data show consistently low grade uranium within all intervals greater than 0.5 g/t gold with averages of 2.9 g/t gold and 26 ppm uranium for drill holes PRAJ0070-PRAJ0096.

Sampling is coincident with and immediately up-dip from modelled VTEM geophysical conductors and strong and consistent IP chargeability anomalies through an area with <1% outcrop, and forms part of a 3.5 kilometre target horizon between basaltic and quartzitic rocks. The average depth of holes reported is 29 metres. The true thickness of the mineralized interval is interpreted to be approximately 80% of the sampled thickness. Drilling was performed with a Company-owned and operated, hand portable, low impact rig, below 2-5 metres of glacial till overburden in the vicinity of gold bearing glacial boulders and subcrop.

In May 2015 the Company returned to Palokas with a new "Winkie" low impact portable diamond core rig capable of drilling three times deeper than the prior hand held rig used at Palokas. Two drill holes for 180.2 metres were completed before winter access conditions ended, to test the down-dip extensions of the Palokas prospect, Highlight intersections include:

  • 19.6m @ 7.5 g/t gold from 18.1 metres in drill hole PRAJ0107 including;
  • 5.0m @ 24.1 g/t gold from 26.7 metres with visible gold present; and
  • 5.1m @ 3.8 g/t gold from 18.3 metres in drill hole PRAJ0108;

Geochemical sampling at Rajapalot is coincident with a versatile time domain electromagnetic ("VTEM") geophysical conductor that extends for more than 500 metres through an area with <1% outcrop, and forms part of a 3.5 kilometre target horizon between basaltic and quartzitic rocks. In addition, gradient array induced polarization ("IP"), pole-dipole IP and ground magnetic surveys have been completed at Rajapalot. The geophysical surveys tested 5 kilometres of target horizon along strike from the drill area at Palokas. Interpretation of the surveys identified multiple near-surface and high priority targets that extend to depth immediately along strike, and extending up to 4 kilometres from the drilled high grade and thick drill results discovered from surface Pole-dipole induced polarization geophysical anomalies extend beyond the 150 metre nominal depth limit of the survey.

Fine disseminated gold mineralization at Palokas occurs within calcsilicate-biotite-tourmaline-pyrrhotite rocks in a contact zone between mafic rocks and relatively oxidized quartzites. The true thicknesses of the mineralized intervals is interpreted to be approximately 80% of the sampled thickness.

During October 2014 the Company announced results from preliminary metallurgical testing on drill core from the Palokas prospect at the Rompas-Rajapalot gold project in Arctic Finland by SGS Mineral Services UK in Cornwall. Excellent gold extraction results of between 95% and 99% (average 97%) were obtained by a combination of gravity separation and conventional cyanidation. Gravity extraction for the four composites responded well with 26-48% gold extraction. Leaching was performed on the pulverised and blended tailings from the three size fractions after gravity extraction. Samples tested are not classified as refractory. Metallurgical test work indicates gold recovery and processing are potentially amenable to conventional industry standards with a viable flowsheet which could include crushing and grinding, gravity recovery, and cyanide leaching with gold recovery via a carbon-in-pulp circuit for production of onsite gold doré;