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.

The 2017 winter exploration program represented the first large scale drilling on the project with the following work completed;

    • 55 diamond drill holes for 11,056 metres of diamond drill core
    • 1,801 BOT holes, for 7,983 metres; averaging 4.4 metres, and;
    • 105 km of infill and extension ground magnetics collected on lines spaced at 50 metres
  • Drilling confirmed the presence of a large gold-mineralized hydrothermal system within a 4.5 sq km area while testing only a small fraction (5%) of the 27 kilometre host sequence;
  • Exceptional rate of drill success with 42% of holes (58 out of the total 137 holes drilled on the project) hitting geochemically significant gold (>1g/t * m). Further 28% of drill holes (39 out of a total of 137) have recorded greater than 5 g/t * m intersections. The average drill depth remains shallow at 109 metres.

Significant drill results for the program included:

The Palokas Prospect

  • PAL0030 (10.0 metres @ 11.6 g/t gold from 110.2 metres; plus 2.9 metres @ 1.0 g/t gold from 135.7 metres; 3.0 metres @ 5.3 g/t gold from 143.9 metres) was collared 150 metres northwest from the “discovery outcrop” at Palokas to test the down-plunge extension of an interpreted high grade gold-shoot within a moderately west-dipping surface. This deepest high grade intersection in the Rajapalot project area, and confirms the shoot at Palokas interpretation, which remains open at depth.
  • PAL0027 at the Palokas prospect intersected 6.8 metres @ 14.7 g/t gold from 34.4 metres and was the first large diameter drill test into the Palokas deposit;

The Raja Prospect:

  • A new zone of gold mineralization was discovered and drill tested by 6 drill holes at the Raja prospect, located 1.75 kilometres south-east from Palokas. This is the easternmost prospect tested to date in the Rajapalot area.
  • The discovery has a strike length of at least 200 metres, and remains open.
  • Better drillholes at Raja included:
    • PAL0075 intersected 27.0 metres @ 3.3 g/t gold (no lower cut) from 64.0 metres, including 3.0 metres @ 2.9 g/t gold from 64 metres, 2.0 metres @ 5.6 g/t gold from 70.0 metres and 8.8 metres @ 7.5 g/t gold from 82.2 metres. PAL0075 was drilled in an opposite direction to PAL0048 (42.7 metres @ 1.0 g/t gold from 53.0 metres
    • PAL0062 drilled 200 metres north of PAL0075 and PAL0048 and intersected 13.5 metres @ 4.0 g/t gold from 180 metres;
  • A new style of gold-bearing system was discovered at South Rajapalot, characterized by an extensive area of potassic-iron-sulphide alteration located 1.8km south of the Palokas prospect. Drilling defined a zone that extends for 900m along strike and 400m in width that remains open.
  • Better drillholes at Raja included:
    • PAL0037 drilled 56m of gold-bearing magnetite, pyrrhotite, biotite and chlorite alteration from 5.0m that averaged 0.53 g/t gold (without applying a lower cut). Higher grade zones included 2.0m @ 3.6 g/t gold from 33.0m and 4.0m @ 3.7 g/t gold from 57m;
    • PAL0033, drilled 700m north of PAL0037, intersected a similar style of potassic-iron-sulphide alteration with results including 2.2m @ 7.7 g/t gold from 152.5m;
  • A broad area of 4 by 6 kilometres was drill tested by the BOT drill program. The program was successful in defining known mineralization and also defined new drill targets over an extensive area. The Rajapalot gold mineralizing system now covers more than 4.5 sq km based on diamond drill results, and is most likely to extend much further based on anomalous gold values in base of till (BOT) data.

The South Rajapalot Prospect

  • A new style of gold-bearing system was discovered at South Rajapalot, characterized by an extensive area of potassic-iron-sulphide alteration located 1.8km south of the Palokas prospect. Drilling defined a zone that extends for 900m along strike and 400m in width that remains open.
  • Better drillholes at Raja included:
    • PAL0037 drilled 56m of gold-bearing magnetite, pyrrhotite, biotite and chlorite alteration from 5.0m that averaged 0.53 g/t gold (without applying a lower cut). Higher grade zones included 2.0m @ 3.6 g/t gold from 33.0m and 4.0m @ 3.7 g/t gold from 57m;
    • PAL0033, drilled 700m north of PAL0037, intersected a similar style of potassic-iron-sulphide alteration with results including 2.2m @ 7.7 g/t gold from 152.5m;

  • PAL0040, drilled 450 metres southeast of PAL0043 and 75 metres south west of PAL0037 intersected: 5.0 metres @ 1.2 g/t gold from 37.3 metres. This is the southernmost drill hole at Rajapalot, opening a new area of exploration potential to the south;
  • PAL0043, drilled 1.5 km southwest of Palokas 12.0 metres @ 1.2 g/t gold from 10.6 metres. This hole targeted a VTEM anomaly and is the westernmost hole reported from Rajapalot to date, which opens a new area of exploration potential to the west;

Base-of-till drilling

  • A broad area of 4 by 6 kilometres was drill tested by the BOT drill program. The program was successful in defining known mineralization and also defined new drill targets over an extensive area. The Rajapalot gold mineralizing system now covers more than 4.5 sq km based on diamond drill results, and is most likely to extend much further based on anomalous gold values in base of till (BOT) data.

Geological Overview

Stratigraphy

The host sequence comprises an isoclinally folded package of amphibolite facies metamorphosed Paleoproterozoic rocks. This package can be divided into two parts. Sequence 1 is a siliciclastic, dolomitic carbonate and albite-altered metasedimentary sequence interpreted as forming in a platformal to continental margin setting. Sequence 2 is a metasedimentary sequence of pelitic turbidites, arkosic sands, carbonates, impure and pure quartzitic sandstones and sulphidic bituminous rocks. An unconformity between the two sequences is interpreted between the largely oxidised rocks of Sequence 1 and reduced rocks of Sequence 2. Mafic rocks, ranging from lava flows, volcaniclastic sediments to dykes and differentiated sills form up to 20 % of the total package. Rare, but significant magnetite iron formations up to 20 metres thick occur towards the top of Sequence 1.

Metamorphic grade is largely amphibolite facies throughout the project area, from near the greenschist-amphibolite facies boundary in the south with increasing grade towards the north into sillimanite stability field. Retrograde alteration to chlorite or epidote is relatively common adjacent to quartz veins and fractures. Tourmaline-bearing granitoids (ca. 1.8 Ga) are exposed within 3 kilometres to the north, and recent drilling at the Boardwalk prospect has revealed albitised granitoids and diorites of unknown age in the core of the project area.

Gold Mineralization

Two distinct styles of gold mineralization dominate the Rajapalot area. The first, is a variably sulphidic iron formation, known as the “Palokas” style. This forms in the uppermost part of Sequence 1 within approximately 100 metres of the inferred unconformity. A largely retrograde mineral alteration assemblage includes chlorite, Fe-Mg amphiboles, tourmaline and pyrrhotite commonly associated with quartz veining. Subordinate almandine garnet, magnetite and pyrite occur with bismuth tellurides, scheelite, ilmenite and gold. Metallurgical testing at Palokas reveals the gold to be non-refractory and 95% pure (with minor Ag and Cu) with excellent recoveries by gravitational circuit with conventional cyanidation.

Gold mineralization uncovered in boulders and drilling at the “Boardwalk” prospect is a variant on the Palokas style – so far in drilling the main source of the boulders has not been discovered. However, zones up to 20 metres thick of anomalous gold in iron formations has been intersected (best intersection 1 metre @ 3.19 g/t Au from 32 metres in PAL0074). These zones only have trace chlorite, unlike the chlorite-magnetite-grunerite boulders which average 15.3 g/t Au (15 boulder and grab samples >0.1 g/t Au with a range of 0.18 – 221 g/t Au). Throughout the entire 10 x 10 kilometre Rompas-Rajapalot project area variants of this iron formation have been recorded, included in a drill section at South Rompas (some 8 km west of Palokas). The recently discovered iron formation host rocks supports the Homestake analogue recently reported by Mawson and demonstrates that the new interpretation of the lithogeochemistry with the airborne and ground magnetics is allowing the exploration footprint to broaden.

The second style of gold mineralization at Rajapalot (known as “Rumajärvi”-type) is characteristically associated with muscovite and/or biotite, in a diverse range of fabrics. Gold grades of more than 1 g/t Au are associated with pyrrhotite and contained within muscovite-biotite schists, muscovite and biotite-bearing albitic granofels and brecciated, variably micaceous albitic rocks. Magnetite is a common mineral, but not a necessity for anomalous gold grades. The host rocks are grey to white owing to their reduced nature and may be enclosed by light pink to red calcsilicate-bearing albitites. To date, Rumajärvi style has been intersected a little lower in Sequence 1 than the iron formation-hosted gold, but given the apparent strong structural control on grade, stratigraphic constraints may not be relevant.

Structure

The relationship between the Palokas and Rumajärvi type systems are not immediately apparent. Pyrrhotite, scheelite, bismuth-tellurides, weak yet persistent uranium anomalism (generally less than 100 ppm U) and fabrics indicative of a late structural event (at least after the first two isoclinal to tight fold and high temperature events) are all features that are common between the two Au mineralization styles. Some of the differences in mineral assemblages, such as chlorite, Fe-Mg amphiboles and tourmaline can be related to variations in bulk rock composition and different structural styles reflect competency contrasts from ductile in schistose micaceous rocks to brittle sulphide matrix breccias in albitic granofels.

The geophysical search for Palokas and Rumajärvi styles sulphidic gold mineralization under thin glacial cover is improving quickly with the knowledge gained in each drill program. A combination of ground magnetics, induced polarization and electromagnetic/resistivity methods can effectively target both styles in the near surface (less than 100 metres). The recording of magnetic susceptibility and conductivity in all drill core is aiding the development of a 3D target model. Combined with base of till assays, areas of Au-Bi-Te anomalism can be identified for either additional geophysics, or drill testing.

Exploration for Palokas and Rumajärvi style gold prospects is no longer just restricted to the Rajapalot area. Recognition of both Sequence 1 and 2 as a package enclosing the 6 km long vein-hosted Rompas Au-U system increases the search space for the pyrrhotite-gold systems. The geochemical characteristics of the iron formations and their low-iron equivalents are not only present in the southern drill section at South Rompas, but have more than 50 km of strike length in Rompas-Rajapalot. It is the interaction of this reactive rock package with late, sulphur- and gold-bearing hydrothermal systems driven by ca. 1.8 Ga granitoids, that now form the most highly prospective targets away from the Rajapalot area.