Rompas-Rajapalot Overview

Quick Overview

The combined Rajapalot and Rompas exploration projects are the Company’s flagship properties, located just south of the Arctic Circle in Finnish Lapland. These are straddles the boundary of the Ylitornio and Rovaniemi municipalities.

Both disseminated and nuggetty high-grade gold has been discovered on a camp-scale area approaching 10 x 10 kilometres within the Paleoproterozoic Peräpohja Belt. Initial discoveries of the nuggety, high-grade, gold-uraninite-bearing dolomite veins were made at Rompas in Sept 2008 by Areva NC geologists. Mawson acquired the project in April 2010 when 30 samples had been collected along the Rompas trend. Results from the maiden drill program at Rompas returned 6 metres at 617 g/t gold from 7 metres depth in drill hole ROM0011. A strike length of over 6 kilometres makes Rompas an exciting target. However, at this stage due to mineralization style and permitting status, the Rajapalot project is the primary focus of exploration.

At Rajapalot, approximately 8 kilometres to the east of Rompas, Mawson field geologists discovered a small, but significant
gold-bearing outcrop, first drilled in 2013. This site, known as the Palokas Prospect returned high-grade, disseminated gold from the first diamond drill holes obtained with a hand-portable drill rig. Results included 19.5 metres at 7.4 g/t gold from 1.3 metres in PRAJ0006; 5.4 metres at 37.6 g/t gold from 2.5 metres in PRAJ0009; 12.6m @ 3.6 g/t gold from 6.7 metres in PRAJ0005; 19.0 metres at 2.3 g/t gold from 8.0 metres in PRAJ0022; and 8.7 metres at 4.6 g/t in PRAJ0025.

During the winter of 2015-16, drilling tested the Palokas mineralisation and broader extents of the Rajapalot system for the first time. Results defined the scale of the hydrothermal system at Rajapalot with major outcomes including:

  • Palokas mineralization extended to north: PAL0019discovered the down plunge extension of mineralization at Palokas, intersecting 2.9 metres @ 5.9 g/t gold from 176.7 metres, including 1.0 metre @ 16.7 g/t gold from 178.7 metres. Mineralization is hosted within a 40-metre-thick chlorite-tourmaline-amphibole-pyrrhotite rock, and is the deepest discovery at Palokas to date.
  • Deepest and best drill result achieved to date outside Palokas: PAL0016 intersected 8.4 metres @ 4.2 g/t gold from 206.0 metres inPAL0016, including 3.4 metres @ 9.5 g/t gold from 211 metres was drilled 350 metres along strike from the main Palokas mineralization. Mineralization is hosted in a sericite-quartz-pyrrhotite rock which represents the Rumijarvi style of mineralization which sits 100 metres lower in the stratigraphic pile to the Palokas;
  • Multiple mineralized zones defined: Mineralization in PAL0018 (1.0metre @ 17.9 g/t gold from 172.0 metres) is hosted in altered sericitic calcsilicate-bearing albitites interpreted to be 50 metres lower in the stratigraphy than the Palokas mineralization.
  • Mineralized rocks drilled over 3.5 kilometres strike: Drillhole PAL0023 (3.0 metres @ 2.1 g/t gold from 84.4 metres) is significant as it is located 2 kilometres from Palokas, and is the most easterly hole drilled along the Palokas target horizon. The main Palokas mineralized position was found within a 100-metre thick hydrothermally altered talc-silicified-pyrrhotite-amphibole rock. The host sequence here is inverted, increasing both complexity and volume of potential host rock within the target area.
  • Multiple targets remain untested: A thin veneer of glacial soils thataverage 3-5 metres thick cover 99% of the area. In combination with the ubiquitous presence of gold mineralization in both drilling and surface sampling over a large area, many areas remain untested. These include:
    • Rumajärvi, located 1,500 metres south of Palokas, where 68 boulders and subcrops >0.1 g/t gold ranged from 0.11 g/t gold to 3,870 g/t gold with an average of 101.4 g/t gold and median of 0.6 g/t gold. Two holes drilled at Rumajärvi failed to find the source of the boulder train.
    • Joki, which was not tested during this drill campaign, where 13 boulders and outcrops >0.1 g/t gold ranged from 0.10 g/t gold to 2,871 g/t gold with an average of 518.5 g/t gold and median of 135.5 g/t gold.
    • Boardwalk,which was not tested during this drill campaign, where 13 boulders and outcrops >0.1 g/t gold ranged from 0.18 g/t gold to 221 g/t gold with an average of 38.2g/t gold and median of 1.0 g/t gold and show the same style of chlorite-magnetite alteration seen at Palokas.

The reinterpretation of the geology after winter drilling indicates that more than 65 kilometres of host stratigraphy exists within Mawson's permit area. In combination with the thick and widespread occurrence of hydrothermal alteration associated
with the gold mineralisation in these drill holes and others at Rajapalot, and the abundant gold-bearing hydrothermal sericite-, biotite- and magnetite-bearing boulders in the area, expectations for further drillingsuccess remain high. Learn More

Ownership

As at May 31, 2016, the Company holds a total of 2 granted exploration permits, 11 exploration permit applications and 2 reservations in Finland. At Rajapalot/Rompas a permitted area of 23,184 hectares exists, which consist of 13 exploration permits and permit applications.

Status of Mawson’s Claims in Finland

Number

Area

(ha)

Exploration Permits*

2

2,469

Exploration Permit Applications

11

20,715

Reservations

2

2,247

* Two under administrative appeal - working under past conditions under enforcement order

Location

The Rompas area is situated a few kilometres south of the Arctic Circle. The area is located mainly in the municipality of Ylitornio, but some areas in the SE of the project belong to the town of Rovaniemi, the capital of Lapland . The distance to both municipality centres is about 50 km.

Access to the area is good with a paved road located between between Ylitornio and Rovaniemi. A local forestry road network is also present in the area. The distance to the nearest railroad station is 30km east at Muurola. A railway station is also present at Ylitornio, which is currently under upgrade for three iron projects located in the Kolari and Pajala areas in Finland and Sweden. In addition, an international airport is situated ten kilometres north of Rovaniemi.

The landscape of the area consists of forest and flat mire terrains with shallow undulating hills in places. No houses are located in the claimed area.

Property History

The area was discovered by an airborne radiometric surveys in 2008 by Areva NC. Follow-up exploration was conducted geologists who had previous Geological Survey of Finland ("GTK") experience in the area. Reconnaissance sampling and geological and radiometric mapping was started in 2008 with some follow-up work in 2009. More than 150 new, separate occurrences of high uranium and extremely high gold contents were located in bedrock. At that time, however, AREVA decided to reduce activities in Finland and subsequently Mawson purchased the property from AREVA in April 2010.

Rajapalot is a grassroots discovery made by Mawson in mid 2012. Prior to August 2012 Rajapalot was unknown and had never been sampled.


Conclusion

Rompas is an exciting new gold discovery 100% owned by Mawson.

Given the scale, tenor of mineralization and frequency of discovery in an area with only 2% outcrop we believe Rompas to be one of the most exciting exploration-stage gold discoveries in the world today.