$0.375
TSX:MAW
$0.270
FSE:MXR
$0.280
PK:MWSNF
Webcast January 30, 2020

Australia

Overview

In late January 2020 Mawson aanounced a multifaceted agreement with major landholder Nagambie Resources Limited (NAG:ASX) (“Nagambie”) in the Victorian Goldfields of Australia. Mawson’s technical team are consistently reviewing opportunities with a view to generate value for Mawson shareholders through project acquisition, exploration and divestment. The Company believes its Finnish assets and newly acquired Australian assets are a natural fit, bringing together a high-quality gold exploration portfolio in two safe and mining friendly jurisdictions.

Interview on acquisition with Gerardo del Real here:

http://www.resourcestockdigest.com/archives/interviews/mawson-resources-tsx-maw-ceo-michael-hudson-on-entry-into-tier-1-goldfields-in-central-victoria-australia-via-agreement-with-nagambie-resources-were-in-the-heart-of-the-hottest-ground-in-the-world/

Nagambie and Mawson have signed three binding Letter Agreements with respect to the above-noted transactions (collectively, the “Transaction”). The execution of final definitive agreements is targeted for on or before 10 March 2020.

  • Mawson to become a Cornerstone Supportive Shareholder in Nagambie
  • Mawson to Purchase 100% of Nagambie’s Clonbinane Tenements
  • Option and Joint Ventures


Mawson will subscribe for 50.0 million Nagambie Shares which will represent 10.0% of the total issued Nagambie Shares on closing of the Transaction (the “Closing Date”). The Nagambie Shares will be subject to trading restrictions for a period of two years from the Closing Date.

Provided Mawson continues to hold the original 50.0 million Nagambie Shares, Mawson will have a right of first refusal to take up or match any proposals being considered by Nagambie over its 2,000 square kilometres of tenements in the Waranga Domain. The tenement package provides Mawson with a runway of potential new projects and includes the Nagambie Mine, which was mined by Perseverance Corporation, who subsequently bought and mined the heap leach operation at Fosterville. Nagambie will continue to explore in the Waranga Domain using its crustal scale modelling, induced polarization geophysics and drilling to provide Mawson with exposure to potential new projects within a vast 2,000 square kilometre portfolio.

As consideration for the 50.0 million Nagambie Shares, Nagambie will receive 8.5 million Mawson Shares, which will represent approximately 4.7% of total issued Mawson Shares (after including the 1.0 million Mawson Shares from the Clonbinane acquisition). The Mawson Shares will be subject to trading restrictions and will be released from such trading restrictions in 25% tranches at intervals of 4 months, 10 months, 16 months and 22 months from the Closing Date.

Mawson will acquire 100% of the shares in Clonbinane Goldfield Pty Ltd (“CGPL”), a 100% subsidiary of Nagambie and the holder of 62 square kilometres of mineral tenements at Clonbinane, for consideration to Nagambie of A$500,000 cash and 1.0 million Mawson Shares. Mawson will also pay Nagambie A$28,000 to replace environmental bonds. The 1.0 million Mawson Shares will be subject to trading restrictions from the Closing Date and will be released in tranches of 250,000 Mawson Shares at intervals of 4 months, 10 months, 16 months and 22 months from close.

Clonbinane is a shallow orogenic (or epizonal) Fosterville-style deposit located 56 kilometres north of Melbourne. Small scale mining has been undertaken in the project area since the 1880s with total production being reported as 41,000oz gold at a grade of 33g/t gold. Gold mineralization is hosted within, or proximal to, dykes with mineralization continuing along structures that extend into the sedimentary country rock. The diorite dyke and historic working trend continues for 11 kilometres and remains undrilled.

Two small drill campaigns have tested the Clonbinane mineralized system to 40-100 metres vertical depth over an 800 metre strike. In 1986, Ausminde Pty Ltd and Ausminde Holdings Pty Ltd (collectively “Ausminde”) were granted mineral tenure at Clonbinane. Ausminde’s completed soil and rock chip sampling and undertook RC drilling in 1993 (29 RC drill holes). Beadell Resources Limited subsequently drilled at Clonbinane in 2008 (30 RC holes with 7 diamond drill tails). Drilling results from both these programs greater than 5g/t gold are shown in Table 1. None of the drill data has been independently verified at this time. Compilation of available data and 3D geologic modeling are in progress. The true thickness of the mineralized intervals is not known at this stage. Selected drill results with a 0.5g/t gold lower cut from these two drill programs at Clonbinane included:

  • 17 metres at 7.0g/t gold and 0.8% antimony from 66 metres (VCRC022),
  • 38 metres at 2.8g/t from 15 metres (VCRC011),
  • 27 metres at 3.7g/t gold and 0.46% antimony from 3 metres (CRC013),
  • 2 metres at 42.5g/t gold and 1.0% antimony from 70 metres (VCRC022),
  • 10 metres at 7.0g/t gold from 42 metres (VCRC011), and
  • 5 metres at 11.2g/t gold and 0.78% antimony from 67 metres (VCRC007).

Clonbinane is open at depth and along strike and is considered a high value exploration project with affinity to the Fosterville Mine. Mawson will compile all historic mining and exploration data into a 3D model, and look to apply large scale, deeper seeking geophysical methods to identify large mineral systems below 40-100 metres depth.

Mawson will have the option to earn an up to 70% joint venture interest in each of Nagambie’s Redcastle and Doctor’s Gully gold properties located in Victoria, Australia by incurring the following exploration expenditures on the each of the properties: A$100,000 in the first year and an additional A$150,000 in year 2 to earn 25%, an additional A$250,000 in year 3 to earn 50% and an additional A$500,000 by year 5 to earn 70%. Once Mawson earns 70% a joint venture between the parties will be formed. Nagambie may then contribute its 30% share of further exploration expenditures or, if it chooses to not contribute, dilute its interest. Should Nagambie’s interest be reduced to less than 5.0%, it will be deemed to have forfeited its interest in the joint venture to Mawson in exchange for a 1.5% net smelter return royalty (“NSR”) on gold revenue. Should Nagambie be granted the NSR, Mawson will have the right to acquire the NSR for A$4,000,000 per property.

  • Redcastle Option and Joint Venture
  • Doctors Gully Option and Joint Venture

Redcastle is a rural locality in central Victoria 45 kilometres east of Bendigo and 18 kilometres north of Heathcote. Redcastle was discovered in 1859, and named the Balmoral Diggings. ‘Redcastle’ a name of Scottish origin, displaced Balmoral sometime later. Underground mining continued until 1902.

Redcastle is a shallow orogenic (or epizonal) Fosterville-style historic high-grade orefield held within a tenure area of 51 square kilometres. It is located 7 kilometres along strike from Mandalay Resources’ Costerfield mine and on a parallel north-south structure, 24 kilometres east of Kirkland Lake Gold’s Fosterville mine. The northern margin of the claim is surround by a Newmont Corporation exploration licence.

There are few historic reliable production records of the early mining at Redcastle, however very high grades of gold and associated stibnite were recorded from nearly all mines, which were only worked to an average of 55 metres depth within a 5 kilometre by 4 kilometre area. The Redcastle Gold Mining Company is reported to have produced 35,000 ounces of gold from Clarke’s Reef at a grade of 33g/t gold.

Today six principal prospects or target areas have been identified at Redcastle: Reservoir, Mullocky, Laura, RFZ, Why Not and Pioneer. An RC drill program in 2007-08 by Nagambie totaled 239 holes for 10,169 metres. The average depth of drilling was 42.6 metres with the deepest hole being 81.0 metres and the shallowest hole being 5 metres deep. Of the 14 prospects drilled, 10 intersected gold greater than 1.0g/t gold in 1 metre sample intervals. Composite intersections with an average weighted grade greater than 2.0 ppm gold, using a 0.5g/t gold cut-off are presented in Table 2. None of the drill data have been independently verified at this time. Compilation of available data and 3D geologic modeling are in progress. The true thickness of the mineralized intervals is not known at this stage. Selected drill results from this drill program at Redcastle included: 10 metres at 2.5g/t gold from 22 metres (RRC26), 2 metres at 10.7g/t gold from 39 metres (RRC41) and 2 metres at 6.3g/t gold from 26 metres (PR16).

Previous workers have exclusively focused on heap leachable near-surface gold at Redcastle and the project remains untested to depth. Mawson will compile all historic mining and exploration data into a 3D model, and look to apply large scale, deeper seeking geophysical methods to identify large mineral systems below 50 metres depth.

Doctor’s Gully is a shallow orogenic (or epizonal) Fosterville-style historic mining district. The Doctor’s Gully retention license covers a smaller area of 4 square kilometres with 21 historic gold showings and mines. In modern times it has been mined for oxide gold. It is located 13 kilometres northeast of Redcastle.

Gold Mines of Kalgoorlie (“GMK”, also working as Metals Exploration Ltd) mapped and drilled Doctor’s Gully in 1988. A total of 1,734 metres of RC drilling was conducted in 29 holes across the prospect. The results from this drill program have never been followed up. Composite intersections are presented in Table 3. None of the drill data has been independently verified at this time. Compilation of available data and 3D geologic modeling are in progress. The true thickness of the mineralized intervals is not known at this stage. Better drill intersections from this program included 7 metres @ 4.1g/t gold from 40 metres (WHP7) and 8 metres @ 3.2g/t gold from 40 metres (WHP26) and 1 metre @ 14.6g/t gold from 62 metres (WHP26).

Like Redcastle, previous workers have exclusively focused on heap leachable near-surface gold at Doctors Gully and the project remains untested at depth. Mawson will compile all historic mining and exploration data into a 3D model, and look to apply large scale, deeper seeking geophysical methods to explore for a large mineral system below 50 metres depth.