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Mining

Mawson Resources shares boosted by successful winter drill results in Finland

The key takeaway included that drilling confirmed the presence of a large gold-mineralized hydrothermal system within a 4.5 sq km area.

Mawson Resources Ltd (TSX:MAW) said after a successful winter drill program, which confirmed a gold system, planning was now underway for the next program starting later this year or early next.

Shares in the mining group added 8.82% in Toronto at $0.37.

Summarising the findings from the Rajapalot project in northern Finland, the group said 55 diamond drill holes for 11,056 metres and 1,801 base-of-till (BOT) drill holes were completed.

Mike Hudson, chairman and chief executive, said: "The winter drill program confirmed the presence of a large, gold-mineralized hydrothermal system at Rompas-Rajapalot, delivering one of Finland's most significant gold discoveries.

"The high hit rate of gold over regional-scale areas, the discovery of multiple high grade mineralized bodies and an extensive gold-footprint provided by BOT drilling, all in the first year of systematic, yet regional scale drill testing is impressive."

The key takeaways are that drilling confirmed the presence of a large gold-mineralized hydrothermal system within a 4.5 sq km area.

But that tested only 5% of the 27km strike of the interpreted host sequence in the Rajapalot area.

In addition, significantly 28% of the drill holes recorded greater than 5 g/t (grams per ton)- metre intersections, while 42% drilled in the Rajapalot project hit significant gold, greater than 1g/t- metre.

The total average drill depth on the project remains shallow at 109 metres.

Highlight assays included 10 metres at 11.6 g/t gold from 110.2 metres, and 2.9 metres at 1 g/t gold from 135.7 metres.

There was also 3m at 5.3 g/t gold from 143.9 metres at the Palokas prospect.