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Mawson Drills 15.2 metres at 3.7 g/t Gold from Surface in First Hole at Sunday Creek in Victoria, Australia

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Mawson Gold Limited has reported promising assay results from its initial drill hole at the Sunday Creek project in the Victorian Goldfields, Australia. The diamond drillhole MDDSC001 yielded 15.2 meters of 3.7 g/t gold from surface, including a notable interval of 0.6 meters at 17.9 g/t gold. This project has historically significant production and is now seeing renewed exploration with plans for continued drilling. The company is mobilizing a second drill rig to expand the defined gold mineralized system. CEO Michael Hudson highlighted the strong start and the potential for increased project scale.

Positive
  • 15.2 meters @ 3.7 g/t gold intersected, including 0.6 meters at 17.9 g/t gold.
  • Successful initial drilling confirms previous findings from reverse circulation drilling.
  • Mobilization of a second drill rig to expand the project indicates strong confidence in findings.
  • High core recovery rate of nearly 100% shows effective drilling operations.
Negative
  • None.

VANCOUVER, BC / ACCESSWIRE / October 7, 2020 / Mawson Gold Limited ("Mawson" or the "Company") (TSX:MAW)(Frankfurt:MXR)(OTC PINK:MWSNF) is pleased to announce assay results from the Company's first drill hole from the 100%-owned Sunday Creek project. Drilling is part of an ongoing 5 kilometre program in the Victorian Goldfields of Australia. The project is an epizonal-style gold prospect located 56 kilometres north of Melbourne and contained with 19,365 hectares of both granted and applied for exploration tenements.

Highlights:

  • Diamond drillhole MDDSC001 intersected 15.2 metres @ 3.7 g/t gold from surface including 0.6 metres at 17.9 g/t gold from 10.4 metres (Tables 1-2, Figures 1-2) while testing unmined extensions of the historic Apollo mine area;
  • This is the first diamond drilling of this mineralized horizon confirming the tenor of gold mineralization found within earlier reverse-circulation drill results, using orientated HQ-sized core;
  • Historic gold mining between 1880-1920 at Sunday Creek occurred over a greater than 11-kilometre trend. Drilling during 1990-2000s focussed on shallow, previously mined surface workings, covering an area of 100 metres in width, 800 metres length but, only to 80 metres depth. As such, the entire field remains open along strike and to depth;
  • Three initial drill holes (MDDSC001-003) have been completed at the Sunday Creek gold project in the Victorian Goldfields for 345 metres of drilling. Given the intensity, style and grade of mineralization observed in this drilling, a second drill-rig will return to Sunday Creek this week to continue to define the gold mineralized system to build volume and scale.

Mr. Hudson, Chairman and CEO, states, "A strong start to our initial drilling in Australia with good gold grades intersected from surface at our 100%-owned epizonal gold project at Sunday Creek. This result confirms the tenor of gold-mineralization found in poorly located reverse circulation drilling from the 1990s and tested what appears to be an unmined area immediately from the surface. Our drilling has opened up this goldfield once again, and given our developing understanding of the intensity, style, scale and grade of mineralization, we have re-mobilized a second rig back to Sunday Creek to continue to grow the project. Meanwhile one rig also continues to drill 7 days a week at the Redcastle project."

Three initial drill holes (MDDSC001-003) totaling 345 metres have now been completed at the Sunday Creek gold project in the Victorian Goldfields. The target was high-grade veining with associated mineralized halos, typical of epizonal-style gold mineralization. Given the intensity, style and grade of mineralization observed in this drilling, a drill has been remobilized back to Sunday Creek to continue to define the gold mineralized system to build volume and scale. A geophysical crew will mobilize soon to the Sunday Creek area to test the system along its strike and to depth by undertaking gradient IP, 3D IP, gravity and ground magnetics.

Mineralization at Sunday Creek is hosted in late-Silurian to early-Devonian-aged shales and siltstones containing a series of volcanic dykes of felsic-intermediate composition. Gold is concentrated in late-aged brittle structures and dominated by two styles: a fracture hosted quartz-stibnite±arsenopyrite extensional-type vein-set, and a broader zone of brittle-fault/shear hosted sulphidic mineralization with more chaotic veining and brecciation. The fracture-hosted quartz-stibnite style of veining seems to have been the focus of historical mining at Sunday Creek, while the broader fault-hosted systems appears untouched. A series of felsic dykes are known over 2.5 kilometers strike and up to 100 metres width and appear to act as a favourable host-lithology for the higher-grade gold mineralization.

Technical and Environmental Background

The true thickness of the mineralized interval is interpreted to be approximately 70% of the sampled thickness. Gold-only intersections are reported with a lower-cut of 0.5 g/t gold over a 1 metre width. No upper cut-off was applied.

A drill rig from drilling contractor Starwest Pty Ltd was used in the drill program. Core diameter was HQ (63.5 mm) and oriented. Core recoveries are excellent and average close to 100% in both oxidized and fresh rock. After photographing and logging in Mawson's core logging facilities in Nagambie, core intervals were diamond sawn in half by Mawson personnel. Half core is retained for verification and reference purposes. Analytical samples are transported to On Site Laboratory Services' Bendigo facility which operates under both an ISO 9001 and NATA quality system. Samples were prepared and analyzed for gold using the fire assay technique (25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis aqua regia digest and ICP-MS methods. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks within interpreted mineralized rock. In addition, On Site inserts blanks and standards into the analytical process.

Qualified Person

Mr. Michael Hudson (FAusMM), Chairman and CEO for the Company, is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure or Mineral Projects and has prepared or reviewed the preparation of the scientific and technical information in this press release.

About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)

Mawson Gold Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold project in Finland. The Australian gold acquisition provides Mawson with a strategic and diversified portfolio of high-quality gold exploration assets in two safe jurisdictions.

On behalf of the Board,



"Michael Hudson"

Michael Hudson, Chairman & CEO

Further Information
www.mawsongold.com
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary,
+1 (604) 685 9316,
info@mawsongold.com

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, timing and successful completion of the geophysics and drill programs planned at Redcastle and Sunday Creek, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, the potential impact of epidemics, pandemics or other public health crises, including the current outbreak of the novel coronavirus known as COVID-19 on the Company's business, planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Figure 1: Plan location of the Sunday Creek Project showing 11 km trend of historic mines (bottom left) and location of current diamond drill with historic mines and drilling (top).

Figure 2: Annotated HQ drill core (63.5mm diameter) showing downhole depth and gold grades. Mineralization starts from surface and extends down to 15.2 metres down hole depth. Gold is hosted in both sediments from 0-10.42 metres and felsic dyke from 10.42-15.2 metres. Core is oxidized and weathered. High grade gold mineralization, as shown by other drillholes at Sunday Creek, continues to depth below the surface weathering.

Table 1: Collar information from Mawson's drilling at the Sunday Creek Project
Coordinate Reference System GDA94, Zone 55 (EPSG:28355)

Hole_Id

Hole_diam

Easting

Northing

Dip

Azimuth

RL_m

EOH_m

Date Reported

MDDSC001

HQ

331079.6

5867769

-55

279

318.1

67

Here

MDDSC002

HQ

331084.7

5867771

-65

250

317.6

150.3

TBA

MDDSC003

HQ

330776.3

5867892

-65

240

294.9

127.7

TBA

Table 2: Individual assay data from drill holes reported in this press release.

Hole_Id

From (m)

To (m)

Length (m)

Sample ID

Gold g/t

MDDSC001

0

0.45

0.45

61000101

2.52

MDDSC001

0.45

1.2

0.75

61000102

0.75

MDDSC001

1.2

2.2

1

61000103

1.11

MDDSC001

2.2

2.95

0.75

61000104

9.38

MDDSC001

2.95

3.2

0.25

61000105

3.12

MDDSC001

3.2

3.68

0.48

61000106

2.00

MDDSC001

3.68

4.5

0.82

61000107

4.53

MDDSC001

4.5

5.3

0.8

61000108

2.01

MDDSC001

5.3

5.95

0.65

61000109

0.70

MDDSC001

5.95

6.1

0.15

61000110

15.80

MDDSC001

6.1

6.37

0.27

61000111

0.82

MDDSC001

6.37

6.63

0.26

61000112

0.54

MDDSC001

6.63

7.65

1.02

61000113

0.78

MDDSC001

7.65

8.3

0.65

61000114

5.73

MDDSC001

8.3

9

0.7

61000115

3.95

MDDSC001

9

10

1

61000116

2.03

MDDSC001

10

10.12

0.12

61000117

3.55

MDDSC001

10.12

10.42

0.3

61000118

2.70

MDDSC001

10.42

11

0.58

61000119

17.90

MDDSC001

11

12

1

61000121

7.43

MDDSC001

12

13

1

61000122

2.66

MDDSC001

13

14

1

61000123

0.76

MDDSC001

14

14.9

0.9

61000124

3.40

MDDSC001

14.9

15.1

0.2

61000125

3.65

MDDSC001

15.1

15.2

0.1

61000126

3.20

MDDSC001

15.2

16.2

1

61000127

0.15

MDDSC001

16.2

17.2

1

61000128

0.05

MDDSC001

17.2

18.2

1

61000129

<0.01

MDDSC001

18.2

19.2

1

61000130

<0.01

MDDSC001

19.2

20.2

1

61000131

<0.01

MDDSC001

20.2

21.2

1

61000132

<0.01

MDDSC001

21.2

22.2

1

61000133

0.01

MDDSC001

22.2

23.2

1

61000134

0.05

MDDSC001

23.2

24.2

1

61000135

0.19

MDDSC001

24.2

25.2

1

61000136

0.20

MDDSC001

25.2

26.2

1

61000137

<0.01

MDDSC001

26.2

27.2

1

61000138

0.01

MDDSC001

27.2

28.2

1

61000139

0.05

MDDSC001

28.2

29.2

1

61000141

0.08

MDDSC001

29.2

30.2

1

61000142

<0.01

MDDSC001

30.2

31.2

1

61000143

<0.01

MDDSC001

31.2

32.2

1

61000144

0.03

MDDSC001

32.2

33.2

1

61000145

0.01

MDDSC001

33.2

34.05

0.85

61000146

0.01

MDDSC001

34.05

34.85

0.8

61000147

0.01

MDDSC001

34.85

35.1

0.25

61000148

0.06

MDDSC001

35.1

36.1

1

61000149

0.04

MDDSC001

36.1

36.5

0.4

61000150

0.11

MDDSC001

36.5

37.35

0.85

61000151

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FAQ

What are the latest assay results from Mawson Gold Limited's Sunday Creek project (MWSNF)?

Mawson Gold Limited reported 15.2 meters at 3.7 g/t gold from the diamond drillhole MDDSC001.

How many drill holes have been completed at the Sunday Creek project (MWSNF)?

Three initial drill holes (MDDSC001-003) totaling 345 meters have been completed.

What is the significance of the drilling results at Sunday Creek for Mawson Gold Limited (MWSNF)?

The drilling results confirm the presence of high-grade gold mineralization, suggesting significant potential for the project.

What drilling plans does Mawson Gold Limited have for the Sunday Creek project (MWSNF)?

The company plans to continue drilling with a second rig to further define the gold mineralized system.

Where is the Sunday Creek project located (MWSNF)?

The Sunday Creek project is located 56 kilometers north of Melbourne, Australia.

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