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Mawson's Subsidiary SXG Drills 124.8 g/t Gold Over 3.6 Metres in 80 Metre Down Dip Step Out

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Mawson Gold's subsidiary, Southern Cross Gold (SXG), announced drilling results from the Rising Sun prospect at the Sunday Creek Project in Victoria, Australia. The deepest hole, SDDSC118, extended high-grade mineralization 80 meters down dip, with a notable intersection of 3.6 meters at 124.8 g/t gold. The hole intercepted 11 high-grade vein sets, including three new sets at depth, and achieved two of the top 10 results for Sunday Creek. Ten holes are currently being processed and analyzed, with four holes in progress. Mawson holds a 49.6% stake in SXG, valued at A$270.4 million.

Positive
  • SDDSC118 extended high-grade mineralization 80 meters down dip.
  • The hole intersected 11 high-grade vein sets, including three new sets at depth.
  • Top 10 results achieved: 0.7m @ 604.0 g/t Au and 3.6m @ 124.8 g/t Au.
  • Mawson's 49.6% stake in SXG is valued at A$270.4 million.
  • Continued high-grade discoveries at Sunday Creek project.
Negative
  • Results pending for 10 drill holes may impact short-term stock volatility.
  • Operational risks related to ongoing drilling and analysis of additional holes.
  • Market dependency on high-grade results continuation for stock stability.

Deepest Hole on Project

Three New High-grade Vein Sets at Depth

Two New Top 10 and Three New >100 g/t AuEq*m Intersections

VANCOUVER, BC / ACCESSWIRE / June 13, 2024 / Mawson Gold Limited ("Mawson" or the "Company") (TSXV:MAW)(Frankfurt:MXR)(PINKSHEETS:MWSNF) announces Southern Cross Gold Ltd. ("Southern Cross Gold" or "SXG") has released results from SDDSC118 from the Rising Sun prospect at the 100%-owned Sunday Creek Project in Victoria, Australia (Figures 1 - 5).

SDDSC118 is the deepest hole on the project, extending high grade mineralization 80 m down dip (3.6 m @ 124.8 g/t Au) and intersecting multiple high-grade structures including three new vein sets at depth. The hole recorded three additional > 100 g/t AuEq x m intersections and two top 10 results for Sunday Creek.

Highlights:

  • SDDSC118 is the deepest hole on the project and extended mineralisation 80 m down dip with 3.6 m @ 124.8 g/t Au from 1,120.4 m (1,050 m vertically below surface).
  • The hole intercepted 11 high-grade vein sets, including three new vein sets at depth with three additional > 100 g/t AuEq x m intersections and two top 10 results for Sunday Creek (0.7 m @ 604.0 g/t Au and 3.6 m @ 124.8 g/t Au) and included seven assayed intervals of > 50 g/t Au (with three individual assays >900 g/t Au), and four assayed intervals > 2% Sb (up to 19.4% Sb). Drill highlights include:
    • 3.1 m @ 39.9 g/t AuEq (38.2 g/t Au, 0.9% Sb) from 452.5 m, including:
      • 1.4 m @ 87.9 g/t AuEq (84.6 g/t Au, 1.7% Sb) from 454.2 m
    • 0.4 m @ 71.2 g/t AuEq (70.3 g/t Au, 0.5% Sb) from 475.4 m, including:
      • 0.1 m @ 235.2 g/t AuEq (235.0 g/t Au, 0.1% Sb) from 475.4 m
    • 0.7 m @ 604.0 g/t AuEq (604.0 g/t Au, 0.0% Sb) from 555.7 m, including:
      • 0.5 m @ 979 g/t AuEq (979 g/t Au, 0.0% Sb) from 555.7 m
    • 1.3 m @ 43.3 g/t AuEq (42.5 g/t Au, 0.4% Sb) from 675.1 m, including:
      • 0.3 m @ 201.9 g/t AuEq (200.0 g/t Au, 1.0% Sb) from 675.1 m
    • 3.6 m @ 124.8 g/t AuEq (124.8 g/t Au, 0.0% Sb) from 1,120.4 m, including:
      • 0.2 m @ 1,200 g/t AuEq (1,200 g/t Au, 0.1% Sb) from 1,120.4 m
      • 0.2 m @ 1,030 g/t AuEq (1,030 g/t Au, 0.0% Sb) from 1,121.0 m
    • 0.2 m @ 36.0 g/t AuEq (36.0 g/t Au, 0.0% Sb) from 1,180.8 m
  • Ten drill holes at Sunday Creek at are being processed and analysed, with four holes in progress.
  • Mawson owns 96,590,910 shares of SXG (49.6%), valuing its stake at A$270.4 million (C$247.0 million) based on SXG's closing price on June 12, 2024 AEST.

Michael Hudson, Mawson Interim CEO and Executive Chairman, states: "At Sunday Creek, the trend is your friend, with drill hole after drill hole continuing to demonstrate continuity, extremely high-grades and new discoveries. This time drill hole SDDSC118 demonstrated continuity across multiple structures, while defining three new vein sets and drilling the deepest, and one of the best, intersections at Sunday Creek with 3.6 m @ 124.8 g/t Au from 1,120.4 m, in a large 80 m down dip extension below previously defined mineralization.

"Additionally, the hole recorded two top 10 results for Sunday Creek (0.7 m @ 604.0 g/t Au as well as the interval above). The tenor of mineralization is becoming higher grade as we go to depth with the tantalizing prospect that the best is still yet to come at Sunday Creek."

Drill Hole Discussion

One drill hole (SDDSC118) is reported from the Rising Sun prospect. The hole was designed to test the hanging wall position of one high-grade vein set and drill to depth further east than tested previously. The hole intercepted 11 mineralized structures, eight of which are high-grade.

SDDSC118 is the deepest hole on the project and extended high grade mineralization 80 m down dip (3.6 m @ 124.8 g/t AuEq). The hole intersected multiple high-grade structures, including seven assayed intervals of > 50 g/t Au (up to 1,200 g/t Au), and four assayed intervals > 2% Sb (up to 19.4% Sb), with three additional > 100 g/t AuEq x m intersections and two top 10 results for Sunday Creek (0.7 m @ 604.0 g/t Au and 3.6 m @ 124.8 g/t AuEq). Three new vein sets were defined, and mineralization was extended 80 m below the exploration target.

The hole traversed from the hanging wall to footwall of the dyke/breccia host and provided continuity information in the plane of the eight known vein sets with three new discoveries at depth including 3.6 m @ 124.8 g/t AuEq (including 0.8 m @ 558.2 g/t AuEq) from 1,120.4 m and 0.2 m @ 36.0 g/t AuEq from 1,180.8 m.

High-grade continuity is best demonstrated in vein set RS15 (Figure 3) where SDDSC118 drilled 0.7 m @ 604.0 g/t AuEq (604.0 g/t Au, 0.0% Sb) from 555.7 m (estimated true width "ETW" 0.4 m) including 0.5 m @ 979.0 g/t AuEq from 555.7 m. This intersection was located 54 m down-plunge of the previously reported SDDSC100 (4.7 m @ 76.6 g/t AuEq) and 42 m up-plunge from the previously reported SDDSC082 (4.3 m @ 72.3 g/t AuEq), increasing confidence in the definition of the high-grade core of RS15.

Highlights from SDDSC118 include:

  • 3.1 m @ 39.9 g/t AuEq (38.2 g/t Au, 0.9% Sb) from 452.5 m, including:
    • 1.4 m @ 87.9 g/t AuEq (84.6 g/t Au, 1.7% Sb) from 454.2 m
  • 0.3 m @ 12.6 g/t AuEq (12.0 g/t Au, 0.3% Sb) from 459.3 m
  • 0.4 m @ 71.2 g/t AuEq (70.3 g/t Au, 0.5% Sb) from 475.4 m, including:
    • 0.1 m @ 235.2 g/t AuEq (235.0 g/t Au, 0.1% Sb) from 475.4 m
  • 0.2 m @ 8.5 g/t AuEq (7.4 g/t Au, 0.6% Sb) from 487.6 m
  • 0.4 m @ 12.7 g/t AuEq (12.6 g/t Au, 0.1% Sb) from 502.2 m
  • 0.4 m @ 46.3 g/t AuEq (44.8 g/t Au, 0.8% Sb) from 540.4 m
  • 0.7 m @ 604.0 g/t AuEq (604.0 g/t Au, 0.0% Sb) from 555.7 m, including:
    • 0.5 m @ 979.0 g/t AuEq (979.0 g/t Au, 0.0% Sb) from 555.7 m
  • 0.1 m @ 12.2 g/t AuEq (12.2 g/t Au, 0.0% Sb) from 568.6 m
  • 4.7 m @ 4.6 g/t AuEq (3.5 g/t Au, 0.6% Sb) from 620.4 m, including:
    • 1.4 m @ 11.0 g/t AuEq (9.1 g/t Au, 1.0% Sb) from 621.2 m
  • 0.6 m @ 5.0 g/t AuEq (4.0 g/t Au, 0.5% Sb) from 624.6 m
  • 0.1 m @ 193.2 g/t AuEq (193.0 g/t Au, 0.1% Sb) from 627.2 m
  • 0.4 m @ 11.7 g/t AuEq (11.0 g/t Au, 0.4% Sb) from 632.7 m
  • 0.1 m @ 27.4 g/t AuEq (26.7 g/t Au, 0.4% Sb) from 657.9 m
  • 0.2 m @ 28.7 g/t AuEq (23.4 g/t Au, 2.8% Sb) from 663.4 m
  • 0.5 m @ 6.3 g/t AuEq (5.1 g/t Au, 0.6% Sb) from 671.5 m
  • 1.3 m @ 43.3 g/t AuEq (42.5 g/t Au, 0.4% Sb) from 675.1 m, including:
    • 0.3 m @ 201.9 g/t AuEq (200.0 g/t Au, 1.0% Sb) from 675.1 m
  • 0.4 m @ 10.0 g/t AuEq (10.0 g/t Au, 0.0% Sb) from 711.6 m
  • 0.8 m @ 6.5 g/t AuEq (6.5 g/t Au, 0.0% Sb) from 970.6 m
  • 3.6 m @ 124.8 g/t AuEq (124.8 g/t Au, 0.0% Sb) from 1,120.4 m, including:
    • 0.8 m @ 558.2 g/t AuEq (558.2 g/t Au, 0.0% Sb) from 1,120.4 m, including
      • 0.2 m @ 1,200 g/t AuEq (1,200 g/t Au, 0.1% Sb) from 1,120.4 m
      • 0.2 m @ 1,030 g/t AuEq (1,030 g/t Au, 0.0% Sb) from 1,121.0 m
  • 0.2 m @ 36.0 g/t AuEq (36.0 g/t Au, 0.0% Sb) from 1,180.8 m

Pending Results and Update

Ten holes (SDDSC114W1, 119, 119W1, 120, 121, 121W1, 122, 123, 124, 125) are currently being processed and analyzed, with four holes (SDDSC122W1, 050W1, 126, 127) in progress (Figures 1 and 2).

Further Information

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG website at www.southerncrossgold.com.au.

Table 1: Top 10 results from Sunday Creek, showing two intersections in SDDSC118 reported here.

No upper gold grade cut is applied in the averaging and intervals are reported as drill thickness. During future Mineral Resource studies, the requirement for assay top cutting will be assessed.

Figures 1 to 5 show project location, plan and longitudinal views of drill results reported here and Tables 2 to 4 provide collar and assay data. The true thickness of the mineralized intervals reported individually as estimated true widths ("ETW"), otherwise they are interpreted to be approximately 55-65% of the sampled thickness for other reported holes. Lower grades were cut at 1.0 g/t AuEq lower cutoff over a maximum width of 2 m with higher grades cut at 5.0 g/t AuEq lower cutoff over a maximum of 1 m width unless specified.

Technical Background and Qualified Person

The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services ("On Site") which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

MAW considers that both gold and antimony that are included in the gold equivalent calculation ("AuEq") have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade global underground mine and a top 5 global producer of antimony.

MAW considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd in its Mandalay Technical Report, 2024 dated March 28, 2024. The gold equivalence formula used by Mandalay Resources was calculated using Costerfield's 2023 production costs, using a gold price of US$1,900 per ounce, an antimony price of US$12,000 per tonne and 2023 total year metal recoveries of 94% for gold and 89% for antimony, and is as follows:

π΄π‘’πΈπ‘ž = 𝐴𝑒 (𝑔/𝑑) + 1.88 × π‘†π‘ (%).

Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a π΄π‘’πΈπ‘ž = 𝐴𝑒 (𝑔/𝑑) + 1.88 × π‘†π‘ (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.

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

Mawson Gold Limited has distinguished itself as a leading Nordic exploration company. Over the last decades, the team behind Mawson has forged a long and successful record of discovering, financing, and advancing mineral projects in the Nordics and Australia. Mawson holds the Skellefteå North gold discovery and a portfolio of historic uranium resources in Sweden. Mawson also holds 49.6% of Southern Cross Gold Ltd. (ASX:SXG) which owns or controls two high-grade, historic epizonal goldfields in Victoria, Australia, including the exciting Sunday Creek Au-Sb discovery.

About Southern Cross Gold Ltd (ASX:SXG)

Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle joint venture in Victoria, Australia, and a strategic 6.7% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which grants SXG a Right of First Refusal over a 3,300 square kilometer tenement package held by NAG in Victoria.

On behalf of the Board,
"Michael Hudson"
Michael Hudson, Interim CEO and Executive Chairman

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, Mawson's expectations regarding its ownership in Southern Cross Gold, 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 on the Company's business, risks related to negative publicity with respect to the Company or the mining industry in general; exploration potential being conceptual in nature, there being insufficient exploration to define a mineral resource on the Australian-projects owned by SXG, and uncertainty if further exploration will result in the determination of a mineral resource; 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 SEDAR+. 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: Sunday Creek plan view showing selected results from SDDSC118 reported here (blue highlighted box), selected prior reported drill holes and pending holes.

Figure 2: Sunday Creek longitudinal section across A-B in the plane of the dyke breccia/altered sediment host (see Figure 1) looking towards the north (striking 236 degrees) showing mineralised veins sets. Showing SDDSC118 reported here (blue highlighted box) with selected intersections and prior reported drill holes. Three new veins sets identified at depth shown.

Figure 3: Sunday Creek longitudinal section across C-D in the plane of the modelled vein set RS15, looking towards the north-east. Showing SDDSC118 (blue highlighted box) reported here and prior reported drill holes.

Figure 4: Sunday Creek regional plan view showing LiDAR, soil sampling, structural framework, regional historic epizonal gold mining areas and broad regional areas (Tonstal, Consols and Leviathan) tested by 12 holes for 2,383 m drill program. The regional drill areas are at Tonstal, Consols and Leviathan located 4,000-7,500 m along strike from the main drill area at Golden Dyke- Apollo.

Figure 5: Location of the Sunday Creek project, along with SXG's other Victorian projects and simplified geology.

Table 1: Drill collar summary table for recent drill holes in progress.

Hole_ID

Depth (m)

Prospect

East GDA94_Z55

North GDA94_Z55

Elevation

Azimuth

Plunge

SDDSC111

496.7

Apollo

331291

5867823

316.8

270

-38

SDDSC112

490.9

Apollo

331464

5867865

333

267

-42

SDDSC112W1

766.4

Apollo

331329

5867859

200

267

-42

SDDSC113

905.5

Rising Sun

330511

5867853

296.6

67.5

-63.5

SDDSC114

878.6

Rising Sun

330464

5867914

286.6

82

-58

SDDSC115

17.6

Rising Sun

330464

5867912

286.6

83

-58.5

SDDSC115A

923.6

Rising Sun

330464

5867912

286.7

83

-59

SDDSC116

682.6

Rising Sun

331465

5867865

333.3

272.5

-41.5

SDDSC117

1101

Rising Sun

330510

5867852

296.5

70.5

-64.5

SDDSC118

1246

Rising Sun

330464

5867912

286.6

80

-64.5

SDDSC119

854.1

Apollo

331498

5867858

336.7

272.5

-45.2

SDDSC120

1022.5

Rising Sun

331110

5867976

319.5

266.5

-55

SDDSC121

588.7

Rising Sun

330510

5867852

296.6

72

-63

SDDSC122

889.89

Rising Sun

330338

5867860

267.7

74

-62

SDDSC114W1

625.1

Rising Sun

330464

5867914

286.6

82

-58

SDDSC119W1

643

Apollo

331498

5867858

336.7

272.5

-45.2

SDDSC123

124.3

Apollo

331499

5867859

337

276

-52

SDDSC124

969.3

Apollo

331499

5867859

337

274

-52.2

SDDSC121W1

953.4

Rising Sun

330510

5867852

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FAQ

What is the significance of Mawson's drilling results at Sunday Creek?

Mawson's subsidiary Southern Cross Gold reported high-grade gold intersections, including 3.6 meters at 124.8 g/t gold, indicating extended mineralization and new vein sets at depth.

What were the top results from Mawson's SDDSC118 drill hole?

The top results from SDDSC118 include 0.7 meters at 604.0 g/t gold and 3.6 meters at 124.8 g/t gold.

How many high-grade vein sets were intercepted in the SDDSC118 hole?

The SDDSC118 hole intercepted 11 high-grade vein sets, including three new sets at depth.

What is the value of Mawson's stake in Southern Cross Gold?

Mawson's 49.6% stake in Southern Cross Gold is valued at A$270.4 million.

What is the depth extension achieved by the SDDSC118 hole at Sunday Creek?

The SDDSC118 hole extended high-grade mineralization by 80 meters down dip.

MAWSON GOLD LTD

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