A significant and strategic regional scale gold-cobalt discovery in mining friendly Finland
Resource on flagship Rajapalot-Rompas project represents just 20% of the 4km trend so potential to expand
Experienced management and fully financed for this season's work
What does Mawson Resources do?
Mining group Mawson (TSE:MAW) was incorporated in 2004 and the flagship property is the Rompas project in Finnish Lapland, a few kilometers south of the arctic circle, where both high-grade gold and cobalt have been discovered over a camp-scale area of more than 10 sq km.
A milestone was reached in December last year, when the company announced a maiden inferred (lower confidence) gold-cobalt estimate for the Raja and Palokas prospects.
The pit and underground constrained inferred resource was put at 424,000 ounces of gold at 3.1 grams/ton gold equivalent, while the combined inferred mineral inventory in the Palokas and Raja prospects was 482,000 ounces of gold equivalent at a grade of 2.4 g/t.
According to the company, the unconstrained maiden inventory puts Rajapalot as one of Finland’s current top three gold projects by grade and contained ounces. It is also one of only a small group of NI 43 101 cobalt resources. Currently, Mawson is focused on increasing gold and cobalt resources at Rajapalot.
It is worth noting that Finland refines half the world’s cobalt outside China, while the globe's largest cobalt refinery lies 400km to the south of Rajapalot.
Finland becoming mining hotspot
Agnico Eagle's (NYSE:AEM) Kittila mine in the country is the largest primary gold producer in Europe and just north of Mawson's ground and there are several other firms exploring in the area.
Kittila has a mine-life estimated through to 2035 and has proven and probable mineral reserves of 4.4 million ounces gold (31 million tonnes at 4.50 g/t gold) as of December 31, 2018.
The country jumped to the Number One spot in the Fraser Institute’s 2017 ranking of investment attractiveness for mining jurisdictions, up from fifth in 2016.
How's Mawson doing?
The firm has recently completed a €3 million 15,000 meter expansion drill program, from which it hopes to double the resource, according to the CEO.
Fourteen diamond drill holes have already been reported (with 28 holes still to come in forthcoming months), and the results so far look promising.
The company reported 31.3 metres at 6 g/t (gram per ton) gold equivalent at the Raja prospect. The same hole encountered 1,030 parts per million (ppm) cobalt from 298.6 meters. A second hole hit 2.9 metres at nearly 6,600 ppm cobalt from nearly 417 metres, the highest-grade cobalt intersection without gold drilled to date.
The winter drill program is focused on expanding gold and cobalt resources at the Raja and South Palokas prospects, and testing less drilled prospect areas including Terry's Hammer and Rumajärvi.
What the CEO said:
Speaking to Proactive ahead of the start of drilling in January this year, Michael Hudson noted this was a substantial drill program: "There's not many drill programs like that going in the ground at the moment," he said.
"We are testing along strike and down -dip from these resources so it's a lower risk program. We've gone through the science experiment of trying to find the gold and where is it and now the project's pivoted to this resource expansion."