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Mawson's Subsidiary SXG Reports More High Grade Drilling Including 3.4 meters at 24.8 g/t AuEq at Sunday Creek, Victoria, Australia

Monday, 23 January 2023 06:30 AM

Mawson Gold Limited

VANCOUVER, BC / ACCESSWIRE / January 23, 2023 / Mawson Gold Limited("Mawson" or the "Company") (TSX:MAW)(Frankfurt:MXR)(OTC PINK:MWSNF) announces further high-grade gold mineralization from a step out from the most easterly extensions of Apollo at the Sunday Creek Project in Victoria (Figure 1). Sunday Creek is 100% owned by Southern Cross Gold ("SXG"), which is an ASX listed company owned 51% by Mawson. Two drill holes SDDSC051 and SDDSC052 are reported here.

Highlights:

  • 40 m step out extends strike of mineralization east, with three separate vein sets intersected in drill hole SDDSC052. Higher grade zones including:
    • 10.7 m @ 4.8 g/t AuEq (3.9 g/t Au, 0.6 %Sb) from 88.5 m
      • Including 0.3 m @ 20.2 g/t AuEq (20.2 g/t Au, 0.0 %Sb) from 88.5 m
      • Including 0.4 m @ 95.0 g/t AuEq (73.2 g/t Au, 13.8 %Sb) from 96.3 m
    • 19.5 m @ 1.9 g/t AuEq (1.7 g/t Au, 0.1 %Sb) from 166.5 m
      • Including 0.3 m @ 33.0 g/t AuEq (33.0 g/t Au, 0.0 %Sb) from 172.9 m
      • Including 0.7 m @ 6.1 g/t AuEq (3.7 g/t Au, 1.5 %Sb) from 175.9 m
    • 11.6 m @ 7.5 g/t AuEq (6.4 g/t Au, 0.7 %Sb) from 209.4 m
      • Including 3.4 m @ 24.8 g/t AuEq (21.2 g/t Au, 2.3 %Sb) from 210.2 m
  • 6 high-grade intersections >20 g/t Au with assays up to 73.2 g/t Au and 13.8% Sb (95.0 g/t AuEq).
  • Drilling of three holes is in progress at Sunday Creek at the Golden Dyke, Rising Sun and Apollo prospects, and 11 holes are being geologically processed and analyzed (Figure 2). Continual news flow expected.
  • Mawson owns 51% of SXG following SXG's recent A$16.0 million capital raise. Mawson's 93.75 million SXG shares have a market value of A$68 million (C$62 million) based on SXG's closing price on January 20, 2022.

Ivan Fairhall, Mawson CEO, states: "Sunday Creek continues to grow, this time in the eastern extent, and demonstrate continuity of the high grade structures typical of the project. The quality shines through strongly again, with grades up to 73.2 g/t Au and 13.8% Sb, and widths including 11.6 m @ 6.4 g/t Au and 0.7 % Sb within three individual mineralized structures in hole 52.

With 14 holes being drilled or analyzed, continual news flow is expected from Southern Cross providing Mawson with huge exploration exposure alongside the Skellefteå project in Sweden, and the 100% owned 1Moz AuEq Rajapalot project in Finland."

Results Discussion

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 19,365 hectares of granted exploration tenements. SXG is also the freehold landholder of 132.64 hectares that forms the key portion in and around the drilled area at the Sunday Creek Project.

Sunday Creek has a 10 km mineralized trend that extends beyond the drill area and is defined by historic workings and soil sampling which have yet to receive any exploration drilling and offers potential future upside.

Drill holes SDDSC051 and SDDSC052 were drilled as 40 m step outs to test the most easterly extensions of the project at the Apollo prospect below historic mining areas from the 1880's (Figures 2-4). The holes are located 500 m east of drillhole SDDSC050. SDDSC052 intersected three separate high-grade veins sets (Figure 4). The same three veins sets were also observed in SDDSC051, in this case with anomalous arsenic and low levels of gold, the hole was considered a near miss by SXG. The development of gold bearing zones is restricted to the 50 m to 100 m wide host dyke breccia, with near miss interactions outside of this zone now able to be identified and traced towards higher grades, such as those located in SDDSC052.

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available through the interactive Vrify 3D animations, presentations and videos all available on the on the SXG website www.southerncrossgold.com.au.

Figures 1-3 show project location and plan and longitudinal views of drill results reported here and Tables 1-3 provide collar and assay data. Holes reported here were drilled at a high angle to both the host breccia dyke and predominant NW high-grade mineralization trend and therefore the true thickness of the mineralized interval is interpreted to be approximately 60-70% of the sampled thickness. Lower grades cut at 0.3 g/t lower cutoff over a maximum of 3 m with higher grades cut at 5.0 g/t AuEq cutoff over a maximum of 1 m.

Update on Current Drilling

Drilling with three rigs is in progress at Sunday Creek at the Golden Dyke, Rising Sun and Apollo prospects. 11 holes (SDDSC53-60, 62, 63, 65) are being geologically processed and analyzed, with three holes (SDDSC061/64/66) in drill progress (Figure 3).

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.

Gold equivalent "AuEq" for Sunday Creek is = Au (g/t) + 1.58 × Sb (%) based on assumed prices of gold US$1,700/oz Au and antimony US$8,500/metal tonne, and total year metal recoveries of 93% for gold and 95% for antimony. Given the geological similarities of the projects, this formula has been adopted to align to TSX listed Mandalay Resources Ltd Technical Report dated 25 March 2022 on its Costerfield project, which is located 54 km from Sunday Creek and which historically processed mineralization from the property.

For previously reported exploration results referenced in this news release, refer to the following:

October 27, 2021 MDDSC021

December 13, 2021 MDDSC025

March 8, 2022 MDDSC026

May 30, 2022 SDDSC033

August 9, 2022 SDDSC 039

October 4, 2022 SDDSC046

November 2, 2022 SDDSC049

December 14, 2022 SDDSC050

Gold equivalent "AuEq" for Rajapalot is AuEq = Au x 95% + Co x 87.6% / 911 based on updated assumed commodity prices of Co USD27.22/lb and Au USD1,700/oz, and includes recovery factors for Au (95%) and Co (87.6%). Refer to Mawson's Technical Report: NI 43-101 Technical Report on a Preliminary Economic Assessment of the Rajapalot Gold-Cobalt Project, Finland, which may be found under the Company's profile on SEDAR. The PEA is preliminary in nature and includes resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

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

Mawson Gold Limitedis an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with its 100% owned flagship Rajapalot gold-cobalt project in Finland, and right to earn into the Skellefteå North gold project in Sweden. Mawson also currently owns 51% of Southern Cross Gold Ltd (ASX:SXG) which in turn owns or controls three high-grade, historic epizonal goldfields covering 470 km2 in Victoria, Australia.

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 and Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which grants SXG a Right of First Refusal over a 3,300 square kilometre tenement package held by NAG in Victoria.

On behalf of the Board,

"Ivan Fairhall"

Ivan Fairhall, CEO

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

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 interest 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, including the current pandemic known as COVID-19 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 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: Location of the Sunday Creek project, along with SXG's other Victoria projects.

Mawson Gold Limited, Monday, January 23, 2023, Press release picture

Figure 2: Sunday Creek plan view showing locations of drillholes for results reported in this announcement, pending holes, and select prior reported drill holes.

Mawson Gold Limited, Monday, January 23, 2023, Press release picture

Figure 3:Sunday Creek east-west longitudinal section looking towards 000, along the trend of the dyke/structure showing pierce point locations scaled by grade x width. Also, prior select reported drillholes shown.

Mawson Gold Limited, Monday, January 23, 2023, Press release picture

Figure 4: Sunday Creek cross section (30m thickness) in plane of SDDSC052 looking towards 340 showing individual NW striking vein sets (coloured polygons) and select prior reported drillholes.

Mawson Gold Limited, Monday, January 23, 2023, Press release picture

Table 1: Drill collar summary table for drillholes reported in this announcement (including in progress).

Hole_ID

Hole Size

Depth (m)

Prospect

East GDA94_Z55

North GDA94_Z55

Elevation

Azimuth

Plunge

SDDSC050

HQ

923.7

Rising Sun

330538.6

5867885.4

295.5

77

-63.5

SDDSC051

HQ

263.5

Apollo

331191.4

5867848.00

307.4

226.5

-74.5

SDDSC052

HQ

245.4

Apollo

331191.4

5867848.00

307.4

246.8

-67.4

SDDSC053

HQ

601.9

Rising Sun

330617.0

5867890.60

299.8

78.6

-62.0

SDDSC054

HQ

285

Apollo

331180.3

5867847.90

306.6

240

-77.0

SDDSC055

HQ

522.2

Gentle Annie

330883.0

5868075.00

306.7

224.2

-60.3

SDDSC056

HQ

194

Apollo

331110.8

5867850.90

303.1

231.2

-35.0

SDDSC057

HQ

414.2

Apollo

331111.65

5867975.1

319.1

184.3

-71.1

SDDSC058

HQ

303

Golden Dyke

330534.6

5867882.1

295.9

188

-69.8

SDDSC059

HQ

641.9

Root Hog

330883

5868075

306.7

214

-75.5

SDDSC060

HQ

263.8

Golden Dyke

330534.6

5867882.1

295.9

167.3

-69.9

SDDSC061

HQ

In progress plan 650

Gentle Annie

330754.2

5868022.2

294.3

209.5

-81.7

SDDSC062

HQ

339.3

Golden Dyke

330537.1

5867883.4

295.6

199

-74.2

SDDSC063

HQ

41.1

Apollo

331292.5

5867824.6

316.4

68

-35

SDDSC064

HQ

In progress plan 940

Root Hog

331031.5

5868097.6

325.1

239.6

-69.2

SDDSC065

HQ

40.1

Apollo

331292.5

5867824.6

316.4

92

-39

SDDSC066

HQ

In progress plan 750

Apollo

331291.1

5867823.1

316.8

278.9

-57

Table 2: Tables of mineralized drill hole intersections reported from SDDSC051 and SDDSC052 using two cut-off criteria. Lower grades cut at 0.3 g/t lower cutoff over a maximum of 3 m with higher grades cut at 5.0 g/t AuEq cutoff over a maximum of 1 m.

Drill Hole

From (m)

To (m)

Width (m)

Au g/t

Sb %

AuEq g/t

SDDSC051

118.0

119.0

1.0

0.4

0.02

0.5

SDDSC052

81.9

82.2

0.3

0.4

0.00

0.4

including

88.5

88.8

0.3

20.2

0.02

20.2

SDDSC052

88.5

99.2

10.7

3.9

0.56

4.8

including

96.3

96.7

0.4

73.2

13.80

95.0

SDDSC052

145.0

146.0

1.0

0.6

0.00

0.6

SDDSC052

166.5

186.0

19.5

1.7

0.13

1.9

including

172.9

173.2

0.3

33.0

0.01

33.0

including

175.9

176.6

0.7

3.7

1.49

6.1

SDDSC052

200.9

202.0

1.1

0.5

0.01

0.5

SDDSC052

209.4

221.0

11.6

6.4

0.67

7.5

including

210.2

213.6

3.4

21.2

2.27

24.8

SDDSC052

228.0

229.0

1.0

0.5

0.00

0.5

Table 3: All individual assays reported from SDDSC051 and SDDSC052 >0.1g/t AuEq.

Drill Hole

from

to

width

Au g/t

Sb %

AuEq g/t

SDDSC051

107.4

108.4

1.00

0.21

0.00

0.21

SDDSC051

109.4

110.65

1.25

0.19

0.00

0.19

SDDSC051

118

119

1.00

0.43

0.02

0.46

SDDSC051

173.15

173.55

0.40

0.12

0.01

0.13

SDDSC051

219.88

220.2

0.32

0.14

0.00

0.15

SDDSC051

220.2

221

0.80

0.13

0.00

0.13

SDDSC051

230.65

231.2

0.55

0.14

0.00

0.14

SDDSC052

81.9

82.2

0.30

0.40

0.00

0.40

SDDSC052

88.02

88.52

0.50

0.27

0.00

0.27

SDDSC052

88.52

88.8

0.28

20.20

0.02

20.23

SDDSC052

88.8

89.1

0.30

3.04

0.00

3.04

SDDSC052

89.1

89.85

0.75

2.96

0.01

2.97

SDDSC052

89.85

90.22

0.37

2.44

0.26

2.85

SDDSC052

91.3

92.2

0.90

0.48

0.00

0.48

SDDSC052

92.2

93.2

1.00

0.32

0.00

0.32

SDDSC052

93.2

94.15

0.95

0.09

0.01

0.10

SDDSC052

94.15

95.2

1.05

0.46

0.02

0.50

SDDSC052

95.2

95.7

0.50

0.03

0.05

0.11

SDDSC052

96.26

96.66

0.40

73.20

13.80

95.00

SDDSC052

96.66

97.75

1.09

0.68

0.03

0.73

SDDSC052

97.75

98.25

0.50

0.35

0.03

0.39

SDDSC052

98.25

98.66

0.41

0.57

0.50

1.36

SDDSC052

98.66

99.2

0.54

0.28

0.02

0.31

SDDSC052

99.2

99.6

0.40

0.11

0.01

0.12

SDDSC052

99.9

100.2

0.30

0.15

0.00

0.15

SDDSC052

100.2

101

0.80

0.19

0.00

0.19

SDDSC052

101.53

102.15

0.62

0.15

0.01

0.16

SDDSC052

119.56

120.34

0.78

0.26

0.00

0.26

SDDSC052

120.34

121.3

0.96

0.28

0.00

0.28

SDDSC052

145

146

1.00

0.58

0.00

0.58

SDDSC052

166

166.5

0.50

0.15

0.00

0.16

SDDSC052

166.5

167.2

0.70

2.48

0.68

3.55

SDDSC052

167.2

168

0.80

0.93

0.39

1.55

SDDSC052

168

168.5

0.50

1.13

0.32

1.64

SDDSC052

168.5

169

0.50

0.10

0.01

0.11

SDDSC052

169

170

1.00

0.12

0.00

0.13

SDDSC052

170

170.65

0.65

0.30

0.00

0.31

SDDSC052

170.65

171.35

0.70

0.29

0.00

0.30

SDDSC052

171.35

172.1

0.75

1.08

0.02

1.11

SDDSC052

172.1

172.85

0.75

1.99

0.01

2.01

SDDSC052

172.85

173.2

0.35

33.00

0.01

33.01

SDDSC052

173.2

174

0.80

1.54

0.01

1.55

SDDSC052

174

174.95

0.95

2.30

0.24

2.68

SDDSC052

174.95

175.9

0.95

3.25

0.15

3.49

SDDSC052

175.9

176.6

0.70

3.70

1.49

6.05

SDDSC052

176.6

177

0.40

0.54

0.01

0.55

SDDSC052

177

178

1.00

0.49

0.01

0.51

SDDSC052

178

179

1.00

1.28

0.01

1.30

SDDSC052

179

180

1.00

0.23

0.00

0.24

SDDSC052

180

181

1.00

0.17

0.01

0.18

SDDSC052

182

183

1.00

0.38

0.00

0.39

SDDSC052

183

183.9

0.90

2.61

0.01

2.62

SDDSC052

183.9

185

1.10

0.77

0.00

0.77

SDDSC052

185

186

1.00

0.31

0.00

0.31

SDDSC052

187

188

1.00

0.13

0.01

0.14

SDDSC052

189

189.55

0.55

0.18

0.01

0.19

SDDSC052

189.55

190.2

0.65

0.25

0.01

0.26

SDDSC052

190.2

190.85

0.65

0.07

0.02

0.10

SDDSC052

200.9

201.45

0.55

0.41

0.00

0.41

SDDSC052

201.45

202

0.55

0.58

0.01

0.60

SDDSC052

202

203

1.00

0.17

0.00

0.18

SDDSC052

208

208.9

0.90

0.09

0.02

0.12

SDDSC052

209.4

210.2

0.80

0.43

0.00

0.44

SDDSC052

210.2

211.05

0.85

5.53

0.04

5.60

SDDSC052

211.05

211.6

0.55

22.10

0.40

22.73

SDDSC052

211.6

212.3

0.70

1.42

0.31

1.91

SDDSC052

212.3

212.9

0.60

45.50

6.71

56.09

SDDSC052

212.9

213.6

0.70

38.55

4.62

45.85

SDDSC052

213.6

214

0.40

0.26

0.01

0.28

SDDSC052

214

215

1.00

0.64

0.00

0.64

SDDSC052

215

216

1.00

0.34

0.02

0.37

SDDSC052

216

217

1.00

0.46

0.00

0.47

SDDSC052

220

221

1.00

0.61

0.00

0.61

SDDSC052

221

222

1.00

0.12

0.00

0.12

SDDSC052

223

224

1.00

0.15

0.08

0.27

SDDSC052

227

228

1.00

0.10

0.00

0.10

SDDSC052

228

229

1.00

0.53

0.00

0.53

SDDSC052

233

233.45

0.45

0.18

0.00

0.18

SOURCE: Mawson Gold Limited

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