VANCOUVER, June 26, 2013 /CNW/ - Mawson Resources Limited ("Mawson") (TSX: MAW) (Frankfurt: MXR) (PINKSHEETS: MWSNF) announces the discovery of a new area, the Kaita gold prospect, made during the first month of field work at Rompas and an update on the summer exploration field season.
Key messages:
- Initial success at the start of the field season with the discovery of the Kaita prospect located 900 metres from the South Rompas drill area where 26 surface mineralized sites (11 with visible gold) have been discovered over a zone that strikes for 415 metres.
- Mawson's plan is to maintain exploration momentum towards discovery and a company-wide budget of $2.5M is planned for calendar 2013 with ten local Finnish geologists currently active in the field.
Mr Hudson states, "We consider Rompas to be one of the most exciting, near surface, high-grade, grassroots gold discoveries. Already, we have seen a great start to our 2013 summer work with another visible gold bearing surface discovery at Kaita over a 415 metre strike extent, located south and parallel to the known Rompas trend."
"The continued success in defining gold from surface, outside of the original Rompas discovery zone gives the Company great confidence. Rompas has the potential, attributes and scale to develop into a significant business and our plan is to maintain exploration momentum towards discovery, with prudent spending to achieve our key aims. With C$5M cash we are in an enviable position to do so and we look forward to continued success over the summer."
KAITA DISCOVERY
The Kaita discovery (Figure 1) was made within the first days of the 2013 field season after targeting gold-anomalous surface reconnaissance sampling and LIDAR (Laser Imaging Detection and Ranging) - identified topographic highs. To date, the discovery consists of 26 surface mineralized sites (11 with visible gold) within an area defined by 415 metres strike and 40 metres width. A majority of the area has not yet been surface prospected. Kaita is parallel to and located 900 metres south south-east of the South Rompas drill area and extends the Rompas vein trend to at least 6.5 kilometres. Channel sampling has already commenced at Kaita and assays are awaited.
Visible gold in the field has been observed in both uraninite and within carbonate. Biotite-rich alteration, of the same style as Rajapalot, has also been observed. Kaita is located outside the Natura 2000 biodiversity areas with large areas of thin till cover within the Company's 100% owned exploration claims. The area has been confirmed by a biologist to contain low value (young) forest and no significant plant species. The Company has prioritized this area to map, prospect, channel sample and define drill targets over the coming months.
WORK PROGRAM
Mawson is planning a targeted and active exploration program to continue the momentum of discovery and definition at Rompas. A Company-wide budget of $2.5M is envisaged to complete summer works which include:
- A 827 line-km helicopter-borne VTEM Plus electromagnetic, magnetics and radiometric geophysical survey over the Rajapalot area;
- Extensive soil and heavy mineral geochemical sampling;
- Shallow hand-held bedrock sampling traverses across the Rompas-Rajapalot project area to map and sample the mineralized sequence undercover;
- Structural geological investigations of orientation and continuity of gold at South and North Rompas;
- Application of improved technologies including using new LIDAR data that will make targeting of the limited outcrop much more effective and rapid, essentially completing prospecting work that once took from weeks to a few days.
- Metallurgical test work on both the Rompas vein and Rajapalot disseminated gold styles.
- Extensive geological research work to better understand the formation, timing and controls of gold and uranium mineralization in conjunction with the Geological Survey of Finland.
- Diamond drilling and RC drilling is planned towards the end of summer after geophysical and geochemical programs have been completed.
ENVIRONMENT
Approximately 80% of Mawson's highest priority targets at Rompas are within European Union defined biodiversity areas (Natura 2000) where the Company is not yet permitted to drill. Natura 2000 defined areas cover 30% of Northern Finland. Although Mawson holds the mineral rights within these areas, drilling is not permitted until a modification of the claim decision is granted by the Finnish authorities.
Over the last year Mawson commissioned Golder Associates of Finland to complete a Natura 2000 Assessment that mapped and reported in detail the floral distribution and natural habitat types of the area. The assessment also defined the impact that Mawson's planned drilling program will have on the biodiversity values. The key consultant who performed all the mapping was one of the biologists who mapped the Rompas Natura 2000 area when it was defined in the late 1990s. He is widely considered as one of the biodiversity experts for the project area. The report concluded that at this stage of exploration, a managed program will have no significant environmental effects on the area. The Company started discussions regarding the report with environmental authorities in May 2012 and the final submission of the report was made in June 2013. The competent authority, the Centre for Economic Development, Transport and the Environment in Lapland, have up to 6 months to comment on the report, and provide their feedback to the mining authorities (TUKES). TUKES are the ultimate decision-makers to modify Mawson's claims to allow drilling in the Natura 2000 areas. The Company does not expect a decision before 2014.
Additionally, the Company has continued to regularly meet all stakeholders including local groups, municipalities and administrative bodies to update them on the Company's work plans. For the most part the stakeholders have been supportive of the Company's work programs and how it has dealt with compliance issues, however there have been some objections and opposition to the Company's work plans and environmental efforts. The Company has been dealing with an investigation requested by certain Environmental Authorities into the Company's hand dug trenches completed during the 2010 and 2011 work programs. The Company has met with all relevant authorities multiple times during the work period and since the objections were raised and believes it conducted its operations within the intent and law of the Mining and Nature Conservation Acts. The Company has been working with all authorities in a transparent and open manner and strongly believes that all allegations against the Company will be refuted when the facts emerge at the end of the investigation, believed to be at the end of 2013.
About Mawson Resources Limited (TSX:MAW) (FRANKFURT:MXR) (PINKSHEETS:MWSNF)
Mawson Resources Limited is a resource acquisition and development company. The Company has distinguished itself as a leading Scandinavian exploration company with a focus on the flagship Rompas-Rajapalot gold project in Finland.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, President & CEO
Technical Background
The qualified person for Mawson's Finnish projects, Mr Michael Hudson, President & CEO for Mawson and Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.
Forward Looking Statement
The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
PDF available at: http://stream1.newswire.ca/media/2013/06/26/20130626_C3377_DOC_EN_28521.pdf
SOURCE: Mawson Resources Ltd.
Investor Information
www.mawsonresources.com
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez/Donna Werbes +1 (604) 685 9316
Seema Sindwani +1 647-478-3017
Email: [email protected]
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