VANCOUVER, May 14, 2018 /CNW/ - Mawson Resources
Limited ("Mawson") or (the "Company") (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces the discovery of
highly significant cobalt enrichment associated with previously
identified gold mineralization at the Company's 100% owned
Rajapalot project in northern Finland. Following an extensive multi-element
drill core re-assay program, followed by a mineralogical QEMSCAN
study led by the Geological Survey of Finland ("GTK") to determine mineral
association, numerous intervals have been identified which mirror
and extend gold mineralized zones. These drill results are
considered highly encouraging in the context of existing high-grade
gold mineralization.
Cobalt is a key component in the cathode of most lithium-ion
batteries and is considered crucial in the switch to electric
mobility and greener generation and storage of energy. As a
result, the cobalt price has escalated approximately 300% within
the past two years. Cobalt is on the European Commission's
critical raw minerals list, delivering a strong mandate to discover
and develop local and ethically produced supply alternatives.
With the world's largest cobalt refinery, Freeport Cobalt,
located only 400 kilometres south in Kokkola, Rajapalot is ideally
positioned to play an important role as a potential sustainable and
transparent supplier to the fast-growing European lithium ion
battery supply chain.
Key Points:
- A newly identified cobalt association with previously known
gold mineralization at the Rajapalot project. Significant
cobalt has been initially discovered in association with and
peripheral to gold mineralization across an area of 3 kilometres by
4 kilometres that remains open in all directions;
- Cobalt is an essential part of the cathode within lithium
ion batteries. Owing to the rapid increase in electrification
of transport, the price of cobalt has jumped 300% in the past 2
years;
- Significant assays received to date include (full assay table
shown in Table 1):
-
- PAL0075: 10.8 metres @ 1,299 ppm Co, 6.2g/t Au (8.7g/t
AuEq) from 8.7 metres
- PRAJ0009: 30.8 metres @ 525 ppm Co, 7.1g/t Au (8.2g/t AuEq)
from 2.5 metres
- PRAJ0006: 19.5 metres @ 696 ppm Co, 7.1g/t Au (8.5g/t AuEq)
from 1.3 metres
- PRAJ0107: 15.0 metres @ 602 ppm Co, 8.7g/t Au (9.9g/t
AuEq) from 24.7 metre
- Combined gold-cobalt mineralized intersections display
increased widths and often show better continuity.
- Mineralogical studies on selected Rajapalot samples indicates
that sulphide cobalt mineralization is hosted in cobaltite and
cobalt pentlandite that are conventionally mined and processed
in other deposits;
- Results indicate the cobalt has the potential to add
significant value as a by-product. Results received to date
show gold equivalent ("AuEq") assays that incorporate cobalt are
20-30% higher than gold only ("Au") assays;
- Finland is an attractive
jurisdiction for the discovery and development of cobalt.
Finland presently refines half of
the world's cobalt outside of China, relying on predominantly imported
feedstock from a Chinese-owned mine in the Democratic Republic of Congo. A future
domestic Finnish source of cobalt would satisfy the recent
announcements by Finland and
Sweden that the countries will
work together on a traceable ledger for sustainable minerals,
considered crucial for achieving climate goals.
Mr. Hudson, Chairman and CEO, states, "This re-assay program
of drill holes from Rajapalot has highlighted a significant
opportunity for Mawson in the battery metals sector. Gold remains
the key commodity at Rajapalot by value, however the identification
of widespread cobalt enrichment in minerals that are the source of
most cobalt mined today, has the potential to add a significant
by-product credit to the project. Owing to Finland's strong position in the processing of
cobalt sulphide concentrates, Rajapalot presents as an attractive
option for future ethically-sourced cobalt for Europe. To date, less than half the holes
drilled at Rajapalot have been assayed for cobalt. Based on this
early success, Mawson is now undertaking an extensive re-assay
program with the results released in the coming months. Further
mineralogical and metallurgical testwork is also planned."
Although the exploration focus will remain for gold at
Rajapalot, cobalt adds significant value as a potential by-product
with a 20-30% increase in calculated gold equivalent ("AuEq") grade
over gold ("Au") grade when incorporating cobalt. Cobalt
distribution is strongly correlated with gold. However, cobalt
appears to be more widespread in and around gold intervals and
grades appear more consistent than gold (Table 1, Figures 1, 2 and
3). Cobalt-only zones also form peripheral to the
gold-bearing zones (i.e. PAL0048 7.9 m @ 1081 ppm cobalt
and 0.1 g/t Au).
Assuming a predominant stratabound control, the true thickness
of the mineralized interval is interpreted to be approximately
90-95% of the sampled thickness. Intersections are reported with a
lower cut of 0.5 g/t AuEq over 1 metre minimum width, no upper
cut-off was applied. The gold equivalent (AuEq) value was
calculated using the following formula: AuEq g/t = Au g/t +
(Co_ppm/481) with assumed prices of Co $88,185/t; and Au $1,320/oz, where 1 g/t Au is equivalent to
0.048 % Co.
Assay Studies
Approximately half of the Rajapalot drill core remains to be
assayed for cobalt (Figure 1). Mawson expects to submit over 3,000
samples for assay in the next 3 months for determination of cobalt
and associated metals. Additional gold-cobalt results are shown in
Table 1 and strip logs showing rock types and multi-element
geochemistry are shown in Figures 2 and 3.
Mineralogical Studies
Mawson engaged the Geological Survey of Finland ("GTK") and Camborne School of Mines,
University of Exeter (UK), to
undertake mineralogical studies of cobalt at Rajapalot. Optical
petrography, X-ray tomography and QEMSCAN suggest that cobalt is
contained within the minerals cobaltite and cobalt pentlandite,
which have metallurgical properties that are potentially favourable
for future recovery. Both cobalt-bearing minerals are mined and
processed in other deposits, and supply much of the world's current
cobalt demand. At Rajapalot, cobaltite occurs as equant crystals
with well-defined grain sizes, while cobalt pentlandite occurs only
as exsolution flames in pyrrhotite with highly variable grain
sizes. Further work is required to understand the spatial and grade
distribution of cobalt-bearing minerals and their likely
metallurgical behavior.
Cobalt in Finland
Finland plays a significant
role in the global cobalt supply chain. The Democratic
Republic of the Congo
("DRC") produced 54% of the world's cobalt in 2016 whilst 80%
of cobalt used in lithium-ion batteries is refined in China.
Half of the world's non-Chinese production (10% of total
production) comes from Freeport Cobalt, the world's largest single
cobalt refinery, located only 400 kilometres from Mawson's
Rajapalot project in Kokkola, Finland. Freeport Cobalt is a joint venture
between Freeport-McMoRan (56%), Lundin Mining Corporation (24%) and
La Générale des Carrières et des Mines (20%) (or Gécamines, the DRC
state mining company). A significant amount of feedstock for
Freeport Cobalt comes via a long-term supply agreement with the
Chinese-owned Tenke Fungurume mine in the DRC. A future Finnish
domestic source of cobalt from Rajapalot would satisfy the recent
announcements by Finland and
Sweden that the countries will
work together on a traceable ledger for sustainable minerals, which
are considered crucial for achieving climate goals.
Owing to the growth in the electrification of transport and need
for storage of renewable energy, the battery sector has become an
important driver of cobalt demand. Demand for lithium-ion
batteries is surging, and this demand is expected to support both
price and volume for the cobalt market for years to come. With
cobalt on the European Commission's critical raw minerals list,
there is a strong mandate to secure local and ethical supplies of
cobalt, which are likely to contribute to further tightened
supply.
In other news, reporting of assays from the winter drill program
at Rajapalot will soon continue, where 14 holes out of 75 holes
have already been made.
Technical Background
Core intervals averaging 1 metre for mineralized samples and 2
metres for barren samples were cut in half at the Geological Survey
of Finland (GTK) core facilities
in Rovaniemi, Finland. The
remaining half core is retained for verification and reference
purposes. Analytical samples were transported by Mawson personnel
or commercial transport from site to the commercial laboratories.
The QA/QC program of Mawson consists of the systematic insertion of
certified standards of known gold content, with blanks at the
beginning of each batch. Inter-laboratory comparisons of gold
assays have also been made by Mawson.
CRS Minlab Oy facility in Kempele, Finland were used for gold only assays for
drill holes PAL0008–0026; 0028–0036; 0038–0049; 0051–0063;
0065–0069; 0071; 0074; 0076–0082 and PAL series drill holes
reported 2018. Samples were prepared and analyzed for gold at
Kempele using the PAL1000 technique which involves grinding the
sample in steel pots with abrasive media in the presence of
cyanide, followed by measuring the gold in solution with flame AAS
equipment. 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 the within interpreted
mineralized rock. In addition, CRS inserts blanks and standards
into the analytical process.
ALS Global's sample preparation facilities in Piteå,
Sweden or Sodankyla, Finland were used for drill holes
PRAJ0001-0002; 0020; 0022-0108 and PAL0001–0007; 0027; 0037; 0050;
0064; 0070; 0073; 0075. Samples were then sent to ALS Global's
analytical laboratories in Vancouver,
Canada or Loughrea, Ireland
to be analyzed by Au-ICP21, GRA-21 (over-range gold), ME-MS41u and
ME-MS61u and ME-MS61 techniques. Where multi-element techniques
reached upper detection limits, over-range measurements were made
using the OG62 method.
Labtium Oy ("Labtium") laboratory in Rovaniemi, Finland were used for gold and multi-element
assays for drill holes PRAJ0003-0018; 0021. Samples were prepared
and analyzed for Au by method 705P (fire assay) and multi-element
analysis by XRF technique (pellet), method +175X.
The qualified person for Mawson's Finnish projects, Dr.
Nick Cook, President for Mawson and
Fellow of the Australasian Institute of Mining Metallurgy has
reviewed and verified the contents of this release.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR,
PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and development
company. Mawson has distinguished itself as a leading Nordic Arctic
exploration company with a focus on the flagship Rompas and
Rajapalot gold projects in Finland.
On behalf of the Board,
"Michael
Hudson"
Michael Hudson,
Chairman & CEO
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, capital and other costs varying
significantly from estimates, changes in world metal markets,
changes in equity markets, 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.
Table 1: Significant gold-cobalt intersections from Rajapalot.
0.5 g/t AuEq lower-cut applied over 1 metre minimum width.
Note: The gold equivalent (AuEq) value was calculated using the
following formula: AuEq g/t = Au g/t + (Co_ppm/481) with assumed
prices of Co $88,185/t; and Au
$1320/oz, where 1g/t Au is equivalent
to 0.047% Co.
|
Original
Intersection
|
New
Intersection
|
Drill
Hole
|
|
from
(m)
|
to
(m)
|
Width
(m)
|
Co
ppm
|
Au
ppm
|
AuEq
ppm
|
Prospect
|
PRAJ0009
|
5.4m @ 37.6 g/t gold
from 2.5m
|
2.5
|
33.3
|
30.8
|
525
|
7.1
|
8.2
|
Palokas
|
PRAJ0006
|
19.5m @ 7.4 g/t gold
from 1.3m
|
1.3
|
21.8
|
20.5
|
696
|
7.1
|
8.5
|
Palokas
|
PRAJ0107
|
19.6m @ 7.5 g/t
gold from 18.1m
|
24.7
|
39.7
|
15.0
|
602
|
8.7
|
9.9
|
Palokas
|
PAL0027
|
6.8 m @ 14.7 g/t
gold from 34.4m
|
27.5
|
48.7
|
21.3
|
482
|
5.4
|
6.4
|
Palokas
|
PRAJ0003
|
9 m at 10.2 g/t gold
from 0m
|
0
|
13.0
|
13.0
|
577
|
7.1
|
8.3
|
Palokas
|
PAL0075
|
8.8 m @ 7.5 g/t
gold from 82.2m
|
82.2
|
93.0
|
10.8
|
1,200
|
6.2
|
8.7
|
Raja
|
PAL0062
|
13.5 m @ 4.0 g/t
gold from 180m
|
180
|
193.5
|
13.5
|
272
|
4.0
|
4.5
|
Raja
|
PRAJ0004
|
8.3m @ 6.0 g/t gold
from 2m
|
0.8
|
19.6
|
18.8
|
533
|
2.7
|
3.8
|
Palokas
|
PRAJ0005
|
12.6m @ 3.6 g/t gold
from 6.7m
|
4.2
|
19.2
|
15.0
|
495
|
3.0
|
4.0
|
Palokas
|
PAL0016
|
8.4 m @ 4.2 g/t gold
from 206.0m
|
206
|
214.4
|
8.4
|
471
|
4.9
|
5.9
|
South
Palokas
|
PAL0048
|
13.7 m @ 2.0 g/t
gold from 82m
|
82.0
|
95.7
|
13.7
|
747
|
2.0
|
3.6
|
Raja
|
PAL0075
|
3.0 m @ 2.9 g/t gold
from 64m, 2.0m @ 5.6 g/t gold from 70.0m
|
55.0
|
75.0
|
20.0
|
525
|
1.2
|
2.3
|
Raja
|
PRAJ0108
|
5.1m @ 3.8 g/t
gold from 18.3m
|
14.0
|
33.7
|
19.8
|
783
|
1.1
|
2.8
|
Palokas
|
PAL0037
|
56m @ 0.53
g/t gold from 5m
|
20.5
|
40.0
|
19.5
|
659
|
0.7
|
2.1
|
Rumajärvi
|
PAL0048
|
No significant assays
quoted
|
104.0
|
111.9
|
7.9
|
1,081
|
0.1
|
2.3
|
Raja
|
SOURCE Mawson Resources Ltd.