Mawson Resources Ltd (TSE:MAW, OTCMKTS:MWSNF) shares jumped 8% on Wall Street and 18% in Toronto on Monday after the company reported further breakthroughs in its Finland-based operations as it released drill results from a further four diamond drill holes from the 2016 to 2017 winter program at the company's 100%-owned Rompas-Rajapalot project.
This winter, a total of 16 diamond holes have been completed to date, with two in progress, for 3,753 metres. Three rigs are now drilling around the clock, and a fourth rig will be mobilized to site during mid-March.
A new style of gold-bearing system has been discovered at South Rajapalot, characterised by an extensive area of potassic-iron-sulphide alteration located up to 1,800m south of the Palokas prospect. Drilling has defined a zone that extends for 900m along strike and 400m in width that remains open. To date, a total of 12 holes have been drilled into the area, with assay results available from 2 drill holes (PAL0033 and PAL0037).
PAL0037 drilled 56m of gold-bearing magnetite, pyrrhotite, biotite and chlorite alteration from 5.0m that averaged 0.53 g/t gold (without applying a lower cut). Higher grade zones included 2.0m @ 3.6 g/t gold from 33.0m and 4.0m @ 3.7 g/t gold from 57m;
PAL0037 intersected what is believed to be, in part, the source of 68 grab samples from boulders and subcrops that lie immediately down ice direction which assayed >0.1 g/t gold and range from 0.11 g/t gold to 3,870 g/t gold with an average of 101.4 g/t gold and median of 0.6 g/t gold. Grab samples are selected samples and are not necessarily representative of the mineralization hosted on the property.
PAL0033, drilled 700m north of PAL0037, intersected a similar style of potassic-iron-sulphide alteration with results including 2.2m @ 7.7 g/t gold from 152.5m;
Drill core from this new discovery will be on display at the PDAC convention in Toronto at Mawson's booth #2941 until Wednesday 8 March. Dr. Nick Cook, President, will be at the core display booth #3107B on Tuesday 7 and Wednesday 8 March. CEO Michael Hudson will discuss the drilling program and the new discovery at 10:20am on Monday 6 March in Room 802.
"This new style of potassic-iron-sulphide alteration gold-bearing hydrothermal system at South Rajapalot is clearly large, and capable of precipitating gold in a variety of structural and stratigraphic settings across a broad area,” said Hudson, Chairman and CEO.
“Drilling is ongoing and many drill holes that are altered remain to be assayed. The potential of the area continues to grow, we have already drilled gold within a 1.75km strike length from Palokas to South Rajapalot during this early stage of our winter program and we look forward to learning more as further results become available," he added.
Mawson shares were up 7.95% at $0.33 in late Monday trading in New York and as much as 18.1% at C$0.49 in Toronto.