Mawson Gold Ltd (TSE:MAW) (OTCPINK:MWSNF) told investors that diamond drilling has now begun at its ground in the historic Victoria goldfields of Australia, firing the starting pistol on the group's exploration of the area set to continue for the rest of this year.
An initial 500 metre drill program is planned at the firm's Sunday Creek property, after which the rig will immediately move to the Redcastle project, Mawson said.
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A total of 5,000 metres is planned for the rest of 2020 in Victoria, with a second rig planned to be added within the next four to six weeks.
It comes after earlier this year, Mawson struck a deal with Australia-listed Nagambie Resources (ASX:NAG) giving it access to three high-grade, Fosterville-style (shallow-orogenic or epizonal) exploration projects with numerous historic mines that lacked drill testing to depth.
"Exciting times with drilling commencing at Sunday Creek and project-scale geophysics revealing controls on high-grade mineralization at Redcastle, in our search for the next Fosterville-style epizonal high-grade gold deposit," Mike Hudson, Mawson's chief executive said in a statement.
"Drilling will be ongoing in Victoria for the remainder of the year and we should see first results starting to flow during mid to late September."
The Victoria goldfields have generated over 80 million ounces of gold and have witnessed three mining booms - in the 1850s, the early 1900s, and in the last three years - noted Mawson.
The region hosts two different types of gold mineralization - the deep orogenic style and the shallow "epizonal" style. Mawson is very much focused on uncovering the latter.
At Sunday Creek, the firm is targeting high-grade veining with associated mineralized halos, typical of epizonal-style gold mineralization.
The Sunday Creek area was developed over multiple parallel zones over 11 kilometres of strike length. Historic holes demonstrate high grade gold with highlights including eight metres at 11.3 grams per ton (g/t) gold from 66 metres including 2 metres at 40.3 g/t gold of the yellow metal.
Meanwhile, at Redcastle, induced polarization (IP) surveys are already in progress.
Here, extremely high gold grades were mined over a 4.5 by 7 square kilometre area that contains over 24 historic mining areas, including the Welcome Group, which produced 20,583 ounces at a whopping grade of 254.6 g/t gold in the 19th century.
Mawson's focus is still on its giant Rajapalot gold project in Finland, but it says the Australian gold acquisition gives it a strategic and diversified portfolio in two safe jurisdictions.
Shares in Mawson gold gained 2.62% in New York to stand at US$0.39 each.
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