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Mawson exploring 9 high grade boulder fields over 12 sq. km in Finland

160 boulders with gold grades ranging from 0.1 g/t gold to 3,870 g/t gold, with an average of 74.9 g/t gold and median of 0.71 g/t gold

VANCOUVER, Sept. 5, 2017 /CNW/ - Mawson Resources Limited ("Mawson") or (the "Company") (TSX: MAW) (Frankfurt: MXR) (PINKSHEETS: MWSNF) announces the result of a systematic review of nine prospect areas at the 100% owned Rajapalot gold project in Finland. These prospect areas were discovered by the Mawson team as gold-bearing boulder fields, from which 160 gold mineralized boulders have now been identified within a 12 square kilometre area. The potential bedrock source of only three of the nine boulder fields have been located by drilling, with the remaining six boulder trains now planned for follow up exploration.

Figure 1: Rajapalot Boulder Fields (CNW Group/Mawson Resources Ltd.)

Key Points:

  • A total of 160 boulders and outcrops with >0.1 g/t gold have been discovered within a 4 kilometre by 3 kilometre area at Rajapalot. Gold grades range from 0.1 g/t gold to 3,870 g/t gold, with an average of 74.9 g/t gold and median of 0.71 g/t gold. Samples from boulders are grab samples, which are selective by nature and are unlikely to represent average grades on the property;
  • The sources of six of nine gold bearing boulder fields remain to be discovered;
  • The sources of three have been discovered by drilling over the last 18 months, these being:
  • Glacial transport direction, combined with geological features and base of till drill results indicate only a short travel distance for all mineralized boulders (<250 m). Rock outcrops related to the boulders have been discovered in five of the boulder fields.
  • Discoveries of additional Palokas-style amphibole-tourmaline-chlorite-pyrrhotite boulders over the last month (assays pending for 4 mineralized boulders) at Hirvimaa have defined immediate drill targets in areas that can be drilled year-round;
  • Winter drilling (2017-18) will focus on delineation of additional gold mineralization in prospects already identified by drilling, and follow-up of boulder fields where the primary source of mineralization remains to be discovered.

Mr Hudson, Chairman & CEO states, "With more than 99% of the gold prospective area at Rajapalot covered with a thin layer of glacial soil, tracing the source of boulders remains a key to further discoveries. The frequency of boulder discovery at Rajapalot over at least 12 sq km is impressive. Our field teams are regularly making new finds, including the exciting Palokas-style mineralized boulders at Hirvimaa, that present immediate drill targets. The bedrock source of only three of nine boulder fields are known to date, with all nine still providing excellent discovery opportunities.

Further discoveries at Rajapalot will come through rigorous exploration practices and a commitment to drilling. Given the high success rate of drilling during the last winter program where 28% of drill holes (39 out of a total of 137) recorded greater than 5 g/t-m intersections, we are looking forward to our upcoming programs."

A summary of sample statistics is shown in Table 1 and description of all boulder fields is shown in Table 2. Samples from boulders are grab samples, which are selective by nature and are unlikely to represent average grades on the property. A lower cut-off for reporting of the boulders is 0.1 g/t Au, and the range, mean and median are all reported to give a more accurate representation of sample variation.

Compilation and re-examination of all the boulder information was conducted for comparison of the drill results of the 2016-17 winter drilling and base of till (BOT) results with previously held data. The geochemistry, mineral assemblages and the shape and size of all boulders was reviewed. Company geologists have determined that the grade distribution of boulders and their spacial association with outcrops and drill results indicate that the shallowly buried sources are close to the northwestern edges of the defined boulder fields.

The source of three boulder fields identified in Figure 1 (Palokas, South Palokas and Raja) have been located. The source of the largest boulder field, Rumajärvi, remains elusive, but as the boulders contain highly anomalous and disseminated gold with pyrrhotite, this remains a high-priority target for 2017-18 winter drill program. Geophysical studies, including distinguishing magnetic pyrrhotite-bearing metasediments from magnetic volcanic rocks is allowing more effective targeting of boulder sources.

Technical Background

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.

Boulder samples were assayed between 2012-2015 and transported by Mawson personnel from site to ALS Chemex Ltd's laboratory in Pitea, Sweden where the samples were prepared and sent to ALS Chemex Ltd's laboratory in Vancouver, Canada to be analyzed by Au-ICP21, GRA-21, ME-MS41u and ME-MS61u techniques. The QA/QC program of Mawson consisted of the systematic insertion of certified standards of known gold content, with blanks at the beginning of each batch. In addition, ALS Chemex inserted a number of blanks and standards into the analytical process.

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: Summary of boulder data for the nine boulder fields at Rajapalot. Minimum cut-off for reporting is 0.1 g/t Au. Samples from boulders are grab samples, which are selective by nature and are unlikely to represent average grades on the property.

Prospect

Number

Average

Au g/t

Median

Au g/t

Min

Au g/t

Max

Au g/t

> 5 g/t Au

2-5 g/t Au

0.5-2 g/t Au

0.1-0.5 g/t Au

Hirvimaa

23

15

0.6

0.1

253

5

0

8

10

Palokas

6

1.0

0.8

0.2

2.8

0

1

2

3

South Palokas

4

4.5

0.7

0.1

17

1

0

1

2

Boardwalk

19

28.1

1.0

0.2

221

4

2

8

5

Terry's Hammer

22

1.6

0.3

0.1

14

3

0

2

17

Rumajärvi

55

184

0.6

0.1

3870

14

6

9

26

Raja Prospect

5

11

2.4

0.7

43

2

1

2

0

Joki

7

50

6.3

0.1

151

5

0

1

1

Raja Permit

19

27

1.0

0.1

236

5

1

7

6


Table 2: Notes on each of the boulder fields; notes on relationship to outcrops and related drilling; 2017-18 drilling plans

Prospect

General boulder notes

Targeting notes

Relationship to outcrops, drilling

Source drilled ?

Drill holes (published grades noted)

Comments & plans

Hirvimaa

Palokas style and disseminated sulphidic albitic and muscovitic boulders; also Rompas style high grade boulders.

Shallow drilling (2-5m into bedrock below till - LD drill holes) reveals anomalism with corresponding IP and magnetic anomalies equivalent to Palokas signature

No Palokas style mineralized outcrops; small Rompas style dolomite veins (Au-U) hosted by mafic rocks

NO

7 NQ drill holes over 800 metre strike length have not found boulder targets; 4 of these drill holes were not focused on Palokas-style targets

Drill testing of Palokas-style targets planned before end of Dec 2017.

Palokas

Rare, small boulders related to Palokas mineralization within 150 m of outcrop

Drill testing to continue of combined IP and magnetic anomaly

Palokas outcrop drilled - mineralization present to > 100 metres; grab and channel samples have produced grades similar to those in drill results.

YES

PAL0027: 6.8 m @ 14.7 g/t Au from 34.4 metres
PAL0030: 10 m @ 11.6 g/t Au from 110.2 m

Drilling next winter to define size and grade of mineralization; controls on grade distribution are now better understood

South Palokas

Micaceous gold-bearing boulders

Magnetic, IP and conductive anomaly evident in geophysics

Tested in drilling in shallow hand-portable drilling (PRAJ) Intersected in PAL0016 - deepest >5g-m intersection

YES

PAL0016: 8.4 m @ 4.2 g/t Au from 206 metres

Test further in winter 2017-18 drill program

Boardwalk

Two types of large boulders present: grunerite-chlorite-pyrrhotite-magnetite boulders with <5 g/t Au and micaceous sulphidic boulders (up to 221 g/t Au)

Both types of boulders are magnetic and sulphidic so can be tested with a combination of ground magnetics and gradient array IP.

Magnetic ironstones have been intersected in early drilling, but the sulphidic and gold-bearing rocks are yet to be found. Micaceous sulphidic rocks are similar to those found at South Palokas, and may be derived from there (< 200 m)

NO

4 NQ drill holes have not intersected target

Ground magnetics at <50 m spaced lines will be conducted before further drilling.

Terry's Hammer

22 anomalous boulders spread across nearly 400 metres; boulders are large and angular (many 50 cm to 1 m diameter). They are inferred to be derived from the NW and W edges of the boulder field.

This boulder field and Rumajärvi (below) are characterized by micaceous, sulphidic and magnetic boulders. As such, they form excellent combined magnetic and IP targets.

Narrow intersections in outcrops do not appear representative of boulders; the 4 NQ drillholes within and adjacent to the boulder field have not intersected the source

NO

Limited drilling has not located source yet

Drill testing in areas adjacent to early 2017 drill holes. Additional magnetic data indicates more targets to west and northwest of existing drilling

Rumajarvi

The best-developed boulder field in Rajapalot with 55 boulders sampled over 0.1 g/t Au; highly variable in size and shape, with some over 2 m in diameter. Many are angular indicating close to source.

Magnetic, sulphidic boulders form the bulk of the mineralized boulders. More detailed ground magnetics (<50 m line spacing) will be used in follow-up

A few outcrops within the boulder field are identified, but only in the central and SE parts. Therefore, the up-ice source has not yet been located.

NO

A single drill hole (PAL0037) intersected some gold mineralization, but not of the major boulder type.
PAL0037: 56 m @ 0.53 g/t Au from 5 metres (no lower cut)

Drilling of identified magnetic anomalies caused by pyrrhotite have been identified for drilling in 2017-18 winter season

Raja Prospect

Micaceous and albitic sulphidic gold mineralized large local boulders in till

Magnetic and disseminated sulphides can be matched with ground geophysics of drilled prospect

The boulders occur on a small knoll southeast of Raja drill intersections (e.g. PAL0048)

YES

PAL0048: 42.7 m @ 1.0 g/t Au from 53 metres (no lower cut)

Drilling required winter 2017-18 to define size and grade of mineralized zone

Joki

Gold-bearing, biotite-rich boulders derived from adjacent rocks

Lower sulphide concentration and resultant low intensity geophysical response will make targeting more difficult below till

Adjacent outcrops within biotite-rich mafic rocks

NO

Single hole did not test target

Target for drill testing in 2017-18 winter over anomalous geochemical results in BOT

Raja Permit

Angular boulders spread across large area, perhaps more spread from source than other boulder fields listed above

A variety of boulder types, but predominantly of Rompas dolomite-calcsilicate vein hosted type

Base of till drilling intersected anomalous metals and Au in NW part of boulder field ("up-ice")

NO

Limited drilling in NE part of boulder area

Additional data compilation and ground geophysics before drill testing

SOURCE Mawson Resources Ltd.

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