Mawson Gold Adds Ounces With the Drill Bit in Finland
Mawson Gold (TSX: MAW)(OTC: MWSNF) CEO Michael Hudson on Significant Gold-Cobalt Drill Intercepts at Flagship Rajapalot Project, Finland, Plus Multi-Project Drilling Update from Victorian Goldfields, Australia
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the chairman & CEO of Mawson Gold — Mr. Michael Hudson. Mike, how are you today?
Michael Hudson: Doing very well. Thanks, Gerardo, for having me back.
Gerardo Del Real: Well, thanks for coming on and providing an update. You had some news here recently. Let me read the headline:
Mawson intersects 15.3 meters at 3 grams per tonne gold, 998 ppm cobalt — and 11 meters at 4 grams per tonne gold and 756 ppm cobalt at South Palokas in Finland.
Congrats on the numbers! The consistency and the hit rate just continues to show up release after release. I'll let you provide the context there, Mike.
Michael Hudson: Well, we've been a little quiet on our drill results, and now the data is coming back and you'll see a slew of results from this winter's drilling. So this is the second release where we put results out from the drilling from a few months ago.
This is an impressive result because it's finding the high-grade that we were missing down-plunge in South Palokas. So this was a 160 meter step-out from the closest high-grade. The more we drill in these systems, actually, the better chance we've got of finding the high-grade.
And that's an obvious thing. But the high grades are there. They just need a number of drill holes to find them, it seems, because the footprint is much larger, and the higher grade shoots are 50 to 60, 70 meters wide. So they take a bit of drilling.
But this is important because it means these results will add significantly to the resource at South Palokas. It will increase the grade, of course, with higher grades coming in down-plunge. And that's what it's really all about.
You'll see lots of drill results coming, and it's a great system we've got up there in Finland. And we're building a project that will eventually, one day — subject to all of the caveats — looks and smells like a mine, right? And that's the way we're thinking of it now. We're drilling holes to go into resources that we can convert to reserves.
And we've started our permitting; our EIA. We've started our land use rezoning. We've got mining engineers involved. So this project is well and truly pivoting beyond just the excitement of a drill hole. But every drill hole really matters to create that resource of significance that we're working towards over the next few months.
Gerardo Del Real: Let's talk about that resource because release after release, it's starting to look and smell a whole lot like a lot closer to a million and maybe north of a million ounces now. I know that, in the past, we've talked about that being a goal. And I think we all believe that, eventually, we're going to see a multi-million ounce resource.
But first things first. Is that a goal, Mike, or are you looking to get towards that number? Are you comfortable talking about that yet, or are we going to wait and get all of the data in and see how it plays out?
Michael Hudson: Yes, I'm a data-driven person. So absolutely, we need to wait for all of the data. But we haven't been shy to say that's our next aim is to get this system to a million ounces.
And that was our key focus of this year's drilling and these results taking the step-outs to create the volume that had the chance to create a resource like that. And I think it's important that that's really just the optical way we're trying to hit it because everyone thinks a million ounces is a start of a significant system, right?
I think many people put a million ounces as you've got something of scale. But the most important thing is that when we put this resource out, whatever it will be, is that it will be a lot bigger too. So a million ounces, or thereabouts, will not be the way it stops.
And you mentioned it; it's a huge footprint. And we've got so many opportunities here to make this into a multi-million ounce system that it looks and smells like it's becoming. But the drill rigs need to get back in there, and we'll be doing that again — mainly in winter — but also we've started to find summer-only drill areas.
One of the new resource areas will be Joki East that is in a summer permitted drill area, and we'll be back there drilling after the resource comes out.
Gerardo Del Real: How happy are you with the cobalt kicker, which is significant not just because it will eventually contribute to the economics of a potential mine but the strategic significance as it relates and in regards to permitting, right?
Michael Hudson: It's a byproduct. It's about 10%, more or less, in-situ value depending on what metal prices you want to choose. So it is not the main payable. The gold is what will drive this in terms of the economics. But in terms of the strategic nature of the project, we're the 7th largest resource in Europe for cobalt already.
Europe, of course — and we've talked about this many times — is going very hard to place itself number one ahead of Asia in terms of the battery supply chain. And that's really a critical point. So that will help the project. It helps our supporters. It helps them politically sell the project because it is that strategic project that Finland needs.
And I think we'll go up to Top-6; we'll knock off Spain. There's a Spanish deposit that I think we'll exceed this year, and that's from the by-product. We're the 6th largest cobalt resource in Europe simply put — so very important.
Gerardo Del Real: The stock has pulled back. The share price has pulled back the last several months alongside the gold consolidation in the entire space. I think it's a heck of an opportunity.
You've used those months very, very efficiently. You continue to deliver on all fronts. And yeah, we didn't really even touch on Australia, right? How are things on that front?
Michael Hudson: We're still drilling in Australia, and you'll see more drill results come to the table shortly there. But the Sunday Creek system is continuing to build as we've seen from our results and our confidence of having a drill rig turning. You should take that is that we're still very encouraged by that project.
We've had some geologists working on Redcastle — our other project down there — and we'll put out a very comprehensive release following a lot of drilling and geophysics that we've done there.
And we still are very excited about that opportunity, which is the mine lease extensions essentially of Costerfield. That's a million-ounce-plus mine there run by Mandalay that has made some very significant discoveries over the last few weeks. That's put that little part of Victoria back on the map also. So lots happening.
Gerardo Del Real: Lots happening is right! Mike, thank you so much for that update. Anything else you'd like to add to that?
Michael Hudson: All very good. Thanks, Gerardo, for your time.
Gerardo Del Real: I appreciate it. Look forward to having you back on. Take care.
Michael Hudson: Regards.