Categories: Precious Metals
Topics: General Precious Metals / Gold Stocks

Mawson Gold (TSX-V: MAW)(OTC: MWSNF) Chairman Michael Hudson on Bonanza Grade Gold At Sunday Creek

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman and interim CEO of Mawson Gold, what has to be a very, very happy Michael Hudson. How are you today, sir?

Michael Hudson: I'm very good, Gerardo. Sounds like a bit of Christmas cheer in your voice there.

Gerardo Del Real: I mean, you can't help but have some cheer in your voice when your subsidiary and soon-to-be fully consummated asset here, Sunday Creek and Southern Cross Gold, drilled 242 meters of 6 grams a tonne gold at Sunday Creek, what's turning out to be a world-class not just gold but antimony deposit, right, and antimony project. I think that's going to have a lot of significance here moving forward with the geopolitical tension surrounding, among other metals and elements, antimony, but 242.1 meters of 6 grams per tonne gold uncut, Mike, is absolutely top notch. Congratulations, sir. Can you provide the context?

Michael Hudson: Well, the context is that it's more of the same very, very good results that are coming out of this project, that is on many measures the best gold discovery globally over the last year or so, and we can say that on hit rate alone.

If we say a 100 gram/meter hit rate and divide it by the amount of drilling, you get a number of ... well, every so many meters, you get a significant intersection, and we're getting them at around every 1,200 or 1,300 meters, and I can't see anything better globally for many years that's intersected like that. I used to say three intersections greater than 100 gram/meter was a bona fide discovery for Newmont, because they once told me that. This hole that we're just talking about, 144, had four of them, so we could farm out this hole in isolation.

In summary, it comes from Rising Sun. It was an extension and mainly an extension hit over that 242 meters, eight high-grade intersections and had some lower grades in between, but it was really eight very high-grade intersections. There was extremely bonanza-grade hits at 16 centimeters at 330 grams, but that wasn't alone. Then we had 3.6 meters at 115 grams, hundreds of meters away. I don't need to repeat the numbers, because they are overwhelming.

Of those eight intersections, five were extensions and three were infill, and both of those are very important to extend the project, so to increase volume, but also to focus on grade. When you get infill and you're getting infilling with very high grades between high grades, of course that gives you a lot more confidence to infer continuity between those grades. That's the hole, but it's been an amazing month all around, couple of months. Then perhaps we can talk about that too.

Gerardo Del Real: No, absolutely. Let's definitely talk about not just the context of the couple of months, but you have five rigs currently operating, and you plan to drill 60,000 meters through to Q3 of 2025. Clearly, clearly, no plans of slowing down, and not, I suspect, the last time that we hear bonanza-grade gold hits from a Mawson news release. Can you speak to where the system, as you understand it, stands now, and what you're hoping to achieve with those five rigs and the 60,000 meters through to Q3 of 2025?

Michael Hudson: Well, we're bringing another rig in in the next week or so. It may come in the next day or so, just before Christmas actually, so there'll be six rigs shortly. We did have an exploration target back in January at the start of this year that was 1.0 to 1.6 million ounces between 7.2 and 9.7 grams per tonne gold equivalent, 20% coming from that antimony that you mentioned before and 80% from the gold. Of course, exploration targets can be very variable in how they're quoted.

This one that we did had some extensions into areas that didn't have enough drill density, but we inferred the extensions geologically and adjacent to where we'd found gold. Then it was treated very much like a resource, and top cut and modeled and wireframed, like we are running an internal resource with the same team that is running the resource for Fosterville, so the same expertise if you like. It is a drill density question rather than anything else.

Now, that was almost a year ago now, and we've done a lot, lot more drilling since then and we've expanded the project literally 500 meters ... well, actually more, 800 meters west, 500 meters east ... half a kilometer more in depth in some places. It's expanded dramatically. Our aim is, with a hundred kilometers of drilling into the project total by mid next year, is to double that exploration target. That's our stated aim, and we're pretty well on the pathway there now.

If we can get to that inventory, then we've got something extremely valuable on our hands at those sort of grades. This will be a top-tier project, and we're only six months away with some more good drilling. The news flow has been amazing this year and over the last few months, and everything's progressing well, never stopping. There's something like 13 holes in the laboratory and five being drilled, and not much of a break over Christmas. Keep your eyes on news flow.

Gerardo Del Real: Couldn't be more excited. I got to say, I've had several subscribers and shareholders write in asking what they need to do as we get closer to the record date and an effective date of spinout of the uranium assets, and the SXG scheme of arrangement. Can you speak to that just quickly? I've answered every email and question that I've received, but just if someone is listening, can you speak to what, if anything, shareholders have to do if they want to continue to own, as they should, right, their shares of Mawson Gold and obviously everything that comes with that exposure-wise?

Michael Hudson: Sure. The scheme has been set up to consolidate ownership of the assets. Rather than having 50-odd percent trading in Australia through Southern Cross and the other 50% shares held by Mawson, that was a rather clunky structure through history. It was a two-year escrow that Mawson had to go through, imposed by the ASX. That ended around middle of the year, and we've been working with Southern Cross to unlock that position and make it a much more investable vehicle, and that we have through this scheme. It's the most tax-efficient mechanism to undertake what is now a very valuable company and we believe will only get more valuable.

As a Mawson shareholder, you just have to sit there and hold your position, and by mid-January you'll have a consolidation to make the share value equivalent between Mawson and Southern Cross. Mawson's consolidating its shares down to the number of shares it owns in Southern Cross itself, so about 96 million. We'll go from 300 to 96, so more or less a three-to-one consolidation, but of course the value should be reflective of that consolidation. The value of the company doesn't change, just the share count reduces.

Then we'll go and spin out the uranium assets in Sweden into the SUA, Swedish Uranium Asset vehicle, which will be a unlisted public company that will be reflective of the shareholding of Mawson at the date, that actually I don't have in front of me now. Please look at our last press release, but it's around the middle of January, and you'll hold that company and it will do something with that when and if Sweden makes change.

The most value, without a doubt, is the Sunday Creek project, and the name change will come. Mawson will change its name to Southern Cross Gold Consolidated. The board of Southern Cross today, which includes myself, I'll stay on at Mawson, but the other three board members will come across. The management will be the same as Southern Cross, that has done such an amazing job over the last couple of years to create this asset.

In simple terms, we'll have a consolidation of ownership, more eyes to the stock. Then also, Mawson will dual-list the day that transaction takes place back in Australia. The day that Southern Cross is suspended from trading in Australia, Mawson will dual-list, and for Southern Cross shareholders, they won't see any gap in trading. Then one day they'll hold a Southern Cross Gold share and the next day they'll hold a CDI in Australia called Southern Cross Gold Consolidated.

There's a few more things for Southern Cross Gold shareholders to do. They have to elect which share they'd like to hold, an ASX or a TSXV share. Mawson shareholders, simply nothing. Stay there, hold and ideally accumulate more stock, Gerardo.

Gerardo Del Real: Excellent. Well, listen, with how this asset's shaping up to be ... and I want to remind everyone there is a suite of assets in the portfolio that are also highly prospective ... this one just has turned out to have that world-class look to it, and the drill results have spoken to that. It should be an exciting 2025. I know you keep busy around the clock, around the calendar year. Excited to see more results. Mike, thank you so much for your time. Appreciate it as always. I hope you have a great Christmas holiday and new year, if we don't chat before then, sir.

Michael Hudson: Thanks, Gerardo.

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