The open pit and underground constrained inferred mineral resource is now estimated to be 9.0 million tonnes averaging 2.1 g/t gold, 570 ppm cobalt, an amount that equates to 2.5 g/t gold equivalent or 600,000 ounces (716,000 oz AuEq).
On Tuesday September 15, Mawson shares advanced on the news, rising 5.2% or $0.02 to 40 cents on volume of 248,183. They are currently trading in a 52-week range of 57 cents and 13 cents.
In a press release that came after the close of trading on September 14, 2020, Mawson said the updated mineral resource doubles the tonnage with a similar grade in comparison to a previous estimate of 4.3 million tonnes at 2.3 g/t gold, 430 ppm cobalt, which was announced in December, 2016.
The Rajapalot Project forms the eastern part of a 10-kilometre by 10-kilometre area consisting of three resource bodies plus two new discovery areas within a 4.0-kilometre by 3.0-kilometre area in Northern Finland. The project is located just south of the Arctic Circle in Finnish Lapland.
Rajapalot is on a runway towards further resource expansion with only 5.0% of the mineralized host horizon tested within a 100 km2 area.
“The doubling of the Rajapalot gold-cobalt inferred resource is another key milestone for the project we originally found as a single outcrop in a swamp a number of years ago, as the project starts to take critical form,” said Mawson Chairman and CEO Michael Hudson.
“A majority of the resource upgrade came from the 14-kilometre drill program completed earlier this year, after our geological team cracked the geological model and the structural association of gold within electromagnetic conductors,” Hudson said. He went on to say that Mason is fully funded and permitted to expand and infill the mineral resource, in order to build critical scale with 20 kilometres of drilling planned to commence in December.
The program will deploy five drill rigs and commence when winter conditions allow, Mawson said.