Progress Report on the Geology, Mineralization and Exploration Activities on the Rompas-Rajapalot Gold- Uranium Project, Peräpohja Schist Belt Lapland, Finland
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Mawson Resources Ltd Progress Report On The Geology, Mineralization And Exploration Activities On The Rompas-Rajapalot Gold- Uranium Project, Peräpohja Schist Belt Lapland, Finland Michael Hudson, FAusIMM, MAIG, MSEG 8/26/2013 1 Table of Contents Table of Contents ............................................................................................................................ 2 List of Tables .................................................................................................................................. 4 List of Appendices .......................................................................................................................... 4 1. Summary ................................................................................................................................ 5 2. Introduction ........................................................................................................................... 8 3. Reliance on Other Experts .................................................................................................... 8 4. Property Description and Location...................................................................................... 8 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography .................. 13 6. History .................................................................................................................................. 13 7. Geological Setting and Mineralization .............................................................................. 14 a) Regional Geological Setting .............................................................................................. 14 b) Rompas Area Geology ....................................................................................................... 17 c) Mineralization .................................................................................................................... 19 8. Deposit Types ....................................................................................................................... 22 9. Exploration ........................................................................................................................... 22 a) Exploration Chronology: 2010 Work Program .................................................................. 26 b) Exploration Chronology: 2011 Work Program .................................................................. 28 c) Exploration Chronology: 2012 Work Program .................................................................. 29 d) Exploration Chronology: 2013 Work Program .................................................................. 32 10. Drilling .............................................................................................................................. 36 11. Sample Preparation, Analyses and Security ................................................................. 43 12. Data Verification .............................................................................................................. 45 13. Mineral Processing and Metallurgical Testing ............................................................. 46 14. Mineral Resource Estimates ........................................................................................... 46 15. Mineral Reserve Estimates .............................................................................................. 46 16. Mining Methods ............................................................................................................... 46 17. Recovery Methods ............................................................................................................ 46 18. Project Infrastructure ..................................................................................................... 46 19. Market Studies and Contracts ........................................................................................ 46 20. Environmental Studies, Permitting and Social or Community Impact ...................... 47 21. Capital and Operating Costs .......................................................................................... 48 22. Economic Analysis ........................................................................................................... 48 2 23. Adjacent Properties ......................................................................................................... 48 24. Other Relevant Data and Information ........................................................................... 49 25. Interpretation and Conclusions ...................................................................................... 49 26. Recommendations ............................................................................................................ 50 1.0 References ......................................................................................................................... 53 3 List of Tables Table 1: Status of Mawson’s Claims in Finland. ......................................................................... 10 Table 2: Lithostratigraphy of the Peräpohja Belt (Prave, 2013) ................................................... 16 Table 3: Comparison of J. Nebocat Samples (2011) with AREVA & Mawson Samples ........... 46 Table 4: Recommended company-wide budget for August-December 2013: ............................. 52 List of Figures Figure 1: Rompas Project Finland Index Map ................................................................................ 9 Figure 2: Rompas Claims and Prospects ...................................................................................... 10 Figure 3: Rompas Geology and Structure ..................................................................................... 18 Figure 4: Rompas Rajapalot Prospect -Basaltic Host Rocks ....................................................... 20 Figure 5: Rajapalot Overview Map with LIDAR ........................................................................ 21 Figure 6: Rompas A Horizon Geochemistry and Prospects ........................................................ 23 Figure 7: Rompas Heavy Mineral Sampling ............................................................................... 24 Figure 8: Rajapalot Airborne and Surface Slingram EM. ............................................................ 26 Figure 9: Drilling Regional Location ............................................................................................ 37 Figure 10: North Rompas Drilling Plan ........................................................................................ 38 Figure 11: South Rompas Drilling Plan ........................................................................................ 39 Figure 12: South Rompas Cross Section 7373780N.................................................................... 40 Figure 13: South Rompas Long Section ....................................................................................... 41 Figure 14: South Rompas Log Grade vs. Width ........................................................................... 42 List of Appendices Appendix 1: List of Mawson’s Claims at Rompas/Finland. ........................................................ 55 Appendix 2: List of Drill Holes Collars Drilled by Mawson to Date at Rompas ......................... 76 4 1. Summary The Rompas-Rajapalot gold-uranium project is located in the Ylitornio municipality of northern Finland at 66.45ºN and 24.75ºE, approximately 50 kilometres (“km”) west of the Rovaniemi town. The initial discovery area, Rompas was discovered by AREVA Resources Finland Oy in September 2008 as part of regional uranium exploration. Limited exploration was undertaken until Mawson purchased the exploration assets of Areva in 2010 and subsequently defined more than 300 surficial with significant grade gold (“Au”) from vein style mineralization over a 6 km strike length. Diamond drilling in 2012 and early 2013 has produced numerous Au-uranium (“U”) intersections, of which 6 metres (“m”) at 617 grams per tonne (“ g/t”) Au remains the highlight. Rajapalot is a new grassroots discovery made by Mawson, 8 km to the east of Rompas, where over a total of 52 outcrop grab samples to date average 152.8 g/t Au and range from 0.001 g/t to 2,817 g/t Au. The Rompas property consists of 108 granted claims at Rompas and 13 granted claims at Rumavuoma totaling 10,580 hectares and 1,292 hectares respectively (Table 1). The Company has staked additional claim applications and reservations in the Rompas area for a total landholding of approximately 87,480 hectares with potential for gold. The initial discovery area, Rompas, is a hydrothermal vein style system defined over a 6.0 km strike and 200-250 m width. Exploration on the project started in May 2010 and since acquiring the project in April 2010, Mawson has collected a total of 2,808 surficial soil and till samples over an area exceeding 55 km by 30 km. Sample spacing has ranged from 1 km to 250 m. Mawson’s geochemical rock chip, grab and channel sample database over this large area now contains 1,171 samples which average 212 g/t Au and 0.8% uranium oxide (“U3O8”). Of the 1,171 samples, 84 samples assay more than 100 g/t Au. Gold values range from 33,320 g/t Au to <0.001 g/t Au and U3O8 values from 49.5% to <4 parts per million (“ppm”). In 2010 Issuer collected 80 channel samples that averaged 0.59 m @ 203.66 g/t Au and 0.86% uranium oxide. During 2011 the weighted