Mawson Resources (TSE:MAW) said on Monday it achieved its best result from the Palokas gold project to date and the deepest and best drill result outside of the Finnish site.
The company said that 8.4 metres @ 4.2 g/t gold from 206.0 metres in PAL0016, including 3.4 metres @ 9.5 g/t gold from 211 metres. The true width is interpreted to be approximately 90% of the sampled thickness.
PAL0016 was drilled 350 metres along strike from the main Palokas mineralisation and is the deepest and best result drilled outside of Palokas to date. Mineralization is hosted in a sericite-quartz-pyrrhotite rock which represents a different style to Palokas.
Mineralisation in PAL0016 is hosted in a sericite-quartz-pyrrhotite rock interpreted to be 50 metres lower in the stratigraphy than the Palokas mineralization within a broad +100 metre wide sulphidic-tourmaline-talc-amphibole alteration zone.
The style of mineralisation in PAL0016 matches with boulders and subcrops from the Rumajarvi prospect, located 1,300 metres south. Rumajarvi will be drilled over the next month, Mawson said in a statement.
"We are pleased to see higher grades develop 350 metres from Palokas with 8.4 metres @ 4.2 g/t gold in PAL0016," said Michael Hudson, President and chief executive officer at Mawson.
"More importantly our recent drilling has provided confirmation that Palokas consists of a large, gold-bearing hydrothermal system with multiple alteration styles that affect numerous intervals in a thick stratigraphic package. Drilling continues," he added.
The company said that the remainder of the winter drill programme will target the area located 1,000 to 1,200 metres south of Palokas, as well as a series of drill hole fences through the 400-metre-long by 100-metre-wide Rumajarvi boulder field.
Mawson shares, prior to being suspended earlier pending news, had traded at up 4.26% at C$0.25.