Mawson Resources Ltd. (TSE:MAW) shares advanced more than 9% on Tuesday after the company said it had signed a plus-10,000-metre diamond drill contract and over-700-hole base-of-till (BOT) drill program at the 100%-owned Rompas-Rajapalot gold project in northern Finland.
The first drill rig is to mobilize to site this week.
Key Points:
- Diamond drill program will exceed 10,000 metres with more than 50 holes planned;
- Program will double the drill metres into the Rajapalot prospect, and will be the first systematic, large scale and deep test of the area;
- Two diamond drill rigs will be mobilized to the Rompas-Rajapalot site by the third week of December 2016;
- Drilling will continue until April 2017;
- Base-of-till drilling ("BOT") will commence immediately, with over 700 holes planned.
"With a $6 million financing just closed, we are wasting no time in getting the rigs turning at Rajapalot, as we begin our largest ever drill program. All permits are in place for this systematic and deep diamond drill testing that will double drilling completed in this highly prospective area. Our aim is to drill up to 4 kilometres along strike and down dip from mineralization discovered during this early stage drilling at Palokas, which included 19.0 metres @ 5.3 g/t gold from 38.7 metres in drill hole PRAJ0109,” said Michael Hudson, CEO.
In addition, fast and cost-effective grid base-of-till drilling will be used to discover and test targets within a 1,425 hectare area around Palokas. Systematic base-of-till drilling of over 700 drill holes at 150 metre spacing will be completed across a broad prospective sequence that is masked by thin glacial soil cover."
More than 50 holes for 10,000 diamond drill metres are planned in the program. To date 94 holes for only 5,972 metres with an average depth of 64 metres have been completed in the Rajapalot area. The planned +10,000 metre diamond drill program will focus on determining the strike and depth continuity of Palokas prospect mineralization and drilling targets developed in conjunction with existing drill and surface data and the recently completed gradient array IP-Resistivity and magnetic surveys. Drill holes will average between 150 and 250 metres long with some holes up to 500 metres down-hole depth as required.
Mawson shares were up 9.3% at C$0.47 on Tuesday.