Mawson Resources Limited (TSE:MAW) (OTCMKTS:MWSNF) is kick-starting a new 15,000-metre drill program at its Rajapalot gold-cobalt project in Finland.
The new program is aiming to expand the resource by extending the Palokas, South Palokas and Raja targets with an updated estimate planned in 2020.
A December 2018 maiden resource put Rajapalot’s figures at 424,000 ounces at 3.1 grams per ton (g/t) gold equivalent in the inferred category, including 4.3 million tons at 2.3 g/t gold and 430 parts per million cobalt.
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Mawson told shareholders that an exploration target exists at Rajapalot that could contain between 800,000 and 1 million ounces on the property, although the company did caution that the target is conceptual in nature until further drilling.
The company said that the first diamond rig was mobilized to the Palokas prospect to drill a high priority target below a previous hole intersecting 15.2 metres at 4.3 g/t gold and 2,566 ppm cobalt from 418.7 metres.
The new program is permitted and fully funded, thanks to a recent C$7.9 million financing that Vancouver-based Mawson closed last week.
“We are confident that new drilling down-plunge from the known inferred mineral resources will locate further mineralization,” Mawson’s CEO Michael Hudson said in a statement on Thursday.
“For the past decade, Mawson has been a safe and sustainable investor and mineral explorer in the Ylitornio region and at its peak, this program will employ up to 70 people to execute the approximate €3 million program."
The six-month drill program will take the company through to April 2020 and deliver an updated resource calculation in the second quarter of 2020.
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