Canada-listed Mawson Resources Ltd (TSE:MAW) is one of an increasing number of juniors attracted by Finland’s relatively uncharted gold potential.
Progress recently has stepped up a gear with the company's development work at the Rompas-Rajapalot gold project in the north of country now moving to the heavy drill stage.
Diamond drilling underway
Two diamond drill rigs will come on stream in coming weeks to follow an extensive testing of near-surface targets.
More than 40 people will be employed when all rigs are on site and active.
Eight new targets have been defined at Rompas-Rajapalot from 225 base-of-till (BOT) drill holes and grab samples that ranged from 0.1 g/t gold to 236 g/t gold.
Grades were an average of 22.6 g/t gold and a median value of 1.0 g/t gold.
"This first systematic drill test of the area met our aims to define geochemically anomalous areas beneath thin glacial till, that covers 99% of the area, with eight anomalous zones defined over a large area of 2.3 km by 1.4 km,” said Michael Hudson, chairman and chief executive officer.
The aim from the latest programme is to drill up to 4 kilometres along strike and down dip from mineralization discovered during shallower exploration at Palokas.
This includes one of the most promising areas of 19.0 metres at 5.3 g/t gold from 38.7 metres in drill hole PRAJ0109.
A new gold address
Hudson says while Rompas-Rajapalot is a relatively new discovery, the potential is there for it to become a major gold ‘address’
There have been ‘very few’ high grade gold discoveries in good jurisdictions such as Finland made in recent years, he adds but this latest drill programme will, if not providing confirmation, at least indicate he may have one.
It will be Mawson’s largest ever drill programme and with a $6mln financing just closed, the company wanted to waste no time in getting the rigs turning.
Fortunately for Mawson, it has supportive shareholders with private equity investors owning 35% and this was key it getting the money for the exploration.
Drilling will continue until April 2017, when the assays should start to indicate whether Hudson is right to be optimistic about the potential.
Mawson shares have done well
Currently valued at C$42.7mln at C$40.41, Mawson shares have more than doubled over the past year as the samples and shallow test results have come through.
Hudson though sees the next stage of the company’s development pushing that market value to between C$150-200mln.
Good drill results this year, one suspects, may go some way to achieving that.