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Mawson Resources poised to start drilling at Redcastle in August as it outlines history of the asset in the Victoria goldfields

Last updated: 04:30 24 Jul 2020 AEST, First published: 21:55 23 Jul 2020 AEST

MAWSON RESOURCES LTD -
In the 19th Century, extremely high gold grades were mined at the Redcastle area

Mawson Resources Limited (TSE:MAW) (OTCPINK:MWSNF) has told investors that geophysics will start at its Redcastle project in Australia this month, followed by drilling from August as the company outlined previous exploration and work at the historic goldfield area.

The firm noted that Redcastle was one of the key high-grade epizonal goldfields in Victoria, where mining began in around 1859.

READ: Mawson Resources poised for exploration drilling at historic Redcastle project in the famous gold fields of Australia

Extremely high gold grades were mined there in over 24 historic mining areas that extend over a combined 17 kilometres of combined high-grade vein strike.

Historically, the focus was on the heap leachable near-surface gold at Redcastle, while no previous explorer has searched for high-grade gold beneath and along strike from existing mines, Mawson said.

Since 1985, 270 holes have been sunk and selected highlight assays included 10 metres at 2.5 grams per ton (g/t) gold from 22 metres (m) and 2 metres at 10.7 g/t from 39 metres.

Mawson said initially at the project, it will systematically collect "tenement-scale" data to understand the broader system and also explore beneath the significant alluvial cover.

Secondly, the firm plans to start drilling from late August 2020, to test beneath the high-grade old mines by combining the "tenement scale" data with other data and historic mine records.

"It remains astounding that the project remains untested below the water table (50 metres average depth)," said Mike Hudson, chief executive of Mawson in a statement. "Mawson will commence geophysics at Redcastle during July, followed by a diamond drilling program in late August/early September."

Earlier this year, Mawson, which is primarily focused on Finland and its Rajapalot gold-cobalt project, struck a deal giving it access to three high-grade, Fosterville-style (shallow-orogenic or epizonal) exploration projects at Redcastle with numerous historic mines that lacked drill testing to depth.

It has the option to earn an up to a 70% joint venture interest in the Redcastle project from Australia-listed Nagambie Resources (ASX:NAG) by spending  A$ 1million on exploration over five years.

The state of Victoria hosts one of the giant orogenic goldfields in the world with more than 80 million ounces extracted since 1851.

It is now experiencing its third gold boom with the discovery of the Swan Zone at Fosterville and better geological understanding that epizonal systems can develop extremely high-grade, free gold deposits.

Among notable mining areas at Redcastle that have never seen testing below old workings, include the Clarkes Reef, the Mitchel reef, the Beautiful Venice Reef, the Hit and Miss Reef, and the Union Reef, noted Mawson.

The firm said a diamond drilling campaign will start at both Redcastle and Sunday Creek, another of Mawson's exploration projects under the Nagambie deal from mid-August.

Shares added 4.05% in Toronto to C$0.38.

---Updates for share price---

Contact the author at giles@proactiveinevestors.com

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