Mawson’s Subsidiary SXG Drills 2,318 g/t Gold Over 1.0 m in Best Hole at Sunday Creek

Vancouver, Canada — Mawson Gold Limited(“Mawson” or the “Company”) (TSXV:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) - https://www.commodity-tv.com/ondemand/companies/profil/mawson-gold-ltd/ - announces Southern Cross Gold Ltd. (“Southern Cross Gold” or “SXG”) has released results from SDDSC107 from the Rising Sun prospect, the best hole drilled to date at Sunday Creek, that returned a spectacularly long and high-grade intersection of gold-antimony mineralization including 1.0 m @ 2,318 g/t Au drilled within 455.3 m @ 7.2 g/t Au from 413.6 m (uncut) at the 100%-owned Sunday Creek Project in Victoria, Australia (Figures 1 - 5).   

Michael Hudson, Mawson Interim CEO and Executive Chairman, states: “Sunday Creek has again delivered one of the hits of the year and the rebirth of the Victorian goldfields continues.  This is an extraordinary global discovery with hole after hole exceeding previous exceptional drill results.  Here, drill hole SDDSC107 from Rising Sun intercepted the highest grade and best intersection at the project with 1.0 m @ 2,318 g/t Au including 0.3 m @ 7,330 g/t Au drilled within a broader interval of 455.3 m @ 7.2 g/t Au (uncut). 

“Importantly, for the first time we have demonstrated continuity of extremely high grades with SDDSC107 intersecting its best grades 17 m down-dip from SDDSC092, which intersected 3.3 m @ 267.8 g/t Au including 0.4 m @ 1,610 g/t Au in vein set RS80 (Figure 3).  This provides an enticing opportunity to now focus on these ultra high grade zones, in small but rich areas, with closer spaced drilling (including wedging) to rapidly build ounces beyond our initial exploration target expectations while we also continue to expand the footprint of the mineralized system.

“With four drill rigs operating, ten holes being processed or in progress, we look forward to continued news flow.“

Picture 1:  Quartz carbonate vein with banded sulphides and course visible gold disseminated along fractures. Interval assayed 0.3 m @ 7,331g/t Au from 684.7 m

Drill Hole Discussion

SDDSC107 contains 10 assayed intervals > 50 g/t Au (up to 7,330 g/t Au), 21 intervals > 15 g/t Au and 13 intervals of > 5 % Sb (up to 25.9 % Sb) and hosts the highest grades (up to 7330 g/t Au) and best intersection drilled to date at Sunday Creek, including four >100 AuEq g/t x m intersections from Sunday Creek.  Cumulatively the hole returned 3,424 AuEq g/t x m.

SDDSC107 was designed to test the strike extent and continuity of high-grade vein sets 20 m along strike (and down dip) from SDDSC077B (404.4 m @ 5.6 g/t AuEq (uncut)). The hole successfully intersected 12 vein sets over a 470 m downhole depth. Figure 5 shows the relationship between SDDSC107, SDDSC077B and surrounding holes in the same dipping plane down the trace of the hole (+/- 415m window around drillholes). Longitudinal sections of two vein sets (from the 45 veins sets defined to date at Sunday Creek) are also shown in Figures 3 and 4 and described below:

Vein Set RS80

SDDSC107 intercepted the highest grades and best intersection drilled at Sunday Creek (1.0 m @ 2318 g/t Au including 0.3 m @ 7330 g/t Au). This intersection was located 17 m down-dip of SDDSC092 (3.3 m @ 267.8 g/t Au including 0.4 m @ 1610 g/t Au) in vein set RS80 (Figure 3). This is the best demonstration to date of continuity between extremely high-grades intersections at Sunday Creek that have been defined by closer spaced drilling. The highest grades on vein set RS80 currently appear to form on the dyke footwall contact with altered sediments. 

This contact remains open 40 m up dip and 33 m down dip towards drill hole SDDSC050 which intersected 2.5 m @ 16.4 g/t AuEq (ETW 1.7 m). The vein is open to depth, and poorly constrained with limited drilling along strike. Drilling these very high-grade structures at close spacing (15 m to 25 m spacing) is increasing our confidence in continuity of extremely high grades at Sunday Creek. Vein morphology and grade tenor suggests that the same vein set has been intersected in a 170 m up/down dip and up to 60 m strike area. Several holes that are in progress or awaiting assay (SDDSC113, 114, 115A, 117) will continue to build the emerging opportunity in vein set RS80.

Vein Set RS50

SDDSC107 also intersected vein set RS50 in the dyke footwall and altered sediment contact intersecting 15.0 m @ 15.2 g/t AuEq (ETW 6.6 m) from 546.8 m (Figure 4).  Vein set RS50 has been traced for 560 m up and down dip and remains open at depth.  The opportunity to focus on the very highest-grade parts of the Sunday Creek system are also apparent in vein set RS50.

Expanded highlights from SDDSC107 include:

• 3.0 m @ 6.2 g/t AuEq (5.7 g/t Au, 0.3% Sb) from 348.7 m, including:
  • 1.0 m @ 13.7 g/t AuEq (13.6 g/t Au, 0.1% Sb) from 349.6 m
• 1.0 m @ 6.6 g/t AuEq (6.6 g/t Au, 0.0% Sb) from 380.0 m
• 0.2 m @ 11.0 g/t AuEq (0.8 g/t Au, 6.4% Sb) from 416.9 m
• 1.0 m @ 31.3 g/t AuEq (14.7 g/t Au, 10.5% Sb) from 425.0 m
• 0.3 m @ 9.0 g/t AuEq (8.6 g/t Au, 0.2% Sb) from 446.8 m
• 2.9 m @ 22.4 g/t AuEq (17.5 g/t Au, 3.1% Sb) from 491.6 m, including:
  • 2.3 m @ 27.3 g/t AuEq (21.8 g/t Au, 3.5% Sb) from 492.2 m
• 3.1 m @ 21.6 g/t AuEq (19.7 g/t Au, 1.2% Sb) from 497.0 m, including:
  • 0.3 m @ 213.1 g/t AuEq (198.0 g/t Au, 9.6% Sb) from 497.0 m
• 0.5 m @ 6.9 g/t AuEq (4.5 g/t Au, 1.5% Sb) from 526.2 m
• 15.0 m @ 15.2 g/t AuEq (9.3 g/t Au, 3.7% Sb) from 546.8 m, including:
  • 4.4 m @ 33.4 g/t AuEq (19.0 g/t Au, 9.1% Sb) from 549.3 m
  • 1.7 m @ 35.7 g/t AuEq (25.1 g/t Au, 6.7% Sb) from 557.5 m
• 9.1 m @ 40.0 g/t AuEq (39.1 g/t Au, 0.6% Sb) from 566.9 m, including:
  • 0.3 m @ 1,402.1 g/t AuEq (1,400.0 g/t Au, 1.3% Sb) from 572.9 m
• 0.3 m @ 32.4 g/t AuEq (31.5 g/t Au, 0.6% Sb) from 585.1 m
• 1.8 m @ 19.5 g/t AuEq (16.4 g/t Au, 1.9% Sb) from 588.3 m, including:
  • 1.4 m @ 25.1 g/t AuEq (21.2 g/t Au, 2.4% Sb) from 588.3 m
• 1.0 m @ 2,318.8 g/t AuEq (2,318.4 g/t Au, 0.3% Sb) from 684.3 m, including:
• 0.7 m @ 3,511.7 g/t AuEq (3,511.0 g/t Au, 0.4% Sb) from 684.3 m (including 0.3 m @ 7,330 g/t Au)
• 0.5 m @ 7.0 g/t AuEq (5.6 g/t Au, 0.9% Sb) from 695.0 m
• 0.9 m @ 5.7 g/t AuEq (5.6 g/t Au, 0.0% Sb) from 702.2 m
• 2.7 m @ 14.7 g/t AuEq (10.9 g/t Au, 2.4% Sb) from 723.0 m, including:
  • 0.3 m @ 57.6 g/t AuEq (26.9 g/t Au, 19.4% Sb) from 723.0 m
  • 0.4 m @ 48.6 g/t AuEq (46.3 g/t Au, 1.5% Sb) from 724.7 m
• 0.5 m @ 7.1 g/t AuEq (7.0 g/t Au, 0.1% Sb) from 731.0 m
• 7.6 m @ 13.5 g/t AuEq (13.3 g/t Au, 0.2% Sb) from 782.7 m, including:
  • 0.3 m @ 18.2 g/t AuEq (18.2 g/t Au, 0.0% Sb) from 782.7 m
  • 2.4 m @ 39.0 g/t AuEq (38.4 g/t Au, 0.3% Sb) from 784.4 m

Pending Results and Update

Seven holes (SDDSC110-112, 112W1, 113, 114, 115A) are currently being processed and analysed, with three holes (SDDSC116, 117, 118) in progress (Figures 1 and 2).

SXG Presenting Core at PDAC 2024 Core Shack

SXG has been selected by the PDAC 2024 technical committee to display its core at this year’s “Core Shack” at the exhibition in Toronto, Canada.

Exploration Manager Kenneth Bush will be at Booth 3110B on Tuesday, March 5, 2024, between 10:00am - 5:00pm ET and Wednesday, March 6, 2024, between 9:00am - 12:00pm ET with selections of core from drill holes SDDSC082, SDDSC091 and SDDSC107 from Sunday Creek.  Staff from Southern Cross Gold will also be available at Mawson’s Booth 2939 from Sunday 03 to Wednesday 06 March.

Further Information

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG website at www.southerncrossgold.com.au.

No upper gold grade cut is applied in the averaging and intervals are reported as drill thickness. During future Mineral Resource studies, the requirement for assay top cutting will be assessed.

Figures 1 to 7 show project location, plan, longitudinal and cross-sectional views of drill results reported here and Tables 1 to 3 provide collar and assay data. The true thickness of the mineralized intervals reported individually as estimated true widths (“ETW”), otherwise they are interpreted to be approximately 60% to 70% of the sampled thickness for other reported holes. Lower grades were cut at 1.0 g/t AuEq lower cutoff over a maximum width of 2 m with higher grades cut at 5.0 g/t Au lower cutoff over a maximum of 1 m width.

Technical Background and Qualified Person

The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services (“On Site”) which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

MAW considers that both gold and antimony that are included in the gold equivalent calculation (“AuEq") have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade global underground mine and a top 5 global producer of antimony.

SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd in its Mandalay Technical Report, 2022 dated 25 March 2022. The gold equivalence formula used by Mandalay Resources was calculated using recoveries achieved at the Costerfield Property Brunswick Processing Plant during 2020, using a gold price of US$1,700 per ounce, an antimony price of US$8,500 per tonne and 2021 total year metal recoveries of 93% for gold and 95% for antimony, and is as follows:

???? = ?? (?/?) + 1.58 × ?? (%).

Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a ???? = ?? (?/?) + 1.58 × ?? (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.

About Mawson Gold Limited (TSXV:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)

Mawson Gold Limited  has distinguished itself as a leading Nordic exploration company.  Over the last decades, the team behind Mawson has forged a long and successful record of discovering, financing, and advancing mineral projects in the Nordics and Australia. Mawson holds the Skellefteå North gold discovery and a portfolio of historic uranium resources in Sweden.  Mawson also holds 51% of Southern Cross Gold Ltd. (ASX:SXG) which owns or controls three high-grade, historic epizonal goldfields covering 470 km2 in Victoria, Australia, including the exciting Sunday Creek Au-Sb discovery. 

About Southern Cross Gold Ltd (ASX:SXG)

Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which grants SXG a Right of First Refusal over a 3,300 square kilometer tenement package held by NAG in Victoria.

In Europe:

Swiss Resource Capital AG

Jochen Staiger & Marc Ollinger

[email protected]

www.resource-capital.ch

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, Mawson’s expectations regarding its ownership interest in Southern Cross Gold, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, the potential impact of epidemics, pandemics or other public health crises, including COVID-19, on the Company’s business, risks related to negative publicity with respect to the Company or the mining industry in general; exploration potential being conceptual in nature, there being insufficient exploration to define a mineral resource on the Australian-projects owned by SXG, and uncertainty if further exploration will result in the determination of a mineral resource; planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on SEDAR. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Figure 1: Sunday Creek plan view showing SDDSC107 reported here (grey box, blue highlight), selected prior reported drill holes and pending holes.  For location see Figure 4.

Figure 2: Sunday Creek longitudinal section across A-B in the plane of the dyke breccia/altered sediment host (see Figure 1) looking towards the north (striking 236 degrees) showing mineralized veins sets.  Showing SDDSC107 reported here and prior reported drill holes.

Figure 3: Sunday Creek longitudinal section across C-D in the plane of the modelled vein set RS80, looking towards the south-west (striking 129 degrees).  Showing SDDSC107 (orange trace) reported here and prior reported drill holes.

Figure 4: Sunday Creek longitudinal section across E-F in the plane of the modelled vein set RS50, looking towards the south-west (striking 139 degrees).  Showing SDDSC107 (orange trace) reported here and prior reported drill holes.

Figure 5: Sunday Creek unconstrained plan view showing SDDSC107 and SDDSC077B assays with other intersections also shown (SDDSC050, 092). Veins (blue), dyke hanging wall surface relative to SDDSC077B and SDSSC107 (green) and hanging wall mineralized zone (from dyke hanging wall to dotted red line).  The distance between SDDSC077B and SDSSC107 is shown along their traces.  The RL at the start and end of holes is noted. For reference, surface is approximately 300 m RL. Of note is continuity of mineralized structures in the dyke hanging wall between SDDSC077B and SDSSC107. Host structure dips steeply to the north, veins dip steeply.

Figure 6: Sunday Creek regional plan view showing LiDAR, soil sampling, structural framework, regional historic epizonal gold mining areas and broad regional areas (Tonstal, Consols and Leviathan) tested by 12 holes for 2,383 m drill program.  The regional drill areas are at Tonstal, Consols and Leviathan located 4,000-7,500 m along strike from the main drill area at Golden Dyke- Apollo.

Figure 7: Location of the Sunday Creek project, along with SXG’s other Victoria projects and simplified geology.