Rajapalot Gold-Cobalt Project PEA

The Rompas-Rajapalot property consists of five granted exploration permits for 5,725 hectares and eight exploration permit applications for a combined total of 17,989 hectares. The property is located in Lapland, northern Finland, close to the Arctic Circle approximately 35 kilometres west-southwest of the city of Rovaniemi.

Access to site is by standard vehicle on tar sealed roads and well-maintained gravel roads. The topography is gently rolling to almost flat, heavily glaciated and inundated with numerous post-glacial lakes, till, eskers, lacustrine and fluvial deposits with a mean elevation of approximately 170 metres.

• Robust economics underscores significant value of current resource base
  • $211 million post-tax NPV5 (real) using $1,700/oz gold and $60,000/t cobalt
  • AISC¹ $824/oz Au life of mine (“LoM”)
  • >92 koz AuEq² steady state average production rate. 9 year life producing ~700 koz Au and ~2800 t Co
• A significant European mine 
  • If in production today, Rajapalot would be the EU’s third largest cobalt mine and sixth largest gold mine
  • Ethical metals sourcing with majority local support and 100% renewable power
• 27% post tax IRR, $181 million initial capex 
  • Strong cashflows, with $338 M free cash flow in years 1 to 5, and $101 M in life of mine cobalt by-product revenues
• 100% owned low-cost project in Tier 1 location
  • Underground only operation, utilising predominately long hole open stoping
  • 95% Au recovery with conventional gravity-CIL
  • Low infrastructure needs
• PEA underpins project to leverage substantial resource growth potential 
  • Rajapalot deposits are all open at depth, highlighted by the deepest intersection in Palokas of 30.8 m at 5.1 g/t AuEq from 553 m.

18,000 ha land package with undrilled targets between the project area and other significant gold occurrences such as the Rompas discovery (highlight 6 m at 617 g/t Au) 8 km west of Rajapalot.

1. AISC is a non-IFRS metric. For definition see Technical Background section below.
2. AuEq production figures calculated using metal prices $1,700/oz Au and $60,000/t Co AuEq = Au oz + (Co t x 35.3). AuEq head grades calculated using the same metals prices, and recoveries of 95% Au and 88.7% Co AuEq = g/t Au + (Co ppm / 988).

• Favourable setting for low operating costs
• Low impact underground only mining
• Conventional processing with high recoveries
• A significant asset for Europe

• Access to 100% renewable grid power
• EU cobalt production source with high environmental credentials
• Cobalt is critical to the EU’s battery ecosystem, and stated goals for self-sufficiency and the circular econom

• +8 km to the west (6m at 617 g/t Au) 
• 30+ structural dominant targets identified in mag survey. Area never drilled, but truckable to Rajapalot 
• Coincident with large C-horizon till anomaly – source unknown
• Refer news release https://mawsongold.com/news/news-releases/2022/mawson-magnetic-survey-highlights-new-exploration-targets-in-finland

• Among best intersections are the deepest, eg, Palokas 30.8 m at 5.1 g/t AuEq from 553 m
• Excellent down-plunge continuity.
• Drill to demonstrate system extends

• Robust deposit with extraction of 85% of the Au in resources through LHOS and cut & fill.
• 9 year life, includes ramp up in year 1
• 1.2 Mt/a production rate, mining 3 deposits at any one time

• 1.2mt/a dedicated mill with conventional low risk flowsheet
• 95% gold recovery to doré driven by simple free gold metallurgy
• Cobalt sulphide flotation to produce marketable cobalt concentrate

• Access to 100% renewable grid power
• Best practice water management included in project configuration
• 100% lined plant residues management facility
• All site infrastructure included for standalone operation
• No expensive camps, bridges, roads