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PK:MWSNF

Mt Isa Queensland Australia

Mt Isa SE

Mawson has staked through its 100% owned Australian subsidiary, Mawson Queensland Pty Ltd, five exploration prospecting licences (“EPMs”) for 483km2. All EPMs, are granted.

While the Company remains focussed in Finland and Victoria for gold, over the last 3 years Mawson’s strategy has been to acquire district-scale areas undercover and along strike from large mines. The Company has built a significant position of 483 square kilometres of granted exploration licences in the Cloncurry district of Mt Isa, over a combined 60 kilometres of strike, and is surrounded by South32 Ltd and Sandfire Resources Ltd;

Subject to Mawson’s compliance with the terms and conditions Mawson will receive $200,000 funding by undertaking a drill program before 31 May 2021. under the Queensland Government’s Collaborative Exploration Initiative (CEI) to fund drilling the F11 target, which is strike-parallel to South32 Ltd’s Cannington silver-lead mine, the ninth largest silver producer in the world with 12.3 Moz produced in 2019. At its prime in the early 2000s Cannington was the world’s largest single silver producer, and represented about 6% of the world’s primary silver production. Deposit styles sought at F11 include both Cannington silver-zinc (Broken-Hill type) and iron-oxide copper-gold (IOCG).

A video of the F11 drill target can be observed HERE.

The Mt Isa area is one of the most metal-endowed areas of the world, and contains 5% of the world’s silver resources, 1.7% of the world’s copper resources, 21.2% of the world’s lead resources and 11% of the world’s zinc resources, within numerous world-class mines. Most of these mines were discovered within outcrop or subcrop areas.

The Mt Isa area contains a large number of mineral occurrences and world class mines. Since the discovery of copper and gold near Cloncurry in the 1860s the rocks of the Mount Isa Orogen have been significant producers of copper, lead, zinc and silver. Significant resources remain, with the Mount Isa Orogen containing 21.2% of the world’s lead resources, 11% of the world's zinc resources, 5% of the world’s silver resources and 1.7% of the world's copper resources. Most of these discoveries were made within the outcrop and subcrop areas. These areas continue under 100-500 metres of cover particularly to the north, east and south of the Mt Isa mineralized block. Mawson’s strategy has been to acquire prospective undercover areas within prospective host sequences in data poor environments.

Over the last year, Mawson flew 100 metres spaced airborne magnetics and a 1km x 1km ground-based gravity over its entire Isa SE holding. This program was funded in part by a AUD $100,000 grant from the Qld Government Collaborative Exploration Initiative, which backs private investment in under-explored parts of north-west Queensland by co-funding particularly innovative projects.

Mawson’s Isa South East project represents an example of the changing industry paradigm to explore deeper under cover. The completed detailed magnetic and gravity surveys are considered a vital steps in derisking the project to generate drill targets. The attractiveness of Mawson’s Isa SE project is underpinned by three key factors:

1. High prospectivity for large mineralized systems including BHT-type and Cloncurry-style IOCGs. The project area spans approximately 60km of strike adjacent to South 32’s world class Cannington mine. This includes approximately 20km of strike similar south east-trending magnetostratigraphy to that which hosts Cannington. The area is structurally complex containing segments of the crustal-scale Cloncurry fault system and associated NW-trending second order structures and major interpreted D2 and D3 shear zones.

2. Extremely low level of exploration maturity. Only two basement targeted holes have been drilled within the Mawson EPMs. This lack of drilling is a direct reflection of increased cover thickness rather than the ability to develop high-potential drill-ready targets, noting the geophysical detectability of all known major deposits in the Isa terrane. Within the current industry paradigm of exploring at greater depths under cover this creates opportunity for Mawson - to review and reprocess open file geophysical data, assess options for additional ground or airborne geophysical surveys and via integration with structural-stratigraphic interpretation develop new exploration targets under cover.

3. Large and strategic land holding. The 4 EPMs that comprise the ISA SE project total 785 sq km. These are contiguous with active miners and explorers South 32, Minotaur and Sandfire.