Mawson Resources (TSX: MAW) Advances Rompas Gold Project in Finland with Very High Grade Results
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By Dr. Allen Alper
on 2/10/2014
Mawson Resources Ltd (TSX: MAW) recently visited the Cambridge House Resource Investment Conference in Vancouver where Mike Hudson, President and CEO, took time to share with Metals News the results of the work they have been doing on their flagship project in Finland.
Said Hudson, “Mawson is a company with a focus on the Rompas gold project in Finland. It is one of the highest grade, near-surface discoveries in the world today.” Hudson is enthusiastic about the future of the project, especially after the results they have recently received during a drilling program. He said, “We have pulled some impressive results. It is a vast system, one of the best in the business. The most recent drill holes are 10-20 meters in thickness with 2-10 grams. All of these results are at surface and we are only drilling down to 30 meters with a small hand portable rig.”
Hudson said that the system itself is enormous and has many different features. He said, “We have identified the mineral system over 100 square kilometers. The original discovery was a nuggety vein system over 6 kilometres length, and although we drilled bonanza grades it will prove a challenge to pull together in a resource until we can drill the system out and find more continuous zones. However, the new system at Palokas located 8km east, is a disseminated system. We like it very much as it will allow us to drill out tonnes with consistent grades with much more ease.”
Mawson has only explored a small amount of the area. Said Hudson, “We have only drilled a small portion of this. We have a 2 percent outcrop. So there is so much that is unknown and it is amazing how much gold we have found within a fraction of the 100% owned exploration property. It is an exciting project and is now a drill exercise to see if the project continues to deliver.”
Like many companies, keeping finances in place is the biggest challenge for Mawson. Hudson said, “Our challenge is to keep it funded. We raised $4.2 million dollars only 3 months ago which speaks mountains about the project and our team. Slowing down exploration is a terrible outcome and we have been fortunate to maintain our momentum. We have $6.5 million dollars in the bank right now. It costs $2.5 million to keep the business running annually plus discretionary costs of drilling and geophysics on top of that.”
Currently, there is activity on their project in Finland. Said Hudson, “We have one drill rig turning right now at the moment and results are continuing to flow. We will continue drilling over the winter. We have had a lot of geophysical and metallurgical work ongoing.”
Hudson is positive about the future for the company and for the deposit. He said, “I’m in it for the long term. Personally, I’m a large shareholder and we are fortunate to have a very solid group of institutions, high net worth’s and corporations as long term shareholders, plus thousands of very supportive retail shareholders. We plan on building our business in the Nordic countries around Rompas. With the results and backing we have received to date, I believe we are poised for considerable success. Much of how quickly the company moves forward is market dependent.” Hudson said, “As the market improves, the best properties will be better rewarded.”
With time, Hudson feels that their Finland-based deposit will open up a new gold region in a new part of the world. Said Hudson, “Rompas in unique. This is a new gold camp. It is a very exciting property.” Even with the potential of the deposit, Hudson and his team know that they need to have the knowledge to run it correctly. Hudson said, “You can have a good property but if you don’t have the management to run it and the financial expertise to navigate the market, you won’t get it done. We have strong support. We have very strong shareholder support with institutional investors. We have the project and the people behind it.”
Part of the knowledge that Hudson brings to the team is wisdom about how to work in the market and how long it will take to bring new product out of the ground. He said, “There are good rules of thumb that aren’t really understood by many. It takes a long time to discover a mine. Once you have been fortunate enough to discover a gold mine, the rule of thumb is 7-10 years before end of feasibility.” Part of the issue is waiting on permits. Said Hudson, “Permitting times are blowing out and we are no different in Finland – a safe jurisdiction with a current slow permitting regime. That just increases the value of the resources in the ground.” For the long term, Mawson is focused on getting the Rompas project off the ground before handing it off to a larger company that can take it to production. Said Hudson, “Our game plan is to be in it for the next 7-10 years and then have a major come in to take over. At the right time, Rompas will be hard for a major to say no to.”
Hudson believes that investors should take a close look at the Rompas and the story that they have to offer. Said Hudson, “You have the key story. Your readers can do their due diligence. We just raised $4 million dollars in just the last few months. That should tell you what type of project it is.” Hudson sums up his project by conveying the progress they have made in Finland by saying, “We have thousands of samples from this project. Finland is slow to permit. This year we will see the end of that. We have done a lot of surface work and found an incredible amount of high grade gold and with drilling only a year in, our challenge now is to quantify the value of the gold in the ground. We have to be definitive about what we find, but there is good scientific reason to be optimistic. We look forward to continuing to find value. It is a unique situation.”
http://www.mawsonresources.com/
Contact Information
Mariana Bermudez - Corporate Secretary
1305 - 1090 West Georgia Street
Vancouver, BC V6E 3V7 Canada
info@mawsonresources.com
INVESTOR RELATIONS
Donna Werbes (Retail) - Vancouver
Tel: +1 (778) 968 1623
dwerbes@mawsonresources.com
Seema Sindwani (Institutional) - Toronto
Tel: +1 (647) 478 4255
ssindwani@albiscap.com
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