Mawson Resources (TSX: MAW) Michael Hudson on Latest High-Grade Results from the Successful Drill Program at Rajapalot Gold Project

March 7, 2018

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Michael Hudson: I'm pretty well. Jet-lagged but well, Gerardo.

Gerardo Del Real: For those listening, can you explain the jet lag? You are getting ready for PDAC, is that correct? PDAC?

Michael Hudson: Absolutely. I've flown into Toronto a day or so early. We've got a small conference here that I'm attending and doing some marketing. Looking forward to a busy few days.

Gerardo Del Real: Wonderful. Well, you had some excellent news this morning. The last time we spoke the rigs were turning, as they are right now, but you have some of the initial results here. You drilled 31.7 meters of 8.4 grams per tonne gold, including 10.9 meters at 21 grams per tonne gold. That's one assay of five that I believe you released today. Can you give me the details?

Michael Hudson: Well, the drill program is basically delivering, Gerardo. We said hopefully next time we speak we've got some good news, and I'm very thankful to say we have. This is the best result that we've drilled on a grade-meter basis in Rajapalot to date. And it's one of the better results globally in the last six months. We don't generally see such widths and grades. We were very pleasantly surprised. When we started drilling this area called Raja, we only had three holes in the area that indicated some gold last year. So we are following up a couple of known intersections and it's stacking up very well. It looks great, we're seeing continuity, and there's a lot more drilling that we've got into it already. And we're still continuing to drill this area. It's looking very interesting.

Gerardo Del Real: Excellent. Now, the continuity is important. Another thing that is really important is the thickness of the mineralized intervals interpreted to be approximately 90%, which is good because often time you get these news releases and you see a great intercept, and then you look at true width and it's 30%, right? Can you speak to that a bit?

Michael Hudson: Well generally, you try and drill mineralization at the highest angle possible to get the true representation of thickness. If you don't, say, you might have only a thin vein that's a few meters thick. You can actually drill down the longitudinal axis of that vein and you can get a very thick intersection that's a lot thicker than the vein itself. So you might drill 20 or 30 meters down the longitudinal axis of a vein when it's only really only a few meters thick. They're called “director’s holes.” Your listeners probably very well may know them. But in this case, we think that, and the geology's quite complex, but we think that we're seeing continuity and true thicknesses in this zone.

It's very important just to talk about that continuity also, because you know, some parts of our project have very high grades of gold but they're nuggety. That's 8 kilometers away at Rompas. But this is a very different style. This is more like, if you think of a plum pudding, where the raisins in the plum pudding are like little nuggets, that's Rompas. This is more like the flour in the plum pudding, much more consistent in that we're drilling right through and seeing consistent grades.

Gerardo Del Real: You mentioned that the geology is complex, and the best systems historically, the systems that produce world-class deposits are that way. They are complex. Now, at South Palokas, I noticed that you drilled some lower grade mineralization for the first time in the structural footwall. Can you talk about that mineralization and the complexity of the geology, because it really is striking, right? And that's one of the goals of this program is to define, hopefully, an ore body of significance that shows continuity, that potentially down the road has some good economics attached to it, but also to get a better understanding of this very complex system.

Michael Hudson: Yeah, you've obviously read the press release in detail. Some of those details get lost in the headline. The headline is spectacular and we're very happy, but there's also other parts that we're drilling that didn't get the gold numbers as per the headline. But it's very interesting that we're starting to find different levels of mineralization in areas that we knew a little bit about. But we're learning all the time. At South Palokas, as you mention, we found another level of mineralization. Now, we're not sure if it's a separate level, if you like, a different pancake in the stack of pancakes, or if it's a folded pancake and a repeat, if you like, of an area or mineralization that we drilled before.

That's where the complexity comes in. Big ore bodies generally have lots of overprinting of mineralization, that's what we're seeing also. Lots of fluid flow has come through these rocks and deposited gold in a variety of events. That's what we're actually seeing here. That's how big systems develop. They're not just a single crack and seal event that forms one-off. They form little systems, but this has the hallmarks of being a big system.

Gerardo Del Real: Now, I understand that 21 holes have been completed. You reported on five today. Are there still three rigs turning?

Michael Hudson: There's three rigs turning as we speak, 24/7, and there'll be more rigs going in there in the next week or so. We've got another two rigs booked and ordered. They'll move in the next week or so. So we'll finish the program up until mid-April with five rigs.

Gerardo Del Real: Excellent. Who from the Mawson team will be at PDAC? I understand you're at booth 2941?

Michael Hudson: That's correct. Obviously, myself and Dr. Nick Cook, the President of Mawson and the technical brains behind the team. He'll be there with some of this drill core that we put out today, so we welcome everyone to come around and have a look. There's a few bits of visible gold that you can see, which is always exciting, in the core. And there'll also be one of our senior geologists, Janne Kinnunen, attending as well as some of our corporate people. Mariana Bermudez and a few of the directors. So we've got a contingent and we welcome people to come along and have a chat.

Gerardo Del Real: Wonderful. Mike, thank you so much for the update. Look forward to chatting as the other assays start trickling in.

Michael Hudson: Look forward to it, Gerardo. Thanks again.

Gerardo Del Real: Thank you.

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