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Thursday, 18 October 2012
Ocean Equities says latest Rompas news "a pivotal moment" for Mawson Resources
Capital markets firm Ocean Equities said Thursday that the latest news from Mawson Resources (TSE:MAW) was "a pivotal moment" for the company.
Wednesday, the company said that 110 exploration claims that cover a surface area of 10,580 hectares at its Rompas gold project in northern Finland have now come into legal force after a standard appeal process.
"After a lengthy process and much anticipation, Mawson has obtained legal rights to 100% of the core Rompas claims," said Mawson's president and CEO Michael Hudson said in a statement.
"This will allow us to drill test the exciting Rompas and Rajapalot gold discoveries outside Natura 2000 areas."
"We think Mawson holds some of the best grass roots gold exploration ground in Scandinavia not currently held by major mining companies," Ocean Equities analyst Christopher Welch said in a note.
The firm's opinion is based on earlier drilling and trenching results which include trench results of 1.4 metres at 2,529 grams per tonne (g/t) gold at North Rompas and previous drill results of 617 g/t gold over 6 metres at South Rompas.
While still at an early stage the drill results suggest Rompas is a shallow, Ocean Equities said in a note, with high grade deposit hosting free gold. Geophysics suggest the deposit has a strike length of at least 6 km and drill results point to a width of over 200 metres.
The share price reaction when Mawson first announced its trenching results (December 2010), which saw the share price soar to over C$2.50, was "indicative of the potential" that Ocean Equities, and the market, sees in the project.
"With confirmation of the licence claims, the company is now able to undertake a more comprehensive drill programme on Rompas to build on these spectacular initial exploration results...we expect more standout drill results from Mawson in 2013 based on the ground’s geological potential."
Now that Mawson has full legal rights to the granted claims it can start a large drill campaign across its property to build on the earlier drilling success, which includes Finland's highest-grade drill intersection of 617 g/t gold over a 6 metres from 7 metres.
The company expects to mobilise the first drill rig onto the property within six weeks, and the rig is expected to drill through the winter period. A second drill rig is expected to be mobilised in Q1 2013, Ocean Equities said in its note.
Approximately 30 per cent of the overall 6 km Rompas trend is now available to drill test while results continue to flow from this summer’s work at Rajapalot, with evidence mineralisation continues into non-Natura 2000 areas.
"Mawson can now also carry out broader exploration surveys across its granted claims. It is hoped that an airborne geophysical study on the nearby Rajapalot target will commence in spring 2013 and build on a recent grab sample survey that led to the target’s discovery (announced in September 2012)," Ocean's Welch said.
"Overall we see the Natura 2000 drilling restrictions to be a minor hindrance to Mawson as it carries out its drilling campaign.
"This is due to Mawson having a large land package of over 10,000 hectares that hosts some of the highest grade precious metals mineralisation that we have so far encountered over meaningful drill and trench intercepts."