Friday 5 April 2013

Ocean Equities notes progress from Mawson's latest drilling at Rompas project


Broker Ocean Equities issued positive comments aboutMawson Resources' (TSE:MAW) latest drilling results revealed earlier this week at its Rompas-Rajapalot project in Finland, saying the results from South Rompas show the company has improved its understanding of gold distribution. 
"The Rompas project has complex geological controls and as the latest results from South Rompas confirm gold grades vary from several ounces or kilos per tonne to trace gold," Ocean Equities wrote in the research note released Friday. 
"Having now completed narrow spaced drill holes at South Rompas Mawson has improved its understanding of gold distribution and has demonstrated some continuity to the gold mineralisation. A more comprehensive sampling method is now warranted to give a better representation of the gold distribution in the system," the report said, adding that bulk sampling of the area would overcome this problem to show a more accurate average gold grade of the trend. 
The company on Wednesday announced the latest drilling results from the northern and southern end of its 6k long Rompas project mineralized trend, and its Rajapalot target in northern Finland. The results were from the last 29 holes of the 51-hole program, for a total of 4,000 metres. 
The Rompas project and the nearby Rajapalot target became Mawson’s priority in the middle of last year, when the company recovered Finland’s highest grade drill at South Rompas with an intercept of 6 metres at 600 grams per tonne (g/t) gold. 
Wednesday, the gold explorer noted that nine of 14 drill holes at the South Rompas prospect intersected gold bearing structures. The company said that drilling at South Rompas "has clearly defined a gold-mineralized envelope", with the best intersection returning 0.5 metres at 148 grams per tonne (g/t) gold and 0.42% uranium oxide (U3O8) from a depth of 16.5 metres in drill hole ROM0074.
As with other previous drilling results, the latest from South Rompas showed a vein style of mineralization with both moderate and bonanza gold grades associated with uranium mineralization. 
"Combining the existing results with down hole radiometric data and bulk sampling data should reveal a great deal about the major controls of the gold distribution in this area," the Ocean Equities' report notes. 
"Once Mawson has unlocked the controls for this part of Rompas it should be able to tailor its exploration programs to improve exploration success across the rest of the 6km Rompas mineralised trend."
The broker also highlights the fact that the South Rompas target is "beginning to shape up", with the top 25 percent of drill intersections having a grade of 7.7 g/t or higher, and the highest grade single intersection having an average grade of 3,540 g/t gold over 1 metre. 
"While most of the gold hits so far have been over fairly narrow intersection widths of 1-2m the hits are all shallow (50% of which are 20m from surface or less) and are within a well-defined lithogically controlled area."
The aim, Ocean Equities says, should be to delineate an area where there is a good concentration of these narrow but high grade gold veins, where Mawson could begin to build a resource model. 
The broker adds that results from North Rompas and Rajapalot showed that good progress is being made in exploring the targets, despite "no potentially economic intersections" yet being returned as the company continues to improve its understanding of the controls on gold distribution at these targets. 
Of Mawson’s total 75,433 hectare landholding which hosts the Rompas and Rajapalot, drilling is restricted to only a small portion due to Natura 2000 restrictions and claim granting delays. 
But the company is now in the late stages of completing an environmental and social impact assessment on its project areas that should allow for a modified claim decision from the Finnish authorities, and let the company conduct a more thorough drilling campaign. 
It estimates that 80 percent of its high priority targets lie in the parts of its landholding it cannot yet drill.

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