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Investors FAQ
What
distinguishes Mawson?
Four points characterize Mawson:
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Low risk Sweden is the largest
gold producer in the EU15 and Mawson has the largest
property holdings, by area, the in Skellefte mining
district (79,884 Ha). The regional geology and gold
mineralization styles are similar to two of the largest gold
districts in the world, namely Timmins, Ontario and the
Kalgoorlie/Golden Mile District in Australia, each of which has
produced more than 50 million ounces of gold.
-
Three drill-ready gold properties
with outcropping gold within a 4km radius. 17 out 18 drill
holes in recent drilling intersected significant mineralization
including 2m of 72.6 g/t gold, 1m of 116.5 g/t gold 13m of 4.5
g/t gold.
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Young, dynamic and experienced
management with a proven record of exploration success. Drill
focused.
-
Tight capital structure.
Please provide a comprehensive
summary of the current capital structure (to include all shares,
warrants with strike prices and term, and any other convertible
instruments)?
Mawson has been developed as a tightly
capitalized company. To enhance shareholder value the directors aim
to continue actively and prudently managing the equity structure of
the company.
Capitalization:
100,000,000 common shares with no par value
Common
shares issued and outstanding: 13,545,916
Escrowed Shares:
6,680,000 common shares
Insiders: 49.5% of outstanding
shares
Cash:
As Jan 2005: C$800 000
Outstanding: 13,717,416
Options: 1,223,500
Warrants: 2,036,584
Fully Diluted: 16,917,500
How much
cash do you have currently available?
As at December 12,
2004, CDN$0.7m. If exercised, all warrants and options would
contribute C$1.6m.
What is
the current cash burn rate (from an SG&A perspective)?
Management's aim is
to maximize every dollar in the ground for an increased chance of
discovery. The approximate cash burn rate from a Selling, General
and Administrative Expenses perspective is C$144,000/year.
What are
your plans for future equity issues, and the timing of any?
Mawson aims to
issue further equity to fund ongoing drill programs at Vargbäcken,
Middagsberget and Fäbodliden in 2005.
Have
there been any substantial shareholder changes recently?
Mawson’s Initial Public Offering,
for which Canaccord Capital Corporation acted as agent, closed on
October 28, 2004. Mawson received gross proceeds of C$1,450,000
from the issuance of 3,625,000 Units at $0.40.
What is
the level of progress of each property?
Vargbäcken is
covered by a 25 year mining lease. A Phase 1 reverse circulation
“RC” drilling program was completed by Mawson in mid-December 2004
for a total of 1730m. Gold mineralization is defined over a strike
length of 550m. Higher grade gold mineralization has been drill
delineated over 250m strike and from surface to 160 m depth.
Vargbäcken is a mesothermal lode gold deposit. Gold is visible,
free and coarse grained and occurs in high grade “bonanza”
structures within a wider gold and sulphide-bearing mineralized halo
which is mapped by an induced polarization anomaly over 1 km
strike. Using a cut-off grade of 0.2 g/t gold, RC49 averaged 74 m
of 1.2g/t gold from 40 m and RC34 averaged 56m of 7.4g/t gold from
38m. The prospect remains open and further drilling is planned in
April, 2005 with the aim of extending and infill drilling Vargbäcken
to resource status.
Rockchip sampling of
outcropping gold-mineralized quartz veins is ongoing at the Fäbodliden
A, B and C prospects. Relogging of past slim-line drill holes is taking
place at the Middagsberget prospect in order to define drill targets for
the first half of 2005.
Mawson is conducting reconnaissance geochemical and geological studies
on the remaining 100% held 44,000 Ha of exploration permits in the
Skellefte district of Northern Sweden.
Have there
been any significant drilling results?
The company completed drilling
at the
Vargbäcken project
on December 9, 2004 .
Click here for a map of planned drill holes.
A
longitudinal section can be found here.
Gold
mineralization is defined over a strike length of 550m with 17 out
of the 18 holes drilled intersecting better than 2m of 2g/t gold.
Best RC drill results include:
-
RC34: 2 metres
of 72.6 g/t gold
-
RC34: 1 metre of
116.5 g/t gold
-
RC32: 13 metres of
4.5g/t gold
-
RC49: 4 metres of
7.0 g/t gold
When are
the next drilling results due?
The Vargbäcken prospect
remains open and further drilling is planned in April 2005, as soon
as spring conditions allow, with the aim of infill drilling
Vargbäcken to resource status.
What is
the current 43-101 resource?
None of Mawson's properties has a current 43-101 resource.
What is
the current inferred resource (on any other globally accepted
measure)?
Resource estimates prepared over the past 7 years at Vargbäcken
indicate the contained tonnage varies from 235,000 tonnes to 619,000
tonnes at a grade ranging between 3.7g/t Au to 7.0g/t Au. These
calculations are non-compliant with NI 43-101. They are conceptual
and insufficient exploration has been completed to define a
resource.
The Middagsberget, Fäbodliden and
Långtjärn exploration targets have had resources calculated in the
past. However, due to NI43-101 guidelines these cannot be quoted.
What is
the future work program?
Drilling will recommence in April
2005 during the European spring. The next will concentrate on
infill drilling and extending the mineralization at Vargbäcken.
Drilling will also be undertaken at the Middagsberget and Fäbodliden
prospects.
Any other
developments (new properties, new partners, etc.)?
The company is constantly
reviewing new gold projects to add to its already quality gold
exploration portfolio. |
