Vargbäcken
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 with 17 out of the 18 holes drilled intersecting better than 2m of 2g/t gold. Higher grade gold mineralization has been drill delineated over 250m strike and from surface to 160 m depth. 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
 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.
The Vargbäcken gold mineralized body was investigated by diamond drilling (DD) under the direction of North Atlantic Natural Resources AB ("NAN") between 1997 and 1998. NAN completed 31 DD holes within a zone extending for 300 metres by 50 metres to approximately 100 metres vertical depth. Visible gold in scout drilling by NAN coupled with geophysical anomalies extend the target zone to greater than 1km in strike.
Resource estimates prepared over the past 7 years 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. Uncertainty exists in the estimated grade due to coarse “nuggety” gold mineralization from slim-line core drill holes. Management believes that by using this drilling method the presence of visible coarse gold can under-estimate true grade and width.
 Outcrop is sparse, and mineralization subcrops against <3m veneer of glacial till overburden. The mineralization forms a complex series of quartz veins in four mineralized zones hosted in a diorite within an overall metasedimentary terrain. The highest density of mineralization and veins is found on the north-western contact of the diorite and metasediment package. The overall focus for gold mineralisation appears to be a structural jog within the diorite. Alteration on the contact of diorite intrusion and metasediments includes silicification and quartz brecciation. The gold is predominantly coarse grained and shows no direct relationship with arsenopyrite and sphalerite.
The company's main project is Vargbäcken, which 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 with 17 out of the 18 holes drilled intersecting better than 2m of 2g/t gold. Higher grade gold mineralization has been drill delineated over 250m strike and from surface to 160 m depth. Best RC drill results include 2 metres of 72.6 g/t gold and 1 metre of 116.5 g/t gold in RC34 and 13 metres of 4.5g/t gold in RC32.
Mawson commissioned a N43-101 independent geological report at Vargbäcken entitled “Review of Exploration at Vargbäcken Gold Deposit, Skellefte Mining District Northern Sweden”, dated August 11, 2004 by Andrejs Panteleyev, Ph.D, P.Eng. Vargbäcken is a joint venture with North Atlantic Natural Resources (NAN) which Mawson have an undivided right to earn 80% with an option to earn 100%.
A full list of RC drill results from the 2004 Phase 1 program are shown below:
Location |
Drill Hole |
From (m) |
To
(m) |
Width1 (m) |
Gold2 (g/t) |
Gold3 (g/t) |
Section 00N |
RC49 |
53 |
54 |
1 |
10.1 |
7.4 |
| |
|
58 |
66 |
8 |
4.1 |
4.0 |
| |
including |
58 |
59 |
1 |
10.9 |
|
| |
including |
62 |
63 |
1 |
11.1 |
|
| |
|
79 |
82 |
3 |
1.5 |
0.9 |
| |
|
88 |
100 |
12 |
1.6 |
|
| |
|
106 |
108 |
2 |
1.3 |
|
Section 300N |
RC48 |
49 |
51 |
2 |
2.2 |
|
Section 200N |
RC47 |
36 |
38 |
2 |
1.7 |
|
Section 140N |
RC46 |
53 |
57 |
4 |
1.5 |
|
| |
|
72 |
74 |
2 |
1.7 |
|
Section 140N |
RC45 |
38 |
42 |
4 |
7.0 |
|
| |
including |
41 |
42 |
1 |
21.7 |
|
| |
|
60 |
62 |
2 |
1.1 |
|
Section 60S |
RC44 |
31 |
35 |
4 |
5.3 |
|
| |
including |
32 |
33 |
1 |
16.3 |
|
Section 60S |
RC43 |
70 |
72 |
2 |
1.4 |
|
| |
|
100 |
102 |
2 |
1.5 |
|
| |
|
106 |
108 |
2 |
1.7 |
|
| |
|
110 |
113 |
3 |
2.3 |
|
| |
|
116 |
118 |
2 |
5.8 |
|
| |
|
124 |
127 |
3 |
10.0 |
|
| |
including |
124 |
125 |
1 |
13 |
|
| |
|
126 |
127 |
1 |
17.4 |
|
| |
|
131 |
133 |
2 |
1.2 |
|
| |
|
141 |
143 |
2 |
2.3 |
|
| |
|
149 |
150 |
1 |
8.7 |
|
| |
|
154 |
170 |
16 |
3.3 |
|
| |
including |
158 |
164 |
6 |
3.9 |
|
| |
|
166 |
170 |
4 |
5.4 |
|
| |
|
167 |
168 |
1 |
15.7 |
|
| |
|
173 |
178 |
5 |
2.0 |
|
Section 140S |
RC42 |
39 |
41 |
2 |
2.4 |
1.9 |
Section 100S |
RC41 |
25 |
27 |
2 |
1.3 |
|
| |
|
30 |
32 |
2 |
17.9 |
|
Section 140S |
RC40 |
No |
Sig. |
Gold |
|
|
Section 100S |
RC39 |
60 |
62 |
2 |
2.2 |
|
| |
|
96 |
98 |
2 |
1.1 |
|
| |
|
120 |
128 |
8 |
2.2 |
|
| |
including |
123 |
124 |
1 |
4.4 |
|
| |
|
125 |
126 |
1 |
4.7 |
|
Section 100S |
RC38 |
18 |
20 |
2 |
1.4 |
|
| |
|
45 |
47 |
2 |
3.8 |
3.0 |
| |
|
58 |
59 |
1 |
4.0 |
|
Section 100S |
RC37 |
22 |
24 |
2 |
1.8 |
|
| |
|
58 |
61 |
3 |
1.9 |
|
| |
|
64 |
66 |
2 |
1.1 |
|
Section 00N |
RC3 |
37 |
39 |
2 |
2.1 |
|
| |
|
53 |
55 |
2 |
4.8 |
|
| |
|
69 |
71 |
2 |
1.1 |
|
Section 00N |
RC35 |
42 |
44 |
2 |
1.1 |
|
| |
|
54 |
58 |
4 |
1.4 |
|
| |
|
76 |
80 |
4 |
1.1 |
|
| |
|
84 |
87 |
3 |
1.3 |
|
| |
|
108 |
111 |
3 |
2.2 |
|
| |
|
129 |
131 |
2 |
2.5 |
|
| |
|
141 |
146 |
5 |
2.8 |
|
| |
including |
141 |
143 |
2 |
3.7 |
|
| |
|
145 |
146 |
1 |
6.6 |
|
Section 00N |
RC34 |
38 |
41 |
3 |
10.4 |
11.1 |
| |
including |
40 |
41 |
1 |
28.1 |
30.7 |
| |
|
46 |
47 |
1 |
4.2 |
4.3 |
| |
|
52 |
54 |
2 |
3.3 |
16.3 |
| |
|
57 |
67 |
10 |
8.6 |
6.1 |
| |
including |
59 |
60 |
1 |
56.4 |
34.9 |
| |
|
66 |
67 |
1 |
8.0 |
7.4 |
| |
|
70 |
84 |
14 |
19.8 |
21.4 |
| |
including |
70 |
72 |
2 |
72.6 |
76.8 |
| |
|
82 |
83 |
1 |
116.5 |
130.3 |
Section 50N |
RC33 |
42 |
55 |
13 |
4.5 |
|
| |
including |
51 |
55 |
4 |
12.4 |
|
Section 50N |
RC32 |
68 |
84 |
16 |
1.2 |
|
| |
including |
68 |
69 |
1 |
4.9 |
|
Note 1: Calculated using a 2m minimum thickness and a 1 g/t gold lower cut. No upper cut applied.
Note 2: Gold analyzed by 500g bottle roll technique with leachwell accelerant and an atomic absorption spectroscopy finish by ALS Chemex Ltd’s laboratory in Piteå, Sweden.
Note 3: Assay results independently checked with 500g metallic screen fire assays by International Plasma Laboratory Ltd in Vancouver, Canada.
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