Court rejects NGO appeal, Mawson plans substantial drill program

VANCOUVER, Sept. 20, 2016 /CNW/ - Mawson Resources Limited ("Mawson" or the "Company") (TSX:MAW) (Frankfurt: MXR) (PINKSHEETS: MWSNF) announces the Supreme Administrative Court of Finland has comprehensively rejected an appeal by the Finnish Nature Conservation Association ("NGO") which now allows Mawson the right to actively explore the Kairamaat 2 and 3 exploration permits, which cover the Rajapalot and Palokas prospects in Northern Finland. The decision is non-appealable and the exploration permits gain immediate legal force. 

Key Points:

  • The Finland Supreme Administrative Court (the "Court") has rejected an appeal by an NGO group against the exploration permit decision that entitles Mawson to drill up to 123 deep diamond drill holes within Natura 2000 biodiversity areas during winter conditions and hand portable rig access during summer conditions;
  • This is the first time the Company has gained full drill access to test the gold mineralized system across the Rajapalot area.
  • Mawson now plans to undertake a substantial winter deep diamond drilling program of 10,000 metres, amongst other work programs, at the Palokas prospect and broader Rajapalot project area.

Mr Hudson, the Company's President & CEO, states, "The Supreme Administrative Court has unequivocally endorsed the permit granted to Mawson by the mining authority in July 2014 which was fully supported by all environmental authorities, to allow deeper drilling at the highly prospective Rajapalot gold project.  Among other rights, the decision allows the Company to deep drill up to 123 diamond drill holes in Natura 2000 biodiversity areas amongst other work programs, and is the key milestone we have been essentially awaiting since the first permits were applied for in October 2009. We understand the responsibility granted to us by this decision and look forward to working with the mining and environmental authorities to ensure our work is conducted according to global best practice methods."

On June 26, 2014, the Finnish Mining Authority, TUKES, granted Mawson a modified and renewed exploration permit (Kairamaat 2 and 3) that covers a surface area of 1,462 hectares at Mawson's Rajapalot and Palokas gold project in northern Finland. In late July 2014, TUKES' decision was appealed by the NGO to the Northern Finland Administrative Court through a standard public appeal process. On May 21, 2015 the Administrative Court rejected all aspects of the appeal. On June 18, 2015, the NGO appealed the Regional Administrative Court's decision to the Supreme Administrative Court and on September 20, 2016 the Supreme Administrative Court upheld the lower court decision.

Over the last year, four administrative bodies representing the mining and environmental authorities and both the Regional and Supreme Administrative Courts have found that Mawson's exploration work, carried out as permitted, does not present any significant risks to nature, environment, animals, other livelihoods, or people in the Rajapalot area or its vicinity. The exploration permits are valid for a period of 3 years, the maximum time allowable under the Finnish Mining Act. The Company has been working under an enforcement order granted in October 2014 and an application to extend the permits can be made in 3-year intervals, up to a maximum of 15 years.  The next renewal is in October 2017.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)

Mawson Resources Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rompas and Rajapalot gold projects in Finland.

On behalf of the Board,

"Michael Hudson"                  
Michael Hudson, President & CEO

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Forward-looking statements are typically identified by words such as: aim, believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, capital and other costs varying significantly from estimates, timing and the successful completion of the Company's proposed drill programs, changes in world metal markets, changes in equity markets, planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on www.sedar.com.  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

SOURCE Mawson Resources Ltd.

Image with caption: "Mawson Resources Limited (CNW Group/Mawson Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160920_C6415_PHOTO_EN_777665.jpg

For further information: www.mawsonresources.com, 1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7, Mariana Bermudez, Corporate Secretary, +1 (604) 685 9316, info@mawsonresources.com

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