VANCOUVER, Feb. 22 /CNW/ - Mawson Resources Limited ("Mawson") TSX - MAW; Frankfurt - MRY. Mr Michael Hudson, President & CEO, announces that Mawson has signed an Option Agreement to explore the Orrbäcken nickel project, which won the annual Swedish "Mineral Hunt" Competition for 2009. Subsequent to this Option Agreement, Mawson has entered a Joint Venture Agreement with Independence Group ("IGO") (www.igo.com.au), a nickel mining and exploration company listed on the Australian Stock Exchange, that provides IGO with the right to explore and advance the project.
"Mawson continues to review global multi-commodity exploration opportunities, while in parallel pursuing its European uranium strategy. In this case, Mawson has chosen to partner with Independence Group, a technically strong and nickel-focused mining company who will rapidly advance the Orrbäcken project." said Mr. Hudson.
The Swedish National Mineraljakten (or "Mineral Hunt") has been contested since 1967 and gives members of the public the opportunity to submit mineralized rock samples with the Swedish Geological Survey (SGU) for assessment. The SGU allocates points based on the grade, context and significance of the rocks submitted and selects an annual winner. The winning project from 2009 was the Orrbäcken nickel project, discovered by father and son team Kurt and Kristoffer Löfroth. Orrbäcken is located 10km south of the town of Skellefteå in Northern Sweden and is comprised of 3 exploration permits totaling 461 Ha held by Mawson via an Option Agreement with Kurt and Kristoffer Löfroth and 1 exploration application of 5160 Ha held directly by Mawson.
Orrbäcken is a new nickel discovery which shows promising chemistry, scale and position in relation to gravity and magnetic datasets. The discovery consists of approximately 80 gabbroic boulders that form a 1.5km long boulder train, 25 of which are mineralized and interpreted to be close to source. Four boulder samples were taken by the Swedish Geological Survey from the Orrbäcken discovery. Nickel ranged from 1.9% to 0.6% and averaged 1.0%, cobalt ranged from 0.21% to 0.05% and averaged 0.1% and copper ranged from 0.7% to 0.1% and averaged 0.3%. The boulder train is associated with a magnetic feature that is of a similar scale to mafic intrusives that host economic deposits elsewhere. IGO plans to fly airborne magnetics over the coming months with field work scheduled for June 2010. With encouraging results, airborne and ground electromagnetic surveys are planned with follow-up diamond drilling during winter 2010/2011.
The Option Agreement with Kurt and Kristoffer Löfroth provides Mawson a 4 year period to purchase a 90% interest in Orrbäcken with a further right to purchase the outstanding 10% interest for SEK5,000,000. The 4 year Option Agreement is maintained by Mawson paying to the mineral hunters SEK200,000 on signing, SEK200,000 on the 1st anniversary, SEK300,000 on the 2nd anniversary, SEK400,000 on the 3rd anniversary and SEK500,000 on the 4th anniversary.
The Joint Venture Agreement with IGO provides IGO the right to earn a 70% interest in Mawson's interest in the Orrbäcken project by funding expenditures of AU$2 million over 5 years. Upon transfer of the 70% interest, IGO must pay Mawson AU$300,000. IGO must spend a minimum of AU$80,000 within 12 months before it may withdraw from the Joint Venture. If either party elects not to contribute then standard industry dilution formulas will apply down to a 5% interest at which point the interest would convert to a 1% NSR. IGO retains the right to purchase the outstanding Löfroth 10% interest.
SGU samples were analyzed by ME-ICP41 and PGM-ICP23 techniques by ALS Chemex Ltd's laboratories in Pitea, Sweden and Vancouver, Canada. The qualified person for the Orrbäcken project, Mark Saxon, director and vice-president of exploration for Mawson, and a member of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.
On behalf of the Board,
Michael Hudson, President & CEO
Forward Looking Statement. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Mawson Resources Ltd.
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