Mawson Resources (TSX: MAW) CEO Michael Hudson on the History & Opportunity at the Redcastle High-Grade Gold Project in the Victorian Goldfields of Australia
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chairman and CEO of Mawson Resources (TSX: MAW)(OTC: MWSNF), Mr. Michael Hudson. Mike, good morning. How are you?
Michael Hudson: Good morning from down under, Gerardo. I'm very well.
Gerardo Del Real: I watched a recent webinar you did, and we'll try to put a link to it at the end of this interview. It was well done, and it did a really thorough job of going over the multiple projects in Australia, of course where you're based out of right now.
You just had some news earlier detailing the mining history of the Redcastle high-grade gold project. This is a project that many are extremely excited about. The market has rewarded quality exploration, specifically out of this region. Can you provide a brief overview of the projects? Then let's talk about the details in the release.
Michael Hudson: Specifically, this is about the Redcastle Project, one of the three projects we have in the Victorian Goldfields. Redcastle is in the shadow of the headframe of Fosterville, which has changed the geological opportunity, rewritten the geological opportunity here in Victoria. It's immediately along strike from Costerfield, which is a million-ounce-plus system that is being mined by Mandalay.
These three projects – Redcastle, Costerfield and Fosterville – were historic mining areas. Redcastle, our project that we're in joint venture with Nagambie Resources, was the most significant field in the day. It was mined 30 years before Costerfield was really looked at and mined, and way before Fosterville was even discovered or thought about.
The old timers went for grade, and this project had grade in oodles, if you like, putting it into simple language. We've got 17 kilometers combined of high-grade structures that were mined down to the water table. The old timers couldn't get below that water because that flooded the mines. They didn't have the pumping technology. They were mining at hundreds of grams across thinner zones, sort of meter type wide zones.
It's an epizonal system. It's exactly an analog for what Fosterville is, for what Costerfield is. The old timers mined these very high grades, but they left gold in the walls. They left gold at their feet and walked away from these mines. Surprisingly, this field, the most significant field in terms of it was mined out before Fosterville and Costerfield, the modern day mines, hasn't had one drill hole underneath any of these high-grade structures. Not one drill hole.
That's our opportunity. We've spent the last two press releases over the last couple of weeks outlining what we're doing. The geophysics is starting on the project, gravity, magnetics and induced polarization. Next week, a drill rig will be turning up through our projects here in Australia. We've got another project called Sunday Creek and Redcastle that we'll be drilling. Within two and a half to three weeks that drill rig will start turning. It's a very exciting time.
This project is just one of those staggering projects. We're not looking for something from first principles. What Fosterville have found at the Swan Zone, which is 1.5 to 2 million ounces – well it was over 2 million ounces before they started mining it – at close to 40 grams.
Gerardo Del Real: That's good, by the way.
Michael Hudson: That's good. That's 40 times the average grade, essentially, of any mine around the world. This is that Swan Zone turned on its side and mined by old timers down to 50 meters on average and not being drilled to depth. So it's just crying out for drilling. We're pretty excited.
Gerardo Del Real: You mentioned the geophysics, which obviously that's exciting, but the diamond drilling program that's supposed to commence in late August, early September, is the main event as it relates to Redcastle.
There should be news, however, beforehand out of Finland with the resource update. You and I spoke, I believe, a little less than a week ago. All was well then and on schedule. How are things coming along for that update?
Michael Hudson: On schedule, mid-August. All the data's with our QP as we stand. We'll be looking at a resource upgrade mid-August. In our press release today, we said 2.5 to 3 weeks' time. Then we said late August. We didn't get that quite right because the rig is a bit of a moving piece, but it's the earlier date that we're looking to be drilling. So mid-August too is likely when that first rig will move in rather than late August. Lots of key points and key information that is coming to the table in the next few weeks from Mawson.
Gerardo Del Real: Mike, exciting times. I'll let you go. I know you have a busy day ahead of you. Thank you so much for that thorough update. Is there anything else that you'd like to add?
Michael Hudson: No. You always ask that question, Gerardo. Just the solidity of Finland and the resource and the excitement of testing an uber high-grade system that extends over a large distance that has never been tested in one of the hottest addresses in the world at the moment.
Gerardo Del Real: And the treasury to explore and develop both, right?
Michael Hudson: Correct. $17.5 million cash is the actual cash balance today.
Gerardo Del Real: Excellent. Mike, thank you.
Michael Hudson: Thank you.