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Mining Company Intersects 162 g/t Gold in Australia

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Mawson Gold has intersected visible gold in Australia. Read on to see what analysts have to say about Mawson's stock.

According to a press release from the company, Mawson Gold Ltd. (MAW:TSX; MWSNF:OTCPK; MRY:FSE) has announced the results of drilling on the Sunday Creek property in Australia. These results included the data from six drill holes on the property, labeled SDDSC068, 73, 74, 76, 77B, and 78.

The Sunday Creek project is wholly owned by a company that Mawson Gold has over half ownership of, Southern Cross Gold Ltd.

According to the press release, 77B revealed 5.6 grams per ton (g/t) gold equivalent over 404.4m at a depth of 374m. The press release reports that the drilling intercepted seven points that returned over 100 g/t and 20 points with over 5% antimony (Sb). The company referred to it as "the best hole drilled to date on the project, a spectacularly wide and high-grade intersection of gold-antimony mineralization."

The company also reported that 78 also revealed notable results, including an up-dip extension and several high-grade zones moving toward the surface. This hole also intersected 162 g/t gold, including visible gold, and 12.8% antimony over five mineralized sections of drilling.

Red Cloud analyst David Talbot gave Mawson a Buy rating and a CA$0.45 target price in a September 6 update.

According to Mawson, 68 also confirmed that the high-grade zones of mineralization extend beyond previous estimates of the Apollo zone.

Mawson also reported in the press release that its stake in the property is worth AU$46.9 million.

Noora Ahola, Mawson's CEO, commented that "Hitting intercepts such as 0.4m at 2,670 g/t gold was the remaining factor that elevates Sunday Creek into the same league as the other globally high-grade epizonal gold deposits that exist in Victoria . . . We expect a steady stream of positive results to come out of Australia."

Gold a Safe Haven

According to Bloomberg, the recent actions of the Federal Reserve have convinced investors to stay the course on gold, which they expect to trend upwards in the long term.

In mid-August, Stockhead reported that analysts were expecting a bull market for gold.

According to Jake Klein of Evolution Mining, "I think the gold story is compelling. It's a store of value, and as people think about their portfolio, it is an alternative to the U.S. dollar." As the dollar continues to falter, investors may continue to seek out gold as a safe haven.

90% Of Property Is Unmined

In an interview with Gerardo Del Real, Michael Hudson spoke on the scope of the company's operations: "We are drilling over about a kilometer strike from Golden Dyke to Apollo . . .  but there's 11 kilometers of the dyke structure." 

Red Cloud analyst David Talbot gave Mawson a Buy rating and a CA$0.45 target price in a September 6 update. 

Analysis from Yahoo Finance identifies Mawson Gold's cash burn as a potential risk but notes that this is not an unusual risk, as the company could raise more money through issuing shares. The article, written by Simply Wall St., states that "we don't think its cash burn is particularly problematic, but after considering the range of factors in this article, we do think shareholders should be monitoring how it changes over time."

According to the company's investor presentation, the company also holds Rajapalot, its flagship project in Finland, a cobalt-producing property. Much of the company's focus is on Rajapalot, including exploration, as, according to the company, over 90% of the property has not been mined.

Ownership and Share Structure

streetwise book logoStreetwise Ownership Overview*

Mawson Resources Ltd. (MAW:TSX; MWSNF:OTCPK; MRY:FSE)

*Share Structure as of 9/6/2023

Reuters provided a breakdown of the company's share structure, where management and insiders own 1.25% of the company.

According to Reuters, Michael Robert Hudson, Executive Chairman, owns 0.91% with 2.69 million shares, and Philip Williams, a director, owns 0.34% with 1.01 million shares.

According to Reuters, institutions own 32.08% of the company.

Reuters reports that the Sentient Group owns 8.72% with 25.71 million shares, Franklin Advisors, Inc. owns 7.53% with 22.20 million shares, Ruffer LLP owns 7.13% with 21.03 million shares, Merk Investments LLC owns 3.59% with 10.60 million shares, Konwave AG owns 2.90% with 8.55 million shares, Goodman & Company, Investment Counsel Inc owns 0.97% with 2.85 million shares, Mackenzie Financial Corporation owns 0.90% with 2.67 million shares, and Purpose Investments Inc. owns 0.34% with 1.00 million shares.

Reuters reports that there are 294.91 million shares outstanding, with 265.05 million free-float traded shares.

According to Reuters, the company has a market cap of AU$59.68 million, and it trades in the 52-week period between AU$0.12 and AU$0.30.

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Important Disclosures:

  1. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  2. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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