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Mawson Resources Ltd.

Mawson Resources Ltd. (TSX:MAW) – Mawson Goes Down Under – Acquiring 3 Projects in the Fosterville Camp

Mawson Resources announced it has entered into an agreement to acquire an interest in three gold projects into the Victorian Goldfields in Australia (Figure 1). We view the transaction positively, as it provides the company a very low-cost entry (net C$1.1M) into a tier one gold camp. We have incorporated a preliminary in-situ valuation of C$30M for these projects into our valuation based on comparables in the region; thus, increasing our fair value estimate to C$0.95/sh (was C$0.85/sh).

Mawson Resources Ltd. (TSX:MAW) – Rajapalot Resource Growth; Approaching Exit Velocity

Mawson Resources announced drill results which continue to expand it’s 100% owned Rajapalot Project in Northern Finland. These are the first two holes of the company’s planned 15,000m program, which is expected to culminate in an updated resource estimate in mid-2020. We believe that Mawson is likely to at least triple its existing resource with its 2020 drill program, suggesting it is undervalued and approaching a resource level that will interest many corporates.

Mawson Resources Ltd. (TSX: MAW) – Ready, Set, Drill – Resource Expected to Triple

Mawson announced the start of its 2019-2020 resource expansion drilling program at the Rajapalot gold-cobalt project in northern Finland. The first diamond drill rig is on site and 15,000m of drilling is planned over the next six months. Tightly defined drill targets should enable Mawson to quickly define an updated resource, which we believe has grown significantly since the previous estimate was released, supporting our view that the stock is undervalued.

Mawson Resources (TSX:MAW) – Excellent Recoveries at Rajapalot; Should Help Processing Cost

Impact: Positive

Mawson has released positive gold and cobalt liberation studies from five composite drill hole samples from the Raja and Palokas prospects at the 100% owned Rajapalot Project in Finland. Gold recoveries were greater than 90% gold being liberated via enhanced gravity and moderate grinding. This represents another important de-risking step for the project. With these metallurgical results and the expectation that the existing resource doubled with last winter’s drill program, plus further exploration upside, we believe Mawson is undervalued.

Precious Metals Update – Ready, Set, GOLD!

If it looks like a bull market (technical breakout in gold), smells like a bull market (significant negative yielding debt) and feels like a bull market (funds flowing into gold), it must be a bull market. Our analysis shows that equities in smaller sized companies outperform during a bull market. However, not all junior miners are created equal, and we believe there are three keys to picking them.

Mawson Resources Ltd. (TSX:MAW) – Performance Gap Creates Buying Window

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Impact: Mildly Positive

Mawson has provided an update summarizing the 15,059m drill program at its Rajapalot Project in Finland where it is positioned to significantly increase its gold-cobalt resource. Mawson’s performance gap creates a buying opportunity as we expect the existing resource to double following this past winter’s drill program and further growth is likely when the company resumes drilling.

How to Play a New Bull Market in Gold

We believe that we are in a new gold bull market, as evidenced by negative real and nominal interest rates and over US$5.5B in funds flowing into physical gold ETFs. Our view is that smaller companies outperform in a bull market. Three keys to look at when investing in junior gold equities include scarcity, catalysts and potential.

Commentary – Golden Summer Conference

We believe that a new bull market has started in gold. This along with investor interest, caused us to host a pair of gold conferences in New York and Toronto, last week. Each conference was opened by Derek Macpherson, VP Research at Red Cloud, highlighting why we believe we are in a new bull market, and 3 keys to investing in it (link). Followed by presentations from Tonogold Resources (OTC:TNGL), Brixton Metals (TSXV:BBB), Mawson Resources (TSX:MAW), Fiore Gold (TSXV:F), Minera Alamos (TSX:MAI), NxGold (TSXV:NXN), Gran Colombia Gold (TSX:GCM), Orford Mining (TSXV:ORM), Pacton Gold (TSXV:PAC), Aquila Resources (TSX:AQA) and RNC Minerals (TSX:RNX).

Mawson Resources Ltd. (TSX:MAW) – New Discovery at Hut; Potential Scope Change

Impact: Positive

Mawson has released assay results from three holes, which yielded another high-grade discovery within the company’s Rajapalot Project in Northern Finland. We are encouraged by Mawson’s ongoing drilling success and continue to believe that the company is likely to at least double the resource at Rajapalot.

Mawson Resources Ltd. (TSX:MAW) – Raja Extends Down Plunge

Impact: Mildly Positive

Mawson has released its last assays from the Raja prospect from the winter drill program, which have extended the high-grade zone down plunge. We are encouraged by Mawson’s ongoing drilling success and continue to believe that the company should at least double the resource at Rajapalot.