Mawson Resources (TSE:MAW) has unveiled gold extraction rates of up to 99 percent from its Palokas prospect at its Rompas-Rajapalot project in Finland after receiving results from preliminary metallurgical tests.
The company said gold extractions results of between 95 and 99 percent were obtained, with an average of 97 percent, by a combination of gravity separation and conventional cyanidation.
The work indicates gold recovery and processing are potentially amenable to conventional industry standards, Mawson said, with a flowsheet which could include crushing and grinding, gravity recovery and cyanide leaching with gold recovery via a carbon-in-pulp circuit for production of on-site gold dore.
"This is a significant outcome," said president and chief executive officer, Michael Hudson.
"Although we have seen visible gold in hand specimens and thin sections, it is encouraging to see that these results demonstrate gold extraction at Palokas is amenable to a conventional flowsheet with up to 99% recoveries."
The metallurgical testing was based on four composite samples from drill holes, which were sent to SGS Mineral Services UK in Cornwall. The next phase of work will seek to review mineralogical gold deportment, whole ore cyanidation, complete gravity recoverable gold tests and more, Mawson said.
Earlier this month, the junior gold explorer unveiled the results of the first six shallow drill holes completed south of its Palokas prospect in Finland, saying they have tripled the footprint of the target. This was the first time the company had the opportunity to drill across the entire Palokas trend at Rajapalot, with drilling having begun about 300 metres south of Palokas where core sample results last year returned 19.5 metres grading 7.4 grams per tonne (g/t) gold.
The company said Tuesday that drilling with the low impact core sampler continues up to 1km south of Palokas.
Mawson --- which has had to undergo a slow permitting process since its first major discovery in Finland more than three years ago -- emphasized it has worked with all authorities to minimize the impacts of its planned drilling, including the capture of all drill cuttings, reduction in total machine weight and the placement of walkways to reduce foot traffic.
It reported today an update on its dealings with certain Finnish environmental authorities relating to work completed during its 2010 and 2011 field programs, involving allegations that Mawson's hand digging affected the nature values of the area. It said a full hearing is scheduled in early November, with the company noting how pleased it is that the case has advanced after four years through formal legal processes.
The junior explorer has always maintained that hand digging had no material impact on the nature values in question. Roughly 20 percent of the 10,000 hectares claimed at its Finland project are defined as EU biodiversity Natura 2000 areas, including Palokas, meaning that there are limitations on certain exploration methods that can be completed.