The drill hole intersected 15.2m at 8.5g/t gold-equivalent, or 4.3g/t gold and 2,566ppm cobalt, from 418.7m and contained both visible gold and cobaltite.

"The Palokas high-grade zone remains open up and down-plunge of PAL0194 and to the north of the conductive trend," chairman and CEO Michael Hudson said.

The intercept was drilled 275m down-plunge from previously-announced high-grade gold-cobalt mineralisation at Palokas and Hudson said the targeting of broad step-outs was a credit to the technical team.

Mawson is working to expand its "significant and strategic" maiden resource, announced in December, of a constrained inferred 4.3 million tonnes at 424,000oz Au-eq for the Raja and Palokas deposits. 

The company was set to gain research and development funding of €250,000 (C$378,000) after joining Finland's BATCircle consortium in March, which Mawson said showed Rajapalot was of strategic significance.

Goldcorp held 12.7% of the company, according to an April presentation.

Mawson shares had touched a 52-week low of C17c last month.

They rose 15.8% or 3c yesterday to 22c to capitalise it at $31.3 million.