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Capella Initiates Scout Drilling at the Kjøli Copper-Cobalt Project, Norway

Exploration Programs

Capella Initiates Scout Drilling at the

Kjøli Copper-Cobalt Project, Norway

VANCOUVER, BC, Jan. 23, 2023 /CNW/ - Capella Minerals Ltd

(TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2) ("Capella" or the

"Company") is pleased to announce that a scout diamond drill

program has been initiated at the Company's 100%-owned Kjøli

copper-cobalt-zinc massive sulfide ("VMS") project in Trøndelag

province, central Norway.

The Kjøli project is located in the northern portion of the former Røros

copper mining district, and 20km NE of Capella's advanced

exploration-stage Hessjøgruva copper-cobalt-zinc project (Figure 1).

The Kjøli project contains two former copper mines - Kjøli and

Killingdal - in addition to numerous VMS occurrences along

interpreted regional-scale thrust corridors.

Highlights

• A scout diamond drill program has been initiated at the

Company's high-grade Kjøli copper-cobalt-zinc project in central

Norway. The 1,250m program will provide for initial drill testing of

the Kjøli Deeps, Kjøli Mine Extension, and Guldalsgruva areas.

The drilling will be accompanied by downhole electromagnetic

(DHEM) and surface-loop electromagnetic (SLEM) surveys

designed to identify potential buried massive sulfide bodies in the

immediate vicinity of the drill holes.

• The Kjøli Deeps target is a large (>2km in length) coincident

gravity and electromagnetic (Turam) anomaly, a highly

favourable combination for VMS deposits. The main target lies

approximately 250m below surface, with the adjacent

Tjornvollmyran copper occurrence (Figure 2) interpreted to

represent a distal expression of the Kjøli Deeps target.

Figure 1. Location of the Kjøli Deeps and Kjøli Mine targets, in

addition to section line for Figure 2.

• Scout drilling in the Kjøli Mine and Guldalsgruva areas will focus

on potential down-dip extensions to the former copper mining

operation and geophysical anomalies (gravity, magnetic, and

electromagnetic) associated with known copper occurrences,

respectively.

• Host rocks to the high-grade VMS-style mineralization in the Kjøli

district are dominantly Cambo-Silurian-age metasediments of the

Røsjø Formation.

• Norwegian contractor Arctic Drilling AS will undertake the drill

program using a track-mounted Diamec U6 rig (Figure 3).

Eric Roth, Capella's President and CEO, commented: "We are excited

to be starting our 2023 exploration program in Norway with a scout

drill program at the Kjøli project. Our main focus will be an initial test of

the Kjøli Deeps target, which has never been drilled and where we

have both geological and geophysical indicators of a buried VMS

deposit. First assays from this scout drill program are currently

anticipated to become available by early April.

In addition, Capella will work towards funding further drilling at the

advanced-exploration stage Hessjøgruva VMS project and a maiden

drill program at Åmot (Løkken) commencing late Q2, 2023. So we

expect to see a lot of activity on our Norwegian portfolio over the

coming 6 months. I look forward to keeping the market updated on

progress at all of our Norwegian copper projects".

Figure 2. Schematic section through the Kjøli Deeps target area and

proposed holes. Section view looking towards the north.

Figure 3. Track-mounted diamond drill rig arriving on location at Kjøli

Deeps.

Qualified Persons and Disclosure Statement

The technical information in this news release relating to the Kjøli

project has been prepared in accordance with Canadian regulatory

requirements set out in NI 43-101, and approved by Eric Roth, the

Company's President & CEO, a Director, and a Qualified Person

under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from

the University of Western Australia, is a Fellow of the Australian

Institute of Mining and Metallurgy (AusIMM) and is a Fellow of the

Society of Economic Geologists (SEG). Mr. Roth has 30 years of

experience in international minerals exploration and mining project

evaluation.

On Behalf of the Board of Capella Minerals Ltd.

"Eric Roth"

____________________

Eric Roth, Ph.D., FAusIMM

President & CEO

About Capella Minerals Ltd

Capella is engaged in the acquisition, exploration, and development of

quality mineral resource properties in favourable jurisdictions with a

focus on European base and battery metals projects.

In Norway, the Company's focus is on: i) the advanced exploration-

stage Hessjøgruva copper-cobalt project and the adjacent

Kongensgruve and Kjøli projects in the northern Røros mining district,

Trøndelag province, ii) the discovery of satellite high-grade copper-

cobalt deposits around the past-producing Løkken copper mine,

Trøndelag province, and iii) the discovery of new copper-cobalt

deposits in the former Vaddas-Birtavarre mining district of northern

Norway.

In Finland, the Company's focus is on the discovery of lithium and

rare-earth element deposits at both its Perho reservation and a

recently acquired, 100%-owned portfolio of reservations located in

Central Finland. In addition, the Company is currently permitting

exploring the Katajavaara-Aakenus gold-copper project in the Central

Lapland Greenstone Belt together with JV partner Cullen Resources

Ltd (ASX: CUL).

The Company also retains exposure to exploration success in

precious metals projects through its active Canadian Joint Ventures

with Prospector Metals Corp (TSXV: PPP) at Savant (Ontario) and

Yamana Gold Inc. at Domain (Manitoba). The Company also retains a

residual interest (subject to an option to purchase agreement with

Austral Gold Ltd) in the Sierra Blanca gold-silver divestiture in Santa

Cruz, Argentina.

Cautionary Notes and Forward-looking Statements

This news release contains forward-looking information within the

meaning of applicable securities legislation. Forward-looking

information is typically identified by words such as: believe, expect,

anticipate, intend, estimate, postulate and similar expressions, or are

those, which, by their nature, refer to future events. Such statements

include, without limitation, statements regarding the future results of

operations, performance and achievements of Capella, including the

timing, completion of and results from the exploration and drill

programs described in this release. Although the Company believes

that such statements are reasonable, it can give no assurances that

such expectations will prove to be correct. All such forward-looking

information is based on certain assumptions and analyses made by

Capella in light of their experience and perception of historical trends,

current conditions and expected future developments, as well as other

factors management believes are appropriate in the circumstances.

This information, however, is subject to a variety of risks and

uncertainties and other factors that could cause actual events or

results to differ materially from those projected in the forward-looking

information. Important factors that could cause actual results to differ

from this forward-looking information include those described under

the heading "Risks and Uncertainties" in Capella's most recently filed

MD&A. Capella does not intend, and expressly disclaims any

obligation to, update or revise the forward-looking information

contained in this news release, except as required by law. Readers

are cautioned not to place undue reliance on forward-looking

information.

Neither the TSXV nor its Regulation Services Provider (as that term is

defined in the policies of the TSXV) accepts responsibility for the

adequacy or accuracy of this release.

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SOURCE Capella Minerals Limited

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For further information: Capella Contacts; Eric Roth, Email:

[email protected]; Karen Davies, +1.604.314.2662

CO: Capella Minerals Limited

CNW 09:00e 23-JAN-23