New Dimension Acquires 3 High-Grade Gold and Copper Projects in Scandinavia
New Dimension Acquires 3 High-Grade Gold and Copper
Projects in Scandinavia
TSX-V: NDR
VANCOUVER, BC
,
Aug. 11, 2020
/CNW/ - New Dimension Resources Ltd. (TSXV: NDR) (the "Company", New Dimension" or "NDR") is
pleased to announce that it has now cemented its diversification strategy by executing an option and purchase agreement with EMX
Royalty Corporation (NYSE American: EMX; TSX Venture: EMX) for the acquisition of 100% interests in the Southern Gold Line Project in
central
Sweden
, and the Løkken and Kjøli copper-zinc-gold projects in central
Norway
(Figure 1). The Southern Gold Line project consists
of a group of licences adjacent to Dragon Mining Limited's Fäboliden gold development project, whilst the Løkken and Kjøli licences cover
both past-producing, high-grade copper(-zinc-gold) mines as well as drill-ready regional exploration targets.
Highlights of the Acquisition
New Dimension to acquire 100% interests in three advanced-stage Scandinavian projects: the Southern Gold Line project in central
Sweden
, and the Løkken and Kjøli projects in central
Norway
.
The Southern Gold Line project forms a group of licences surrounding the Fäboliden gold development project, and hosts both
orogenic-style gold mineralization along granite-greenstone contacts as well as intrusion-related gold mineralization (Figure 2).
Løkken and Kjøli are copper-rich, volcanogenic massive sulfide("VMS")-style projects. The past-producing Løkken mine (production
ended in 1987) was known as one of the premier examples of a
Cyprus
-type copper-rich VMS deposit, with historical production
estimated at 24Mt @ 2.3% Cu + 1.8% Zn (plus gold credits)
1
. Kjøli is located in the productive Røros mining district, which forms part
of the renowned Røros-Tynset-Folldal belt of VMS deposits in central
Norway
(Figures 3-5).
Significant upside potential for new discoveries in all properties, including "brownfields" discoveries around known mineral deposits
and "greenfields" discoveries in satellite bodies.
Both
Sweden
and
Norway
offer stable mining jurisdictions with competitive operating costs.
Potential funding to be raised as announced
August 6, 2020
will be primarily used to advance these properties to drill-ready status.
Eric Roth
, New Dimension's CEO, commented today: "I am very pleased to be reporting the acquisition of these three highly-prospective
gold and copper properties in
Sweden
and
Norway
from EMX. The Southern Gold Line represents a highly underexplored extension of the
Swedish Gold Line, and our focus here will be to advance targets hosting gold mineralization in similar geologic and structural settings to
the adjacent Fäboliden deposit. At both Løkken and Kjøli, we are excited by the potential for new discovery given that VMS deposits
typically occur in clusters and existing geological and geophysical datasets suggest numerous untested anomalies along strike from
previous mining operations. Indeed, some of these anomalies represent "walk-up" drill targets for the Company and we look forward to
drilling these as quickly as possible. I look forward to keeping the market informed as we move towards drilling on all three projects".
1
Historic production values quoted for Løkken are from Grenne T, Ihlen PM, Vokes FM (1999) Scandinavian Caledonide metallogeny in a plate-tectonic perspective. Mineral Deposita 34:422–471, Neither NDR or EMX have performed sufficient work to
verify the published data reported above, but both Companies believe this information to be considered reliable and relevant.
Link to figures:
https://newdimensionresources.com/site/assets/files/13220/2020-08-scandinavia-acquisition.pdf
Acquisition Terms for 100% Interest in the Southern Gold Line, L
ø
kken and Kj
ø
li Projects
New Dimension will pay EMX
USD 25,000
in cash upon signing.
Upon completion of all on-site Due Diligence (expected by
September 1, 2020
), an initial 12-month option period will begin, and the
Company will issue EMX 3 million common shares of NDR.
During the initial option period (
September 1, 2020
to
September 1, 2021
), New Dimension will be required to invest a minimum of
USD 100,000
in exploration in each of the three projects.
Until NDR has completed financings to the value of
CAD 4,500,000
, EMX will retain a free-carried 9.9% shareholding in NDR.
Afterwards, EMX retains the option to participate in future financings at its own discretion.
During the second year from signing (
September 1, 2021
to
September 1, 2022
), NDR will be required to invest a minimum of
USD
500,000
on all three projects. During subsequent years, NDR will be required to drill a minimum of
1,000m
on each project.
From the second anniversary of signing (
September 1, 2022
), NDR will be required to make advanced royalty payments to EMX of
USD 25,000
per project, increasing
USD 5,000
/year up until reaching a maximum of
USD 75,000
/year per project.
NDR to make additional payments of
USD 500,000
to EMX upon:
The filing of a Preliminary Economic Assessment technical report
The filing of a National Instrument 43-101 ("NI-43101) complaint feasibility study
EMX to retain a 2.5% NSR in the projects, with 0.5% being purchasable for
USD 1M
within 6 years
Scandinavian Project Overview
Løkken Project,
Norway
.
Løkken is considered to be the largest ophiolite-hosted Cypress-type VMS deposit to be developed in the world.
Production at Løkken commenced in 1654 and continued until closure in 1987, producing some 24Mt @ 2.3% Cu and 1.8% Zn (plus gold
credits)
1
, with multiple satellite bodies of mineralization that also saw varying degrees of development. Several zones of drill defined
mineralization remain undeveloped in the district, where clear evidence is seen for mineralization developed in multiple stratigraphic
horizons and along strike of the major deposits. Historic data sets also include extensive geophysical surveys, with multiple untested
anomalies. The Løkken concessions cover approximately 210 square kilometers (21,000 Ha) of prospective stratigraphy along strike from
the former mining operations.
Both Løkken and Kjøli (see description below) are part of a broader geologic terrain that was originally linked geologically to the VMS
districts in
Newfoundland
-New
Brunswick-Maine
and the Appalachian Mountains of
North America
. This terrain constitutes one of the most
prolific VMS belts in the world.
Kjøli Project,
Norway
.
Like the Løkken District, the Kjøli Project represents an extensive trend of VMS-type occurrences and historic
mines. Kjøli is positioned along the northern extension of the belt of VMS deposits in
Norway
that comprise the greater Røros district,
which as seen mining for over 300 years beginning in the mid-1600's. The Kjøli project contains the Killingdal mine, which operated 1674-
1986 and produced over 2.9 Mt @ 1.7% Cu + 5.5% Zn
2
. Recent airborne geophysical surveys identified numerous exploration targets on
the Kjøli project that have not yet been followed up. The Kjoli Project covers an area of approximately 120 square kilometres (12,000 Ha).
2 Historic production figures are from Birkeland, A. (1986) Mineralogisk og geokjemisk undersokelseav Killingdal gruver, Sor-Trondelag. M. Scient. Thesis, University of Oslo in Geological Survey of Finland, Special Paper 53 pg. 86.
Southern Gold Line,
Sweden
.
The Southern Gold Line project is located in central
Sweden
and consists of six prospective licenses in the
vicinity of, and along trend of, Dragon Mining Ltd's Fäboliden development project
3
. The Southern Gold Line Project consists of over 500
square kilometres (50,000 hectares) of exploration concessions which cover areas with similar geologic and structural settings as the
Fäboliden deposit. Reconnaissance sampling and mapping programs are ongoing in the area, with initial BLEG samples collected across
portions of the licenses showing multiple areas with enrichment of gold in stream sediments.
3
References made to nearby mines and analogous deposits provide context for the Southern Gold Line project, but are not necessarily indicative that the project hosts similar tonnages or grades of mineralization.
Qualified Persons and Disclosure Statement
The technical information in this news release 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 over 25 years of experience in international
minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
"Eric Roth"
___________________________
Eric Roth
, Ph.D., FAusIMM
President & CEO
About New Dimension Resources
New Dimension is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions
with a focus on high-grade gold and base metal deposits. The Company's current focus is on the discovery through exploration and
discovery of high-grade gold deposits on its newly-acquired Southern Gold Line Project (
Sweden
), as well as on its existing 100%-owned
Savant Lake
project in
Ontario
and 29.6% interest in the Domain JV in
Manitoba (Canada
). In addition, the Company has acquired a 100%
interest in two large properties covering the past-producing Løkken and Kjøli copper-rich massive sulfide deposits in central
Norway
.
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 New Dimension, 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 New Dimension 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 New Dimension's most recently filed MD&A. New
Dimension 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
New Dimension Resources Ltd.
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For further information:
New Dimension Contacts: Eric Roth, Email: [email protected], Karen Davies, +1 604-314-2662
CO: New Dimension Resources Ltd.
CNW 09:00e 11-AUG-20