District Applies for Additional Mineral Licenses over Alum Shale Energy Metal Targets in Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Applies for Additional Mineral Licenses over
Alum Shale Energy Metal Targets in Sweden
Vancouver, B.C. February 28, 2024
February 28, 2024 – District Metals Corp . (TSX -V: DMX) (OTCQB: DMXCF) (FRA:
DFPP); (“District” or the “Company”) is pleased to report that Bergslagen Metals AB (a 100%
owned Swedish subsidiary of District) has applied for eight mineral licenses covering a total area
of 91,470 hectares (Figures 1 and 2). These applications target Alum Shale deposits, and have
been registered with Bergsstaten (Mining Inspectorate of Sweden) to permit the exploration of
vanadium, nickel, molybdenum, zinc, and other elements located in central and north- central
Sweden. Bergsstaten is expected to reach a decision on the Company’s mineral license
applications in the coming weeks.
Although there is currently a moratorium on uranium mining and exploration in Sweden, t he
Swedish Government has recently initiated an inquiry into abolishing the ban on uranium mining
and exploration (February 26, 2024 news release).
District consolidated 100% of the Viken Energy Metals Deposit on January 15, 2024 ( news
release here), which i s the largest undeveloped Alum Shale uranium -vanadium-potash-
molybdenum-nickel-copper-zinc deposit in Sweden, and amongst the largest deposits based on
total historic mineral resources of uranium and vanadium in the world.
Alum Shale deposits in Sweden typically contain a large inventory of critical energy metals that
will be required as part of the green energy transition. In addition, potentially viable Alum Shale
deposits are large and shallow, which simplifies and lowers the cost of the exploration, discovery,
and development stages.
Highlights:
• Mineral License application Viken nr 4 will increase the area of the Viken Property from
9,367 hectares (ha) to 37,211 ha.
• Mineral License applications Tåsjö nr 106 to 108 will increase the area of the Tåsjö
Property from 15,625 ha to 34,317 ha.
• Mineral License applications Malgomaj 1001 to 1003 is a new property that covers an
area of 37,131 ha, and is located northeast of the Tåsjö Property.
• Mineral License application Österkälen nr 101 is a new property that covers an area of
7,803 ha, and is located southeast of the Tåsjö Property.
Garrett Ainsworth, CEO of District, commented: “The Alum Shale Formation in Sweden is vast
and insufficiently explored. As a result, it represents an opportunity to be a significant contributor
to the green energy transition in Sweden, Europe, and elsewhere.
These licence applications are the product of an elaborate methodology to vector in on high
priority Alum Shale deposit targets developed by District in partnership with GeoVista AB. Alum
Shales are radioactive and low -resistivity which is visible with airborne radiometric and Very
Low Frequency (VLF) data, respectively. Also, potentially viable Alum Shale deposits need to
be thickened substantially via structural thrusting, which is identifiable using detailed geological
maps provided by the Swedish Geol ogical Survey (SGU). Finally, glacial till geochemical data
and a compilation of historical exploration work refined our selection of target Alum Shale
deposits.”
Alum Shale deposits in Sweden are known to host uranium and vanadium, together with other
commodities of interest, such as molybdenum, nickel, copper, zinc, potash, phosphate and rare
earth elements (REE).
Viken nr 4 Mineral License Application
According to the SGU geological map, Alum Shale is only outcropping in two small areas. One
in the south-west corner and another in the west, but the actual distribution might be different as
the area is covered by soil and till, and any overlying limestone is likely very thin.
The airborne radiometric survey shows moderate to high values in the northern to south- eastern
part of Viken nr 4. A large area of high conductivity dominates the western half of the application,
with a similar smaller one in the east, close to the border with the Viken nr 3 mineral licence.
Thickening of the Alum Shale is likely, but not evident from the SGU geological map. Only
two glacial till samples are located within the application where one of them shows a
moderately anomalous value of uranium (4 ppm U), and the other shows highly anomalous
vanadium (78 ppm V).
Tåsjö nr 106 to 108 Mineral License Applications
Tåsjö nr 106 is located adjacent southwest of Tåsjö nr 102 and contains the Fetsjön zone. The
Fetsjön zone is part of several large historical exploration target estimates for uranium,
vanadium, rare earth elements, phosphate and other energy metals and has seen extensive
historic drilling. According to published SGU metallogenetic maps, the Fetsjön zone is within
one of Sweden's most promising areas to host large Alum Shale deposits.
Tåsjö nr 107 is adjacent to Tåsjö nr 102 and 103, which covers the eastern part of the Alum
Shale in the Tåsjö area. The lithology comprises Alum Shale with the overlying carbonate-rich
unit and the underlying quartz-rich metasediments.
An airborne radiometric survey covers two thirds of the area, and shows moderate to high
uraniferous radiometric values, especially in the center area. The airborne VLF survey only
covers less than half of the perimeter, showing moderate to moderate-high conductive values
with an enticing high conductivity area in the south of the application.
Some tectonic thickening is likely present as suggested by thrust faults shown in the SGU
geological maps. No glacial till samples were available for Tåsjö nr 107.
According to the SGU geological map Tåsjö nr 108 is dominated by Alum Shale.
The SGU airborne radiometric survey shows relatively low uraniferous radiometric values, with
some significantly elevated values in the west and south areas. The airborne VLF survey shows
that the area is characterized by a strong high conductivity anomaly covering almost the entire
area.
No obvious tectonic thickening is suggested by the SGU geological maps, and no glacial till
survey data is available for Tåsjö nr 108.
Malgomaj 1001 to 1003 Mineral License Applications
Malgomaj nr 1001 is covered by Alum Shale and quartz-rich meta-sediments.
No airborne radiometric or VLF data was available for Malgomaj nr 1001.
Tectonic thickening of the Alum Shale is strongly suggested by the SGU geological map in the
northern half of Malgomaj nr 1001 where a repeating sequence of A lum Shale and quartz-rich
meta-sediments is shown.
Only two till samples were collected from the area by SGU, one in the center and one in the south,
both showing anomalous U values (8.2 ppm in the center and 6 ppm in the south) as well as one
value of 21 ppm Mo in the center.
Six grab rock samples from Malgomaj nr 1001 are reported in the SGU database, confirming the
presence of Alum Shale with values up to 33 ppm U, 577 ppm V, 111 ppm Ni and 160 ppm Mo.
Malgomaj nr 1003 is characterized by an extensive presence of Alum Shale at surface.
The historical airborne radiometric survey indicates moderate to high uraniferous radiometric
values over most of Malgomaj nr 1003, with the highest values also grouped in the center part of
the application. No airborne VLF geophysical data was available for this area.
Significant tectonic thickening within Malgomaj nr 1003 is indicated by the SGU geological
maps, with both the Alum S hale and the quartz -rich meta-sediments repeating within a nappe
system.
The SGU glacial till survey shows multiple samples with anomalous uranium in the 3.5 to 11.4
ppm U range scattered all over Malgomaj nr 1003. In the central part of the area cover by the
license application, several samples show anomalous vanadium up to 43.5 ppm V as well as
anomalous phosphate up to 0.34 % P2O5 that is associated with REE of the Early Ordovician
phosphatic siltstone in the Tåsjö area. This is further confirmed by the presence of anomalous
lanthanum up to 32.7 ppm La in the glacial till samples from the same area. Molybdenum in the
glacial till samples generally shows moderate anomalous values that reach up to 56 ppm Mo,
while nickel shows values up to 46 ppm Ni.
Alum Shale has been confirmed within Malgomaj nr 1003, and eight grab samples showed values
of up to 47 ppm U, 504 ppm V and 175 ppm Mo.
Österkälen nr 101 Mineral License Application
Österkälen nr 101 is covered by Alum Shales at surface as well as both the overlying carbonate-
rich meta-sediments and the lower quartz-rich meta-sediments.
The historical airborne radiometric survey shows moderate uraniferous radiometric values with
small but strongly radioactive areas in the south and north. Österkälen nr 101 is almost in its
entirety characterized by a strong low-resistivity anomaly, based on the VLF airborne survey.
Tectonic thickening is likely given the presence of mapped overthrust faults.
No SGU glacial till surveys cover the area of this mineral license application or surrounding area.
Figure 1: Mineral License Application for Viken Property
Figure 2: Mineral License Applications for Tåsjö, Malgomaj, Österkälen
Technical Information
All scientific and technical information in this news release has been prepared by, or approved by
Garrett Ainsworth, PGeo, President and CEO of the Company. Mr. Ainsworth is a qualified
person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
The data disclosed in this news release is related to historical results. District has not undertaken
any independent investigation of the sampling nor has it independently analyzed the results of the
historical exploration work in order to verify the results. District considers these historical results
relevant as the Company is using this data as a guide to plan exploration programs. The
Company's current and future exploration work includes verification of the historical data through
drilling.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects
referred to herein other than District’s Properties. Mineralization on any other properties referred
to herein is not necessarily indicative of mineralization on District’s Properties.
About District Metals Corp.
District Metals Corp. is led by industry professionals with a track record of success in the mining
industry. The Company’s mandate is to seek out, explore, and develop prospective mineral
properties through a disciplined science -based approach to create s hareholder value and benefit
other stakeholders.
District is a polymetallic exploration and development company focused on the Viken and
Tomtebo Properties in Sweden. The Viken Property covers 100% of the uranium-vanadium Viken
Deposit, which is an asset with substantial exploration and development expenditures that resulted
in the definition of large historic polymetallic resource estimates in 2010 and 2014. The Viken
Deposit is amongst the largest deposits by total historic mineral resources of uranium and
vanadium in the world.
The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District
of south- central Sweden and is situated between the historic Falun Mine and Boliden’s
Garpenberg Mine that are located 25 km to the northwest and southeast, respectively. Two historic
polymetallic mines and numerous polymetallic showings are located on the Tomtebo Property
along an approximate 17 km trend that exhibits similar geology, structure, alteration and
VMS/SedEx style mineralization as other significant mines within the district.
For further information on the Tomtebo Property, please see the technical report entitled “NI 43-
101 Update Technical Report on the Tomtebo Project, Bergslagen Region of Sweden” dated
effective October 15, 2020 and amended and restated on February 26, 2021, which is available
on SEDAR+ at www.sedarplus.ca.
On Behalf of the Board of Directors
“Garrett Ainsworth”
President and Chief Executive Officer
(604) 288-4430
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding “Forward-Looking Information”
This news release contains certain statements that may be considered “forward- looking information” with respect to the
Company within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward- looking
information ca n be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not
expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does n ot
anticipate” or “bel ieves”, or variations of such words and phrases or statements that certain actions, events or results “may”,
“could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved” and any similar expressions. In addition, any
statements that refer to expectations, predictions, indications, projections or other characterizations of future events or
circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts
but instead represent management’s expectations, estimates and projections regarding future events. Forward- looking
information in this news release relating to the Company include, among other things, statements relating to the Purchase
Agreement and closing thereof; the Company’s Swedish polymetallic properties; the Company’s planned exploration activities,
including its drill target strategy and next steps for the Swedish properties; and the Company’s interpretations and expectations
about the results on the Swedish properties.
These statements and other forward- looking information are based on opinions, assumptions and estimates made by the
Company in light of its experience and perception of historical trends, current conditions and expected future developments, as
well as other factors that the Company believes are appropriate and reasonable in the circumstances, as of the date of this news
release, including, without limitation, assumptions about the reliability of historical data and the accuracy of publicly rep orted
information regarding past and historic mines in the Bergslagen district; and in respect of the intention of the Swedish
government to eventually lift or amend its moratorium on uranium exploration and mining in Sweden; the Company’s ability to
raise sufficient capital to fund planned exploration activities, maintain corporate capacity; and stability in financial and capital
markets.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered
reasonable by the Company as of the date such statements are made, are subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking information, including but not limited to risks associated with
the following: the reliability of historic data on District’s p roperties; the Company’s ability to raise sufficient capital to finance
planned exploration; that the Swedish government maintains its moratorium on uranium exploration and mining in Sweden for
the foreseeable future; the Company’s limited operating history; the Company’s negative operating cash flow and dependence
on third-party financing; the uncertainty of additional funding; the uncertainties associated with early stage exploration activities
including general economic, market and business conditions, the regulatory process, failure to obtain necessary permits and
approvals, technical issues, potential delays, unexpected events and management’s capacity to execute and implement its future
plans; the Company’s ability to identify any mineral resources and mineral reserves; the substantial expenditures required to
establish mineral reserves through drilling and the estimation of mineral reserves or mineral resources; the uncertainty of
estimates used to calculated mineralization figures; changes in governmental regulations; compliance with applicable laws and
regulations; competition for future resource acquisitions and skilled industry personnel; reliance on key personnel; title matters;
conflicts of in terest; environmental laws and regulations and associated risks, including climate change legislation; land
reclamation requirements; changes in government policies; volatility of the Company’s share price; the unlikelihood that
shareholders will receive d ividends from the Company; potential future acquisitions and joint ventures; infrastructure risks;
fluctuations in demand for, and prices of metals ; fluctuations in foreign currency exchange rates; legal proceedings and the
enforceability of judgments; going concern risk; risks related to the Company’s information technology systems and cyber -
security risks; and risk related to the outbreak of epidemics or pandemics or other health crises. For additional information
regarding these risks, please see the Company’s Annual Information Form dated July 11, 2022, under the heading “Risk Factors”,