District Applies for Additional Mineral Licenses to Increase Land Position to the North and South of the Polymetallic Viken Mineral License in Central Sweden
District Applies for Additional Mineral
Licenses to Increase Land Position to the
North and South of the Polymetallic Viken
Mineral License in Central Sweden
Vancouver, British Columbia--(Newsfile Corp. - March 7, 2023) -
District Metals Corp. (TSXV: DMX)
(FSE: DFPP); ("District" or the "Company")
is pleased to report that Bergslagen Metals AB (a
100% owned Swedish subsidiary of District) has applied for additional mineral licenses covering the
area to the south and north of the original Viken nr 1 mineral license application that covers 68% of the
polymetallic Viken Deposit located in Jämtland County, central Sweden (Figure 1). If granted, the
additional licenses will applications will increase the area of the Viken Property from 2,302 hectares (ha)
to 9,367 ha. The Viken Deposit is the largest undeveloped Alum Shale vanadium-uranium-molybdenum-
nickel-copper-zinc deposit in Sweden, and amongst the largest deposits by total historic mineral
resources of vanadium and uranium in the world. The Bergsstaten (Mining Inspectorate) is expected to
reach a decision on the Company's Viken nr 1 mineral license application by May 2023.
Highlights:
Additional mineral license applications will increase the area of the Viken Property from 2,302
hectares (ha) to 9,367 ha.
Expansion of the Viken Propery to the south (Viken nr 2) and north (Viken nr 3), will allow the
Company to target mineralized Alum Shale that has been tectonically thickened from 20 to 30 m by
thrusting and folding up to 180 m.
Historical drill holes completed within the area of the Viken nr 2 and 3 mineral license applications
returned grades and widths of mineralization that are consistent with drill results from within the
Viken Deposit (Tables 1 to 3).
Garrett Ainsworth, CEO of District, commented: "These mineral license applications to the south and
north of our original Viken nr 1 mineral license application, if approved, will give the Company a
dominant land position in the Myrviken Energy Metals District.
We have targeted areas that contain a
ridge of thickened Alum Shale host rock that has returned significant mineralization and widths in historic
drill holes, demonstrating that the Viken Deposit mineral resource estimate from 2014 has potential to
become even larger."
Table 1: Historical Drill Results from Viken nr 2
Drill Hole
Depths and Interval
Assay Results
Hole ID
Azimuth
Dip
From (m)
To
(m)
Interval (m)
V
2
O
5
(ppm)
U
3
O
8
(ppm)
Mo (ppm)
Zn (ppm)
Cu (ppm)
07-030
-
-90
6.90
20.00
13.10
3,180
269
412
682
143
34.00
46.60
12.60
1,918
156
201
508
115
07-039
-
-90
22.30
74.00
51.70
2,043
171
250
414
120
07-046
-
-90
45.80
62.00
16.20
2,595
228
325
297
120
62.00
78.20
16.20
1,720
153
237
341
130
Notes:
Continental Precious Minerals Inc. released these drill results in 2007.
True widths of the reported mineralized intervals have not been determined, but are expected to be near 100% given the flat
lying nature of the Alum Shale host unit that is drilled by vertical holes.
V ppm has been converted to V2O5 ppm by multiplying the V ppm value by 1.7826.
U ppm has been converted to U3O8 ppm by multiplying the U ppm value by 1.17924.
These drill results are historical in nature. 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 drill results relevant as the Company will use this data as a guide to plan future exploration programs. The
Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will
include verification of the data through drilling.
Table 2: Historical Drill Results from East Viken nr 3
Drill Hole
Depths and Interval
Assay Results
Hole ID
Azimuth
Dip
From (m)
To
(m)
Interval (m)
V
2
O
5
(ppm)
U
3
O
8
(ppm)
Mo (ppm)
Zn (ppm)
Cu (ppm)
11-137
-
-90
7.90
34.30
26.40
2,952
238
318
532
130
08-126
-
-90
28.00
35.40
7.40
2,872
171
265
395
97
61.00
127.30
66.30
3,458
241
331
544
118
08-125
-
-90
72.30
138.00
65.70
2,467
191
273
435
168
08-127
-
-90
48.10
94.00
45.90
3,474
202
320
501
122
Notes:
Continental Precious Minerals Inc. released these drill results in 2008 and 2011.
True widths of the reported mineralized intervals have not been determined, but are expected to be near 100% given the flat
lying nature of the Alum Shale host unit that is drilled by vertical holes.
V ppm has been converted to V2O5 ppm by multiplying the V ppm value by 1.7826.
U ppm has been converted to U3O8 ppm by multiplying the U ppm value by 1.17924.
These drill results are historical in nature. 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 drill results relevant as the Company will use this data as a guide to plan future exploration programs. The
Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will
include verification of the data through drilling.
Table 3: Historical Drill Results from West Viken nr 3
Drill Hole
Depths and Interval
Assay Results
Hole ID
Azimuth
Dip
From (m)
To
(m)
Interval (m)
V
2
O
5
(ppm)
U
3
O
8
(ppm)
MoO
3
(ppm)
DDMA001
-
-90
40.00
48.00
8.00
3,866
233
411
90.00
102.00
12.00
1,803
135
244
122.00
134.00
12.00
2,376
121
273
162.00
174.00
12.00
1,546
135
280
DDMA002
-
-90
All results below 100 ppm U
3
O
8
DDMA003
-
-90
120.00
245.70
125.70
3,673
139
300
DDMA004
-
-90
158.00
194.00
36.00
2,507
136
288
200.00
241.21
41.21
2,643
126
284
DDMA005
-
-90
44.00
82.00
38.00
3,493
141
296
98.00
126.00
28.00
3,003
178
439
DDMA006
-
-90
16.00
54.00
38.00
2,962
135
255
60.00
108.00
48.00
3,286
191
384
DDMA007
-
-90
42.00
84.00
42.00
2,725
137
252
88.00
204.00
116.00
2,197
153
349
Notes:
Aura Energy Limited released these drill results between 2007 and 2017.
True widths of the reported mineralized intervals have not been determined but are expected to be near 100% given the flat
lying nature of the Alum Shale host unit that is drilled by vertical holes.
These drill results are historical in nature. 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 drill results relevant as the Company will use this data as a guide to plan future exploration programs. The
Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will
include verification of the data through drilling.
The Polymetallic Viken Deposit
The Viken Deposit is situated in the province of Jämtland, approximately 570 km northwest of
Stockholm, Sweden. Infrastructure is well developed in the area with daily air service, as well as rail and
truck freight services. Electrical power and modern communications are also readily available in the
area.
The Geological Survey of Sweden (SGU) carried out work on the Alum Shales from 1977 to 1978 and
drilled approximately 19 holes within and in the vicinity of the Viken Deposit.
In 2005, Continental
Precious Minerals Inc. (CPM) purchased mineral licenses that covered prospective Alum Shales where
CPM drilled 26,293 m in 133 holes from 2006 to 2008 to delineate the Viken Deposit.
CPM retained P&E Mining Consultants Inc. to carry out a Resource Estimate and PEA in 2010 that
resulted in the following historical estimate:
Table 4: 2010 Viken Deposit Historical Mineral Resource Estimate
1
2010 Viken Deposit Historical Mineral Resource Estimate
Classification
Tonnage (k
tonnes)
Grade
Contained Metal
V
2
O
5
(ppm)
U
3
O
8
(ppm)
Mo (ppm)
Ni (ppm)
V
2
O
5
(Mlbs)
U
3
O
8
(Mlbs)
Mo (Mlbs)
Ni (Mlbs)
Indicated
23,610
3,130
190
280
320
162.8
9.9
14.7
16.5
Inferred
2,830,757
2,680
170
240
320
16,716.1
1,037.7
1,516.5
2,015.7
Notes:
The mineral resource estimates contained in this table are considered to be "historical estimates" under National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
A Qualified Person has not done sufficient work to
classify the historical estimate as a current mineral resource, and the Company is not treating these historical estimates as
current Mineral Resources. The Company would need to conduct an exploration program, including twinning of historical
drill holes in order to verify the Viken Deposit historical estimate as a current mineral resource.
Weighting of composite samples by linear Ordinary Kriging was used for the estimation of block grades. Kriging
parameters were based on the grade-element variography derived from the mineralized shale domain. A block
discretization level of 5 x 5 x 2 was used during kriging.
The mineralized shale domain was treated as a hard boundary, and
data used during estimation
were limited to composite samples located within the mineralized shale domain wireframe.
Only blocks wholly or partially within the mineralized shale domain were estimated. The mineralized shale domain was
treated as a hard boundary, and data used during estimation.
During the first pass, four samples from each of three drill holes within 110m of the block centroid were required. All block
grades estimated during the first pass were classified as Indicated.
During the second pass, blocks not populated during the first pass were estimated. A minimum of three and a maximum of
six samples from one or more drillholes within 330 m of the block centroid were required. All block grades estimated during
the second pass were classified as Inferred.
An internal break-even cut-off grade of US $7.50/tonne was used in reporting this historical estimate.
In 2012, a bio-heap leach scenario was evaluated, and P&E Mining Consultants were retained again to
conduct an Updated Technical Report, Resource Estimate and Preliminary Economic Assessment on
the Viken Deposit with the following historical estimate:
Table 5: 2014 Viken Deposit Historical Mineral Resource Estimate
2
2014 Viken Deposit Historical Mineral Resource Estimate
Classification
Tonnage (k
tonnes)
Grade
Contained Metal
U
3
O
8
(ppm)
Ni (ppm)
Cu (ppm)
Zn (ppm)
U
3
O
8
(Mlbs)
Ni (Mlbs)
Cu (Mlbs)
Zn (Mlbs)
Indicated
43,000
190
340
100
410
18.0
32.0
10.0
38.0
Inferred
3,019,000
170
340
120
420
1,145.0
2,230.0
799.0
2,802.0
Notes:
The mineral resource estimates contained in this table are considered to be "historical estimates" under National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
A Qualified Person has not done sufficient work to
classify the historical estimate as a current mineral resource, and the Company is not treating these historical estimates as
current Mineral Resources. The Company would need to conduct an exploration program, including twinning of historical
drill holes in order to verify the Viken Deposit historical estimate as a current mineral resource.
Block grades were estimated using Ordinary Kriging of capped composite samples. Only blocks wholly or partially within
the mineralized shale domain were estimated, and between six and fifteen samples from two or more drill holes within 660 m
of the block centroid were used for estimation.
A small area in the Southern portion of the deposit with an average drillhole
spacing of approximately 120 m has been classified as Indicated.
An internal break-even cut-off grade of US $11.00/tonne was used in reporting this historical estimate.
The Viken Deposit is a polymetallic shale resource contained within the Cambrian Viken Shale which
regionally is referred to as the Alum Shale. The Alum Shale is enriched in metals such as vanadium,
uranium, nickel, copper, zinc, and molybdenum. It occurs over a significant area in Sweden and is locally
valued as a bituminous shale with recoverable hydrocarbons. The Alum Shale is regionally extensive in
Sweden.
The stratigraphy across the Viken Mineral License application consists of upper Middle and Upper
Cambrian age Alum Shale occurring as both in situ and fault detached blocks, with the latter having
greater potential for economic mineralization due to imbrication of mineralized blocks. The Alum Shale
is mostly exposed at surface and is underlain by Proterozoic granites and gneisses thrust Eastward over
Archean granitic basement rocks. The thickness of the Alum Shale host rock has been tectonically
thickened from 20 to 30 m by thrusting and folding during the Silurian to approximately 180 m.
Mineralization of potential economic significance is hosted in Middle and Upper Cambrian Alum Shale,
with the Upper Cambrian age strata more enriched in vanadium and uranium than the Middle
Cambrian
3
. Vanadium occurs within the lattice of a mica mineral named roscoelite. Uranium values are
predominantly associated with sub-micron-scale uraninite crystals. Nickel, molybdenum, copper and zinc
are present as sulphides.
Stock Option Grant
The Company has also granted a total of 2,400,000 stock options to directors, officers, employees and
consultants of the Company, in accordance with the provisions of its stock option plan. Each stock option
is exercisable at $0.20 per common share (being the closing price of the Company's common shares on
March 6, 2023, the grant date). All stock options have a term of five years and vest on the grant date.
Figure 1: Viken Mineral License Applications and Outline of Viken Deposit
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7971/157467_1bbe3c6b347ca9c7_002full.jpg
References
1
Preliminary Economic Assessment on the Viken MMS Project, Sweden for Continental Precious Minerals Inc. 2010. P&E Mining Consultants Inc.,
EHA Engineering Ltd., and G.A. Harron & Associates Inc..
2
Updated Technical Report, Resource Estimate and Preliminary Economic Assessment on the Viken MMS Project, Sweden for Continental Precious
Minerals Inc. 2014. P&E Mining Consultants Inc..
3
Andersson, A, Dahlman, B., Gee, D.G. and Snäll, S., 1985: The Scandanavian Alum Shale, S.G.U., Ser. Ca Nr 56, 50 p
.
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 drilling 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 drill 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.
The data disclosed in this news release is related to mineral resource estimates that are considered to
be "historical estimates" under National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
A Qualified Person has not done sufficient work to classify the historical estimate
as a current mineral resource, and the Company is not treating these historical estimates as current
Mineral Resources. The Company would need to conduct an exploration program, including twinning of
historical drill holes in order to verify the Viken Deposit historical estimate as a current mineral resource.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred
to herein other than the Viken Mineral License application. Mineralization on any other properties
referred to herein is not necessarily indicative of mineralization on the Viken Mineral License application.
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 shareholder value and benefit other
stakeholders.
The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-
central Sweden is the Company's main focus. Tomtebo comprises 5,144 ha 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.
Mineralization that is open at depth and along strike at the historic mines on the Tomtebo Property has
not been followed up on, and modern systematic exploration has never been conducted on the Property.
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.sedar.com
.
On Behalf of the Board of Directors
"
Garrett Ainsworth
"
President and Chief Executive Officer
(604) 288-4430
Neither 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 can 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 not anticipate" or
"believes", 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 statements in this news release relating to the Company include, among other things,
statements relating to the Company's application for a 2,302 hectare mineral license (Figure 1) to
explore for vanadium, nickel, molybdenum, zinc, and other elements covering a portion of the
polymetallic Viken Deposit located in Jämtland County, central Sweden; the expected timing of the
Bergsstaten's (Mining Inspectorate) decision on the Company's Viken nr 101 mineral license
application; the Company's planned exploration activities, including its drill target strategy and next
steps for the Viken Property; and the Company's interpretations and expectations about the results on
the Viken Property.
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
reported information regarding past and historic mines in the Bergslagen district; 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 likelihood of the Bergsstaten's (Mining Inspectorate) decision to
approve the Company's Viken nr 101 mineral license application; the reliability of historic data
regarding the Viken Deposit and the Tomtebo Property; the Company's ability to raise sufficient
capital to finance planned exploration (including incurring prescribed exploration expenditures
required by the Tomtebo Purchase Agreement, failing which the Tomtebo Property will be forfeited
without any repayment of the purchase price); 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
Company's dependence on one material project, the Tomtebo Property; 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 interest; 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 dividends from the Company; potential future acquisitions
and joint ventures; infrastructure risks; fluctuations in demand for, and prices of gold, silver and
copper; 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,
including the recent outbreak of COVID-19. For additional information regarding these risks, please
see the Company's Annual Information Form, under the heading "Risk Factors", which is available at
www.sedar.com
. These factors and assumptions are not intended to represent a complete list of the
factors and assumptions that could affect the Company. These factors and assumptions, however,
should be considered carefully. Although the Company has attempted to identify factors that would
cause actual actions, events or results to differ materially from those disclosed in the forward-looking
statements or information, there may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Also, many of such factors are beyond the control of the Company.
Accordingly, readers should not place undue reliance on forward-looking statements or information.
The forward-looking information is made as of the date of this news release, and the Company
assumes no obligation to publicly update or revise such forward-looking information, except as
required by applicable securities laws.
All scientific and technical information contained in this news release has been prepared by or
reviewed and 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/157467