District Commences Drilling at the Stollberg Property in Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Commences Drilling at the Stollberg Property in Sweden
Vancouver, B.C. October 16, 2024
October 16 , 2024 – District Metals Corp . (TSX -V: DMX) (OTCQB: DMXCF) (FRA:
DFPP); (“District” or the “Company”) is pleased to announce the commencement of core
drilling at the high grade polymetallic Stollberg Property located 35 km to the southwest of the
Tomtebo Property (Figure 1) within the Bergslagen Mining District of south-central Sweden. The
Stollberg-Tomtebo Properties are being explored in collaboration with Boliden Mineral AB.
Highlights:
• A total of 2,200 m of drilling in five to six holes is planned at the historic Gränsgruvan
Mine (operated from 1943 to 1978) located within the Stollberg Property (Figure 2).
• All drill holes will be followed up by Boliden’s in-house, state of the art, down-hole, three
component electromagnetic (DHEM) survey1.
• The Stollberg Property contains similar host rocks, structure, alteration, and
mineralization styles as the Garpenberg Mineralized Trend, which gives significant
support in making a similar new discovery2,3,4.
Garrett Ainsworth, CEO of District, commented: “ Over the last year important geological,
geochemical, and geophysical data from the Stollberg Property has been obtained and compiled
by the technical team through a collaborative process that has delivered priority areas for drilling.
During this process the historic Gränsgruvan Mine stood out as one of several priority areas to
drill within the Stollberg Property. From a property- wide perspective , the whole rock
geochemistry from historic drill core and outcrop rock sampling at the Stollberg Property is highly
analogous to the setting associated with Boliden’s operating Garpenberg Mine, which is a global
tier one asset.
There are numerous historic drill holes with wide intervals of high grade polymetallic
mineralization at the Gränsgruvan Mine. The Fall 2024 drill program will focus on step outs from
known mineralization at the Gränsgruvan Mine to expand upon known mineralized bodies , and
to potentially discover new polymetallic mineralized bodies.
Leading edge whole rock geochemistry and DHEM will be completed on all drill holes to increase
the team’s technical understanding of the Stollberg mineralized trend, and to increase the
probability of making new discoveries.”
Stollberg Property Description
The Stollberg Mineralized Trend is located in the Bergslagen region of the Fennoscandian shield.
The Stollberg Trend comprises a 5 .0 km long steeply east -dipping belt of manganese- rich,
magnetite and Zn-Pb-Ag sulphide deposits hosted by marble, skarn and hydrothermally altered
meta-volcanic rocks. The deposits have been mined continuously from medieval times until 1982.
Most deposits in the Stollberg Mineralized Trend occur along the N-S striking eastern limb of an
upright to steeply east -dipping, steeply south plunging syncline. The historic Gränsgruvan Zn-
Pb-Ag Mine is located 2 .0 km west of the historic Stollberg workings and is interpreted to be
stratigraphically equivalent, representing the western limb of the syncline.
The core of the syncline comprises meta- sediments, which are separated from the mineralized
horizon by 800 m of massive to banded rhyolitic meta-volcanic rocks. These hanging-wall rocks
are generally not strongly altered but locally contain abundant patchy, calc -silicate aggregates
and local zones of elevated cordierite, muscovite and quartz, interpreted as regional
metamorphosed syn-volcanic alteration zones. Proximal to the mineralized horizon on the eastern
limb, gradation into biotite and quartz rocks with abundant porphyroblasts (locally more than 50
vol.%) of garnet, gahnite, cordierite, andalusite, sillimanite and amphibole is observed. These
grade further eastward into marble and skarn, which is the main host to mineralization. Formation
of these polymetallic deposits directly followed a major rhyolitic, volcanic eruption and formation
of a submarine caldera. The earliest mineralization comprised exhalative iron oxides concurrent
with limestone formation. Post -caldera subsidence and burial induced a s hift in style of
mineralization, whereby the limestone became a trap to replacement -type magnetite and Zn-Pb-
Ag sulphide mineralization.
The polymetallic sulphide mineralization is dominated by sphalerite (Zn), pyrrhotite, arsenopyrite
and lesser chalcopyrite (Cu) and pyrite. They grade irregularly into semi -massive and locally
massive sulphide bodies, which are considerably richer in galena (Pb-Ag). Average grades in the
mined deposits ranged between 0.5 to 5.0% Zn, 0.5 to 15.6% Pb, and 5 to 320 g/t Ag2,3,4.
Boliden acquired the historic Gränsgruvan Zn-Pb-Ag Mine in 1972 and produced 0.26 Mt at 4.8%
Zn, 2.1% Pb and 29 g/t Ag down to - 225 m depth until mine closure in 1978 4. Boliden restarted
exploration activities in the Stollberg Mineralized Trend in 2000.
The newly discovered mineralization at the Västansjö deposit is situated on the eastern limb of
the Stollberg syncline. A mineral resource estimate, compliant with SveMin’s procedures, was
delineated by Boliden in 2016 5. Similarities in structural setting, alteration and mineralization
style to the marble -skarn hosted Zn- Pb-Ag-(Cu-Au) deposit of Garpenberg imply potential for
finding significant mineralization at the Stollberg Property2,3,4.
Figure 1: Location of Stollberg and Tomtebo Properties
Figure 2: Proposed Drill Holes at the Historical Gränsgruvan Mine
References
1 Allen, Rodney L., Jonsson, Rolf H. 2014. Boliden’s Garpenberg Zn-Pb-Ag mine, Sweden – Critical factors behind
the discoveries that turned mine closure into a large expansion project. SEG Conference Abstract 0393- 000191.
https://www.segweb.org/SEG/Events/Conference-Archive/2014/Conference-
Proceedings/data/papers/abstracts/0393-000191.pdf
2 Frank, K.S., Spry, P.G., Raat, H., Allen, R.A., Jansson, N.F and Ripa, M. (2019). Variability in the Geologic,
Mineralogical, and Geochemical Characteristics of Base Metal Sulfide Deposits in the Stollberg Ore Field,
Bergslagen District, Sweden. Econ Geol 114: 473–512. doi: https://doi.org/10.5382/econgeo.4646
3 Jansson N, Erismann F, Lundstam E, Allen RL (2013). Evolution of the Paleoproterozoic volcanic -limestone-
hydrothermal sediment succession and Zn- Pb-Ag and iron oxide deposits at Stollberg, Bergslagen region, Sweden:
Econ Geol 108: 309-335
4 Raat, H., Jansson, N.F., and Lundstam, E., (2013). The Gränsgruvan Zn-Pb-Ag deposit, an outsider in the Stollberg
ore field, Bergslagen, Sweden: Geology Applied to Mineral Deposits, Biennial Meeting, 12th, Uppsala, Sweden,
August 12–15, 2013, Proceedings, p. 12–15
5 Rönnblom-Pärson, E., (2016). Komplettering till ansökan om bearbetningskoncession Västansjö K nr 1,
Smedjebackens Kommun, Dalarnas Län, 2016 -02-29. Supporting document for mining concession application
Västansjö K nr 1 fr om Boliden Mineral AB including a Mineral Resource Estimate to the Mining Inspectorate
(Bergsstaten).
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 the Tomtebo and Stollberg Properties. Mineralization on any other
properties referred to herein is not necessarily indicative of mineralization on the Tomtebo and
Stollberg 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 properties; 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 abilit y 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 interest; environm ental 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 th e 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”,
which is available at www.sedar plus.ca. 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 materiall y
from those disclosed in the forward-looking information 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 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.