District Commences Phase II Drill Program at the Tomtebo Property
District Commences Phase II Drill Program at
the Tomtebo Property
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2021) -
District Metals Corp. (TSXV: DMX)
(FSE: DFPP) ("District" or the "Company")
is pleased to announce that it has commenced core
drilling a minimum of 5,000 m with two rigs at its high grade polymetallic Tomtebo Property located in the
Bergslagen Mining District in south-central Sweden. Hy-Tech Drilling Sweden AB has been awarded the
contract for this Phase II drill program.
The main objectives of the Phase II drill program include: 1) aggressive step outs from significant
mineralization encountered during our Phase I drill program at the historic Tomtebo Mine; 2) testing a
new and comprehensive interpretation proximal to the large mineralized system at the Tomtebo Mine
through the use of whole rock geochemistry, Borehole Electromagnetic (BHEM) anomalies, and
coincident geophysical anomalies; 3) testing virgin regional targets that comprise coincident gravity,
magnetic, and conductive anomalies located up to 1 km northeast and 600 m southwest along trend
from the Tomtebo Mine.
The proposed Phase II drill hole locations are shown in Figures 1 and 2.
Garrett Ainsworth, CEO of District, commented: "Since acquiring the Tomtebo Property in June 2020 we
have been diligently acquiring and compiling exploration data to better understand the polymetallic
mineral system at Tomtebo, which has prioritized the best targets with potential to discover economic
mineralization.
We now have a much better understanding of Tomtebo thanks to our technical team's
breadth of modern knowledge on polymetallic deposits in the Bergslagen, and through innovative
exploration techniques such as whole rock geochemistry and geophysical surveys that were never
previously carried out at Tomtebo.
Every exploration program we have conducted at Tomtebo has
delivered positive overlapping anomalies and data that makes this Phase II drill program the most
exciting to date."
A minimum of 5,000 m of core drilling in approximately 14 holes is planned at the historic Tomtebo Mine
and up to 1 km along the Tomtebo Mine trend with a focus on the following targets:
Steffenburgs zone:
step outs below hole TOM21-001, which intersected
8.2 m at 20.94%
ZnEq
1
(65.3 to 73.5 m) and is supported by the
largest and strongest BHEM conductive plate
from the Phase I drill program.
Oscarsgruvan zone:
step outs below and east-northeast from hole TOM21-002, which
intersected
12.55 m at 331.9 g/t AgEq
2
(90.8 to 103.35 m), and
4.8 m at 505.6 g/t AgEq
2
(125.0
to 129.80 m) supported by numerous geophysical anomalies and the whole rock geochemical
interpretation.
Gårdsgruvans zone:
step outs below and southwest from hole TOM21-017, which intersected
13.4 m at 0.68% CuEq
3
(88.1 to 101.5 m),
16.2 m at 0.87% CuEq
3
(206.8 to 223.0 m),
5.6 m at
7.11% ZnEq
1
(269.2 to 274.8 m),
5.05 m at 2.86% CuEq
3
(278.1 to 283.15 m), and
2.0 m at
2.18% CuEq
3
(295.3 to 297.3 m) supported by numerous geophysical anomalies and the whole
rock geochemical interpretation.
Northeast Gravity Target:
testing a
very significant blind gravity high anomaly
with
coincident magnetic and conductive anomalies located 1 km northeast along trend from the
historic Tomtebo Mine.
This gravity high anomaly remains open to the northeast and at depth
where an
exploration target of 34.0 Mt at a density of 3.45 g/cm
3
has been modeled at shallow
depths (40 to 320 m).
Southwest Gravity Target:
testing a significant gravity high anomaly with coincident magnetic
and conductive anomalies located 600 m southwest along trend from the historic Tomtebo Mine.
This gravity high anomaly is associated with historic iron sulphide occurrences, which are known to
sometimes coalesce with polymetallic sulphide mineralization in the Bergslagen District.
An
exploration target of 28.7 Mt at a density of 3.50 g/cm
3
has been modeled at shallow depths
(near surface to 420 m) at this target.
Tomtebo Mine Proximal Gravity Targets:
testing gravity high anomalies to the south and east of
the historic Tomtebo Mine, which are supported by coincident magnetic and conductive
anomalies.
West of Tomtebo Mine:
systematic analysis of whole rock geochemistry in drill core from the
Phase I program combined with structural mapping data has resulted in an interpretive
breakthrough where the massive sulphide fertile horizon (between the Rhyolite 1 and 2) has been
identified.
This fertile horizon remains wide open and untested for at least 800 m west of hole
TOM21-012 and the historical Tomtebo Mine.
The potential quantity and density of the gravity exploration targets described above are conceptual in
nature, and it is not possible to make assumptions on metal grades from a gravity survey.
There has
been insufficient or no drilling to define a mineral resource or to determine if polymetallic sulphide
mineralization is present, respectively.
It is uncertain if further drilling will result in these gravity
exploration targets being delineated as a mineral resource or resulting in the discovery of polymetallic
sulphide mineralization.
The Company has also granted a total of 2,220,000 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 $0.25 per common share (being above the closing price of the Company's common
shares on October 6, 2021, the grant date). All stock options have a term of five years and vest on the
grant date.
Figure 1: Plan View of Proposed Phase II Drill Holes
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7971/98837_a23ac499b4cbe875_002full.jpg
Figure 2: Massive Sulphide Fertile Horizon Between Rhyolite 1 and 2
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/7971/98837_a23ac499b4cbe875_003full.jpg
References
1
Metal prices used in USD for the ZnEq calculation were based on Ag $15.00/oz, Au $1650/oz, Cu
$2.15/lb, Zn $0.85/lb, and Pb $0.75/lb.
ZnEq equals = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu%
× 2.529) + (Pb% × 0.882).
The use of ZnEq is to calculate cut-off grades for exploration purposes, and
no adjustments were made for metal recovery.
2
Metal prices used in USD for the AgEq calculation were based on Ag $15.00/oz, Au $1650/oz, Cu
$2.15/lb, Zn $0.85/lb, and Pb $0.75/lb.
AgEq equals = Ag g/t + (Au g/t × 110) + (Cu% × 98.286) + (Zn%
× 38.857) + (Pb% × 34.286).
The use of AgEq is to calculate cut-off grades for exploration purposes,
and no adjustments were made for metal recovery.
3
Metal prices used in USD for the CuEq calculation were based on Ag $15.00/oz, Au $1650/oz, Cu
$2.15/lb, Zn $0.85/lb, and Pb $0.75/lb.
CuEq equals = Cu% + (Au g/t x 1.1192) + (Ag g/t × 0.0102) + (Zn
% x 0.3953) + (Pb % x 0.3488).
The use of CuEq is to calculate cut-off grades for exploration purposes,
and no adjustments were made for metal recovery.
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 drill core reported in this news release was logged and prepared at the District Metals AB core
facility in Säter, Sweden before submittal to ALS Geochemistry in Malå, Sweden where the drill core is
cut, bagged, and prepared for analysis.
Sample pulps were sent to ALS Geochemistry in Ireland (an
accredited mineral analysis laboratory) for analysis. Samples were analyzed using a multi-element ultra
trace method combining a four-acid digestion with ICP-MS analytical package ("ME-MS61"). Over limit
sample values were re-assayed for: (1) values of copper >1%; (2) values of zinc >1%; (3) values of lead
>1%; and (4) values of silver >100 g/t using the high-grade material ICP-AES analytical package ("ME-
OG62").
Additional over limit sample values were re-assayed for: (1) values of zinc >30%; (2) values of
lead >20% using the high precision analysis of base metal ores AAS analytical package ("Zn, Pb-
AAORE").
Gold, platinum, and palladium were analyzed using the 30 g lead fire assay with ICP-AES
finish analytical package ("PGM-ICP23"). Certified standards, blanks, and duplicates were inserted into
the sample shipment to ensure integrity of the assay process. Selected samples were chosen for
duplicate assay from the coarse reject and pulps of the original sample. No QA/QC issues were noted
with the results reported.
Some of 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.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred
to herein other than the Tomtebo Property. Mineralization on any other properties referred to herein is not
necessarily indicative of mineralization on the Tomtebo Property.
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 planned exploration activities, including its drill target strategy
and next steps for the Tomtebo Property; the company's interpretations and expectations about the
mineralization of the Tomtebo Mine; the Company's belief that the numerous gravity high anomalies
identified at the historic Tomtebo Mine provide immense expansion potential; the Company's belief
that the modeled gravity high anomalies at the historic Tomtebo Mine could correspond with
polymetallic and/or iron sulphide mineralization, or a mafic unit; and the Company's belief that the
gravity high anomaly located one kilometer to the northeast of the Tomtebo Mine represents a
potential grassroots discovery opportunity with a modeled tonnage that compares with the historic
production tonnage from the historic Falun Mine.
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
satisfy the
exploration expenditure requirements required by the definitive purchase agreement
between the Company and the vendor of the Tomtebo Property (the "
Tomtebo Purchase
Agreement
") by the times specified therein; 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 regarding 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
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