District Drills Shallow Polymetallic Sulphide Mineralization on the Gruvberget Property
District Drills Shallow Polymetallic Sulphide
Mineralization on the Gruvberget Property
Vancouver, British Columbia--(Newsfile Corp. - July 13, 2022) -
District Metals Corp. (TSXV: DMX)
(FSE: DFPP) ("District" or the "Company")
is pleased to report that the core drilling program has
been completed at its polymetallic Gruvberget Property located in the Bergslagen Mining District of
south-central Sweden.
Drilling at the Gruvberget Property commenced in early-June where 1,144 m in five holes (GRU22-001 to
-005) have been completed (Figure 1). Drill core samples from these five holes will be shipped to ALS
Geochemistry in Malå, Sweden for assay preparation and then to ALS Geochemistry in Loughrea,
Ireland for analysis. Assay results are expected by late-August or early-September.
Highlights
Polymetallic sulphide mineralization was intersected in four out of five drill holes
at the
Gruvberget North zone.
Multiple mineralized intervals from 0.4 to 8.8 m in width were
observed in each of the four mineralized drill holes
. The polymetallic sulphide mineralization
comprises chalcopyrite (copper sulphide +/- gold), sphalerite (zinc sulphide), and galena (lead
sulphide +/- silver) as
disseminated, impregnated, vein/stringer, and semi-massive sulphide
mineralization
.
The polymetallic mineralized system at the
Gruvberget North zone has been identified as
possible Strataform Zn-Pb-Ag mineralization
, which would make it
analogous to Lundin
Mining's Zinkgruvan Mine
located 190 km to the south of the Gruvberget Property.
Hole GRU22-003 intersected 8.8 m (127.4 to 136.2 m) of disseminated to semi-massive
polymetallic sulphide mineralization
.
Hole GRU22-004 intersected 6.2 m (125.7 to 131.9 m) of disseminated to vein polymetallic
sulphide mineralization
.
Hole GRU22-002 intersected 4.65 m (132.65 to 137.30 m) of disseminated to semi-massive
polymetallic sulphide mineralization
.
Rodney Allen, Technical Advisor for District, commented: "The mineralized zone in the holes that we
have drilled so far at Gruvberget comprises an up to 37 m thick interval of banded to locally massive,
metamorphosed mudstone (meta-argillite), with subordinate 0.03 to 1.0 m thick intervals of skarn. The
skarn is dominated by diopside with lesser epidote, actinolite and locally garnet. The mineralization
comprises sphalerite with lesser galena, pyrite, pyrrhotite and chalcopyrite and occurs as irregular
veinlets and layer-parallel laminae in the meta-argillite and thicker veins and patches in the skarn.
"The sphalerite-galena-pyrite bands in the meta-argillite are foliated and folded and the main tectonic
foliation forms an axial-plane foliation to these folds. These relationships indicate that the mineralization
formed before the main tectonic foliation. The abundance of non-aluminous minerals in the skarn
indicate that the skarn formed by hydrothermal replacement of former limestone or dolomite (which
contain little or no aluminium) and not volcanic rocks or mudstone (which contain abundant aluminium).
"Mineralization within the skarn comprises veins and replacement patches and is clearly epigenetic.
Mineralization within the meta-argillite comprises both veins and layer-parallel bands or laminae and
could either be completely epigenetic or could be remobilized from original stratiform bedded
mineralization during deformation and metamorphism. Thus, two alternative interpretations for the
mineralization are plausible: (1) the mineralization is hydrothermal, metasomatic and epigenetic and
resulted from hot metal-rich fluids being channelled along the stratigraphic interval of interbedded
limestone and argillite, with the most intense mineralization occurring within the limestone beds that
would have been an ideal reactive chemical trap for the mineralizing fluids, or (2) the mineralization
comprised stratiform bedded sulphides in argillite interbedded with silica- and magnesium-altered
limestone beds, and during deformation and metamorphism, the mineralization became remobilized into
veins and the altered limestones were transformed to skarn. Both of these styles of mineralization occur
as World-class deposits in Bergslagen, with Garpenberg being an example of the replacement style
deposit, and Zinkgruvan an example of the stratiform-bedded style."
Garrett Ainsworth, CEO of District, commented: "Our first pass drill program at the Gruvberget North
zone has significantly advanced our understanding of the mineralizing system on the Property, and its
potential.
We encountered polymetallic sulphide mineralization in four out of five step-out drill holes
where mineralization remains open in most directions. Strong continuity of mineralization at the North
zone persists at depth and towards the north where we have coincident SkyTEM conductive and
magnetic anomalies. Mineralization at the North zone remains open at a vertical depth of 160 m, which is
important given that the polymetallic mineralized systems at the Garpenberg and Zinkgruvan Mines
extends to depths of 1,600 m or more.
"Review of the drill core by Rodney Allen and Anders Zetterqvist, who are geological experts in the
Bergslagen District, has provided us with new insights on the possible type of polymetallic mineralizing
system present at the Gruvberget North zone. Whole rock geochemistry will continue to be an important
tool in confirming the geological units and alteration intensity, which will direct the next drill campaigns.
"Much of the Gruvberget Property is covered by a thin veneer of glacial till (2 to 20 m), so we have
recently conducted a pilot soil sampling program over and away from the Gruvberget North zone. The
soil samples recovered will be analyzed by ionic leach and conventional (ICP-MS) analysis to determine
which method is preferable before initiating a larger soil sampling program focused on and "down-ice"
from our airborne geophysical target zones. Drill targets supported by coincident geochemical and
geophysical anomalies provide an increased level of confidence when prioritizing targets."
Figure 1: Long Section Looking East at Gruvberget North Zone
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7971/130691_5727404f04d43af5_002full.jpg
Drill Hole Summaries
GRU22-001 (North Zone):
Hole GRU22-001 was drilled to the southwest (240°) at a dip of -60° to target mineralization
approximately 60 m below historical hole GRU1011, which returned
6.1 m at 11.0% ZnEq
1
.
After 8.0 m of overburden, the hole intersected granitic gneiss to 18.2 m that was underlain by
amphibolite until 126.1 m. Granitic gneiss with intermittent mafic dykes was encountered from 126.1 to
210.6 m followed by Amphibolite until the end of hole depth at 290.5 m.
The host metapelite unit and accompanying polymetallic sulphide mineralization was not encountered.
The re-emergence of the granitic gneiss unit in hole GRU22-001 suggests a structural repetition by
folding or faulting, which could put the host metapelite unit further down dip of the hole.
GRU22-002 (North Zone):
Hole GRU22-002 was drilled to the southwest (240°) at a dip of -45° from the same location as hole
GRU22-001 to target mineralization approximately 30 m below historical hole GRU1011.
After 8.0 m of overburden, the hole intersected granitic gneiss to 20.0 m that was underlain by
amphibolite until 113.0 m. The host metapelite unit was encountered from 113.0 to 175.0 m depth
followed by feldspar porphyritic gneiss until the end of hole depth at 202.7 m.
The polymetallic sulphide mineralization comprises three diopside dominated skarn lenses. The Zn-Pb-
Cu mineralization in the skarn is sphalerite dominated and hosts polymetallic sulphide stringers, blebs,
bands, and semi-massive.
GRU22-003 (North Zone):
Hole GRU22-003 was drilled to the southwest (268°) at a dip of -50° to target mineralization
approximately 45 m below historical hole GRU1010, which returned
3.9 m at 7.5% ZnEq
1
.
After 8.0 m of overburden, the hole intersected granitic gneiss to 34.0 m that was underlain by
amphibolite until 117.0 m. The host metapelite unit was encountered from 117.0 to 187.5 m depth
followed by feldspar porphyritic gneiss until the end of hole depth at 211.2 m.
The polymetallic sulphide mineralization comprises three diopside dominated skarn lenses. The Zn-Pb-
Cu mineralization in the skarn is sphalerite dominated and hosts polymetallic sulphide bands, blebs and
irregular stringers. At the margins of the skarns sphalerite is concentrated in bands hosting skarn clasts
in a sulphide matrix.
GRU22-004 (North Zone):
Hole GRU22-004 was drilled to the southwest (268°) at a dip of -50° to target mineralization
approximately 40 m below historical hole GRU1009, which returned
2.0 m at 4.2% ZnEq
1
.
After 8.0 m of overburden, the hole intersected granitic gneiss to 31.1 m that was underlain by
amphibolite until 125.7 m. The host metapelite unit was encountered from 125.7 to 185.6 m depth
followed by feldspar porphyritic gneiss until the end of hole depth at 209.9 m.
The polymetallic sulphide mineralization is hosted in the metapelite unit and is characterized by two
distinct zones that comprise different mineralization settings.
Firstly, from 125.7 to 137.3 m the
mineralization is dominated by disseminated pyrite in a heterogeneously textured, locally silicified and
cordierite bearing metapelite. Locally sphalerite occurs as foliation parallel stringers and stockwork.
Some phlogopite-rich zones within are sphalerite-rich. Secondly, the majority of the Zn-Pb-Cu
mineralization is associated with the skarn intervals whereas sphalerite is the dominant sulphide and
occurs as bands and irregular lenses, and galena and chalcopyrite form irregular patches and stringers.
GRU22-005 (North Zone):
Hole GRU22-005 was drilled to the northwest (291°) at a dip of -60° from the same location as hole
GRU22-004 to target mineralization approximately 30 m south of historical hole GRU1015, which
returned
2.1 m at 8.6% ZnEq
1
. A modeled SkyTEM conductor plate was also targeted with GRU22-
005.
After 8.0 m of overburden, the hole intersected granitic gneiss to 40.4 m that was underlain by
amphibolite until 135.5 m. The host metapelite unit was encountered from 135.5 to 197.5 m depth
followed by feldspar porphyritic gneiss until the end of hole depth at 229.5 m.
The polymetallic sulphide mineralization comprises two diopside dominated skarn lenses. The Zn-Pb-Cu
mineralization in the skarn is sphalerite dominated and hosts polymetallic sulphide bands, blebs and
irregular stringers. At the margins of the skarns sphalerite is concentrated in bands hosting skarn clasts
in a sulphide matrix.
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.
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 Gruvberget Property. Mineralization on any other properties referred to herein is
not necessarily indicative of mineralization on the Gruvberget 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 Gruvberget Property; and the Company's interpretations and expectations
about the results on the Gruvberget 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 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.
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