District Provides Update on the Bakar Copper Property
District Provides Update on the Bakar Copper
Property
Vancouver, British Columbia--(Newsfile Corp. - November 21, 2022) -
District Metals Corp. (TSXV:
DMX) (FSE: DFPP); ("District" or the "Company")
announces an exploration work program to be
completed before the end of 2022, and an update on the planned drill program at the Bakar Property
located on Northern Vancouver Island, British Columbia (Figure 1).
The Bakar Property is in a Joint
Venture (JV) between District (20% ownership) and Sherpa II Holdings Corp. (TSXV: SHRP) ("Sherpa
II") where District is the operator.
Exploration work completed in 2020 and 2021 at the Bakar Property identified the high priority Elephant
Crossing (EC) Target, which comprises a coincident VTEM anomaly (1.5 km to 0.5 km) and ZTEM
anomaly (4.5 km by 0.8 km) along with two rock chip samples from outcrop at the edge of the VTEM and
ZTEM anomalies that returned 0.49% Cu and 4.13% Cu (
February 7, 2022 news release
).
The discovery of the EC Target led the District-Sherpa II JV to approve an 800 m drill program (in two
holes), and the associated drill permit application was submitted to the BC Ministry in November 2021.
The Company has been in regular contact with the BC Ministry and Quatsino First Nation to obtain
approval for our drill permit application on the Bakar Property.
Unforeseen delays have occurred during
the final stages of the drill permitting process, and the expected drill permit approval has been extended
to Q1 2023.
Consequently, the exploration budget for the remainder of 2022 has been re-allocated towards
conducting additional airborne geophysical and geochemical surveys at the Bakar Property that do not
require an exploration permit. The planned airborne geophysical survey will comprise VTEM and
magnetics over areas not previously flown, and the geochemical survey will comprise glacial till sampling
over and "down-ice" from the EC Target. Details on the results from these surveys will be released in
early-2023.
Garrett Ainsworth, CEO of District, commented: "We are very disappointed that we have not received
our permit approval in time to drill the EC Target on our Bakar Property before the end of 2022.
However, the additional geophysical and geochemical surveys that we have planned at the Bakar
Property will provide us with useful exploration data that will advance our understanding of the EC Target,
and potentially develop new drill targets along trend from the EC Target."
Figure 1: Bakar Property Location
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7971/144706_cc426c4e44dafa80_002full.jpg
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 chip samples from outcrop reported in this news release were recovered by Vector Geological
Solutions Inc. from the Bakar Property and shipped to Bureau Veritas Mineral Laboratories (an
accredited mineral analysis laboratory) in Vancouver, BC for preparation and analysis. Samples were
analyzed for 45 elements with four acid digestion Inductivity Coupled Plasma – Mass Spectrometry (ICP-
MS). 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.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred
to herein other than the Bakar Property and mineralization at those other properties or projects is not
necessarily indicative of mineralization on the Bakar Property.
Amended and Restated Option Plan
The Company's annual general and special meeting of shareholders was held on November 3
rd
, 2022.
At that time the shareholders of the Company approved all matters as presented including the adoption
of the Company's new incentive stock option plan (the "
Option Plan
").
The Option Plan was previously adopted by the board of directors on October 6, 2022. The total number
of common shares of the Company (the "
Common Shares
") reserved and available for grant and
issuance under the Option Plan shall be a rolling number equal to 10% of the total issued and
outstanding Common Shares from time to time.
A summary of the Option Plan is contained in the Company's management information circular dated
October 7, 2022.
which is available under the Company's profile on SEDAR.
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 Bakar Property; the Company's interpretations and expectations about the results on the Bakar Property; and the
expected timing of the issuance of a drill permit for the Bakar 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/144706