District Receives Approval of Additional Viken Mineral License Applications in Central Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Receives Approval of Additional Viken Mineral License
Applications in Central Sweden
Vancouver, B.C. May 3, 2023
May 3 , 202 3 – District Metals Corp . (TSX -V: DMX) (FRA: DFPP) ; (“District” or the
“Company”) is pleased to report that Bergslagen Metals AB (a 100% owned Swedish subsidiary
of District) has received approval from the Bergsstaten (Mining Inspectorate) for the Viken nr 2
and 3 mineral license applications that covers the area to the south and north of the original Viken
nr 1 mineral license application that encompasses 68% of the polymetallic Viken Deposit located
in Jämtland County, central Sweden (Figure 1) . 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.
Highlights:
• The approved Viken nr 2 and 3 mineral license applications have increased 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).
• There is currently a moratorium on uranium mining and exploration that was imposed in
2018. The Swedish Government has a po sitive stance on re -evaluating and lifting the
moratorium.
Garrett Ainsworth, CEO of District, commented: “The Viken Property now comprises three large
mineral licenses (Viken nr 1 to 3) that are in good standing for the next three years, and cover the
majority of the polymetallic Viken Deposit and its likely extensions to the north and south as
evidenced by historic drill hole results.”
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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)
V2O5
(ppm)
U3O8
(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)
V2O5
(ppm)
U3O8
(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)
V2O5
(ppm)
U3O8
(ppm)
MoO3
(ppm)
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 U3O8
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 Estimate1
2010 Viken Deposit Historical Mineral Resource Estimate
Classification Tonnage
(k tonnes)
Grade Contained Metal
V2O5
(ppm)
U3O8
(ppm)
Mo
(ppm)
Ni
(ppm)
V2O5
(Mlbs)
U3O8
(Mlbs)
Mo
(Mlbs)
Ni
(Mlbs)
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 t he 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 e stimation 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 se cond 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 Rep ort, Resource Estimate and Preliminary Economic
Assessment on the Viken Deposit with the following historical estimate:
Table 5: 2014 Viken Deposit Historical Mineral Resource Estimate2
2014 Viken Deposit Historical Mineral Resource Estimate
Classification Tonnage
(k tonnes)
Grade Contained Metal
U3O8
(ppm)
Ni
(ppm)
Cu
(ppm)
Zn
(ppm)
U3O8
(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 sampl es. 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 s tratigraphy 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Figure 1: Viken Mineral Licenses with Outline of Viken Deposit
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 Vi ken 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.
District is a polymetallic exploration and development company focused on the Viken and
Tomtebo Properties in Sweden. The Viken Property covers 68% of the uranium-vanadium Viken
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Deposit, which is an asset with substantial exploration and development expenditures that resulted
in the definition of large historic polymetallic resource estimates and positive economic studies
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 polymeta llic 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.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 forwa rd-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 “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, indic ations, 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
Viken nr 1, 2 and 3 mineral licenses (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 Company’s planned exploration
activities, including its drill target strategy and next steps for the Viken Property; a nd 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 perceptio n 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, assumpt ions 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.