District Receives Approval of Mineral License Application that Encompasses the Majority of the Polymetallic Viken Deposit in Central Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Receives Approval of Mineral License Application that
Encompasses the Majority of the Polymetallic Viken Deposit in
Central Sweden
Vancouver, B.C. April 12, 2023
April 12, 2023 – 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 1
mineral license application that covers approximately 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.
On March 7, 2023 t he Company reported ( see news release ) that additional mineral license
applications have been submitted to the Mining Inspectorate that cover areas to the south (Viken
nr 2) and north (Viken nr 3) of the original Viken nr 1 mineral license (Figure 1). Approval of the
Viken nr 2 and 3 mineral licenses will increase the area of the Viken Property from 2,302 hectares
(ha) to 9,367 ha where h istorical drill holes have returned grades and widths of polymetallic
mineralization that are consistent with drill results from within the Viken Deposit. The application
process for Viken nr 2 and 3 is ongoing.
Highlights:
• The approved Viken nr 1 mineral license application covers 68% of the Viken
Deposit, which is a large polymetallic deposit containing economically significant levels
of vanadium (V), uranium (U), molybdenum (Mo), nickel (Ni), copper (Cu), and zinc
(Zn).
• Mineral license applications to the south (Viken nr 2) and north (Viken nr 3) of Viken
nr 1 (Figure 1) 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.
Garrett Ainsworth, CEO of District, commented: “We are pleased with the approval of our Viken
nr 1 mineral license application that covers the majority of the polymetallic Viken Deposit. This
low-cost application resulted in the Company being granted a three-year term and secures an asset
918
-
1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone:
(604) 288
-
4430
2010 Viken Deposit Historical Mineral Resource Estimate
Classification
Tonnage
(k tonnes)
Grade
Contained Metal
V
2
O
5
(ppm)
U
3
O
8
(ppm)
Mo
(ppm)
Ni
(ppm)
V
2
O
5
(Mlbs)
U
3
O
8
(Mlbs)
Mo
(Mlbs)
Ni
(Mlbs)
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 t
o verify the
Viken Deposit
historical estimate as a
current mineral resource.
•
Weighting of composite samples by linear Ordinary Kriging was used for the estimation 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.
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.
“
In addition,
District believes that
the
rejection of the motion
submitted by two members of
the
Swedish Parliament to lift the uranium moratorium on March 30, 2023
does not represent
any
change
of
policy
or
direction
by
the
Government,
which
has
repeated
its
support
to lift
the
uranium moratorium.
Further information on this matter is described below.
”
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
1: 2010 Viken Deposit Historical Mineral Resource Estimate
1
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Telephone: (604) 288-4430
• During the second 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 Report, Resource Estimate and Preliminary Economic
Assessment on the Viken Deposit with the following historical estimate:
Table 2: 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 t he 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 samples. 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.
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 miner alized
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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Uranium values are predominantly associated with sub -micron-scale uraninite crystals. Nickel,
molybdenum, copper and zinc are present as sulphides.
Additional Comments on the Status of the Uranium Moratorium
The motion to lift the uranium moratorium in Sweden put forward to the legislature by two
Members of Parliament from the ruling Moderate Party was rejected on March 30, 2023. Th e
motion was the equivalent of a declaration to the Government about the importance of lifting the
moratorium. It was bundled with a number of other permitting and environmental matters, some
of which were not sponsored by Moderate Party Members of Parliament . Only one declaration
was approved and all others were rejected, which is often the case when matters are initiated by
individual Members of Parliament rather than the Government. In this case with respect to the
uranium moratorium, the Parliamentary Committee concluded that there are differing views on
the uranium moratorium among the committee members and that the committee saw no need to
issue a declaration to the Government on this matter at this time.
There has been no indication that this vote c hanges the Government’s positive stance on lifting
the uranium moratorium. The Government’s policy remains that the uranium moratorium will be
re-evaluated. If the Government decides to remove the moratorium after its re-evaluation, it will
do so in the form of a Government Bill. District is not aware of any guidance from the Government
as to the timing of such legislation, but believes that Sweden is focused on promoting the low-
carbon power generation that is exemplified by nuclear energy.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Figure 1: Viken Mineral License and Applications with Outline of Viken Deposit
References
1
Preliminary Economic Assessment on the Viken MMS Project, Sweden for Continental Precious Minerals Inc.
2
010.
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
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
Viken
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
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
situat
ed
between
the
historic
Falun
Mine
and
Boliden’s
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Telephone:
(604) 288-4430
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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.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 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, 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 manageme nt’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 mineral license (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 expected timing of the Bergsstaten’s (Mining
Inspectorate) decision on the Company’s Viken nr 2 and 3 mineral license application s; the Company’s planned exploration
activities, including its drill target strategy and next steps for the Viken Property; and 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 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 ac curacy 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, uncert ainties,
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 likelihood of the Bergsstaten’s (Mining Inspectorate) decision to approve the Company’s Viken nr 101 mineral
license application; the reliability of historic data regarding the Viken Deposit and 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
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
financing; the uncertainty of additional funding; the uncertainties associated with early stage exploration activities includ ing
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, estimat ed
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 n o 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.