District Receives Approval of Sågtjärn Mineral License Applications in Central Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Receives Approval of Sågtjärn Mineral License
Applications in Central Sweden
Vancouver, B.C. July 31, 2023
July 31, 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 Sågtjärn nr
101 and 102 mineral license application s to explore for copper, zinc, lead silver, gold,
molybdenum and cobalt over a 4,068 hectare (ha) area located in the Jämtland and Västernorrland
Counties in central Sweden (Figure 1).
The Sågtjärn mineral licenses are in good standing for a three-year term that ends on May 10,
2026. Renewal for an additional three years will require payment of mineral license fees to the
Swedish Mining Inspectorate, and the completion of at least some geological, geochemical, or
geophysical work on the mineral license before May 10, 2026.
Sågtjärn Property Highlights:
• Mineral license Sågtjärn nr 101 contains the Sågtjärn Uranium Deposit. A Technical
Report prepared for Continental Precious Minerals Inc. by Telluride & Associates dated
September 20, 2005 on the Sågtjärn Deposit calculated an historical mineral resource
estimate for U3O8 of:
o Historical Inferred Mineral Estimate: 756,000 tonnes at a grade of 0.068%
U3O8 containing 1,137,585 lbs of U3O8 using a 200 ppm uranium cut off1.
The above mineral resource estimate is considered to be an “historical estimate” 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 this historical estimates as a current Mineral Resource.
The Company would need to conduct an exploration program, including twinning of historical
drill holes in order to verify the Sågtjärn Deposit historical estimate as a current mineral
resource.
• The Sågtjärn Deposit remains open in all directions, and contains the following drill result
highlights:
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o Hole SGT-77-007 intersected 8.7 m at 0.13% U3O8 from 60.3 to 69.0 m.
o Hole SGT-77-011 intersected 7.0 m at 0.18% U3O8 from 86.0 to 93.0 m.
o Hole SGT-79-011 intersected 5.2 m at 0.13% U3O8 from 132.6 to 137.8 m.
o Hole SGT-80-001 intersected 4.6 m at 0.13% U3O8 from 146.5 to 151.1 m.
• Mineral license Sågtjärn nr 102 contains the Staverberget Mineral Occurrence, which
is highlighted by:
o Historical boulders that returned assays from background levels up to 1.3% Cu,
1.8% Mo and 1.3 g/t Au.
o Limited historical drilling intersected 0.8 m at 1.46% U3O8, 1.26% Mo, 0.25%
Pb, 0.2% Zn, 0.2% Cu, and 10 g/t Ag.
• A moratorium on uranium mining and exploration in Sweden was imposed in 2018. The
current Swedish Government has expressed a positive stance on re -evaluating the
moratorium.
Garrett Ainsworth, CEO of District, commented: “ Through our generative review of energy
metals properties in Sweden we continue to add historical mineral resources to District’s portfolio
of properties through the mineral license application process. The Sågtjärn Uranium Deposit
contains a significant historical estimate of uranium that remains open in all directions. Uranium
was the only metal analyzed at the Sågtjärn Deposit, but it is apparent from review of the historical
data and drill core that there is potential for other metals of interest to be present.
Although the moratorium on uranium mining and exploration imposed by the Swedish
Government in 2018 remains, the Company continues to be encouraged by some positive media
reports regarding the Swedish Government’s stance to lift the uranium moratorium. The
Company and its consultants continue to monitor next steps by the Government, and will update
shareholders as developments arise.”
Background
The mineral occurrences on the Sågtjärn Property were discovered during fo llow-up work of
geochemical soil anomalies in 1974 by the Swedish Geological Survey (SGU). Detailed outcrop
mapping, boulder hunting and sampling started in 1975 followed by ground geophysical surveys
and systematic geochemical sampling.
Drilling commenced in 1977 and was completed in early Spring 1980. Forty-three diamond
drill and four percussion holes were drilled during this period giving a total of 6,655 m at the
Sågtjärn Uranium Deposit. A preliminary historical mineral resource estimate of 757,145 tonnes
at a grade of 0.087% U3O8 containing 1,464,883 lbs of U3O8. This preliminary historical estimate
was based on the profile calculation method using a minimum 2 m width and a 300 ppm uranium
cut-off based on XRF analysis 2. This historical mineral resource estimate is based on a 19 81
Report by L-O Forsberg and F. Kullman , Swedish Geological Survey. It is 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 th is historical estimate
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
as current Mineral Resource. This preliminary historical mineral resource estimate was revised
by Telluride & Associates’ technical report dated September 20, 20051.
The Sågtjärn Uranium Deposit remains open in all directions, especially towards the northwest
where hole SGT-80-001 intersected 4.6 m at 0.13% U3O8 from 146.5 to 151.1 m. The historical
drill cores have not been analyzed for other potentially economic elements of interest.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Figure 1: Sågtjärn Mineral Licenses
The Sågtjärn area is dominated by Proterozoic meta -sedimentary rocks which have suffered up
to upper amphibolite metamorphic grades. Three main rock units are observed, being a biotite -
sillimanite-cordierite gneiss of probably argillitic origin (shale), a quartz -feldspar-sillimanite
gneiss of probably arenitic origin (arkose – greywacke) separated by a boudinaged and folded
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
garnet-amphibole (iron) skarn unit. There are two types of pegmatoids associated with the skarn
unit, which are irregular, sheet like zones within the gneissic units. The pegmatoids vary in
thickness from cm to meter scale and comprises approximately 20% of the rock volume at the
Sågtjärn Uranium Deposit. The coarse grained greyish -white, biotite dominant pegmatoids host
accessory uraninite, monazite, molybdenite and chalcopyrite, whereas the biotite-poor pegmatoid
type is unmineralized. These pegmatoids have never been analyzed for lithium or rare-earth-
elements.
Multiple companies have been exploring the area for base- and precious metals. This includes the
Staverberget area with copper, molybdenum, and gold enriched boulders that assayed from
background levels to 1.3% Cu, 1.8% Mo and 1.3 g/t Au hosted by metamorphosed, fine -grained
mica-rich sediment-gneiss. Follow-up drilling in 1982 (987 m in 7 drill holes) intersected a 0.8 m
mineralized interval with 1.46% U3O8, 1.26% Mo, 0.25% Pb, 0.2% Zn, 0.2% Cu, 10g/t Ag3.
The last company who held mineral licenses covering the Sågtjärn Property was Continental
Precious Minerals from 2005 to 2014 where they drilled one hole (SGT-07-001) in the center of
the Sägtjärn Uranium Deposit that returned confirmatory assay results . No modern exploration
techniques including geophysics have been applied on the Sågtjärn Property.
References
1 Phillips, Andrew H., 2005: Revised Introductory Technical Report on Eight Uranium Properties
in Northern Sweden. Report Prepared for Continental Precious Minerals Inc. by Telluride &
Associates.
2 Forsberg, L-O. and Kullman, F. , 1981: Sågtjärnen, Detailed Prospecting and Ore Estimation.
Uranrapport 1981-3, Sveriges Geologiska Undersökning, BRAP 81033, p. 73.
3 Persson, G., 1983: Molybdenminerliseringen Steverbergt. Prospekteringsrapport, Sveriges
Geologiska Undersökning, BRAP 82601, p. 45.
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 th is historical
estimate as current Mineral Resource. The Company would need to conduct an exploration
program, including twinning of historical drill holes in order to verify the Sågtjärn Uranium
Deposit historical estimate as a current mineral resource.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
The data disclosed in this news release is related to historical drill ing 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 releva nt 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 Sågtjärn Mineral Licenses. Mineralization on any other properties
referred to herein is not necessarily indicative of mineralization on the Sågtjärn Mineral Licenses.
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 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 simila r 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 Tomteb o 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 o pportunity 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”, “w ill” 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 Co mpany include, among other things, statements relating to the Company’s
Sågtjärn Property to explore for copper, zinc, lead silver, gold, molybdenum and cobalt located in Jämtland and Västernorrland
Counties, north-central Sweden; the Company’s planned exp loration activities, including its drill target strategy and next steps
for the Sågtjärn Property; and the Company’s interpretations and expectations about the results on the Sågtjärn Property.
These statements and other forward -looking information are ba sed 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 rep orted
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 on District’s Properties; 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 purcha se 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 ge neral 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 p roject, 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 pe rsonnel;
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 Compan y’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 a ctual 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 suc h 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 obli gation 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430