District Reports on 3D Modeling of Mineralized Zones at the Former Tomtebo Mine and Changes to the Board
District Reports on 3D Modeling of Mineralized
Zones at the Former Tomtebo Mine and
Changes to the Board
VANCOUVER, BC
,
Oct. 7, 2020
/CNW/ -
District Metals Corp.
(TSXV: DMX) (FRA: DFPP);
("District" or the "Company")
is pleased to report on the Leapfrog 3D modeling of polymetallic
mineralized zones at the former Tomtebo Mine located within the Company's Tomtebo Project in the
Bergslagen Mining District of south-central
Sweden
.
Mineralized zones at the Tomtebo Mine were modeled from historical mine maps and drilling that
was conducted by state-owned Stora AB from 1916 to 1972. District is utilizing this model to
prioritize drill targets, which will form the basis for a drill permit application to be submitted in
November 2020
for an early-2021 drill program. The drill program will focus on confirming historic
intersections, and stepping out from numerous mineralized zones that are open along strike and at
depth as a prelude to potentially developing an NI 43-101 mineral resource, and to exhibit the
greater potential that may exist.
3D Model Highlights
A total of 33 polymetallic mineralized domains within four zones were modeled based on drill
assays and semi-massive to massive sulphides logged from historical drill holes.
The majority of modeled mineralized zones are from surface to the
-200 m
level exploration
drift. High grade copper-gold dominant mineralization (feeder zone) in the south transitions to
high grade silver-zinc-lead dominant mineralization (distal zone) that is developed in the fold
hinge to north and east.
The Gamla Gruvans, Gårdsgruvans, and Steffenburgs zones (Figure 1) trend southwest to
northeast for approximately
710 m
with widths from 190 to
385 m
. The Oscarsgruvans zone
(Figures 1 and 2) trends west to east for approximately
240 m
with widths from 35 to
95 m
.
The southwest to northeast trend displays continuity of southwest plunging high grade
mineralization, which provides excellent potential for significant mineralization at depth and along
strike.
The modeled mineralized zones at Oscarsgruvans (Figure 2) and Steffenburgs (Figure 3)
support drilling at
50 m
centers that has good potential to develop an NI 43-101 mineral
resource.
Drilling at the Oscarsgruvans zone will focus around historic hole TOMT65001, which returned
4.67 m
at 1,087.0 g/t AgEq
1
or 28.0% ZnEq
2
(113.90 to
118.57 m
) from surface.
Drilling at the Steffenburgs zone will focus around historic hole TOMT70004, which returned
16.17 m
at 535.7 g/t AgEq
1
or 13.8% ZnEq
2
horizontally from the
-200 m
level exploration
drift.
Drilling at the Gårdsgruvans zone will focus around historic hole TOMT16008b, which returned
3.6 m
at 3.98% Cu
(9.50 to
13.10 m
),
4.0 m
at 11.79% Cu
(51.60 to
55.60 m
), and
3.4 m
at
2.38% Cu
(68.60 to
72.00 m
) from surface.
Drilling at the Gamla Gruvans zone will initially focus around historic hole TOMT69001, which
intersected
29.04 m
of semi-massive chalcopyrite-pyrite
(copper-gold dominant
mineralization) horizontally from the
-200 m
level exploration drift.
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.
Garrett Ainsworth
, CEO of District, commented: "The Leapfrog 3D modeling of polymetallic
mineralization at the former Tomtebo Mine has confirmed priority drill targets, and has set our
course towards potentially developing a mineral resource through confirmation, infill, and step-out
drilling. The modeled data will also be instrumental in targeting mineralization below the
-200 m
level
exploration drift in a District where polymetallic ore is currently productively mined at depths of
1400
m
at the Garpenberg Mine by Boliden, and
1300 m
at the Zinkgruvan Mine by Lundin Mining. In
conjunction with our recent geological work and SkyTEM conductive and magnetic anomalies at the
Tomtebo Mine, the drill targets and subsequent potential are nothing short of incredible."
Change to the Board of Directors
Mr.
Jonathan Challis
has been appointed to its Board of Directors, replacing Ms.
Anna Ladd-Kruger
,
who will continue as a strategic advisor, in each case, effective today. Ms. Ladd-Kruger has been
with District since
July 2019
, and her advice and guidance from the Company's start up to present
has been invaluable. District greatly appreciates Ms. Ladd-Kruger's contributions, and is fortunate to
have retained her as a strategic advisor.
Garrett Ainsworth
, CEO of District, commented: "We are very pleased to welcome Jonathan as a
new independent director to District as he brings a breadth of public mining company experience on
the technical and capital market fronts from his many years working on numerous mineral resource
assets around the globe. Jonathan complements our board of directors' skills and experiences, and
we are confident he will provide valuable perspectives as we continue to execute on our
advancement of the Tomtebo Project. I would like to thank Anna for her exceptional advice and
guidance as a Director during her tenure, and I look forward to continuing to work with Anna as a
Strategic Advisor."
Mr.
Jonathan Challis
is a mining engineer with over 30 years experience in the operation,
management, financing and analysis of mining projects around the world. Mr. Challis has an honours
degree in Mineral Exploitation from
University College, Cardiff
and an MBA degree from
Cranfield
School
of Management. He has both the South African Metalliferous Mine Captain's and Mine
Manager's Certificates of Competency. He is a Fellow of the Institution of Materials, Minerals and
Mining and a Chartered Engineer.
Mr. Challis started his professional life as a Mining Engineer with Gold Fields of South Africa Limited
in 1974 before returning to
Europe
where he worked as a mining analyst for
James Capel
& Co;
Banque de la Societe Financiere Europeenne (BSFE) and Barclays Bank Ltd. At BSFE and
Barclays, he was involved in the analysis and structuring of debt packages for various mining and
energy projects around the world. He subsequently joined
McLeod Young Weir
in
London
in 1987 as
a mining analyst prior to relocating to
Toronto
in 1990. In 1994, he joined CM Oliver in
Toronto
as a
Director and Senior Mining Analyst, prior to moving back to
London
where he was instrumental in
establishing a European presence for that company. In 1997, he joined Ivanhoe Capital Corporation
and was involved in numerous early stage exploration ventures in diverse locations, and joined Shore
Gold in 1999 as President and a Director.
He was formerly a Director of Peregrine Diamonds Ltd. (TSX – operating in
Canada
): Peregrine
Metals Ltd (TSX-V a metals exploration company operating in
Argentina
); Chairman of Rye Patch
Gold (TSX-V involved in gold exploration in
Nevada
) and is currently a Director of Pasinex Resources
(a zinc exploration and producer in
Turkey
).
In connection with this appointment and pursuant to the Company stock option plan, Mr. Challis has
been granted 300,000 stock options priced at
$0.33
per share for a five-year term.
Figure 1: Plan View of Mineralized Zones at Tomtebo Mine (CNW Group/District Metals Corp.)
Figure 2: Oscarsgruvans Zone at Tomtebo Mine (CNW Group/District Metals Corp.)
Figure 3: Steffenburgs Zone at Tomtebo Mine (CNW Group/District Metals Corp.)
References
1
AgEq equals = Ag g/t + (Au g/t × 110) + (Cu% × 98.286) + (Zn% × 38.857) + (Pb% × 34.286).
Metal prices used in USD for metal equivalent calculations were based on
$15.00
/oz for Ag,
$1650
/oz for Au,
$2.15
/lb for Cu,
$0.85
/lb for Zn and
$0.75
/lb for Pb. Metal equivalent calculations
assume 100% recoveries.
2
ZnEq equals = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu% × 2.529) + (Pb% × 0.882).
Metal prices used in USD for metal equivalent calculations were based on
$15.00
/oz for Ag,
$1650
/oz for Au,
$2.15
/lb for Cu,
$0.85
/lb for Zn and
$0.75
/lb for Pb. Metal equivalent calculations
assume 100% recoveries.
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.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects
referred to herein other than the Tomtebo Property. Mineralization on any other properties referred
to herein is not necessarily indicative of mineralization on the Tomtebo Property.
The data disclosed in this news release related to drilling results is 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's future exploration work will include verification of the data through drilling.
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.
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
statements" 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 state that certain actions, events or results "may",
"could", "would", "might", "will" or "will be taken", "occur" or "be achieved" and other similar
expressions. In addition, statements in this news release that not historical facts are forward
looking statements including anticipated results of future exploration and the results of additional
compilation work.
These statements and other forward-looking information are based on assumptions and estimates
that the Company believes are appropriate and reasonable in the circumstances, , 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 satisfy the exploration expenditure requirements required by the definitive purchase
agreement between the Company and the vendor of the Tomtebo property (the "Definitive
Purchase Agreement") by the times specified therein (failing which the Tomtebo Property will be
forfeited without any repayment to the Company); and stability in financial and capital markets.
There can be no assurance that such statements will prove to be accurate and actual results, and
future events could differ materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's expectations include ; the
risk that historic data regarding the Tomtebo property is unreliable, the risk that information
concerning production and mineralization at current and historic mines within the Bergslagen
District proves to be inaccurate; the risk that the Company will be unable to raise sufficient capital
to finance planned exploration (including incurring prescribed exploration expenditures required by
the Definitive Purchase Agreement, failing which the Tomtebo Property will be forfeited without any
repayment of the purchase price); future metal prices, , general economic, market or business
conditions, \ and other exploration or other risks detailed herein and from time to time in the filings
made by the Company with securities regulators, including those described under the heading
"Risks and Uncertainties" in the Company's MD&A for the financial year ended
June 30
, 2019.
The Company does not undertake to update or revise any forward-looking statements, except in
accordance with applicable law. Readers are cautioned not to put undue reliance on these forward-
looking statements.
SOURCE
District Metals Corp.
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For further information:
Garrett Ainsworth, President and Chief Executive Officer, (604) 288-4430
CO: District Metals Corp.
CNW 08:00e 07-OCT-20