District Reports on Additional Historic High Grade Polymetallic Drill Intercepts at the Former Tomtebo Mine
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Telephone: 604-628-2669
District Reports on Additional Historic High Grade Polymetallic
Drill Intercepts at the Former Tomtebo Mine
Vancouver, B.C. July 27, 2020
July 27, 2020 – District Metals Corp . (TSX -V: DMX) (FRA: DFPP) ; ("District" or the
“Company”) is pleased to provide an update on the historical drill data compilation work, and
the Leapfrog 3D geological model of the historic Tomtebo Mine located within District’s
polymetallic Tomtebo Property in the Bergslagen Mining District of south-central Sweden. In
partnership with EMX Royalty Corp. (TSX -V:EMX), this work represents an important
development for the Tomtebo Property that has never been previously conducted, and has already
identified exceptional drill ready targets.
Historic drill highlights from the Steffenburgs zone at the Tomtebo Mine show substantial
intervals of polymetallic mineralization from 200 to 317 m below surface that remains open along
strike and at depth. The historic drill results from the Tomtebo Mine are from campaigns carried
out by state-owned Stora AB between 1916 to 1972.
Steffenburgs Zone Historic Drill Highlights
The Steffenburgs zone covers the northwest quadrant of the Tomtebo Mine, and is dominated by
silver-zinc-lead mineralization with lesser copper -gold mineralization. The holes highlighted
below show mineralization as disseminated, stringer, semi -massive and massive sulphides that
remains open along strike and at depth.
• Hole TOMT70004 was drilled horizontally from the -200 m exploration drift level and
intersected 16.17 m at 535.7 g/t AgEq1 or 13.8% ZnEq2 (2.00 to 18.17 m).
• Hole TOMT70003 was drilled horizontally from the -200 m level and intersected 9.81 m
at 441.3 g/t AgEq1 or 11.4% ZnEq2 (5.79 to 15.60 m).
• Hole TOMT70011 was drilled horizontally from the -200 m level and intersected 1.55 m
at 1,458.4 g/t AgEq1 or 37.6% ZnEq2 (26.95 to 28.50 m).
• Hole TOMT71036 was drilled downwards at -66° from the -200 m level and intersected
9.5 m at 303.4 g/t AgEq1 or 7.8% ZnEq2 (118.5 to 128.0 m).
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• Hole TOMT71031 was drilled downwards at -63° from the -200 m level and intersected
17.75 m at 286.5 g/t AgEq1 or 7.4% ZnEq2 (108.8 to 126.55 m).
• Hole TOMT71041 was drilled downwards at -75° from the -200 m level and intersected
29.44 m at 260.2 g/t AgEq1 or 6.7% ZnEq2 (5.32 to 34.76 m), 3.34 m at 349.4 g/t AgEq1
or 9.0% ZnEq 2 (54.0 to 57.34 m), and 0.68 m at 500.0 g/t AgEq 1 or 12.9% ZnEq 2
(66.83 to 67.51 m).
The historic polymetallic drill results are reported in AgEq and ZnEq due to the high silver and
zinc values that are also common throughout the Bergslagen Mining District. In 2019, reported
revenue from Boliden’s nearby Garpenberg Mine was accounted by silver at 30% , zinc at 40%,
lead at 20%, and gold-copper at 10%3.
The highlighted historic drill holes are shown on plan map and long section in Figures 1 and 2,
respectively. Table 1 shows individual assay results for silver, gold, copper, zinc, and lead that
comprise the AgEq and ZnEq values above.
Garrett Ainsworth, CEO of District, commented: “ The size and scale potential at the former
Tomtebo Mine is evident with these additional historic drill results that show wide intervals of
strong polymetallic mineralization enriched with precious metals that is open in all directions.
The first ever deep penetrating airborne electromagnetic and magnetic survey (SkyTEM312 HP)
was recently flown on the Tomtebo Property, and we eagerly await for the final data by late -
August, which will be subsequently interpreted by Condor Consulting and Geovista AB.”
Context of Historic Drill Results
Drill holes TOMT70003 and -70004 were drilled on either side of the -200 m exploration drift,
which is interpreted to delineate an approximate 31 m wide northwest dipping silver-zinc-lead
dominant mineralized horizon with a northeast plunge that remains wide open at depth. To date,
only one interval with assay results has been located for hole TOMT70011, which was drilled to
within six meters of TOMT70004. Hole TOMT70009 was drilled horizontally from the -200 m
drift, and encountered substantial polymetallic mineralization 35 m to the southwest of hole
TOMT70004.
Holes TOMT71036, -70029, -71031, and -71040 were drilled as a fan below the -200 m
exploration drift towards the east to target a west dipping silver-zinc-lead dominant mineralized
horizon. These four drill holes trace the mineralized horizon for 50 m along strike, and show core
length intercepts of up to 17.75 m (true thickness unknown), which is wide open along strike and
down dip.
Drill hole TOMT71041 was drilled below the -200 m exploration drift to the northeast along the
strike of a silver-zinc-lead dominant mineralized horizon. This hole stayed within the interpreted
northwest dipping mineralization for 29.44 m. Additional strong mineralized intercepts at depth
support the presence of stacked mineralized horizons at the Steffenburgs zone.
These drill results are historical in nature. District has not undertaken any independent
investigation of the s ampling nor has it independently analyzed the results of the historical
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
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 prog rams. 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.
Next Steps at Tomtebo Property
• Historical data from the Tomtebo Mine continues to be digitized, compiled and
interpreted, and further results will be released as interpretations are completed.
• A detailed airborne electromagnetic and magnetic survey (SkyTEM) recently commenced
on the Tomtebo Property (see July 13, 2020 news re lease). The final SkyTEM data is
expected by late -August, and then interpretive work will begin. Any c onductive or
magnetic high anomalies from the survey will be followed up as promising targets for
high grade polymetallic mineralization.
• Conductive and magnetic high anomalies will be targeted as part of a broader prospecting,
mapping, and sampling program in late-August. Detailed work will focus on the historic
Tomtebo and Lövås Mines, and the numerous mineral occurrences on the Tomtebo
Property.
• Dr. Rodney Allen, BSc, PhD, from Volcanic Resources has been retained to review all
historical data and available drill core along with ongoing exploration data to assist in
prioritizing drill targets. Dr. Allen was Manager, Geology Research and Development for
the Boliden Group, in Sweden for ten years. Prior to that position, he studied several
polymetallic ore deposits in Sweden. His geological interpretations were instrumental in
the discovery of new ore bodies at Garpenberg and Renström.
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Telephone: 604-628-2669
Figure 1: Plan View of Steffenburgs Zone
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Figure 2: Long Section Facing East from Northwest Quadrant of Tomtebo Mine
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Table 1: Steffenburgs Zone Historical Drill Results
Drill Hole Depths and Interval Historical Assay Results
Hole ID Azimuth Dip Hole Type From (m) To (m) Interval
(m) Ag (g/t) Au (g/t) Cu (%) Zn (%) Pb (%) AgEq
(g/t) ZnEq (%)
TOMT70003 10 0 Underground 5.79 15.60 9.81 88.20 0.37 0.16 5.37 2.60 441.32 11.38
TOMT70004 162 0 Underground 2.00 18.17 16.17 93.02 1.03 0.22 5.42 2.86 535.68 13.82
TOMT70009 309 0 Underground 4.62 12.73 8.11 46.00 0.20 0.20 1.34 1.64 196.08 5.06
TOMT70011 170 0 Underground 26.95 28.50 1.55 222.00 1.00 0.27 16.90 13.00 1,458.44 37.62
TOMT70029 90 -66 Underground 114.92 125.42 10.50 57.91 0.42 0.65 1.43 0.54 241.62 6.23
TOMT71031 110 -63 Underground 108.80 126.55 17.75 55.51 0.75 0.98 0.91 0.53 286.54 7.39
TOMT71036 73 -66 Underground 118.50 128.00 9.50 25.39 1.29 0.18 1.98 1.23 303.38 7.82
TOMT71040 126 -63 Underground 106.60 110.64 4.04 84.84 0.78 na na na 170.12 na
TOMT71041 32 -75 Underground 5.32 34.76 29.44 69.02 0.81 0.41 0.99 0.67 260.24 6.71
54.00 57.34 3.34 71.29 0.84 0.72 2.42 0.62 349.37 9.01
66.83 67.51 0.68 80.00 0.70 0.40 6.50 1.50 499.56 12.88
Notes:
• True widths of the reported mineralized intervals have not been determined
• 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
• AgEq equals = Ag g/t + (Au g/t × 110) + (Cu% × 98.286) + (Zn% × 38.857) + (Pb% × 34.286)
• ZnEq equals = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu% × 2.529) + (Pb% × 0.882)
• Metal equivalent calculations assume 100% recoveries
• na - not assayed
• 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
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.
3 Boliden’s Summary Report on Resources and Reserves for Garpenberg in 2019 -
https://www.boliden.com/globalassets/operations/exploration/mineral-resources-and-mineral-
reserves-pdf/2019/resources_and_reserves_garpenberg_2019-12-31.pdf contains the key
assumptions, parameters and methods used to prepare the mineral resource and reserve estimates
contained herein in respect of the Garpenberg Mine.
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 and Trollberget Properties. Mineralization on any other
properties referred to herein is not necessarily indicative of mineralization on the Tomtebo and
Trollberget Properties.
The data disclosed in this news release relat ed to drilling results is historical in nature. District
has not undertaken any independent investig ation 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 To mtebo 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
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Telephone: 604-628-2669
to the northwe st 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
604-628-2669
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 explo ration 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 forfei ted 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 m ineralization 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, availability of capital and financing on acceptable terms, general economic, market or
business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, 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, 2020. The Company does not undertake to update or revise any forward -looking
statements, except in accordance with applicable law. Read ers are cautioned not to put undue reliance on these
forward-looking statements.