District Reports on Historic Shallow and High Grade Polymetallic Drill Intercepts at the Former Tomtebo Mine
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
District Reports on Historic Shallow and High Grade Polymetallic
Drill Intercepts at the Former Tomtebo Mine
Vancouver, B.C. July 6, 2020
July 6, 2020 – District Metals Corp. (TSX-V: DMX; "District" or the “Company”) is pleased
to announce that it has progressed the compilation of historical drill data, 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 Oscarsgruvan zone at the Tomtebo Mine show significant
polymetallic mineralization at shallow depths (within 200 m from surface) that is open along
strike and at depth. These historic highlights are from drilling campaigns by Stora AB from 1916
to 1972.
Oscarsgruvan Historic Drill Highlights
The Oscarsgruvan zone is situat ed at the north end of the Tomtebo Mine , and is dominated by
silver-zinc-lead mineralization with lesser copper -gold mineralization. The holes highlighted
below show strong mineralization associated with semi-massive and massive sulphides over a dip
extent of 200 m and strike extent of 170 m that remains open.
• Hole TOMT65001 was drilled from surface and intersected 4.67 m at 1,087.0 g/t AgEq1
or 28.0% ZnEq 2 (113.90 to 118.57 m) at the north end of the Tomtebo Mine, which
remains open along dip and strike.
• Hole TOMT65002 was drilled from surface and intersected 4.45 m at 665.3 g/t AgEq1
or 17.2% ZnEq2 (116.35 to 120.80 m) approximately 170 m east of TOMT65001, which
remains open along dip and strike.
• Hole TOMT72005 was drilled upwards from the -200 m level and intersected 2.02 m at
746.3 g/t AgEq1 or 19.3% ZnEq2 (31.34 to 33.36 m), and 8.12 m at 503.3 g/t AgEq1 or
13.0% ZnEq 2 (35.33 to 43.45 m) approximately 4 5 m down -dip from TOMT65001,
which remains open along dip and strike.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
• Hole TOMT70016 was drilled horizontally from the -200 m level and intersected 4.76 m
at 648.1 g/t AgEq1 or 16.7% ZnEq2 (20.70 to 25.46 m), and 13.30 m at 16.2% ZnEq2
(30.10 to 43.40 m) approximately 100 m down-dip from TOMT65001, which remains
open along dip and strike. Silver and gold assays in the latter interval of hole TOMT70016
are not available.
• Hole TOMT43002 was drilled from surface and intersected 6.20 m at 16. 3% ZnEq 2
(41.70 to 47.90 m) approximately 100 m up-dip from TOMT65001, which remains open
along dip and strike. Silver and gold assays for hole TOMT43002 are not available.
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 Bergslage n Mining District. In 2019, reported
revenue from the nearby Garpenberg Mine was accounted by silver at 30%, zinc at 40%, lead at
20%, and gold-copper at 10%5.
The highlighted historic drill holes are shown on plan map and long section in Figures 1 and 2 ,
respectively. Figure 3 shows the location of the Tomtebo and Trollberget Properties within the
Bergslagen Mining District. Table 1 shows individual assay results for silver, gold, copper, zinc,
and lead that comprise the AgEq and ZnEq values above. Table 2 shows the production, mineral
reserve, and mineral resource tonnage and grade for some of the past and current operating mines
in the Bergslagen Mining District.
Garrett Ainsworth, CEO of District, commented: “ These historic drill intercepts from the
Tomtebo Mine show impressive continuity along strike and dip, where strong polymetallic
mineralization remains open in all directions. The significant widths and high grade polymetallic
mineralization encountered represent immediate drill targets at the north end of the Tomtebo Mine
as infill, and step outs along strike and below the -200 m level. Historic drilling results indicate
that the Tomtebo Property has excellent potential to host a large mineralized system. Additional
historic drilling data will be reported on as it is interpreted, and we look forward to commencing
the first ever deep penetrating airborne electromagnetic survey (SkyTEM312 HP) across the
Tomtebo Property in July.”
Background
Mining activity at the Tomtebo Mine began in the mid-seventeenth century until the 1900’s with
available records only showing historic production of 120,000 tonnes averaging 4.4% copper 3.
No records have been found on the recovery of gold, silver, zinc, and lead from the polymetallic
material that was extracted . In the 1960’s state -owned Stora AB (mining and forestry focused
company) developed a -200 m level exploration drift used for exploration drilling into the early-
1970’s. According to records obtained from the Swedish Ge ological Survey , Stora AB was
preparing the Tomtebo Mine for production to commence following the closure of the Falun
Mine, which is located 25 km to the northwest. The Swedish Government changed Stora AB’s
mandate to solely focus on its forestry operations, which left the Tomtebo Mine undeveloped.
Since Stora AB’s ownership of the Tomtebo Mine, several companies have owned at least part of
the current Tomtebo Property, but no significant work was conducted. Mining license records
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
indicate that this is the first time the historic Tomtebo and Lövås Mines have been consolidated
into a contiguous land package that now covers a 17 km mineralized trend.
Recent Exploration
The most notable work was completed between 2006 to 2012, consisting of limited geophysical
surveys over the Tomtebo Mine that resulted in drilling of 227 m in just two shallow holes.
In 2018, EMX Royalty Corp. assayed eight rock grab samples from the Tomtebo M ine dump
piles that ranged from 0.16 to 2.97% Cu, 0.07 to 2.45 g /t Au, 0.09 to 20.1% Zn, 0.04 to 10.8%
Pb, and 3.1 to 383.0 g/t Ag4. Rock grab samples are selective samples by nature and as such are
not necessarily representative of the mineralization hosted across the Property . In general,
elevated gold values are associated with high grade copper related to volcanic massive sulphide
feeder style mineralization, and high grade silver values are associated with high grade zin c and
lead related to sedimentary exhalative style mineralization.
Historical drill hole data, mine plans and sections, and reports on the Tomtebo Mine were
obtained from an archive named Arkivcentrum Dalarna located in the town of Falun , which is
located 25 km northwest from the Tomtebo Property. Archived data found for the Tomtebo Mine
includes a total of 12,277 m in 139 historic holes that were drill ed from surface or the -200 m
level exploration drift. Only eight drill holes tested beneath the -200 m level with the deepest
hole reaching a vertical depth of 342 m from surface, and all holes encountered
mineralization. The drill assay results clearly show that polymetallic mineralization is open at
depth and along strike. Partial or full assay data is only available from 84 drill holes at the
Tomtebo Mine. Partial drill core of 34 drill holes is stored at the national core archive in Malå,
Sweden, which has been examined by personnel from District and EMX Royalty Corp.
Polymetallic Mines in the Bergslagen Mining District
The Bergslagen Mining District is know n for very large polymetallic mineralized systems that
exhibit volcanic massive sulphide (VMS), sedimentary exhalative (SedEx), and carbonate
replacement (CRD) mineralization types (Figure 3 and Table 2). The precious metal content is
significant in the Bergslagen with mineralization being either silver -zinc-lead dominant (distal
zone) or gold-copper dominant (feeder zone). The Garpenberg Mine, historic Falun Mine, and
Zinkgruvan Mine are examples of large mineralized systems in the Bergslagen that share similar
geology, structure, alteration, and mineralization styles as information reviewed to date suggests
are found on the Tomtebo Property.
Boliden’s underground Ag-Zn-Pb-Au-Cu Garpenberg Mine is located 25 km to the southeast of
the Tomtebo Property where silver-zinc-lead dominant ore is mined 1400 m below surface, and
mineral resources extent to a depth of 1600 m that is open. Several mineralized bodies are mined
at Garpenberg along a 4.5 km trend. Since Boliden took over the mine in 1957 a total of 54.4 Mt
of ore has been processed at grades of 134 g/t Ag, 4.9% Zn, 2.1% Pb, 0.3 g/t A u, and significant
unmined reserves and resources remain. In 2019, Boliden processed 2.86 Mt of ore at grades of
118 g/t Ag, 4.1% Zn, 1.5% Pb, and 0.26 g/t Au as per Boliden’s Summary Report on Resources
and Reserves for Garpenberg in 2019. Zinc accounted for 40% of the revenue with silver at 30%,
lead at 20%, and gold-copper at 10%5.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Stora AB operated the historic A u-Cu-Ag-Zn-Pb Falun Mine which is located 25 km to the
northwest of the Tomtebo Property where gold-copper dominant ore was mined to at least 600 m
below surface with mineralization that remains open. The mine was operated from the 10 th
Century up until 1992, and subsequently became a museum that was designated a UNESCO world
heritage site in 2001. Records indicate that Falun produced at least 28.1 Mt at 2 -4% Cu, 2-4 g/t
Au, 4% Zn, 1.5% Pb, 13-25 g/t Ag from a combination of open pit and underground workings6.
Lundin Mining’s underground Ag -Zn-Pb-Au-Cu Zinkgruvan Mine is located 175 km to the
southwest of the Tomtebo Property where silver-zinc-lead dominant ore is mined 1300 m below
surface, and mineral resources extent to a depth of 1600 m that is open. In the central par t of
Zinkgruvan, silver-zinc-lead mineralization is stratigraphically underlain by sub -stratiform
copper-gold mineralization that is also being mined. Zinkgruvan is divided into two areas that
comprise several mineralized bodies that extend for more than 5 km along strike and to depths of
1,600 m. The orebody thickness ranges from 3 to 40 m. Although continuous production has
occurred since 1857, records from 1994 indicate that Zinkgruvan has produced 19.3 Mt at 9.9%
Zn, 4.0% Pb, and 84 g/t Ag, and from 2010 has produced 0.9 Mt at 2.0% Cu. Significant unmined
resources and reserves remain at Zinkgruvan7.
Information on the Garpenberg Mine, historic Falun Mine, and Zinkgruvan Mine has not been
verified by District and is not necessarily indicative of the grades or tonnages of mineralization
on the Company's Tomtebo Property.
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 will commence on the Tomtebo
Property in July. Any conductive 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 minera l 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Figure 1: Plan View of Tomtebo Mine
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Figure 2: Long Section Facing South from North End of Tomtebo Mine
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Figure 3: Bergslagen Mining District
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Table 1: Oscarsgruvan 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 (%)
TOMT65001 127 -60 Surface 113.90 118.57 4.67 199.84 0.88 0.25 13.64 6.93 1,086.93 28.03
TOMT65002 167 -65 Surface 116.35 120.80 4.45 195.11 0.55 0.05 7.80 3.00 665.28 17.16
196.80 206.86 10.06 33.50 0.29 0.56 0.15 0.01 127.28 3.28
TOMT72005 216 58 Underground 31.34 33.36 2.02 183.00 0.40 0.10 9.70 3.90 746.31 19.25
35.33 43.45 8.12 87.86 0.57 0.13 5.82 3.33 503.26 12.98
TOMT70016 293 0 Underground 20.70 25.46 4.76 24.00 0.40 0.02 13.72 1.34 648.12 16.72
Underground 30.10 43.40 13.30 na na 0.06 14.39 1.94 na 16.24
TOMT43002 83 -66 Surface 41.70 47.90 6.20 na na 0.19 11.22 5.16 na 16.25
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.