District Metals (DMX.V): Provides Drilling Update from the Tomtebo Property and Appointment of Key Technical Advisor
April 14, 2021 – District Metals Corp. (TSX-V: DMX) (FRA: DFPP); (“District” or the “Company”) is pleased to provide an update on the maiden drill program currently being executed at the high grade polymetallic Tomtebo Property located in the Bergslagen Mining District in south-central Sweden.
District commenced a 5,000 m drill program at the Tomtebo Property on March 15, 2021 (see news release here), targeting numerous high grade polymetallic zones at the historic Tomtebo Mine. To date, a total of 1,377 m has been drilled in seven holes. Drill core samples from the first three holes have been sent to ALS Geochemistry in Malå, Sweden for preparation and analysis, with results expected by late-May.
All drilling thus far has been concentrated at the Steffenbergs and Oscarsgruvan zones as follow up, infill, and step outs from historical drilling that returned high grade polymetallic mineralization over significant widths.
Appointment of Key Technical Advisor
Rodney Allen, BSc, PhD of Volcanic Resources has been appointed as Technical Advisor to the Company. 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.
Garrett Ainsworth, CEO of District, commented: “We are very pleased with the progression of our maiden drill program at Tomtebo. Our technical team and drill crew in the field are firing on all cylinders, which has resulted in optimized production from the drill rig with best practices being carried out with regards to health, safety, and the environment. We are very excited to receive assay results from our first three drill holes next month.
The official appointment of Rodney Allen as a Technical Advisor for District Metals is a natural fit. Rodney is an important addition to the technical team given his depth of highly relevant experience at Boliden’s Garpenberg Mine, and elsewhere in Sweden. Between Rodney and our Country Manager, Hein Raat, the Company is fully equipped to unlock the potential at Tomtebo.”
The Company has also granted a total of 200,000 stock options to employees and consultants of the Company, in accordance with the provisions of its stock option plan. Each stock option is exercisable at $0.40 per common share (being the closing price of the Company’s common shares on April 13, 2021, the grant date). All stock options have a term of five years and vest on the grant date.
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 drill results reported in this news release 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. The author of the NI 43-101 Technical Report on the Tomtebo Property has completed historical data verification and validation work, and has concluded that the historical drill results at the Tomtebo Mine do not conform to the presently accepted industry standards. 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.
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
President and Chief Executive Officer
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 not 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 management’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 planned exploration activities, including its drill target strategy and next steps for the Tomtebo Property; the company’s interpretations and expectations about the mineralization of the Tomtebo mine; the Company’s belief that the numerous gravity high anomalies identified at the historic Tomtebo Mine provide immense expansion potential; the Company’s belief that the modeled gravity high anomalies at the historic Tomtebo Mine could correspond with polymetallic and/or iron sulphide mineralization, or a mafic unit; and the Company’s belief that the gravity high anomaly located one kilometer to the northeast of the Tomtebo Mine represents a potential grassroots discovery opportunity with a modeled tonnage that compares with the historic production tonnage from the historic Falun Mine.
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 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; and stability in financial and capital markets.