District Metals Corp. (TSXV: DMX) (FSE: 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 Sagtjarn nr 101 and 102 mineral license applications to explore for copper, zinc, lead silver, gold, molybdenum and cobalt over a 4,068 hectare (ha) area located in the Jamtland and Vasternorrland Counties in central Sweden.
The Sagtjarn 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.
Sagtjarn Property Highlights: Mineral license Sagtjarn nr 101 contains the Sagtjarn Uranium Deposit. A Technical Report prepared for Continental Precious Minerals Inc. by Telluride & Associates dated September 20, 2005 on the Sagtjarn Deposit calculated an historical mineral resource estimate for U3O8 of:
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 Sagtjarn Deposit historical estimate as a current mineral resource.
The Sagtjarn Deposit remains open in all directions, and contains the following drill result highlights: Hole SGT-77-007 intersected 8.7 m at 0.13% U3O8 from 60.3 to 69.0 m.
Hole SGT-77-011 intersected 7.0 m at 0.18% U3O8 from 86.0 to 93.0 m.
Hole SGT-79-011 intersected 5.2 m at 0.13% U3O8 from 132.6 to 137.8 m.
Hole SGT-80-001 intersected 4.6 m at 0.13% U3O8 from 146.5 to 151.1 m.
Mineral license Sagtjarn nr 102 contains the Staverberget Mineral Occurrence, which is highlighted by: Historical boulders that returned assays from background levels up to 1.3% Cu, 1.8% Mo and 1.3 g/t Au.
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 Sagtjarn Uranium Deposit contains a significant historical estimate of uranium that remains open in all directions. Uranium was the only metal analyzed at the Sagtjarn 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 Sagtjarn Property were discovered during follow-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 Sagtjarn 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 analysis2. This historical mineral resource estimate is based on a 1981 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 this historical estimate as current Mineral Resource. This preliminary historical mineral resource estimate was revised by Telluride & Associates’ technical report dated September 20, 20051.
The Sagtjarn 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.
The Sagtjarn 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 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 Sagtjarn 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 Sagtjarn Property was Continental Precious Minerals from 2005 to 2014 where they drilled one hole (SGT-07-001) in the center of the Sagtjarn Uranium Deposit that returned confirm
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’sGarpenberg 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.
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