VANCOUVER, BC, Jan. 18, 2021 /CNW/ - District Metals
Corp. (TSX-V: DMX) (FRA: DFPP); ("District" or the
"Company") is pleased to announce that a drilling contract has
been executed with Hy-Tech Drilling Sweden AB (Hy-Tech) to conduct
core drilling at the Company's polymetallic Tomtebo Property
located in the Bergslagen Mining District in south-central
Sweden. The contract is for a minimum of 5,000 m of core drilling that will focus on
confirmation and expansion of polymetallic mineralization at the
historic Tomtebo Mine. Drilling is expected to begin in
late-February or early-March, and further details on the start date
and specific targets to be drilled will be announced in due
course.
Garrett Ainsworth, CEO of
District, commented: "Hy-Tech Drilling is a leader in the diamond
drilling industry, and have been operating successfully at Lundin
Mining's Zinkgruvan Mine in Sweden
since 2019. We are very pleased to have retained Hy-Tech to
complete a minimum of 5,000 m of core
drilling on our Tomtebo Property. Our drill permitting has
gone exceptionally well thus far, and we are on track to commence
drilling in line with our original forecast."
Hy-Tech has assembled an experienced drill crew, and will be
utilizing a TECH 5000 track-mounted drill rig that is capable of
drilling to depths of 2,000 m with NQ
and 1,000 m with HQ. All of the
planned drill holes will have their collars located before drilling
commences with a Differential Global Positioning System (DGPS) to
ensure targets are pierced optimally. Down-hole orientation
surveys will be conducted with a non-magnetic and north seeking
gyro tool, and drill core will be oriented to better understand the
framework of polymetallic mineralization at Tomtebo. These
are important tools that were not available during Stora AB's (past
operator) drilling campaigns conducted between 1916 and 1972.
Additionally, an AMC Centrifuge core cuttings management system
will be utilized as part of District's commitment to meet and
exceed environmental regulations.
Borehole electromagnetic surveys (BHEM) will be conducted on all
of the holes completed, which is an important modern technology
that was never done on any of the historic drill holes at the
Tomtebo Mine. BHEM surveys will identify conductive bodies,
indicate if a drill intersection is in the central or distal part
of a conductive body, estimate the position of an off-hole
conductive body, and can be combined with the July 2020 SkyTEM conductive data. The use
of BHEM surveys at the Garpenberg Mine in the 1990's were
instrumental in the discovery of several large polymetallic
mineralized bodies.
The Company has also granted 50,000 stock options to a
consultant of the Company, in accordance with the provisions of its
stock option plan. Each stock option is exercisable at $0.45 per common share (being the closing price
of the Company's common shares on January
15, 2020, the grant date). All stock options have a term of
five years and vest on the grant date.
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.
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, located in the
Bergslagen Mining District of south-central Sweden, is the Company's main focus. The
Tomtebo Property comprises 5,144 ha, and is situated between the
historic Falun Mine and Boliden's Garpenberg Mine 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 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,
2020. 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.