VANCOUVER, BC, April 14, 2021 /CNW/ - District Metals
Corp. (TSXV: 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.
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.
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
"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 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.
Forward-looking information is necessarily based on a number
of opinions, assumptions and estimates that, while considered
reasonable by the Company as of the date such statements are made,
are subject to known and unknown risks, uncertainties, assumptions
and other factors that may cause the actual results, level of
activity, performance or achievements to be materially different
from those expressed or implied by such forward-looking
information, including but not limited to risks associated with the
following: the reliability of historic data regarding the Tomtebo
Property; the Company's ability 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); the Company's limited
operating history; the Company's negative operating cash flow and
dependence on third-party financing; the uncertainty of additional
funding; the uncertainties associated with early stage exploration
activities including general economic, market and business
conditions, the regulatory process, failure to obtain necessary
permits and approvals, technical issues, potential delays,
unexpected events and management's capacity to execute and
implement its future plans; the Company's ability to identify any
mineral resources and mineral reserves; the substantial
expenditures required to establish mineral reserves through
drilling and the estimation of mineral reserves or mineral
resources; the Company's dependence on one material project, the
Tomtebo Property; the uncertainty of estimates used to calculated
mineralization figures; changes in governmental regulations;
compliance with applicable laws and regulations; competition for
future resource acquisitions and skilled industry personnel;
reliance on key personnel; title matters; conflicts of interest;
environmental laws and regulations and associated risks, including
climate change legislation; land reclamation requirements; changes
in government policies; volatility of the Company's share price;
the unlikelihood that shareholders will receive dividends from the
Company; potential future acquisitions and joint ventures;
infrastructure risks; fluctuations in demand for, and prices of
gold, silver and copper; fluctuations in foreign currency exchange
rates; legal proceedings and the enforceability of judgments; going
concern risk; risks related to the Company's information technology
systems and cyber-security risks; and risk related to the outbreak
of epidemics or pandemics or other health crises, including the
recent outbreak of COVID-19. For additional information regarding
these risks, please see the Company's Annual Information Form,
under the heading "Risk Factors", which is available at
www.sedar.com. These factors and assumptions are not intended to
represent a complete list of the factors and assumptions that could
affect the Company. These factors and assumptions, however, should
be considered carefully. Although the Company has attempted to
identify factors that would cause actual actions, events or results
to differ materially from those disclosed in the forward-looking
statements or information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Also, many of such factors are beyond the control of the
Company. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The forward-looking
information is made as of the date of this news release, and the
Company assumes no obligation to publicly update or revise such
forward-looking information, except as required by applicable
securities laws. All scientific and technical information contained
in this news release has been prepared by or reviewed and 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.
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SOURCE District Metals Corp.