Capella/Teako drilling Løkken Copper-Cobalt-Zinc VMS Project, Norway
Capella Minerals Ltd. [TSXV: CMIL; OTCQB: CMILF; FRA: N7D2] and Teako Minerals Corp. [CSE: TMIN], the company’s strategic partner at the expanded Løkken copper-cobalt-zinc massive sulfide (VMS) project in Trøndelag Province, central Norway, has initiated a scout diamond drill program at the Åmot Cu-Co-Zn target.
The Åmot target is a 2km-long “buried” VMS target hosted within favourable stratigraphy for VMS-type deposits and located just 5km east of the former Løkken copper mining operations. The Åmot target was discovered through recent systematic exploration and has never been drill tested.
Capella announced a strategic partnership with Teako at the Løkken project in Q3, 2024 through the combination of Capella’s exploration concessions around the former Løkken mine with Teako’s regional-scale exploration concessions along the Løkken trend. Through this partnership, Capella retains direct project-level participation (a non-dilutable 10% carried interest to production) on any discoveries made within the former Capella concessions, plus indirect exposure to discovery upside through its shareholding in Teako.
Highlights: Strategic partner Teako has initiated a maiden diamond drill program at the Åmot VMS Cu-Co-Zn target, Løkken project, central Norway.
The Åmot target is a 2km-long coincident geophysical (electromagnetic and ground magnetic anomalies) and geochemical target – all considered to be key indicators for “buried” VMS targets – and which has been defined by modern exploration undertaken since the closing of the former Løkken mining operations in the mid-1980’s. No drilling has yet been undertaken on the Åmot target.
Teako received all approvals for this current round of drilling on the Åmot target in December, 2024, with the main limitation being that it be completed by March 31, 2025 (the expected end of winter conditions). Additionally, Teako has been granted an 11-day extension (until April 11, 2025) to its drill permit at the adjacent Høydal target.
The Åmot program currently contemplates the drilling of a minimum of 580 metres to test a “buried” Cu-Co-Zn target located 5km east of the former Løkken mining operations (and the first of a number of targets to be tested within the district-scale Løkken project). Åmot is hosted within stratigraphy considered favourable for the discovery of new Løkken-type VMS deposits, and the main target is a large (up to 2km in length) coincident geophysical (electromagnetic and ground magnetic) and geochemical anomaly which together represent a highly favourable combination for “buried” VMS deposits. The Åmot target is interpreted by both Teako and Capella from Maxwell plate modelling of geophysical data to lie approximately 44m to 140m below the surface.
The company’s previously announced (December 3, 2024) non-brokered private placement of up to 15,000,000 units at $0.05 per share is still ongoing. Each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to acquire an additional common share at a price of $0.10 per share for a period of two years from the date of issuance. The company remains in discussions with potential investors and is working diligently towards closing this financing as soon as practically possible.
The former Løkken Mine closed in the mid-1980’s in response to low copper prices and produced a reported 24MT at 2.3% Cu plus 1.9% Zn (with minor Co, Ag, and Au credits). The Løkken mine was a stratiform massive sulfide deposit which measured approximately 4km in length, reached a maximum depth of 1km, and had an average thickness of 60m. Mineralization consisted of massive chalcopyrite, sphalerite, pyrite, and pyrrhotite.
The combined land holding of the Capella-Teako partnership covers a total area of 1,039 km2 and is comprised of the 114 km2 of concessions originally held by Capella around the former Lokken mine (and now owned 90% by Teako) together with the 925 km2 of concessions held 100% by Teako along strike within favourable stratigraphy.
Given that VMS deposits typically occur in clusters – and combined with the lack of systematic regional exploration throughout much of the land package – considerable potential exists for the discovery of new Løkken-type deposits within the broader district. Capella retains direct project-level participation (a non-dilutable 10% carried interest to production) on any discoveries made within the former Capella concessions, plus indirect exposure to discovery on the combined land holding upside through its significant shareholding in Teako.
In northern Finland, the company has five copper-gold projects including the priority Killerö E target (a former Anglo American copper-gold project that was never drill tested) and the Saattopora W target (the western extension to Outokumpu Oy’s Saattopora former copper-gold mine) – all of which are located about 40km SW of Agnico Eagle’s Kittilä Gold Mine, currently the largest gold producer in Europe.
In the Trøndelag Province of central Norway, the company’s focus is on the discovery of high-grade copper-cobalt massive sulfide (VMS) deposits in the former mining districts of Løkken and Røros.
The company’s portfolio includes a 100% interest in the advanced exploration-stage Hessjøgruva copper-cobalt project and adjacent Kongensgruve project in the northern Røros mining district, and exposure to the discovery of new satellite copper-cobalt-zinc VMS targets around the past-producing Løkken copper mine through a strategic partnership with Teako Minerals Corp.
Capella also holds significant equity positions in Teako Minerals and Grit Metals Corp. (formerly European Energy Metals Corp. as a direct result of the recent divestiture of non-core assets.