District Metals set to drill in Sweden, shares rally
District Metals Corp. [DMX-TSXV, MKNF-FSE] shares rallied Monday after the company said it has started core drilling at its high-grade polymetallic Tomtebo Property in the Bergslagen Mining District in south-central Sweden.
Core drilling at the Tomtebo Property will consist of 1,200 metres in three holes, which will be followed by drilling 1,800 metres in 10 holes at the Gruvbergen Property located 40 kilometres northwest of Tomtebo. The company said drill permitting for 800 metres in two holes at the Bakar Copper Property on Northern Vancouver Island continues and drilling may commence in June or July, 2022.
District Metals shares advanced on the news, rising 6.75% or $0.015 to 24 cents on volume of 109,310. The shares are currently trading in a 52-week range of 59 cents and 19 cents.
District Minerals acquired a 100% interest in Tomtebo from EMX Royalty Corp. [EMX-TSXV] in June 2020. That project is currently the company’s main focus.
The Tomtebo Property is located within a 2.5-hour drive northwest of Stockholm, Sweden’s capital city. The advanced stage exploration property encompasses an area of 5,144 hectares, and is situated 25 kilometres northwest of Boliden’s polymetallic Garpenberg Mine, and 25 kilometres southeast of the historic Falun Mine.
The company says Tomtebo contains similar host rocks, structure, alteration, and VMS/SedEx style mineralization as the nearby Garpenberg and Falun mines. The size and scale of these mines has only been revealed within the last two decades through a better understanding of the associated polymetallic-VMS/SedEX mineralizing systems, and through advances in drilling and mining technology.
Mining at Tomtebo can be traced back to the mid-seventeenth century. Two historic mines, and numerous mineralized prospects are situated on a 17-kilometre trend on the property. Historic production consisted of 120,000 tonnes of 4.4% copper at the Tomtebo Mine, and 330,000 tonnes at 3.5% zinc, 2.5% lead, and 30 g/t silver at Lovas. However, mining depths reached down to approximately 200 metres. Based on available cross sections and long sections, mineralization at Tomtebo and Lovas appears to be open in all directions, the company has said.
By comparison, mining operations at Boliden’s Garpenberg Mine and Lundin Mining Corp.’s [LUN-TSX; LUMI-Sweden] Zinkgruvan mine are currently at depths of 1,250 metres and 1,200 metres respectively. Zinkgruvan is located 175 kilometres to the southwest.
The primary objectives of the Tomtebo drill program include two step out holes below high-grade polymetallic mineralization at the Steffenburgs zone where recent drilling intersected 30.0 metres of 10.9% Zinc Equivalent (ZnEq) to test for possible extensions of the massive sulphide lenses at depth.
The company is also planning an aggressive 665-metre step out northeast of the historic Tomtebo Mine at a virgin regional target to test a magnetic high anomaly along the Tomtebo Volcanogenic Massive Sulphide (VMS) mineralized horizon.
The company said the magnetic high anomaly at this target has a similar signature to the magnetic high associated with polymetallic mineralization at the Steffenburgs zone.