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District Metals is putting the historic Bergslagen mining district on the international map with its Tomtebo project in Sweden

Snapshot

District Metals is looking to apply modern systemic exploration techniques at Tomtebo in an effort to unlock the property’s potential

District Metals Corp. -

Quick facts: District Metals Corp.

Price: 0.42 CAD

TSX-V:DMX
Market: TSX-V
Market Cap: $24.96 m
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  • Junior explorer looking to unlock value in the historic Bergslagen mining district of Sweden
  • Tomtebo covers an area of 5,144 hectares, and is 175 kilometres northwest from Stockholm
  • Project is located near two world-class operations: Boliden’s Garpenberg mine and LKAB’s Falun mine
  • Looking to apply modern systemic exploration techniques at Tomtebo in an effort to unlock the property’s potential

What District Metals does:

District Metals Corp (CVE:DMX) is reimagining a historic mining district with its polymetallic Tomtebo project in Sweden.

Located in the central area of the country, the Bergslagen district is home to some world-class metal mines like Garpenberg, Zinkgruvan and Falun. But despite its long history of mining, Sweden is still off the radar of many international investors. The country is Europe’s leading mining nation, accounting for 91% of the continent’s iron ore, 9% of the copper, and 24-39% of its lead, zinc, silver and gold.

Sweden’s Boliden, which owns Garpenberg, is its largest mining company, but the country is also home to projects being explored by Lundin Mining and Agnico Eagle Mines. That said, international investment in exploration is still extremely limited – deterred by the notion of high taxes, an active environmental movement and elevated labour costs.

Vancouver-based District is hoping to change that perception with its Tomtebo property, an advanced exploration project that covers an area of 5,144 hectares around 175 kilometres northwest from Stockholm, Sweden’s capital. Thanks to the district’s long history of mining, infrastructure like roads, railway, and power lines surround the project. Boliden’s Garpenberg, which was once referred to as the world’s most productive underground zinc mine, is 25 kilometres south of Tomtebo.

District Metals sees a number of geological similarities between Garpenberg and Tomtebo, from host rocks, structure, alteration, and mineralization styles. Historic production at Tomtebo comprised 120,000 tonnes at 4.4% copper intermittently for over 200 years, but the area has seen little to no exploration in the intervening period. In 2018, former owner EMX Royalties Corp assayed eight rock grab samples from dump piles that ranged from 0.2% to 3% copper, 0.1 to 2.5 grams per ton (g/t) gold, 0.1 to 20.1% zinc, 0.1% to 10.8% lead, and 3.1 to 383 g/t silver.

Today, District Metals is looking to apply modern systemic exploration techniques at Tomtebo in an effort to unlock the property’s potential – and put an under-the-radar mining district on the international map.

How is it doing:

Since acquiring the project from EMX in February 2020, District Metals has been busy assembling the pieces to start its aggressive exploration campaign at Tomtebo.

In July, the firm began an airborne electromagnetic and magnetic survey at Tomtebo - the first time a deep penetrating airborne study has been carried out at the site. The survey will cover the entire Tomtebo property with around 600 line-kilometers at a line spacing of 100 metres, and is capable of detecting conductive polymetallic sulphide mineralization at depths of 500 metres or more.

Concurrent with the SkyTEM survey, the explorer is analyzing historic drill data on the past-producing project and has already identified a number of highly prospective targets. Historically reported intersections include 4.7 metres at 1,087 grams per ton (g/t) silver equivalent or 28% zinc equivalent at the Oscarsgruvan zone and 16.2 metres at 535.7 g/t silver equivalent or 13.8% zinc equivalent at the Steffenburgs zone.

More recently the company began fieldwork at Tomtebo, starting with geological mapping, prospecting and geochemical sampling near the former Tomtebo Mine and expanding throughout the property.

The firm is planning a drilling campaign to start in early 2021.

Inflection points:

  • Complete review of historical data and modeling of the Tomtebo Mine drill data
  • Final interpretation of the SKYTEM data and 3D inversions
  • 5,000-metre drill program planned for early 2021

What the boss says:

"Compilation of historical drill results at the Tomtebo Mine is complete, and Leapfrog 3D modeling of the mineralized zones continues, which will be greatly enhanced by the additional data obtained from the recently commenced fieldwork,” District CEO Garrett Ainsworth told shareholders in September.

“The final SkyTEM data will be available very soon, and thereafter interpretations on the magnetic and conductive data will be developed as an additional layer to define our priority drill targets at the Tomtebo Mine and regionally across the Tomtebo property.”

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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District Metals releases final airborne electromagnetic and magnetic data at...

District Metals (CVE: DMX) CEO Garrett Ainsworth joined Steve Darling from Proactive to bring news the company is sharing the data from their recent airborne survey of the Tomtebo Mine area. Ainsworth shares the date including what he says “has successfully identified the Tomtebo Mine Trend,...

6 days, 10 hours ago

4 min read