Although most of the attention in Sweden and for District Metals (DMX.V) is focusing on the Viken uranium deposit, we should not forget the company still has a joint venture with Boliden to explore for base metals in the Bergslagen mining district. As you may remember, District Metals contributed the Tomtebo property while Boliden contributed the Stollberg asset to what ultimately will be an 85/15 joint venture after Boliden spends C$10M on exploration.
And both companies have hit the ground running. Boliden and District Metals kicked off a drill program on the Tomtebo project where both partners wanted to follow up on previously discovered high-grade zinc mineralization. An initial budget of C$2M was approved and District Metals was the operator of the drill program which consisted of almost 2,200 meters in six holes.
The drill program has been completed but the assay results aren’t in yet, but District Metals has already released a preliminary update on the drill program as the drill bit intersected strong footwall polymetallic sulphide mineralization at the Steffenburgs Zone where it encountered copper-rich semi-massive to massive sulphide mineralization over a length of 17 meters in hole TOM24-042. Meanwhile, holes 41 and 43 also encountered copper-rich sulphide mineralization over a length of respectively 60 meters and 21 meters. On top of that, Boliden’s proprietary three component downhole electromagnetic survey showed in-hole and off-hole electromagnetic conductors which likely represent sulphide mineralization. The entire exploration update is a good read, and we would recommend you to read the update in its entirety here.
The timing couldn’t be any better as the zinc and copper price have been on the rise and although this still isn’t fully reflected in the share prices of base metal juniors, we hope the market will start to pay attention soon. The majority of District Metals’ current valuation is underpinned by the ownership of the Viken uranium deposit but it would for sure be nice to have two irons in the fire.
Disclosure: The author has a long position in District Metals. District is a sponsor of the website. Please read the disclaimer.
