VANCOUVER, BC, July 13, 2020 /CNW/ - District Metals Corp. (TSX-V: DMX) ("District" or the "Company") is pleased to announce that an airborne electromagnetic ("EM") and magnetic survey has commenced on the Tomtebo Property ("Tomtebo" or the "Property"), located in the Bergslagen Mining District in south-central Sweden.

District Metals Corp. Logo (CNW Group/District Metals Corp.)

Garrett Ainsworth, CEO of District, commented: "The Bergslagen Mining District is known for large high grade polymetallic mineralized systems that can be identified by their conductive and magnetic properties.  For such a prolific district, the lack of EM and detailed magnetic coverage is astounding.  The recently commenced SkyTEM312 HP survey represents the first time a deep penetrating airborne EM survey (greater than 200 m depth) has been carried out on the Tomtebo Property.  This is significant because we know that these systems in the Bergslagen Mining District can have mineral resources from surface to depths of 1600 m, such as is the case at Boliden's Garpenberg Mine and Lundin Mining's Zinkgruvan Mine."     

The Company retained SkyTEM Surveys ApS based out of Denmark to undertake this detailed heliborne SkyTEM312 HP (transient electromagnetic – high power) and magnetic survey over the Tomtebo Property.   The survey will cover the entire 5,144-hectare Tomtebo Property with approximately 600 line-kilometers at a line spacing of 100 m, and is capable of detecting conductive polymetallic sulphide mineralization at depths of 500 m or more.  The Tomtebo Property is underlain by an ideal geological environment for effective EM data collection in that the volcanic and intrusive country rocks are very resistive, in contrast to the conductive sulphide mineralization, which will provide excellent resolution of any EM conductive anomaly identified.  Also, the absence of graphitic geological units on the Property is positive because distinguishing between sulphide- and graphite-sourced EM conductors is otherwise a challenge that typically requires follow-up ground EM surveys to resolve.

In general, it is anticipated that the SkyTEM312 HP survey will identify the copper-gold dominant sulphide mineralization (feeder zones) as a moderate to strong conductor while the silver-zinc-lead dominant sulphide mineralization (distal zones) may show as non-conductive to weakly conductive due to the zinc sulphide mineralization.  However, the silver-zinc-lead mineralization in the district often has associated magnetic sulphides, which is expected to be detected as a moderate to strong magnetic high.  The EM and magnetic data acquired from the SkyTEM312 HP survey will be interpreted by Condor Consulting and Geovista AB, and 3D inversions and Maxwell plates will be produced to identify high priority target areas.                

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.

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, located in the Bergslagen Mining District of south-central Sweden, is the Company's main focus.  The Tomtebo Property comprises 5,144 ha, and is situated between the historic Falun Mine and Boliden's Garpenberg Mine 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 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
604-628-2669

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 statements" with respect to District Metals Corp. ("District" or 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 state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". 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 relating to District include, among other things, statements relating to District's planned exploration activities and the anticipated results thereof.

These statements and other forward-looking information are based on opinions, assumptions and estimates made by District 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 exploration and production in the Bergslagen Mining 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 (failing which the Tomtebo Property will be forfeited without any repayment to the Company); 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 District 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 the following factors; the risk that historic data regarding the Tomtebo Property is unreliable, the risk that information concerning production and mineralization at current and historic mines within the Bergslagen Mining District proves to be inaccurate; the risk that the Company will be unable 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); risks related to management and conflicts of interest; fluctuations in demand for, and prices of gold, silver and copper; inherent risks of exploration for mineral deposits, including that commercial quantities or grades of minerals may not be discovered; risks associated with the uncertainty of estimates of mineral resources governmental regulations, particularly those applicable to the mineral exploration and development industry; environmental laws and regulations and associated risks, including climate change legislation; land reclamation requirements; the ability to obtain and maintain necessary rights, concessions and permits; risks of operating in a foreign jurisdiction and through foreign subsidiaries; a dependence on ability to attract and retain qualified management; limitations of insurance and uninsured risks; public social activism against companies undertaking natural resource development; risks associated with First Nations relations; competition; legal proceedings and the enforceability of judgments; anti-corruption and bribery regulations market events and general economic conditions globally(including the outbreak of the novel Coronavirus; and currency exchange rate risks. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect District. 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.

SOURCE District Metals Corp.

Copyright 2020 Canada NewsWire

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