Corporate Presentation August 2020 A geoscience-based, systematic, - - PowerPoint PPT Presentation
TSX-V: DMX Corporate Presentation August 2020 A geoscience-based, systematic, and valuation-oriented exploration and development Company Tomtebo Polymetallic VMS/SedEx Property Bergslagen Mining District, South Central Sweden TSX-V: DMX
TSX-V: DMX Corporate Presentation | August 2020
A geoscience-based, systematic, and valuation-oriented exploration and development Company
Tomtebo Polymetallic VMS/SedEx Property Bergslagen Mining District, South Central Sweden
TSX-V: DMX
TSX-V: DMX Corporate Presentation | August 2020
Cautionary Statement Regarding Forward Looking Information
This presentation contains certain statements that may be considered “forward-looking statements” with respect to District Metals Corp. (“District Metals” 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
“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
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. 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 mines in the Bergslagen 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 District proves to be inaccurate; 2 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
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; 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. All scientific and technical information contained in this presentation has been prepared by or reviewed and 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.
TSX-V: DMX Corporate Presentation | August 2020
Executive, Board, and Technical Team
Garrett Ainsworth
President & CEO 3
Executive Joanna Cameron
Director
Board Anna Ladd-Kruger
Independent Director
Galen McNamara
Technical Advisor
Technical & Strategic Advisory Garrett Ainsworth
Non-Independent Director
Rob Chang
Strategic Advisor
Gavin Cooper
CFO
Maria Wells
Corporate Secretary
Garrett Ainsworth
President, CEO, and Director
Doug Ramshaw
Independent Director
TSX-V: DMX Corporate Presentation | August 2020
Share Structure
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27.2% 49.2% 2.1% 9.9% 11.6%
Management & Insiders Institutional & HNW Bakar Property Vendor EMX Royalty Corp. Retail
Share Structure June 30, 2020
Basic Shares Issued 59,422,524 Stock Options
(Exercise price at $0.20-$0.30)
4,980,000 Warrants Fully Diluted Shares Outstanding 64,402,524
TSX-V: DMX Corporate Presentation | August 2020
Sweden is a Top Mining Jurisdiction
continent’s iron ore, 9% of the copper, and 24-39% of its lead, zinc, silver and gold.
and broad public support for export-led resource extraction.
Mining are significant polymetallic producers.
Sweden ranked 10 in 2019 for investment attractiveness Index of the Fraser Institute.
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Stockholm
Zinkgruvan Falun Garpenberg Saxberget
Tomtebo
Kankberg Björkdal Svartliden Kristineberg Kirunavaara Aitik Maurliden Luleå Sundsvall Malmö Göteborg Rönnskär Smelter
TSX-V: DMX Corporate Presentation | August 2020
A World Class Mining District: Bergslagen, Sweden
deposits such as Garpenberg, Zinkgruvan, Falun, and Sala.
have grown exponentially through advances in knowledge of the mineralizing systems and technology.
to other significant VMS/SedEx districts.
deep water ports, low power costs <$0.07/kwh, and five smelters in the Nordic region.
The Bergslagen District offers a rich metal endowment and extensive infrastructure:
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Trollberget Tomtebo
TSX-V: DMX Corporate Presentation | August 2020
A World Class Mining District: Bergslagen, Sweden
deposits such as Garpenberg, Zinkgruvan, Falun, and Sala.
have grown exponentially through advances in knowledge of the mineralizing systems and technology.
to other significant VMS/SedEx districts.
deep water ports, low power costs <$0.07/kwh, and five smelters in the Nordic region.
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Trollberget Tomtebo
Mine/Deposit Tonnage of Production, Reserve, or Resource with Grades Falun Mine1 28.1 Mt Production at 2–4% Cu, 2-4 g/t Au, 4% Zn, 1.5% Pb, 13–25 g/t Ag Garpenberg Mine2 54.4 Mt Production at 134 g/t Ag, 4.9% Zn, 2.1% Pb, 0.3 g/t Au Garpenberg Mine2 74.8 Mt P&P at 96 g/t Ag, 3.1% Zn, 1.4% Pb, 0.3 g/t Au, 0.05% Cu Garpenberg Mine2 44.3 Mt M&I at 90 g/t Ag, 2.8% Zn, 1.3% Pb, 0.4 g/t Au, 0.05% Cu Garpenberg Mine2 24.1 Mt Inferred at 59 g/t Ag, 2.6% Zn, 1.5% Pb, 0.4 g/t Au, 0.07% Cu Tomtebo Mine3 0.12 Mt Production at 4.4% Cu Lovas Mine4 0.33 Mt Production at 3.5% Zn, 2.5% Pb, 30g/t Ag Zinkgruvan Mine5 19.3 Mt Production at 9.9% Zn, 4.0% Pb, 84 g/t Ag 0.9 Mt Production at 2.0% Cu Zinkgruvan Mine5 11.9 Mt P&P at 7.9% Zn, 2.9% Pb, 63 g/t Ag Zinkgruvan Mine5 5.2 Mt P&P at 1.8% Cu, 0.2% Zn, 26 g/t Ag Zinkgruvan Mine5 15.7 Mt M&I at 9.3% Zn, 3.7% Pb, 84 g/t Ag Zinkgruvan Mine5 5.0 Mt M&I at 2.3% Cu, 0.3% Zn, 32 g/t Ag Zinkgruvan Mine5 9.4 Mt Inferred at 8.5% Zn, 3.5% Pb, 81 g/t Ag Zinkgruvan Mine5 0.2 Mt Inferred at 2.3% Cu, 0.3% Zn, 25 g/t Ag Sala Mine1 5.0 Mt Production at 150-3000 g/t Ag, 12% Zn, 1.5% Pb Stollberg (Gransgruvan Mine)6 6.7 Mt Production at 7.7% Zn, 2.6% Pb, 60 g/t Ag Stollberg (Tvistbo Mine)7 0.58 Mt Production at 3.3% Zn, 2.6%, 22 g/t Ag Saxberget Mine3 6.43 Mt Production at 42.2 g/t Ag, 0.4 g/t Au, 0.9% Cu, 2.2% Pb, 7.1% Zn Lovisagruvan Mine8 1.15 Mt Production at 9.4% Zn, 5.3% Pb, 10-20 g/t Ag
Note: The mines within the Bergslagen District provide geologic context for the Tomtebo Property, but this is not necessarily indicative that the Property hosts similar grades or tonnages of mineralization.
TSX-V: DMX Corporate Presentation | August 2020
A World Class Mining District: Bergslagen, Sweden
deposits such as Garpenberg, Zinkgruvan, Falun, and Sala.
have grown exponentially through advances in knowledge of the mineralizing systems and technology.
to other significant VMS/SedEx districts.
deep water ports, low power costs <$0.07/kwh, and five smelters in the Nordic region.
The Bergslagen District offers a rich metal endowment and extensive infrastructure:
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Trollberget Tomtebo
TSX-V: DMX Corporate Presentation | August 2020
Garpenberg Mine – 39% Precious Metal Value Input
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Metal Value per tonne Percentage Silver ($/tonne) $74.13 33% Zinc ($/tonne) $96.23 42% Lead ($/tonne) $39.63 17% Gold ($/tonne) $16.50 7% Total $/tonne $226.49 100%
Notes:
$0.85/lb Zinc, $0.75/lb Lead, $1650/oz Gold, and assume 100% metallurgical recovery.
Metal Value per tonne Percentage Silver ($/tonne) $64.65 31% Zinc ($/tonne) $91.80 44% Lead ($/tonne) $34.73 17% Gold ($/tonne) $16.50 8% Total $/tonne $207.68 100%
Garpenberg Mine Past Production2:
54.4 Mt at 134 g/t Ag, 4.9% Zn, 2.1% Pb, 0.3 g/t Au
$64.65 $91.80 $34.73 $16.50
Garpenberg Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne) Gold ($/tonne)
TSX-V: DMX Corporate Presentation | August 2020
Falun Mine – 41% Precious Metal Value Input
10 $10.51 $78.55 $28.33 $160.05 $170.59
Falun Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne) Gold ($/tonne) Copper ($/tonne) $9.17 $74.94 $24.83 $160.05 $142.16
Falun Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne) Gold ($/tonne) Copper ($/tonne)
Metal Value per tonne Percentage Silver ($/tonne) $74.13 33% Zinc ($/tonne) $96.23 42% Lead ($/tonne) $39.63 17% Gold ($/tonne) $16.50 7% Total $/tonne $226.49 100% Metal Value per tonne Percentage Silver ($/tonne) $64.65 31% Zinc ($/tonne) $91.80 44% Lead ($/tonne) $34.73 17% Gold ($/tonne) $16.50 8% Total $/tonne $207.68 100%
Falun Mine Past Production1:
28.1 Mt Production at 2–4% Cu, 2-4 g/t Au, 4% Zn, 1.5% Pb, 13–25 g/t Ag
Metal Value per tonne Percentage Silver ($/tonne) $9.17 2% Zinc ($/tonne) $74.94 18% Lead ($/tonne) $24.83 6% Gold ($/tonne) $160.05 39% Copper ($/tonne) $142.16 35% Total $/tonne $411.13 100%
Notes:
$0.85/lb Zinc, $0.75/lb Lead, $1650/oz Gold, and assume 100% metallurgical recovery.
TSX-V: DMX Corporate Presentation | August 2020
Sala Mine – 75% Precious Metal Value Input
11 $10.51 $78.55 $28.33 $160.05 $170.59
Falun Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne) Gold ($/tonne) Copper ($/tonne) $871.00 $235.65 $28.33
Sala Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne)
Metal Value per tonne Percentage Silver ($/tonne) $74.13 33% Zinc ($/tonne) $96.23 42% Lead ($/tonne) $39.63 17% Gold ($/tonne) $16.50 7% Total $/tonne $226.49 100% Metal Value per tonne Percentage Silver ($/tonne) $64.65 31% Zinc ($/tonne) $91.80 44% Lead ($/tonne) $34.73 17% Gold ($/tonne) $16.50 8% Total $/tonne $207.68 100%
Sala Mine Past Production1:
5.0 Mt Production at 150-3000 g/t Ag, 12% Zn, 1.5% Pb
Metal Value per tonne Percentage Silver ($/tonne) $759.60 75% Zinc ($/tonne) $224.81 22% Lead ($/tonne) $24.83 2% Total $/tonne $1,009.23 100%
$759.60 $224.81 $24.83
Sala Mine Production Metal Value per Tonne
Silver ($/tonne) Zinc ($/tonne) Lead ($/tonne)
Notes:
$0.85/lb Zinc, $0.75/lb Lead, $1650/oz Gold, and assume 100% metallurgical recovery.
TSX-V: DMX Corporate Presentation | August 2020
Tomtebo Property
approximate 2.5 hour drive from Stockholm in Sweden.
and the historic Falun Mine is located 25 km to the NW.
alteration, and mineralization styles as Garpenberg & Falun.
appears to be open in all directions, and Tomtebo has a historic resource.
modern exploration.
Located in the heart of the prolific Bergslagen District.
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REFERENCES FOR PRODUCTION, RESOURCES, & RESERVES: FALUN1: Allen, R.L., Lundström, I., Ripa, M., and Christofferson, H., 1996, Facies analysis of a 1.9 Ga, continental margin, back-arc, felsic caldera province with diverse Zn-Pb-Ag-(Cu-Au) sulfide and Fe oxide deposits, Bergslagen region, Sweden: Economic Geology, v. 91, p. 979–1008. GARPENBERG2: https://www.boliden.com/globalassets/operations/exploration/mineral-resources-and-mineral-reserves- pdf/2019/resources_and_reserves_garpenberg_2019-12-31.pdf TOMTEBO3: Ed. Eilu, Pasi, 2012, Geological Survey of Finland, Special Paper 53, Metallogenic areas in Sweden, p. 154 LÖVÅS4: Geological Survey of Sweden report grb_097, 1997.
Note: The nearby mines provide geologic context for Tomtebo, but this is not necessarily indicative that the Property hosts similar grades or tonnages of mineralization.
28Mt Historical Production: 2-4% Cu, 2-4 g/t Au, 4% Zn, 13-24 g/t Ag, 1.5% Pb
FALUN MINE1
0.33Mt Historical Production: 3.5% Zn, 2.5% Pb, and 30g/t Ag
LÖVÅS MINE4
0.12Mt Historical Production: 4.4% Cu
TOMTEBO MINE3
54.4Mt Past Production: 134 g/t Ag, 4.9% Zn, 2.1% Pb, 0.3 g/t Au Reserves/Resources at December 31, 2019: P&P 74.8Mt: 96 g/t Ag, 3.1% Zn, 1.4% Pb, 0.3 g/t Au, 0.05% Cu M&I 44.3Mt: 90 g/t Ag, 2.8% Zn, 1.3% Pb, 0.4 g/t Au, 0.05% Cu Inferred 24.1Mt: 59 g/t Ag, 2.6% Zn, 1.5% Pb, 0.4 g/t Au, 0.07% Cu
GARPENBERG MINE2
TSX-V: DMX Corporate Presentation | August 2020
Boliden’s Garpenberg Mine
with over $400M invested in state-of-the-art efficiency.
an operational expenditure of US $40/tonne (396 SEK/tonne).*
US $27/tonne (270 SEK/tonne) cut-off.*
mineral resources that remain open at 1600 m.
resources through the discovery of blind mineralized zones.
“The world's most productive underground zinc mine.” (https://www.boliden.com/operations/mines/boliden-garpenberg)
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* https://www.boliden.com/globalassets/operations/exploration/mineral-resources-and-mineral-reserves- pdf/2019/resources_and_reserves_garpenberg_2019-12-31.pdf
TSX-V: DMX Corporate Presentation | August 2020
Garpenberg’s Modest Beginning
At Garpenberg, the bulk of the mineralization sits well below the area of historic mining. The more recently discovered ore bodies are blind. Garpenberg and Tomtebo were historically mined for copper, but only to shallow depths (<200 m).
Garpenberg Tomtebo
Garpenberg Mine Longitudinal Section Looking Northwest
500 m
Surface
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TSX-V: DMX Corporate Presentation | August 2020
Comparison of Tomtebo and Garpenberg Mines
Garpenberg Mine Long Section Looking Northwest
Surface
4.5 km 0.64 km
Tomtebo Mine Long Section Looking Northwest Open Open Open
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TSX-V: DMX Corporate Presentation | August 2020
Conceptual Long Section of Tomtebo Property
Conceptual Long Section Looking Northwest
Surface
4.5 km 0.64 km
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0.3 km 12.2 km Tomtebo Mine Lövås Mine Garpenberg Mine
TSX-V: DMX Corporate Presentation | August 2020
Tomtebo Property Geological Setting
styles as the world class Garpenberg Mine located 25 km SE, and the historic Falun Mine located 25 km NW.
volcanic carbonate replacement in limestone.
garnet alteration with high copper content suggests a robust metal-rich hydrothermal system was active.
associated with VMS and replacement style mineralization.
mines, prospects, and showings.
In the right district with the right features.
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TSX-V: DMX Corporate Presentation | August 2020
Historic Tomtebo Mine Plan Section
120,000 tonnes at 4.4% Cu3 intermittently from the mid- seventeenth century until 1969. Production of Au, Ag, Zn, was not documented.
historic mineral resource from surface to 200 m depth comprising 385,000 tonnes grading 0.67% Cu, 1.84% Pb, 3.72% Zn, 0.66 g/t Au and 55 g/t Ag9.*
samples from dump piles that ranged from 0.16 to 2.97% Cu, 0.07 to 2.45 g/t Au, 0.09 to 20.1% Zn, 0.04 to 10.8% Pb, and 3.1 to 383.0 g/t Ag10.**
1990’s were abandoned due to a shift in business focus to forestry.
Mineralization is open along strike and at depth.
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* This is a historic resource for the purposes of NI 43-101, and a Qualified Person has not done sufficient work to classify the historic resource above as current mineral resources or mineral reserves, and District is not treating the historical estimate as current mineral resources or mineral reserves. District Metals considers these results as indications of the presence of mineralization on the property, and will use the information to guide future exploration.
OPEN OPEN OPEN OPEN
** Rock grab samples are selective samples by nature and as such are not necessarily representative of the mineralization hosted across the Property.
TSX-V: DMX Corporate Presentation | August 2020
Alteration & Mineralization at Historic Tomtebo Mine
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Coarse grained, “banded” massive to semi-massive sulphide mineralization (chalcopyrite-sphalerite-galena). “Footwall” type alteration and mineralization characterized by biotite/chlorite rich quartz- chalcopyrite-pyrite/pyrrhotite. Massive sulfides with actinolite/tremolite bands. Carbonate rocks excellent host for high grade replacement style mineralization.
TSX-V: DMX Corporate Presentation | August 2020
Plan View of Historic Drilling at Tomtebo Mine
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Oscarsgruvan zone
TSX-V: DMX Corporate Presentation | August 2020
Long Section Facing South at Oscarsgruvan Zone, Tomtebo Mine
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at 1,087.0 g/t AgEq11 or 28.0% ZnEq12 (113.90 to 118.57 m).
at 665.3 g/t AgEq11 or 17.2% ZnEq12 (116.35 to 120.80 m) approximately 170 m east of TOMT65001.
intersected 2.02 m at 746.3 g/t AgEq11 or 19.3% ZnEq12 (31.34 to 33.36 m), and 8.12 m at 503.3 g/t AgEq12 or 13.0% ZnEq13 (35.33 to 43.45 m) approximately 45 m down-dip from TOMT65001.
and intersected 4.76 m at 648.1 g/t AgEq11 or 16.7% ZnEq12 (20.70 to 25.46 m), and 13.30 m at 16.2% ZnEq13 (30.10 to 43.40 m) approximately 100 m down-dip from TOMT65001.
at 16.3% ZnEq12 (41.70 to 47.90 m) approximately 100 m up-dip from TOMT65001.
The Oscarsgruvan zone contains a high grade silver-zinc-lead mineralized horizon that shows continuity along 170 m of strike and 200 m of dip extent, which is open in all directions.
TSX-V: DMX Corporate Presentation | August 2020
Historic Drill Hole Assays at Oscarsgruvan Zone, Tomtebo Mine
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Notes:
the historical exploration work in order to verify the results. District considers these historical drill results relevant as the Company will use this data as a guide to plan future exploration programs. The Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will include verification of the data through drilling.
Drill Hole Depths and Interval Historical Assay Results Hole ID Azimuth Dip Hole Type From (m) To (m) Interval (m) Ag (g/t) Au (g/t) Cu (%) Zn (%) Pb (%) AgEq (g/t) ZnEq (%) TOMT65001 127
Surface 113.90 118.57 4.67 199.84 0.88 0.25 13.64 6.93 1,086.93 28.03 TOMT65002 167
Surface 116.35 120.80 4.45 195.11 0.55 0.05 7.80 3.00 665.28 17.16 196.80 206.86 10.06 33.50 0.29 0.56 0.15 0.01 127.28 3.28 TOMT72005 216 58 Underground 31.34 33.36 2.02 183.00 0.40 0.10 9.70 3.90 746.31 19.25 35.33 43.45 8.12 87.86 0.57 0.13 5.82 3.33 503.26 12.98 TOMT70016 293 Underground 20.70 25.46 4.76 24.00 0.40 0.02 13.72 1.34 648.12 16.72 Underground 30.10 43.40 13.30 na na 0.06 14.39 1.94 na 16.24 TOMT43002 83
Surface 41.70 47.90 6.20 na na 0.19 11.22 5.16 na 16.25
TSX-V: DMX Corporate Presentation | August 2020
Plan View of Steffenburgs Zone, Tomtebo Mine
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exploration drift level and intersected 16.17 m at 535.7 g/t AgEq11
and intersected 9.81 m at 441.3 g/t AgEq11 or 11.4% ZnEq12 (5.79 to 15.60 m).
and intersected 1.55 m at 1,458.4 g/t AgEq11 or 37.6% ZnEq12 (26.95 to 28.50 m).
level and intersected 9.5 m at 303.4 g/t AgEq11 or 7.8% ZnEq12 (118.5 to 128.0 m).
level and intersected 17.75 m at 286.5 g/t AgEq11 or 7.4% ZnEq12 (108.8 to 126.55 m).
level and intersected 29.44 m at 260.2 g/t AgEq11 or 6.7% ZnEq12 (5.32 to 34.76 m), 3.34 m at 349.4 g/t AgEq11 or 9.0% ZnEq12 (54.0 to 57.34 m), and 0.68 m at 500.0 g/t AgEq11 or 12.9% ZnEq12 (66.83 to 67.51 m).
The Steffenburgs zone contains wide high grade silver-zinc-lead mineralized horizons, which are open in all directions.
TSX-V: DMX Corporate Presentation | August 2020
Historic Drill Hole Assays at Steffenburgs Zone, Tomtebo Mine
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Notes:
the historical exploration work in order to verify the results. District considers these historical drill results relevant as the Company will use this data as a guide to plan future exploration programs. The Company also considers the data to be reliable for these purposes, however, the Company's future exploration work will include verification of the data through drilling.
Drill Hole Depths and Interval Historical Assay Results Hole ID Azimuth Dip Hole Type From (m) To (m) Interval (m) Ag (g/t) Au (g/t) Cu (%) Zn (%) Pb (%) AgEq (g/t) ZnEq (%) TOMT70003 10 Underground 5.79 15.60 9.81 88.20 0.37 0.16 5.37 2.60 441.32 11.38 TOMT70004 162 Underground 2.00 18.17 16.17 93.02 1.03 0.22 5.42 2.86 535.68 13.82 TOMT70009 309 Underground 4.62 12.73 8.11 46.00 0.20 0.20 1.34 1.64 196.08 5.06 TOMT70011 170 Underground 26.95 28.50 1.55 222.00 1.00 0.27 16.90 13.00 1,458.44 37.62 TOMT70029 90
Underground 114.92 125.42 10.50 57.91 0.42 0.65 1.43 0.54 241.62 6.23 TOMT71031 110
Underground 108.80 126.55 17.75 55.51 0.75 0.98 0.91 0.53 286.54 7.39 TOMT71036 73
Underground 118.50 128.00 9.50 25.39 1.29 0.18 1.98 1.23 303.38 7.82 TOMT71040 126
Underground 106.60 110.64 4.04 84.84 0.78 na na na 170.12 na TOMT71041 32
Underground 5.32 34.76 29.44 69.02 0.81 0.41 0.99 0.67 260.24 6.71 54.00 57.34 3.34 71.29 0.84 0.72 2.42 0.62 349.37 9.01 66.83 67.51 0.68 80.00 0.70 0.40 6.50 1.50 499.56 12.88
TSX-V: DMX Corporate Presentation | August 2020
Long Section Facing East of Gårdsgruvans Zone, Tomtebo Mine
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intersected 3.6 m at 3.98% Cu (9.50 to 13.10 m), 4.0 m at 11.79% Cu (51.60 to 55.60 m), and 3.4 m at 2.38% Cu (68.60 to 72.00 m).
intersected 1.9 m at 6.12% Cu (47.00 to 48.90 m).
intersected 8.3 m at 1.69% Cu (58.80 to 67.10 m), 3.83 m at 2.21% Cu (73.70 to 77.53 m), and 2.4 m at 1.20% Cu (79.60 to 82.00 m).
intersected 9.36 m at 1.38% Cu (7.21 to 16.57 m).
exploration drift, and intersected 0.66 m at 14.35% CuEq13 (4.72 to 5.38 m).
intersected 5.5 m at 3.80% CuEq13 (147.43 to 152.93 m).
The Gårdsgruvans zone contains high grade copper mineralization and associated alteration that confirms intensely strong feeder zones were active, which is an essential component of a robust polymetallic mineralizing system in the Bergslagen Mining District.
TSX-V: DMX Corporate Presentation | August 2020
Historic Drill Hole Assays at Gårdsgruvans Zone, Tomtebo Mine
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Drill Hole Depths and Interval Historical Assay Results Hole ID Azimuth Dip Hole Type From (m) To (m) Interval (m) Ag (g/t) Au (g/t) Cu (%) Zn (%) Pb (%) CuEq (%) TOMT16005 81
Surface 47.00 48.90 1.90 na na 6.12 na na na TOMT16008b 136
Surface 9.50 13.10 3.60 na na 3.98 na na na 51.60 55.60 4.00 na na 11.79 na na na 68.60 72.00 3.40 na na 2.38 na na na TOMT16009 79
Surface 28.40 31.90 3.50 na na 2.56 na na na TOMT57002 77
Surface 58.80 67.10 8.30 na na 1.69 na na na 73.70 77.53 3.83 na na 2.21 na na na 79.60 82.00 2.40 na na 1.20 na na na TOMT67001 289 Underground 154.50 158.75 4.25 na na 1.35 na na na 162.53 163.50 0.97 na na 3.83 na na na TOMT68003 102
Surface 7.21 16.57 9.36 na na 1.38 na na na TOMT68004 77
Surface 1.40 10.65 9.25 na na 1.01 na na na TOMT70015 316 Underground 4.72 5.38 0.66 189.00 4.00 7.94 na na 14.35 TOMT71005 81
Surface 117.35 117.55 0.20 na na 9.44 na na na 124.10 124.75 0.65 na na 1.26 na na na 127.35 127.70 0.35 na na 4.95 na na na 129.70 130.35 0.65 na na 2.79 na na na TOMT71007 289 Underground 47.48 48.14 0.66 25.00 0.40 2.52 na na 3.22 TOMT71010 102
Surface 147.43 152.93 5.50 58.26 1.02 2.07 na na 3.80 TOMT71018 299 44 Underground 60.70 61.79 1.09 73.00 0.80 1.10 na na 2.74
Notes:
been determined
were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu
undertaken any independent investigation of the sampling nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical drill results relevant as the Company will use this data as a guide to plan future exploration
for these purposes, however, the Company's future exploration work will include verification of the data through drilling.
TSX-V: DMX Corporate Presentation | August 2020
Historic Lövås Mine Long Section
tonnes at 3.5% Zn, 2.5% Pb, and 30g/t Ag4.
hydraulic conditions. The mine workings extended along a strike length of 300 m.
dump piles that ranged from 1.0 to 25.2% Zn, 0.65 to 20.0% Pb, 63.9 to 370.0 g/t Ag, 0.12 to 1.24% Cu, and 0.13 to 0.34 g/t Au10.**
and massive polymetallic sulphides within carbonate (meta-limestone) host formation.
Mineralization is open along strike and at depth.
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OPEN OPEN OPEN OPEN
** Rock grab samples are selective samples by nature and as such are not necessarily representative of the mineralization hosted across the Property.
TSX-V: DMX Corporate Presentation | August 2020
Alteration & Mineralization at Historic Lövås Mine
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Epidote-calcite alteration with massive to semi-massive galena. Coarse-grained massive sphalerite. Carbonate replacement with sulphides.
TSX-V: DMX Corporate Presentation | August 2020
Next Steps for Tomtebo Property
Advance through modern systematic exploration.
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TSX-V: DMX Corporate Presentation | August 2020
References & Technical Notes
1 Allen, R.L., Lundström, I., Ripa, M., and Christofferson, H., 1996, Facies analysis of a 1.9 Ga, continental margin, back-arc, felsic caldera province with diverse Zn-Pb-Ag-(Cu-Au) sulfide and Fe oxide deposits, Bergslagen region,
Sweden: Economic Geology, v. 91, p. 979–1008.
2 https://www.boliden.com/globalassets/operations/exploration/mineral-resources-and-mineral-reserves-pdf/2019/resources_and_reserves_garpenberg_2019-12-31.pdf 3 Ed. Eilu, Pasi, 2012, Geological Survey of Finland, Special Paper 53, Metallogenic areas in Sweden. 4 Geological Survey of Sweden report grb_097, 1997. 5 Daffern, T., Ellis, R., King, P., Richardson, S., Glucksman, E., Beveridge, A., 2017, NI 43-101 Technical Report for the Zinkgruvan Mine, Sweden, Wardell Armstrong International. 6 Raat, H., Jansson, N.F., and Lundstam, E., 2013, The Gränsgruvan Zn-Pb-Ag deposit, an outsider in the Stollberg ore field, Bergslagen, Sweden: Geology Applied to Mineral Deposits, Biennial Meeting, 12th, Uppsala, Sweden,
August 12–15, 2013, Proceedings, p. 12–15.
7 Kopparberg Mineral (unpub. annual report, 2012) 8 Jansson, N.F., Sädbom, S, Allen, R.L, Billström, K, Spry, P.G., 2018, The Lovisa Stratiform Zn-Pb Deposit, Bergslagen, Sweden: Structure, Stratigraphy, and Ore Genesis: Economic Geology (2018) 113 (3): 699–739. 9 Technical Report on Tomtebo Mine, Birger Hellegren, 1983. 10 Grab rock samples were recovered from the mine dump piles at the historical Tomtebo and Lövås Mines by EMX Royalites Corp. in 2018. The rock samples were sent to ALS Geochemistry – Malå, Sweden for preparation, and
subsequently pulps were sent to ALS Geochemistry – Ireland (an accredited mineral analysis laboratory) for analysis. Samples were analyzed using forty-one element inductively coupled plasma method (“ME-ICP41”). Over limit sample values were re-assayed for: (1) values of copper >1%; (2) values of zinc >1%; (3) values of lead >1%; and (4) values of silver >100 g/t. Samples were re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical
samples were chosen for duplicate assay from the coarse reject and pulps of the original sample. No QA/QC issues were noted with the results reported.
11 AgEq equals = Ag g/t + (Au g/t × 110) + (Cu% × 98.286) + (Zn% × 38.857) + (Pb% × 34.286). Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu, $0.85/lb for
Zn and $0.75/lb for Pb. Metal equivalent calculations assume 100% recoveries.
12 ZnEq equals = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu% × 2.529) + (Pb% × 0.882). Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu, $0.85/lb for
Zn and $0.75/lb for Pb. Metal equivalent calculations assume 100% recoveries.
13 CuEq equals = Cu% + (Ag g/t × 0.0102) + (Au g/t x 1.1192). Metal prices used in USD for metal equivalent calculations were based on $15.00/oz for Ag, $1650/oz for Au, $2.15/lb for Cu. Metal equivalent calculations assume 100%
recoveries.
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TSX-V: DMX Corporate Presentation | August 2020
907 - 1030 West Georgia Street, Vancouver, BC, V6E 2Y3 Phone: (604) 288-4430 info@districtmetals.com districtmetals.com
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