District Metals (DMX.V): Reports on Shallow Historic Drill Results from the Lövås-Nyberget Area Including 15.9 m at 1.3% Copper

March 3, 2021 – District Metals Corp. (TSX-V: DMX) (FRA: DFPP); (“District” or the “Company”) is pleased to announce that it has recently obtained 13 historical drill logs and assay data from the Lövås-Nyberget Area located within District’s polymetallic Tomtebo Property in the Bergslagen Mining District of south-central Sweden. These historic drill results from the Dammsjön and Flyttjebasen zones were obtained from the Geological Survey of Sweden (SGU), and are from drilling campaigns carried out by Boliden Gruvförvaltningen in 1953 and 1972.

The Lövås-Nyberget Area is situated at the northeast end of the Tomtebo Property (Figure 1), and is approximately 12 km northeast from the former Tomtebo Mine where the Company is scheduled to commence a 5,000 m drill program this month.  

Garrett Ainsworth, CEO of District, commented: “The exploration potential of the Tomtebo Property continues to improve with these additional historic drill results.  There is a relatively high density of historic mines and mineral occurrences across Tomtebo that suggests profuse metal leakage has occurred along controlling structures and geological units.  The Lövås-Nyberget area represents another highly prospective target for District in a part of the license area with little to no modern previous systematic exploration.”

The reported historic drill highlights are from the Dammsjön and Flyttjebasen zones, which are located 530 m north and 960 m northeast-east from the former Lövås Mine.  Shallow drilling of these zones to depths between 63.3 to 140.1 m encountered narrow to wide intervals of stacked polymetallic mineralization with low to moderate base metal and silver values in 10 out of 13 holes, and mineralization remains wide open along strike and at depth.  Significant gold values are known in the area, but historically were not often assayed. 

• Hole 21 – Dammsjön zone – 15.9 m at 1.3% Cu, 0.6% Zn, and 0.3% Pb
  (47.4 to 63.3 m).
• Hole 25 – Flyttjebasen zone – 4.8 m at 1.1% Zn, 1.8% Pb, 0.1% Cu, and 44.3 g/t Ag
  (83.2 to 88.0 m).
• Hole 31 – Flyttjebasen zone – 11.1 m at 1.6% Zn, 0.8% Pb, 0.1% Cu, and 11.2 g/t Ag
  (72.9 to 84.0 m).

This historic drilling has confirmed that polymetallic mineralization strikes northwest-west to southeast-east for 1.5 km from the Dammsjön and Flyttjebasen zones, and magnetic high anomalies suggest this mineralized trend continues for more than 2.4 km.

For additional details, including a full table of the historical results, together with an overlay of the 2020 SkyTEM magnetic data, which will impact future exploration planning and potential, please refer to Company’s website.

Figure 1 – Location of Lövås-Nyberget Area

Mineral License Extension

On February 10, 2021 the Swedish Government approved a proposal to grant a one-year extension of all valid mineral licenses due to the Covid-19 pandemic.  This approval will provide an extra year for District’s Tomtebo and Trollberget Properties at no cost.  Since the future effects of the pandemic remain unknown there may be additional easements for exploration companies operating in Sweden.  This initiative taken by the Swedish Government is an excellent example of why Sweden is such a good jurisdiction to operate in.

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.

The drill results reported in this news release are historical in nature. District has not 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. The author of the NI 43-101 Technical Report on the Tomtebo Property has completed historical data verification and validation work, and has concluded that the historical drill results at the Tomtebo Mine do not conform to the presently accepted industry standards. 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.