Tomtebo Property Four Drill Holes Assay Results

VANCOUVER — District Metals Corp. announced assay results on four drill holes (TOM21-013 to -016) from the maiden drilling program at the high grade polymetallic Tomtebo Property located in the Bergslagen Mining District in south-central Sweden. Drill holes TOM21-004 to -012 were completed at the Steffenburgs and Oscarsgruvan zones where drill core samples from these eight holes were batched together resulting in a longer turnaround time, and expects these assay results soon.

Holes TOM21-013 to -016 were drilled below open pits where copper sulphides were historically extracted at the Gardsgruvans zone in the southwest portion of the historic Tomtebo Mine. Of particular interest, holes TOM21-013 and -016 successfully intersected vein networks of copper-rich sulphides within strongly altered felsic volcanic rocks. These vein networks occur over intervals of approximately 50 m in both drill holes with sub-sections of higher grade copper mineralization highlighted below: TOM21-013 intersected 8.65 m at 2.92% Cu and 0.43 g/t Au (76.65 to 85.30 m) including 7.05 m at 3.47% Cu and 0.52 g/t Au (77.45 to 84.50 m), and 5.15 m at 1.56% Cu and 0.32 g/t Au (191.30 to 196.45 m); and TOM21-016 intersected 17.2 m at 0.94% Cu and 0.28 g/t Au (191.6 to 208.8 m) including 3.0 m at 2.80% Cu and 1.21 g/t Au (201.1 to 204.1 m).

Rodney Allen, Technical Advisor, said, "Holes TOM21-013 and -016 drilled networks of copper-rich, pyrite-pyrrhotite-chalcopyrite veins within strongly altered felsic volcanic rocks. These vein networks are interpreted as feeder conduits in which high temperature fluids carrying Cu-Au-Zn-Pb-Ag flowed upwards towards the sea floor in a submarine volcanogenic hydrothermal system. In this type of volcanogenic system, mostly copper and some gold are precipitated in the hot cores of the feeder conduits, whereas zinc, lead, silver and the rest of the gold are carried further upwards in the conduit system, where at lower temperature, and just below the sea floor, they deposit Zn-Pb-Ag-Cu-Au veins and massive sulphide mineralization. Considering the geometry of the stratigraphy and mineralization drilled so far at Tomtebo, it is likely that the copper zones drilled in TOM21-013 and -016 represent cores of the sub-seafloor feeder system that continues upwards to feed massive sulphide mineralization at the Steffenbergs zone (seen by drill hole TOM21-001) and other bodies yet to be drilled.

The widespread extent and the intensity of the copper-bearing vein networks indicate that Tomtebo has economic potential for both Cu-Au resources within the feeder vein system as well as high grade Zn-Pb-Ag-Cu-Au massive sulphide at a higher stratigraphic level.

The mineral assemblage of the alteration zones that host the copper vein networks is quartz-cordierite-anthophyllite-phlogopite-chlorite±gahnite±magnetite. This is an amphibolite facies (medium grade) metamorphic mineral assemblage that represents metamorphism of earlier syn-volcanic quartz-chlorite-sericite alteration. It is common in Volcanogenic Massive Sulphide (VMS) mineral systems world-wide that strong quartz-chlorite±sericite alteration hosts the most copper-rich part of the feeder vein network.

The rocks drilled at Tomtebo are volcanic rocks that have been strongly hydrothermally altered and mineralized, then strongly metamorphosed, foliated and folded. The original character of the host volcanic rock is largely obscured by these subsequent processes. However, relict primary features of the volcanic rocks occur locally as small windows within the otherwise intensely altered and deformed rocks, and enable us to build a picture of the original architecture of the volcanic system. Holes TOM21-013 to -016 encountered textures that are characteristic of dense glassy volcanic rocks, especially felsic lavas and shallow intrusive domes, and suggest that the copper-rich feeder zones are hosted at least partly by a lava dome or shallow intrusive dome. Lava domes and shallow intrusions are typically the main host for copper-rich feeder zones in the footwall of VMS deposits.

Other parts of several drill holes encountered massive coarsely clastic rocks that are probably pumice-rich deposits from explosive eruptions, and banded rocks that are interpreted as altered stratified felsic volcanic ash. Thus, combining all the evidence extracted from the drilling so far, suggests that Tomtebo contains one or more rhyolitic lava/intrusive domes, enclosed by massive and stratified felsic pumice and ash. This is the classic setting for VMS ore deposits and several of the polymetallic deposits in the Bergslagen.

Lithogeochemical samples have been collected from the drill cores and sent to ALS laboratory in order to help interpret the distribution of the lava/intrusive domes and to interpret the position and geometry of the sea floor horizon above these lava domes where massive sulphide mineralization formed."

Garrett Ainsworth, CEO, said, "Our first few holes into the Gardsgruvans zone have returned exceptionally strong copper results and associated alteration that exhibits the presence of multiple robust and long lasting copper-rich feeder zones, which is an important feature of other large polymetallic deposits in the Bergslagen District.

We have now concluded our maiden Spring 2021 drill program at Tomtebo totaling 5,611 m in 22 holes, which has been a great success on a number of different levels. Our field personnel and Hy-Tech Drilling AB executed this drill program with the upmost professionalism. Permitting for the planned Phase II drill program in September/October 2021 has already commenced. This pause in drilling will allow us to compile and interpret all of the newly obtained data to prioritize targets for an exciting Phase II drill program that will include large step outs and testing of regional targets up to a kilometer away from the historic Tomtebo Mine."

Hole TOM21-013 was drilled at an angled orientation (-65° dip) to the southeast (110° azimuth). It was designed to target copper mineralization down dip from the Gardsgruvan open pit and within the vicinity of historic drill intercepts that returned several meters of high grade copper and were not assayed for gold or other metals of interest. This hole is dominated by homogenous and massive looking altered felsic volcanic rocks with varying assemblages of alterations associated with variable amounts of disseminated pyrite (up to 3% locally). Intense quartz-chlorite-cordierite alteration started at 68.0 m with disseminated pyrite>chalcopyrite. Strong copper mineralization was observed as stringer and vein-style feeder conduits from 77.0 to 84.0 m. Varying disseminated sulphides, including traces of chalcopyrite traces stopped at 128.0 m. A second zone of similar style disseminated sulphide mineralization started at 185.0 m with strong copper stringer/vein-style mineralization between 194.0 to 196.5 m. Disseminated sulphides ended at around 262.0 m and are followed by a homogenous quartz>muscovite>phlogopite altered felsic volcanic rock with a more clastic texture. The hole ends at 280.8 m.

Hole TOM21-014 was drilled at an angled orientation (-55° dip) to the southeast (110° azimuth). It was drilled 50 m north of TOM21-013 to target zinc-lead-silver mineralization logged in a historic drill hole from the -200 m exploration drift. Hole -014 was dominated by homogenous and massive looking altered felsic volcanic rocks with varying assemblages of alterations. Traces of chalcopyrite were observed from 96.0 to 104.0 m, and disseminated sulphides abruptly stopped after 110.0 m until the end of hole depth of 287.3 m.

Hole TOM-21-015 was drilled at an angled orientation (-70° dip) to the southeast (110° azimuth) and was collared 100 m south of TOM21-013. The target for this hole is historically logged Cu-mineralization in historic drill hole TOM69005 with missing assay data. Both lithology and alteration styles are similar to holes TOM21-013 and -014. Sulphides (dominantly pyrite) vary from traces to local disseminations but in general less than 1%. Impregnation of pyrite>chalcopyrite was observed between 63.0 and 64.0 m. The alteration signature changes from 212.0 m to more dark-grey quartz>>phlogopite-cordierite alteration with disseminated sulphides that ends around 248m to the end of hole depth of 287.0 m.

Hole TOM-21-016 was drilled at an angled orientation (-46° dip) to the southeast (110° azimuth). This hole targeted copper mineralization from historic drill holes TOM56005 and TOM71016 that were not assayed for gold or other metals of interest. Historic hole TOM69001 drilled horizontally from the -200 m exploration drift, indicated disseminated Cu-mineralization with missing assays at the end of the hole, which was a second target. Massive and homogenous altered felsic volcanic rocks were encountered with varying assemblages of alterations. An interval of dark grey quartz-chlorite-anthophyllite-cordierite alteration with local pyrite>chalcopyrite impregnations and stringers were observed between 80.0 and 103.0 m. The second target encountered strong copper mineralization from 191.0 to 210.0 m, which is interpreted as feeder zone veins in a sub-seafloor hydrothermal system. At 223.0 m the alteration changes from strong to moderate until the end of the hole depth of 290.0 m.