District Intersects 11.0 m at 5.8% Zn, 1.1% Pb, 20 g/t Ag on the Stollberg Property

2025-03-26

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Vancouver, British Columbia--(Newsfile Corp. - March 26, 2025) - District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) (FSE: DFPP); ("District" or the "Company") is pleased to report on drill assay results for five drill holes (GRAGR-151 to -155) completed during the Fall 2024 drill program at the base metal polymetallic Stollberg Property located in the Bergslagen Mining District in south-central Sweden.

A total of 2,438 m was drilled in five holes around the historic Gränsgruvan Mine (operated intermittently from 1943 to 1978) located within the Stollberg Property. This drill program was carried out from mid-October to mid-December 2024 as part of the collaboration with Boliden Mineral AB.

Under the terms of a definitive agreement dated October 27, 2023, Boliden and District will collaborate in the development of District's wholly-owned polymetallic Tomtebo Property and Boliden's wholly-owned polymetallic Stollberg Property. Initially, Boliden will be granted the right to earn (the "Earn-In Option") up an eighty-five percent (85%) interest in the Tomtebo Property. Following exercise of the Earn-In Option, the Tomtebo Property will be contributed to a joint venture, along with Boliden's Stollberg Property, under which District will control an initial fifteen percent (15%) interest. A summary of the terms of definitive agreement as between Boliden and District is presented in the news release on October 30, 2023.

A summary of the Stollberg Property is presented in the news release on October 16, 2024. Compilation work in combination with extensive review and sampling of historic drill core from the historic Gränsgruvan Mine resulted in a better understanding of the geological setting, alteration system and tectonic framework of the area. Whole rock lithogeochemistry from historic drill core samples revealed that the alteration system and style of mineralization are analogous to that at Boliden's operating Garpenberg Mine, which is located approximately 50 km east of the Stollberg Property. As a reference point 3.5 million tonnes with grades of 3.4% Zn, 1.5% Pb, 97 g/t Ag, and 0.33 g/t Au was mined at the Garpenberg Mine in 20241. This tonnage and grades from the Garpenberg Mine is to provide context, but is not necessarily indicative that the Stollberg Property hosts similar tonnages or grades of mineralization.

Highlights:

Drill hole GRAGR-152 intersected 28.00 m at 3.68% Zn, 0.70% Pb, 23 g/t Ag, 0.11 g/t Au, and 0.05% Cu (420.0 to 448.0 m)

including 11.00 m at 5.80% Zn, 1.1% Pb, 20 g/t Ag, 0.16 g/t Au, and 0.10% Cu (420.0 to 431.0 m)

Drill hole GRAGR-154 intersected 9.85 m at 4.52% Zn, 2.44% Pb, 21 g/t Ag, 0.1 g/t Au, and 0.01% Cu(351.3 to 361.15 m)

including 4.5 m at 7.81% Zn, 3.57% Pb, 34 g/t Ag, 0.14 g/t Au, and 0.01% Cu (352.1 to 356.6 m)

Down-hole electromagnetic results show multiple off-hole conductors: all drill holes were followed up by Boliden's in-house, state of the art, down-hole, three component electromagnetic (DHEM) survey2, and all holes showed both in-hole and off-hole EM conductors that likely represent sulphide mineralization.

The Stollberg Property contains similar host rocks, structure, alteration, and mineralization styles as the Garpenberg Mineralized Trend, which gives significant support in making a similar new discovery3,4,5.

A drill hole plan is shown in Figures 1 and drill assay results are shown in Table 1.

Rodney Allen, Technical Advisor for District, commented: "Our geological work shows that at the old Gränsgruvan mine, the mineralization occurred as massive to semi-massive polymetallic sulphide lenses, within and at the contact of, a limestone unit, and also as impregnation and network vein mineralization (stringer vein system) within the volcanic rocks on the stratigraphic footwall side of the limestone. This situation is analogous to the mineralization at Boliden's near-by giant Garpenberg deposit. In the 1970s, towards the end of mining at Gränsgruvan, the mine geologist made a tentative interpretation that the main limestone unit and perhaps the mineralization were folded. Our strategy has been that yes, the geological structure at Gränsgruvan could well be more complicated than originally thought, as this has been shown to be true in recent work at many of the polymetallic sulphide ore deposits in Bergslagen. If this is the case, the complicated geometry of the mineralization and host rocks could be the main reason that the high-grade mineralization could not previously be traced along strike and to depth at Gränsgruvan. Consequently, our strategy has been that if we can understand the geological structure better, confirm whether the mine stratigraphy is folded, and determine the geometry and continuation of the folds, then we would generate new drill targets for high-grade ore. The current drill program reported here, has been a major success in achieving that goal. We have intersected good mineralization, but perhaps even more importantly, we have made a major breakthrough in understanding the geological structure of the Gränsgruvan mine area. We can now confirm that the mine stratigraphy is tightly folded. Furthermore, our geological work shows that the limbs of the folds are deformed (attenuated, stretched and sheared) and cut by faults. This is the main reason that the mineralized zone has been difficult to follow and has been missed by many previous drill holes. Our preliminary geological interpretation indicates that there are several fold and fault repetitions of the main mineralized host zone within the Gränsgruvan mine area. We have intersected a couple of these repetitions in the current drill program. In future drilling, we will be able to extend our geological interpretation further and target the mineralized zone in areas that have been missed previously. The knowledge we have gained also encourages us to explore the extensions of the fold structures to the north, south and down-plunge."

Garrett Ainsworth, CEO of District, commented: "The Fall 2024 drill program at the Stollberg Property was the first under the current District and Boliden collaboration, and has delivered some good base metal polymetallic drill assay results. More importantly, the joint technical committee has uncovered some geological breakthroughs at the historic Gränsgruvan Mine, which will make follow up drilling very exciting in H2 2025.

Similarities between the Stollberg Property and Boliden's operating Garpenberg Mine suggest exploration potential to make a significant discovery at Stollberg. There are numerous historic drill holes with wide intervals of base metal polymetallic mineralization at the Gränsgruvan Mine, which gives us an advantageous head start."

[](https://images.newsfilecorp.com/files/7971/246097_b40d9e256431daad_002full.jpg)

Figure 1: Plan map of Fall 2024 Drilling at the historic Gränsgruvan Mine, Stollberg Property

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/7971/246097_b40d9e256431daad_002full.jpg

Table 1: Stollberg Drill Assay Results

| Drill Hole | Depths and Interval | Assay Results | | | | | | | | | | | Hole ID | Azimuth | Dip | Total Depth (m) | From (m) | To (m) | Interval (m) | Ag (g/t) | Zn (%) | Pb (%) | Au (g/t) | Cu (%) | | GRAGR-151 | 267 | -60 | 315 | 239.00 | 241.00 | 2.00 | 16 | 2.40 | 1.09 | 0.04 | 0.04 | | GRAGR-152 | 270 | -50 | 542.9 | 368.40 | 369.10 | 0.70 | 147 | 0.24 | 2.28 | 0.41 | 0.01 | | | | | | 377.70 | 400.75 | 23.05 | 13 | 2.65 | 0.95 | 0.03 | 0.04 | | | | | incl | 377.70 | 386.15 | 8.45 | 20 | 3.19 | 1.48 | 0.03 | 0.03 | | | | | | 420.00 | 448.00 | 28.00 | 23 | 3.68 | 0.70 | 0.11 | 0.05 | | | | | incl | 420.00 | 431.00 | 11.00 | 20 | 5.80 | 1.06 | 0.16 | 0.10 | | | | | incl | 436.00 | 445.45 | 9.45 | 34 | 2.84 | 0.68 | 0.10 | 0.01 | | | | | | 451.00 | 453.00 | 2.00 | 42 | 4.22 | 2.00 | 0.03 | 0.00 | | | | | | 456.00 | 457.00 | 1.00 | 24 | 4.38 | 1.33 | 0.05 | 0.00 | | | | | | 522.85 | 524.45 | 1.60 | 16 | 3.69 | 0.67 | 0.02 | 0.00 | | GRAGR-153 | 270 | -50 | 635.8 | 462.40 | 471.70 | 9.30 | 7 | 1.23 | 0.36 | 0.01 | 0.02 | | | | | | 478.35 | 486.95 | 8.60 | 22 | 2.28 | 1.08 | 0.03 | 0.01 | | | | | | 618.35 | 621.40 | 3.05 | 10 | 0.41 | 1.33 | 0.05 | 0.01 | | GRAGR-154 | 272 | -53 | 398.8 | 351.30 | 361.15 | 9.85 | 21 | 4.52 | 2.44 | 0.10 | 0.01 | | | | | incl | 352.10 | 356.60 | 4.50 | 34 | 7.81 | 3.57 | 0.14 | 0.01 | | GRAGR-155 | 266 | -53 | 545.8 | No significant results | | | | | | | |

Notes:

All intervals are core lengths, and true thicknesses are yet to be determined. Mineral resource modeling is required before true thicknesses can be estimated.

Drill Hole Summaries

The Fall 2024 drilling at the historic Gränsgruvan Mine on the Stollberg Property is summarized below and the location of the mentioned drilling can be found in Figure 1. Information on azimuth, dip and total depth can be found in Table 1.

GRAGR151 (northern extension Gränsgruvan)

The first part of the hole (up to ~100 m) is composed of unmineralized, schistose, moderately, locally strongly altered (muscovite-biotite-silica>garnet) felsic volcanic rocks. The following 100 m are represented by strongly altered (silica-k-feldspar>biotite-muscovite>albite) felsic volcanic rocks, possibly a coherent rhyolitic lava or intrusion. Trace to locally 2% py-po>cpy-gn occur throughout this interval. Both early and late, 1 to 6 m thick, mafic dykes occur up to ~175 m depth. Between 200 to 310 m the hole intersected strongly altered (biotite\phlogopite-muscovite-k-feldspar>silica) felsic volcanic rocks. From ~220 to 305 m the section shows a weak, stringer style mineralization, average of 2-5% sulphide content (py-po>cpy-sph-gn), with a more intense mineralized section, 5-10% sulphides (232-235.5 m). The last 5 meters (310-315 m) consist of strongly altered (biotite\phlogopite-garnet-muscovite) felsic volcanic rock with trace sphalerite and galena.

GRAGR152 (southern extension Gränsgruvan)

About 70% of the hole stayed in the hanging wall part of the mineralization and intersected the following lithologies: i) unmineralized and weakly to moderately altered (muscovite-biotite-silica-cordierite, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits which locally show a fining upward sequence; ii) two unmineralized marble units, 269.1-289.7 m and 326.5-332.5 m; iii) early, foliated and phlogopite altered, amphibole rich mafic sills\dykes, 92.5-97.2 m and 220.1-255.6 m; and iv) late, undeformed and unaltered, weakly porphyritic mafic dyke, 361.7-366.3 m.

Moderate to intense mineralization was intersected between 375.55 m and 445.4 m. Highest sulphide (py-po>sph-gn-aspy) contents are hosted in marble ~10-20% sulphides, 375.5-380.5 m and semi-massive sulphides (up to 80%), 380.5-382.5 m. Moderate to strong stringer style mineralization extends for over 60m (between 382.5 - 445.4 m) with an average of ~10% sulphide content (py-po>cpy-sph-gn), in strongly altered (silica-k feldspar-muscovite-biotite and patchy magnetite, garnet) felsic volcanic rocks. A less intense, ~5% stringer style, mineralized section occurs between 447 and 469 m, within the following lithologies: i) marble and pyroxene skarn beds, 447-453.6 m; ii) interlayered/banded skarn and silica-biotite/phlogopite-garnet altered felsic volcanic rocks, 453.6-457 m; and iii) silica-biotite/phlogopite-garnet-magnetite altered felsic volcanic rocks, 457-469 m.

A thick marble unit was intersected, 469-531.7 m. From 500 to 531 m the unit is weakly mineralized (1-5%, patchy to stringer style sph-gn>py-po). Fine grained felsic volcanic layers occur within the marble, 522.85-524.45 m and host ~10-20% sphalerite rich stringers.

The last 11.2 meters (531.7-542.9 m EOH) are characterized by weakly to moderately altered fine grained felsic volcanic rocks which look like the felsic siltstone layers from the hanging wall unit. Thus, these are interpreted as hanging wall rocks that were structurally repeated through a fold structure. Thin, sph-py-po stringers occur throughout this interval (<5% sulphide content).

GRAGR153 (southern extension Gränsgruvan)

Up to 454.5 m the hole stayed in the hanging wall part of the deposit composed mostly of unmineralized and weakly to moderately altered (muscovite-biotite-silica-cordierite>garnet, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits. Thin, unmineralized, marble and skarn beds occur, 159.5-165.3 m. Several 1 to 7 m thick, foliated, phlogopite altered and amphibole rich mafic dykes occur throughout.

Mineralized marble unit was intersected at 447.9-463.35 m. This is intruded by a young, unaltered and undeformed mafic dyke, 457.15-461.9 m. Stringer sulphides (10-20% sph-gn-py-po) and disseminated magnetite occur in the lower part of the marble. The mineralization is stronger close to the contact with strongly altered (silica-k-feldspar-muscovite-biotite and patchy magnetite, garnet) felsic volcanic rocks (463.35-516.7 m). The latter unit hosts intense stringer style mineralization (py-po>sph-gn-cpy) that decreases downhole: 10-20% sulphides, 463.35-484 m; 5-10% sulphides, 484-500 m; 1-5% sulphides. Weak, patchy to stringer style mineralization (1-5% py-po>cpy) also occurs downhole, within interlayered/banded skarn and silica-biotite/phlogopite-garnet altered felsic volcanic rocks, 516.7-532.5 m).

A thick, overall unmineralized, marble unit was intersected, 532.5-580 m. This is followed downhole (580 to 614 m) by weakly to moderately altered fine grained felsic volcanic rocks which look like the felsic siltstone layers from the hanging wall unit. Therefore, these are interpreted as hanging wall rocks that were structurally repeated through a fold structure. The felsic rocks transit downhole into an interbedded section (614-618.3 m) composed of thin (dm to meter sized) marble, pyroxene skarn, and silica-biotite altered felsic volcanic rocks. Patchy to stringer style mineralization (~5% py-po-cpy±sph-gn) occurs in the last part of this interval and continues into the unit below (618.3-623.3 m), phlogopite-garnet schists, locally with skarn bands. The hole ends into a strongly altered (phlogopite-muscovite-silica±k feldspar) felsic volcanic unit (623.3-635.8 m).

GRAGR154 (southern extension Gränsgruvan)

Up to 334 m the hole stayed in the hanging wall part of the deposit composed mostly of unmineralized and weakly to moderately altered (muscovite-biotite-silica-cordierite>garnet, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits. Trace sulphides occur throughout the section, except for the last 10 meters which show a very weak, patchy mineralization (1-2% py-po±sph-cpy). A young, undeformed and unaltered mafic dyke intrudes, 265.85-270.1 m.

The hanging wall felsic volcanic rocks transit into an unmineralized, marble and skarn dominated unit (334 - 349 m), which subsequently transits into an interlayered/banded unit of skarn, marble and silica-biotite/phlogopite-garnet altered felsic volcanic rocks (349 - 359 m). This section is characterized by intense stringer style mineralization, with an average of ~20% sph-gn>py-po between 352 and 359 m. The mineralization continues downhole in the following unit (359-367m, biotite/phlogopite-garnet-amphibole-silica altered felsic volcanic rocks) but decreases gradually (5-10%, 359-361 m, <5% from 361 m to 367 m).

The last part of the hole (367-398.8 m, EOH) is represented by strongly altered (silica-k feldspar-muscovite-biotite and patchy garnet) felsic volcanic rocks which show a weak (sph-gn-cpy).

GRAGR155 (southern extension Gränsgruvan)

The first 13 meters (11-24 m) are characterized by typical hanging wall felsic volcanic siltstones. From 24 to 34.3 m, the rocks are strongly sheared, locally brecciated by quartz and phlogopite veins, and strongly altered (silica-biotite/phlogopite-garnet-amphibole-andalusite). This section is probably linked to a fault zone. Trace py-po stringers are common along foliation. The following unit, (34.3-40 m) is composed of a coarse grain, unmineralized, actinolite-tremolite skarn. From 40 to 83.2 m the hole intersects a magnetite-rich, and partially mineralized marble>skarn unit: 50-69 m patchy, 1-2%, po>py±gn-sph-py; 69-76 m stringer style, 2-5% py-cpy-po±gn-sph; 76-83.2 m patchy, 1-2% po>py±gn.

From 83.2 to 451.2 m the hole stays in unmineralized and moderately altered (muscovite-biotite-silica-cordierite>garnet, patchy to pervasive) felsic volcanic siltstone, sandstone, and mass flows deposits, typical of hanging wall part of the deposit. Young, unaltered and undeformed, weakly porphyritic mafic dyke intrudes, 451.2-458.85 m. Between 458.85 m to 488.5 m the hole intersects a strongly altered (silica-biotite>garnet>muscovite) felsic volcanic rocks which are partially mineralized: 466-473 m, patchy to stringer style, 1-5% py-po>sph; 473-488.5 m, stringer style, ~5% py-po>sph±cpy. This unit transits into an interlayered/banded unit (488.5-522.6 m), characterized alternating dm to meter size layers of pyroxene skarn, marble, and silica-biotite-garnet altered felsic volcanic rocks. Heterogenous, patchy to stringer style mineralization occurs throughout, with higher sulphide content, 500-507 m, 1-10% py-po-sph-gn±cpy. The hole ends in strongly altered (silica-biotite-garnet,522.6-529.15 m and silica-k feldspar-muscovite-biotite, 529.15-545.8 EOH) felsic volcanic rocks with trace, patchy, sulphides (gn-sph-py).

References

1 https://www.boliden.com/490349/globalassets/operations/exploration/mineral-resources-and-mineral-reserves-pdf/2024/resources-and-reserves-garpenberg-2024-12-31.pdf

2Allen, Rodney L., Jonsson, Rolf H. 2014. Boliden's Garpenberg Zn-Pb-Ag mine, Sweden - Critical factors behind the discoveries that turned mine closure into a large expansion project. SEG Conference Abstract 0393-000191. https://www.segweb.org/SEG/Events/Conference-Archive/2014/Conference-Proceedings/data/papers/abstracts/0393-000191.pdf?v=020606

3Frank, K.S., Spry, P.G., Raat, H., Allen, R.A., Jansson, N.F and Ripa, M. (2019). Variability in the Geologic, Mineralogical, and Geochemical Characteristics of Base Metal Sulfide Deposits in the Stollberg Ore Field, Bergslagen District, Sweden. Econ Geol 114: 473-512. doi: https://doi.org/10.5382/econgeo.4646

4Jansson N, Erismann F, Lundstam E, Allen RL (2013). Evolution of the Paleoproterozoic volcanic-limestone-hydrothermal sediment succession and Zn-Pb-Ag and iron oxide deposits at Stollberg, Bergslagen region, Sweden: Econ Geol 108: 309-335

5Raat, 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

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by Garrett Ainsworth, P.Geo, 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.

The drill core reported in this news release was logged and prepared at the District Metals AB core facility in Säter, Sweden before submittal to Palsatech Oy in Sala, Sweden where the NQ-size drill core is cut and bagged. The samples were prepared for analysis at ALS Geochemistry in Piteå, Sweden ("PREP-31Y"). Sample pulps were sent to ALS Geochemistry in Ireland (an accredited mineral analysis laboratory) for analysis. Samples were analyzed using a multi-element ultra trace method combining a four-acid digestion with ICP-MS analytical package ("ME-MS61"). 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 using the high-grade material ICP-AES analytical package ("ME-OG62"). Gold, platinum, and palladium were analyzed using the 30 g lead fire assay with ICP-AES finish analytical package ("PGM-ICP23"). Certified standards, blanks, and duplicates were inserted into the sample shipment to ensure integrity of the assay process. Selected 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.