press release

District Intersects 30.0 m at 10.9% ZnEq on the Tomtebo Property

2022-02-28

CSE - Canadian National Stock Exchange · Drill Results

Vancouver, British Columbia--(Newsfile Corp. - February 28, 2022) - District Metals Corp. (TSXV: DMX) (FSE: DFPP); ("District" or the "Company")is pleased to report assay results for the remaining eleven drill holes (TOM21-026 to -036) from the Phase II drill program at the high grade polymetallic Tomtebo Property located in the Bergslagen Mining District in south-central Sweden. A total of 4,906 m in eleven drill holes was completed during the Phase II drill program that was carried out from October to December 2021.

Drill holes TOM21-027, -028 and -032 targeted the Steffenburgs zone as follow up from hole TOM21-025 (previously reported here), which returned 14.3 m at14.2% ZnEq1from 210.0 to 224.3 m. Hole TOM21-028 was drilled 60 m up plunge from TOM21-025 and intersected the longest interval of continuous strong sulphide mineralization at Tomtebo to date. Hole TOM21-027 was drilled approximately 80 m down plunge from hole TOM21-025 and encountered stringer and vein sulphide mineralization along the northwest edge of the massive sulphide lens at the Steffenburgs zone. Hole TOM21-032 was drilled approximately 35 m northwest from hole TOM21-025 and also encountered stringer and vein sulphide mineralization.

In late-January to early-February 2022 borehole electromagnetic (BHEM) surveys were conducted, and interpretations are underway. At the Steffenburgs zone the interpreted BHEM results will assist in delineating the massive sulphide lens to optimize drill targeting at depth.

Highlights:

TOM21-028intersected 30.05 m at 10.9% ZnEq1(148.35 to 178.40 m). including 21.80 m at 14.3% ZnEq1(152.00 to 173.80 m). including 10.05 m at 17.0% ZnEq1(157.15 to 167.20 m).

TOM21-032intersected 6.80 m at 2.5% ZnEq1(149.20 to 156.00 m) and 12.70 m at 3.3% ZnEq1(221.30 to 234.00 m).

TOM21-027intersected 3.50 m at 4.7% ZnEq1(61.40 to 64.90 m), 8.00 m at 2.0% ZnEq1(229.00 to 237.00 m),and 2.70 m at 7.2% ZnEq1(274.40 to 277.10 m).

Drill hole plan, cross and long sections are shown in Figures 1 to 3, and drill assay results are shown in Table 1.

Rodney Allen, Technical Advisor for District, commented: "The new massive sulphide intersection in hole TOM21-028 provides another excellent intersection in the Steffenburgs zone massive sulphide lens. This intersection shows a zonation from intense "stringer" sulphide veining in the stratigraphic footwall, followed by a thick interval of massive sulphide, which is in turn overlain by relatively weakly mineralized hanging-wall rocks. The massive sulphide interval also shows zoning, comprising a core of massive pyrite with relatively minor sphalerite, enclosed by massive pyritic sulphide with numerous prominent bands of rich sphalerite-galena. These zoning relationships are common in high-grade VMS deposits; they indicate that the massive sulphide grew progressively and evolved with time. High-temperature solutions welled up in the footwall stringer zone, dissolving Zn-Pb-Ag-Au from the footwall side of the deposit, leaving a massive pyritic "residue" in the lower to central parts of the massive sulphide lens and concentrating the Zn-Pb-Ag-Au in the upper and lateral parts of the lens. These relationships provide further confirmation that we have intersected classic VMS (Volcanogenic Massive Sulphide) mineralization on a major VMS ore horizon.

In several places, sphalerite-galena bands in the massive sulphide can be seen to form tight folds, which provides further evidence that the Steffenburgs zone massive sulphide is deformed and may be folded also on the larger scale. We now have a number of good intersections of both massive sulphide and stringer sulphide in several drill holes and because the mineralization is likely folded it is not yet entirely certain how the various intersections join up from drill hole to drill hole. We anticipate that data from recent geophysical surveys and lithogeochemical analysis of drill core samples, combined with the geological mapping of the drill cores will enable us to better understand the geometry of the mineralization and to plan the best locations for additional drill holes."

Garrett Ainsworth, CEO of District, commented: "The Steffenburgs zone is showing great promise that is most recently highlighted with a wide intercept of strong polymetallic mineralization in hole TOM21-028 that has returned 30 m at 10.9% ZnEq1. Elevated gold values were observed above and below the massive sulphide intercept in hole TOM21-028, which supports the occurrence of successive mineralizing events that opens up additional targets at Tomtebo. Assay results from hole TOM21-027 show us that the polymetallic mineralization at the Steffenburgs zone remains open, and it appears that this hole clipped the northwest outside edge of the plunging massive sulphide lenses encountered by holes TOM21-001, -025, and -028. Our next phase of drilling at Tomtebo is planned for early-April and will focus on the Steffenburgs zone where targeting will be finalized based on the BHEM and whole rock geochemistry interpretations."

[](https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_002full.jpg)

Figure 1: Drill Hole Locations from Tomtebo Phase II Program

To view an enhanced version of Figure 1, please visit: https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_002full.jpg

[](https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_003full.jpg)

Figure 2: Cross Section Looking Northwest at Steffenburgs Zone

To view an enhanced version of Figure 2, please visit: https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_003full.jpg

[](https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_004full.jpg)

Figure 3: Long Section Looking Northeast at Steffenburgs Zone

To view an enhanced version of Figure 3, please visit: https://orders.newsfilecorp.com/files/7971/115023_ce9b23b6e4ec4b1a_004full.jpg

Table 1: Tomtebo 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 (%) | ZnEq (%) | | TOM21-026 | 110 | -58 | 459.00 | 159.80 | 161.30 | 1.50 | 5.13 | 0.01 | 0.00 | 0.24 | 0.68 | 2.53 | | | | | | 289.10 | 292.00 | 2.90 | 14.69 | 0.12 | 0.01 | 0.49 | 0.66 | 3.55 | | | | | | 320.00 | 321.60 | 1.60 | 48.93 | 1.05 | 0.01 | 1.29 | 3.65 | 15.22 | | TOM21-027 | 35 | -62 | 312.00 | 42.50 | 43.15 | 0.65 | 91.40 | 0.42 | 0.85 | 0.06 | 0.31 | 4.49 | | | | | | 61.40 | 64.90 | 3.50 | 32.03 | 0.42 | 0.36 | 0.53 | 0.66 | 4.72 | | | | | | 192.50 | 193.30 | 0.80 | 236.00 | 0.82 | 6.10 | 0.54 | 0.18 | 14.28 | | | | | | 200.00 | 205.00 | 5.00 | 8.41 | 0.85 | 0.26 | 0.09 | 0.06 | 1.69 | | | | | | 229.00 | 237.00 | 8.00 | 9.30 | 0.98 | 0.51 | 0.10 | 0.04 | 2.05 | | | | | | 270.20 | 271.10 | 0.90 | 37.40 | 2.01 | 1.27 | 0.20 | 0.01 | 4.67 | | | | | | 274.40 | 277.10 | 2.70 | 37.38 | 4.79 | 1.08 | 0.16 | 0.02 | 7.21 | | TOM21-028 | 52 | -50 | 218.70 | 110.00 | 111.00 | 1.00 | 20.50 | 0.27 | 0.11 | 0.15 | 0.35 | 2.21 | | | | | | 119.10 | 120.60 | 1.50 | 5.72 | 0.87 | 0.24 | 0.04 | 0.06 | 1.47 | | | | | | 124.35 | 126.20 | 1.85 | 9.87 | 0.78 | 0.31 | 0.04 | 0.07 | 1.60 | | | | | | 143.60 | 144.70 | 1.10 | 6.47 | 0.46 | 0.12 | 0.09 | 0.16 | 1.38 | | | | | | 148.35 | 178.40 | 30.05 | 24.99 | 6.97 | 1.90 | 0.43 | 0.16 | 10.93 | | | | | incl. | 148.35 | 173.80 | 25.45 | 28.81 | 8.13 | 2.20 | 0.47 | 0.17 | 12.57 | | | | | incl. | 152.00 | 173.80 | 21.80 | 32.02 | 9.36 | 2.53 | 0.53 | 0.16 | 14.34 | | | | | incl. | 157.15 | 163.70 | 6.55 | 36.99 | 12.44 | 3.33 | 0.27 | 0.10 | 17.34 | | | | | incl. | 157.15 | 167.20 | 10.05 | 29.13 | 12.97 | 2.53 | 0.24 | 0.15 | 16.99 | | | | | | 184.80 | 185.10 | 0.30 | 112.00 | 14.25 | 6.96 | 0.23 | 0.04 | 24.02 | | TOM21-029 | 110 | -45 | 351.00 | No Significant Results | | | | | | | | | | TOM21-30B | 0 | -50 | 300.00 | 72.60 | 73.20 | 0.60 | 4.15 | 0.47 | 0.02 | 0.09 | 0.12 | | | TOM21-031 | 210 | -47 | 411.00 | 356.70 | 358.50 | 1.80 | 1.89 | 2.11 | 0.02 | 0.12 | 0.06 | 2.66 | | TOM21-032 | 31 | -50 | 366.00 | 96.50 | 97.15 | 0.65 | 17.70 | 0.36 | 0.32 | 0.10 | 0.20 | 1.89 | | | | | | 101.45 | 102.00 | 0.55 | 10.55 | 4.76 | 0.24 | 0.10 | 0.08 | 5.75 | | | | | | 107.10 | 107.70 | 0.60 | 20.20 | 3.25 | 0.62 | 0.05 | 0.03 | 4.53 | | | | | | 110.60 | 111.30 | 0.70 | 22.20 | 0.96 | 0.38 | 0.13 | 0.19 | 2.71 | | | | | | 149.20 | 156.00 | 6.80 | 9.88 | 0.98 | 0.49 | 0.14 | 0.16 | 2.46 | | | | | | 160.00 | 161.00 | 1.00 | 28.20 | 0.77 | 1.90 | 0.08 | 0.02 | 3.44 | | | | | | 221.30 | 234.00 | 12.70 | 25.28 | 1.40 | 0.57 | 0.18 | 0.08 | 3.28 | | | | | incl. | 229.40 | 233.00 | 3.60 | 45.04 | 2.25 | 0.71 | 0.26 | 0.08 | 4.99 | | | | | | 247.00 | 250.00 | 3.00 | 6.01 | 1.29 | 0.58 | 0.04 | 0.04 | 2.16 | | TOM21-033 | 165 | -50 | 300.00 | No Significant Results | | | | | | | | | | TOM21-034 | 180 | -47 | 360.00 | No Significant Results | | | | | | | | | | TOM21-035 | 215 | -62 | 450.00 | No Significant Results | | | | | | | | | | TOM21-036 | 155 | -55 | 300.00 | 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. Cut-off grade of 1.2% ZnEq was utilized, which may include up to 2.0 m of internal dilution. Underground mining cut-off at the nearby Garpenberg Mine was US$32/tonne in 2020. Metal prices used in USD for the ZnEq cut-off calculations were based on Ag $15.00/oz, Au $1650/oz, Cu $2.15/lb, Zn $0.85/lb, and Pb $0.75/lb. ZnEq = Zn% + (Ag g/t × 0.0257) + (Au g/t x 2.831) + (Cu% × 2.529) + (Pb% × 0.882) The use of ZnEq is to calculate cut-off grades for exploration purposes, and no adjustments were made for metal recovery.

Drill Hole Summaries

TOM21-026 (Gårdsgruvans zone):

Hole TOM21-026 was drilled at an angled orientation (-58° dip) to the east (110° azimuth). It was designed to test a BHEM anomaly, a gravity high anomaly, but also step out 100 m down plunge from multiple stacked mineralized lenses encountered in hole TOM21-017, which returned 13.4 m at 0.68% CuEq2(88.1 to 101.5 m), 16.2 m at 087% CuEq2(206.8 to 223.0 m), 5.6 m at 7.11% ZnEq1(269.2 to 274.8 m), 5.05m at 2.86% CuEq2(278.1 to 283.15 m) and 2.0 m at 2.18% CuEq2(295.3 to 297.3 m)

After 7.0 m of overburden, the hole intersected moderately to locally strongly altered felsic volcanic rocks with trace pyrite (0.1-2%) and some local zones of weak pyrite impregnation that were intercalated with occasional meter-scale mafic dykes from 7.0 to 288.0 m. Sulphide impregnation and veins (pyrite, pyrrhotite, chalcopyrite) were encountered between 288.0 and 291.0 m. This is underlain by moderately to locally strongly altered felsic volcanic rocks with trace pyrite (1%) that were intercalated with occasional meter-scale mafic dykes from 291.0 to 332.0 m. A semi-massive chalcopyrite-dominated sulphide vein of 0.4 m was encountered at 332.0 m. This is followed by moderately altered felsic volcanic rocks with local zones of trace pyrite (1-2%) that were intercalated with occasional meter-scale mafic dykes and a pegmatite dike from 233.0 m to the end of the hole depth at 459.0 m.

TOM21-027 (Steffenburgs zone):

Hole TOM21-027 was drilled at an angled orientation (-62° dip) to the northeast (35° azimuth). It was designed to be a follow up on TOM21-025 from the same collar, which returned 14.3 m at 14.2% ZnEq1(210.0 to 224.3 m) based on the step out of 118 m down plunge from massive sulphides encountered in hole TOM21-001, which returned 8.2 m at 20.94% ZnEq1(65.3 to 73.5 m).

After 11.8 m of overburden, the hole intersected moderately altered felsic volcanic rocks with trace pyrite and pyrrhotite (1%) from 11.8 to 63.0 m. Between 63.0 and 64.5 m, accumulations of polymetallic sulphides (pyrite, pyrrhotite, chalcopyrite, galena) in the form of veinlets, stringers, and narrow zones of impregnation were observed. This is underlain by moderately to strongly altered felsic volcanic rocks with local trace pyrite (0.1%) that were intercalated with occasional meter-scale mafic dykes from 64.5 to 270.0 m and a porphyritic felsic dike from 127.0 to 133.0 m. This unit includes two zones of polymetallic sulphides (pyrite, pyrrhotite, sphalerite, galena, chalcopyrite) in the form of veinlets and stringers, which were observed between 192.5 to 204.0 m and 231.0 to 236.5 m. This is followed by polymetallic sulphide mineralization (pyrite, pyrrhotite, sphalerite, galena) in the form of banded sulphide impregnations between 270.0 to 278.0 m. This mineralized unit is underlain by strongly altered felsic volcanic rocks with local trace pyrite (1%) that were intercalated with meter-scale mafic dykes from 278.0 m to the end of the hole depth at 312.0 m.

TOM21-028 (Steffenburgs zone):

Hole TOM21-028 was drilled at an angled orientation (-50° dip) to the east-northeast (52° azimuth). It was designed to be a follow up on TOM21-025 from the same collar, which returned 14.3 m at 14.2% ZnEq1(210.0 to 224.3 m) based on the step out of 40 m down plunge from massive sulphides encountered in hole TOM21-001, which returned 8.2 m at 20.94% ZnEq1(65.3 to 73.5 m).

After 20.0 m of overburden, the hole intersected moderately to locally strongly altered felsic volcanic rocks with trace pyrite (1%) and some narrow zones of weak pyrite impregnation that were intercalated with occasional meter-scale mafic dykes from 20.0 to 148.2 m. A porphyritic felsic dike was encountered from 89.0 to 93.0 m, and 108.5 to 125.5 m along with several polymetallic stringers and veinlets (pyrite, pyrrhotite, chalcopyrite, galena, chalcopyrite). The sulphide content increased after 143.0 m in moderately to intensely altered felsic volcanic rocks. Strong sulphide impregnations (pyrite, pyrrhotite, chalcopyrite) were encountered between 148.2 to 157.1 m as well as semi-massive sulphides (pyrite, pyrrhotite, chalcopyrite) between 149.3 to 150.4 m.

Massive stratabound polymetallic sulphides (sphalerite, galena, pyrite, pyrrhotite, chalcopyrite) were intersected from 157.1 to 173.8 m. This high-grade and very dense mineralized intercept of 16.7 m represents the longest drilled massive sulphide interval intersected at the historic Tomtebo Mine to date.This mineralized intercept is underlain by moderately altered felsic volcanic rocks with trace pyrite (1-2%) but also a massive polymetallic sulphide vein (pyrrhotite, sphalerite) at 184.8 to 185.1m. This unit is intercalated with occasional meter-scale mafic dykes from 173.8 m to the end of the hole depth at 218.7 m.

TOM21-029 (Gårdsgruvans zone):

Hole TOM21-029 was drilled at an angled orientation (-45° dip) to the east (110° azimuth). It was designed to test a proximal gravity high anomaly and is located 240 m southwest of TOM21-015 and southwest from holes TOM21-016 and -017 that intersected several stacked polymetallic sulphide lenses.

After 9.7 m of overburden, the hole intersected a pegmatite dike from 9.7 to 16.3 m. This is followed by weakly to moderately altered felsic volcanic rocks with local trace pyrite (1%) that were intercalated with occasional meter-scale mafic dykes from 16.3 to 309.5 m. Porphyritic felsic dikes were encountered from 67.8 to 78.0 m and 169.0 to 185.0 m as well as a pegmatite dike at 221.3 to 227.7 m. This unit is underlain by moderately to strongly altered felsic volcanic rocks with trace to disseminated pyrite (1-2%) closely intercalated with several meter-scale mafic dykes from 309.5 to 345.0 m. Weakly altered felsic volcanic rocks without pyrite persisted from 345.0 m to the end of the hole depth at 351.0 m.

TOM21-030A/B (West of Tomtebo Mine):

Hole TOM21-30A was abandoned at a depth of 47 m due to technical issues, and TOM21-030B was the re-start hole.

Hole TOM21-030B was drilled at an angled orientation (-50° dip) to the north (0° azimuth). It was designed to test the geology of the northwestern hinge of the Steffenburgs zone and targeted the contact of rhyolite 1 and 2 at a -200 m level to the west of the known sulphide mineralization.

After 21.0 m of overburden, the hole intersected weakly to moderately altered felsic volcanic rocks with local trace pyrite (0.1-1%) that were intercalated with occasional meter-scale porphyritic felsic dykes from 21.0 to 126.4 m. This unit of felsic volcanic rocks is underlain by a group of several mafic and porphyritic felsic dikes from 126.4 to 156.0 m. Moderately altered felsic volcanic rocks without sulphides follow and are intercalated with occasional meter-scale mafic dykes associated with localized stronger alteration and remobilized trace pyrite (0.1-1%) from 156.0 m to the end of the hole depth at 300.0 m.

TOM21-031 (Oscarsgruvan zone):

Hole TOM21-031 was drilled at an angled orientation (-47° dip) to the southwest (210° azimuth). It was designed to be a 50 m step-out below significant sulphide mineralization encountered in hole TOM21-004, which returned 13.4 m at 5.04% ZnEq1(194.6 to 208 m). The hole also targeted coincident gravity and magnetic high anomalies.

After 15.1 m of overburden, the hole intersected an undifferentiated phyric felsic intrusive unit without sulphides from 15.1 to 40.0 m. This is followed by a partly altered undifferentiated intrusive amphibolite unit intercalated with occasional meter-scale weakly altered felsic volcanic rocks from 40.0 to 110.0 m. Weakly to moderately altered felsic volcanic rocks without sulphides follow with occasional meter-scale mafic and porphyritic felsic dikes and narrow intrusive amphibolite units from 110.0 to 247.0 m. Similar felsic volcanic rocks follow this unit with moderate to locally strong alteration intensity and locally disseminated pyrite and pyrrhotite (0.1-1%) from 247.0 to 313.0 m. Below this, a pyroxene and amphibole skarn were intersected, which are intercalated with meter-scale silicified felsic volcanic rocks that do not show sulphides from 313.0 to 348.6 m. This skarn is underlain by weakly to moderately altered felsic volcanic rocks with local zones (355.0 to 360.0 m, 363.0 to 371.0 m, and 376.0 to 385.0 m) of weakly disseminated polymetallic sulphides (0.1-1%) (pyrite, pyrrhotite, chalcopyrite, sphalerite) from 348.6 to 390.0 m. Moderately altered felsic volcanic rocks without sulphides follow from 390.0 m to the end of the hole depth at 411.0 m.

TOM21-032 (Steffenburgs zone):

Hole TOM21-032 was drilled at an angled orientation (-50° dip) to the northeast (31° azimuth). It was designed to step out 40 m down plunge from massive sulphides encountered in hole TOM21-001, which returned 8.2 m at 20.94% ZnEq1(65.3 to 73.5 m), as well as to follow up on the massive sulphide intercepts in hole TOM21-025, which returned 14.3 m at 14.2% ZnEq1(210.0 to 224.3 m) and TOM21-028 which intersected 16.85 m of massive sulphides (157.15 to 174.0 m).

After 21.0 m of overburden, the hole intersected moderately altered felsic volcanic rocks with trace pyrite (1%) from 21.0 to 71.5 m. A porphyritic felsic dike was encountered from 71.5 to 76.1 m. This is followed by moderately altered felsic volcanic rocks with several individual polymetallic sulphides (pyrite, pyrrhotite, sphalerite, galena) veinlets and stringers intercalated with occasional meter-scale mafic dikes from 76.1 to 139.0 m. Moderately to strongly altered felsic volcanic rocks with disseminated and impregnated sulphides (pyrite, pyrrhotite) were encountered between 139.0 to 163.0 m. This unit also includes semi-massive to massive polymetallic sulphides (pyrite, pyrrhotite, sphalerite, galena) from 151.6 to 152.55 m. This mineralized unit is underlain by moderately and strongly altered felsic volcanic rocks with mostly trace pyrite (1%) intercalated with occasional meter-scale mafic dikes from 163.0 to 346.7 m. This unit contains sulphide (pyrite, pyrrhotite) impregnation from 198.5 to 207.1 m and 221.3 to 223.3 m, polymetallic sulphide (pyrite, pyrrhotite, sphalerite, galena) impregnation from 224.5 to 233.0 m, and 243.9 to 254.5 m. A pyroxene skarn with blebby (1-2%) sulphides (pyrite, pyrrhotite) follows from 346.7 to 355.8 m. Weakly altered felsic volcanic rock without trace pyrite persists from 355.8 m to the end of the hole depth at 366.0 m.