District Metals (DMX.V) published the results of the airborne electromagnetic survey last week, and we had a follow-up call with CEO Garrett Ainsworth to discuss the details.
The highlight of the survey is the confirmation of a three kilometer long trend along the Tomtebo mine trend, and the survey also clearly confirms the existence of several conductive and magnetic high anomalies towards the northeast of the historic Tomtebo mine.
CEO Ainsworth described those areas of interest as ‘pimples’ as the magnetic highs in the middle of felsic volcanic rocks (a magnetic low, in blue) are exactly what one wants to see on a magnetic survey. Every single on of the ‘pimples’ (we’ll just copy the term) represents an important drill target and the two pimples highlighted with the arrows on the image below are high priority targets.
We also see several other large anomalies, like for instance the two highlighted by the stars, but those aren’t of interest as they likely indicate large intrusive bodies with magnetite, hence the outsized size of those two targets. Additionally, those larger anomalies are NOT located in the middle of a magnetic low (the felsic volcanics) and as such, do not represent good exploration targets.
And just to compare the survey result from District Metals with what the Garpenberg mine actually looks like: we see the exact same hotspots in the middle of the felsic volcanics. Note: the Garpenberg survey was completed quite a while ago and the ‘blobs’ appear to be larger than at Tomtebo but that’s merely because the spacing was not as tight as the District Metals survey at Tomtebo.
The oblique section provided in the press release also clearly shows the historic mining activities at the Tomtebo mine were barely scratching the surface.
If the shaft would have been sunk just 100 meters deeper, the Tomtebo mine may actually have been a completely different story and we can only imagine the technical team of District Metals is getting excited about these juicy drill targets.
For some reason, the market didn’t appear to be impressed with the results of the SkyTEM survey as the share price dipped to a low of C$0.325 before closing at C$0.335, which is likely a result of the $2.4M financing that became free trading on October 6th.. However, the importance of these drill targets seems to be sinking in as District Metals has now closed higher for four days in a row and the Wednesday share price at the closing bell was C$0.42, about 25% higher than the closing price the day the aerial survey results were released.
The methodological exploration approach seems to be paying off and District is still planning on drilling Tomtebo in Q1 2021.
Disclosure: The author has a long position in District Metals. District is a sponsor of the website