VANCOUVER, BC, Oct. 28, 2020 /PRNewswire/ - New Dimension Resources Ltd. (TSXV: NDR) (the "Company", New Dimension" or "NDR") is pleased to report that it has successfully completed its on-site due diligence on the Løkken and Kjøli base metal projects in Norway and the Southern Gold Line project in Sweden (collectively, the "Scandinavian Projects"). The Company holds the right to acquire 100% interests in the Scandinavian Projects pursuant to an option and purchase agreement with EMX Royalty Corporation (NYSE American: EMX; TSXV: EMX)(Figure 1) (refer to the Company's press release dated August 11, 2020). The Company is also pleased to report that field crews have been mobilized to all three projects with the objective of advancing priority targets to drilling.
- New Dimension has successfully completed on-site due diligence on the district-scale land holdings optioned from EMX around the past-producing Løkken and Kjøli copper-zinc(-silver-gold) deposits in central Norway and the Southern Gold Line gold project in central Sweden.
- Field crews have been mobilized to all three Scandinavian Projects, with the immediate focus being on:
- Prioritizing high-grade copper-rich massive sulfide ("VMS") targets at both Løkken and Kjøli for drilling. Previous targeting focused on the locations of mineral occurrences and high-conductivity anomalies in airborne electromagnetic data, with the current work program further refining these targets through the acquisition of detailed ground magnetic data and select soil geochemical sampling. Approximately 4.5km of the prospective 15km strike length at Kjøli has now been covered by detailed ground magnetic data (Figures 2 & 3). Field crews were mobilized to Løkken in early October to undertake similar field programs.
- Planning is underway for a "bottom of till" auger drill program on the Rötjärnen claim at Southern Gold Line, where locating the source of gold-mineralized boulder trains remains a high priority. In parallel, a low-cost regional Bulk Leach Extractable Gold ("BLEG") sampling program continues on the 50,000 Ha property.
- The Company is adequately funded to advance the Scandinavian Projects to drilling after the completion of its recent financing.
- The Company intends to complete a technical report in compliance with National Instrument 43–101 ("NI 43-101") on one of the Scandinavian Projects; a technical report for Løkken has now been initiated and is expected to be filed by mid-November.
Eric Roth, New Dimension's President and CEO, commented today: "I am very pleased to be reporting that our on-site due diligence of the Scandinavian Projects has been completed, and that field crews are now busy working on the advancement of our priority targets to drilling. I am particularly excited by the potential for new discovery at both Løkken and Kjøli, given that existing geological and geophysical datasets suggest numerous untested anomalies (including some "walk-up" drill targets) along strike from previous mining operations. At Southern Gold Line, our immediate focus is to locate the source of gold-mineralized boulder trains in the southernmost Rötjärnen claim. In parallel, a low-cost reconnaissance BLEG sampling program is being undertaken across the entire property. Having been on-site at all three properties, I can personally attest to the potential for significant discovery and upside therein for New Dimension.
Aside from short term news flow from our three Scandinavian properties, I am also looking forward to keeping the market informed on advances made at our two high-grade gold Joint Venture projects - Domain (Yamana Gold JV) and Savant Lake (Ethos Gold JV) – as well as the recent Sierra Blanca divestiture (Austral Gold). The Company is now entering a phase of unprecedented exploration activity on a quality mix of high-grade gold and base metals projects."
Link to figures:
Scandinavian Project Overview
Kjøli Copper-Zinc(-Silver-Gold) VMS Project, Norway
The Kjøli copper-zinc(-silver-gold) VMS project represents a district-scale (120 square kilometres, or 12,000 Ha) land position on the northern extension of the greater Røros district, which saw mining for over 300 years beginning in the mid-1600's. The Kjøli claims covers approximately 15 km of prospective stratigraphy extending north from the past-producing Killingdal mine, which operated from 1674 to 1986 and produced some 2.9 Mt @ 1.7% Cu + 5.5% Zn1 from one of Europe's deepest (1.4km) underground mines, and also covering the former Kjøli mine and numerous mineral occurrences in between. Recent field mapping and airborne geophysical surveys have identified numerous exploration targets on the Kjøli claim block that have not yet been followed up. In addition, a regional-scale thrust fault has superimposed post-mineralization sandstones over the mineralized volcano-sedimentary sequences in the western portion of the property, and the potential for the discovery of buried massive sulfide deposits beneath the thrust remains high.
Field activities were initiated at Kjøli during September with ground magnetic and soil sampling surveys having now been completed over approximately 4.5km of the 15km of the prospective stratigraphy which hosts the historic copper mines and key mineral occurrences. Nearly 200 line kilometres of ground magnetic data have been acquired to date and 400 partial leach samples taken. Data from the ground magnetic survey is currently in the process of being processed and interpreted, with results from samples taken from the geochemical survey pending.
1 Historic production figures are from Birkeland, A. (1986) Mineralogisk og geokjemisk undersokelseav Killingdal gruver, Sor-Trondelag. M. Scient. Thesis, University of Oslo in Geological Survey of Finland, Special Paper 53 pg. 86.
Løkken Copper-Zinc(-Silver-Gold) Project, Norway
The Løkken copper-zinc(-silver-gold) project is located approximately 50km SW of the regional centre of Trondheim in central Norway. The Løkken claim block covers a total area of 210 square kilometres (21,000 Ha) and includes the former Løkken underground mine (which closed in 1987 in response to low metals prices), the associated historical mineral processing facilities, plus multiple satellite bodies of mineralization with varying degrees of development. Løkken is considered to be one of the largest ophiolite-hosted Cypress-type VMS deposits by tonnage to have been developed in the world and produced around 24Mt @ 2.3% Cu and 1.8% Zn (plus silver and gold credits)2. Historical records also suggest incomplete extraction of all high-grade copper-zinc blocks in the underground mining operation.
Field work is currently in progress at Løkken and includes the undertaking of ground magnetic and soil geochemical surveys over key regional target areas, commencing with the Dragset target (Figures 4 & 5). In parallel, efforts to obtain and reprocess existing regional airborne electromagnetic datasets (key for modelling buried massive sulfide mineralization), together with the digitizing of former underground mine plans for Løkken, are in progress. The Company expects to be able to continue undertaking field activities at Løkken until the arrival of winter snows (likely late November), with the permitting of drill targets expected to be undertaken immediately thereafter.
2 Historic production values quoted for Løkken are from Grenne T, Ihlen PM, Vokes FM (1999) Scandinavian Caledonide metallogeny in a plate-tectonic perspective. Mineral Deposita 34:422–471, Neither NDR or EMX have performed sufficient work to verify the published data reported above, but both Companies believe this information to be considered reliable and relevant.
Southern Gold Line, Sweden
The Southern Gold Line project is located in north-central Sweden and consists of 500 square kilometres (50,000ha) of mineral claims located in the immediate vicinity of Dragon Mining Ltd's Fäboliden development project and Svartliden gold mine3 (Figure 6). The Southern Gold Line exploration concessions cover areas with similar geologic and structural settings to the Fäboliden deposit (orogenic gold deposits located at, or near, granitoid-greenstone contacts). Host rocks to the high-grade gold mineralization are Paleoproterozoic in age. Reconnaissance sampling and mapping programs are ongoing, with initial BLEG samples collected across portions of the licenses showing multiple areas with enrichment of gold in stream sediments. Planning for bottom of till / top of bedrock auger drilling in the highly prospective southern Rötjärnen claim, where gold mineralized boulder trains have been identified on surface, is underway with auger drilling currently expected to be undertaken in late 2020.
3 References made to nearby mines and analogous deposits provide context for the Southern Gold Line project but are not necessarily indicative that the project hosts similar tonnages or grades of gold mineralization.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a director and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr. Roth has over 25 years of experience in international minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
Eric Roth, Ph.D., FAusIMM
President & CEO
About New Dimension Resources Ltd
New Dimension is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and base metal deposits. The Company's precious metals focus is on the discovery through exploration of high-grade gold deposits on its recently optioned Southern Gold Line Project (Sweden), as well as on its active Joint Ventures with Ethos Gold Corp. at Savant Lake (Ontario) and Yamana Gold Inc. at Domain (Manitoba), and the divestiture of Sierra Blanca (Argentina) to Austral Gold Ltd. The Company's base metals focus is on the discovery of high-grade copper-rich VMS deposits on the district-scale land positions around the past-producing Løkken and Kjøli mines in central Norway. Field activities are underway on all projects, with the primary focus being to advance priority targets to drilling.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in New Dimension's most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE New Dimension Resources Ltd.