District Metals Corp revealed that its wholly-owned Swedish subsidiary Bergslagen Metals AB has applied for a 2,302-hectare mineral license to explore for vanadium, nickel, molybdenum, zinc, and other elements, covering nearly 68% of the polymetallic Viken Deposit in Jämtland County, around 570 kilometers (km) northwest of Stockholm, Sweden.
The Vancouver, British Columbia-based company noted that the Viken Deposit is “the largest undeveloped” Alum Shale vanadium-uranium-molybdenum-nickel-copper-zinc deposit in Sweden, and among the largest deposits by total historic mineral resources of vanadium and uranium in the world.
District said the Bergsstaten (Mining Inspectorate) is likely to reach a decision on the company's Viken nr 101 mineral license application by the end of February 2023.
In a statement, District CEO Garrett Ainsworth said: “Our mineral license application over much of the polymetallic Viken Deposit presents an excellent opportunity for the company to obtain a mineral asset that has seen ample recent exploration and development expenditures, which has resulted in the definition of large historic polymetallic resource estimates and positive economic studies."
District highlighted the following:
- The application covers 68% of the Viken Deposit, a large polymetallic deposit containing economically significant levels of vanadium (V), uranium (U), molybdenum (Mo), nickel (Ni), copper (Cu), and zinc (Zn).
- A 2010 Preliminary Economic Assessment (PEA) report on the Viken Deposit calculated historical mineral resource estimates for V2O5, U3O8, Mo, and Ni of:
- Indicated Mineral Resources: 23.6 million tons at an average grade of 0.31% V2O5, 0.019% U3O8, 0.028% Mo, and 0.032% Ni containing 162.8 million pounds (lbs) of V2O5, 9.9 million lbs of U3O8, 14.7 million lbs of Mo, and 16.5 million lbs of Ni.
- Inferred Mineral Resources: 2.8 billion tons at an average grade of 0.27% V2O5, 0.017% U3O8, 0.024% Mo, and 0.032% Ni containing 16.7 billion lbs of V2O5, 1 billion lbs of U3O8, 1.5 billion lbs of Mo, and 2.0 billion lbs of Ni.
Investors can find a 2014 updated resource estimate and PEA report on the Viken Deposit here.
District said Sweden's new center-right coalition government has signaled strong support for nuclear power. There are currently six operating nuclear reactors in Sweden that supply about 40% of the country's electricity. The new government has called for the possible restart of Ringhals units 1 and 2, as well as the construction of new reactors.
The new government in Sweden passed a motion on November 22, 2022 to revert the Minerals Act back to its original wording before August 1, 2018 to make uranium mining possible again in Sweden.
District’s flagship advanced exploration stage Tomtebo property is in the Bergslagen Mining District of south-central Sweden.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive