Alicanto Minerals Ltd (ASX:AQI) is undertaking a 20,000-metre drilling campaign at its primary projects in the Bergslagen region of Sweden - the Greater Falun Copper-Gold-Silver-Zinc-Lead Project and at the nearby Sala Silver-Zinc-Lead Project.
Sala Silver Mine, known as the ‘Swedish Treasury’, has produced more than 200 million ounces of silver at very high grades and Alicanto is confident there is more to come.
The company recently undertook a detailed review of historical data that concluded Sala has strong exploration potential - having been exposed to virtually no modern techniques and mineralisation open in every direction.
A specialised diamond rig capable of drilling at the surface and underground is active at Sala.
“Busy six months ahead”
Alicanto managing director Peter George recently told Proactive's Andrew Scott that the drilling at Greater Falun was on a bit of a pause while large downhole EM surveys were carried out on the 4,000 metres recently drilled.
He said: “I expect to get the results from that over the next month.
“We’ve also got the MAG survey team out there at the same time, which will help us delineate where the causative intrusions are in relation to the drilling that we did.
“And that’s going to set us up for the continuation of drilling as we move forward at Greater Falun.
“It’s a really exciting time both at Falun and Sala actually, so we’ve got a really busy six months coming up.”
Stone Lake skarn mineralisation
Most recently at Greater Falun, the company intersected semi-massive sulphide skarn mineralisation with visual chalcopyrite in the second hole drilled at Stone Lake target.
Assays returned 0.27 metres at 5.92% copper and 4.6 parts per million (ppm) silver from 124.2 metres, as part of an interval grading 1.92% copper and 1.3 ppm silver over 0.92 metres.
George said: “It’s the first time that we’ve had any drill holes in history put into this particular area and to intersect high-grade copper of nearly 6% is a fantastic achievement for us.”
The semi-massive character of the intersected copper-skarn system, some 80 metres beneath historic workings with similar mineralisation, in combination with the most intense, proximal and prograde skarn alteration so far encountered at Greater Falun - highlighting the potential for significant mineralisation nearby.
Map of the Falun Project (AQI 100%) - showing current drill targets in yellow dots, the recently acquired Sala Silver Project (AQI 100%) and the Garpenberg Mine (owned and operated by Boliden).
Arakaka sale underway
Early this month, the company announced it would sell its Arakaka Gold Project in Guyana to private Canadian company Virgin Gold Corp as it looks to expand drilling at its flagship Swedish projects.
The company will receive up to C$4.75 million (around A$5.08 million) from the sale, which will be used to progress the drilling campaign underway in Sweden.
This deal will need to be approved by Alicanto shareholders and is subject to several conditions - mostly relating to Virgin Gold.
Doubling down in Sweden
George said Arakaka would be jettisoned in order to allow Alicanto to double down its focus on its two highly prospective Swedish projects.
“The Arakaka sale will enable us to focus our resources on unlocking the value of what is a potentially company-making opportunity at Greater Falun and Sala.
“The cash and the share component are going to go a long way towards helping what we’re doing over in Sweden.”
Bergslagen Mining District
Notably, both the company’s projects are in the Bergslagen region, which hosts world-class base and precious metals projects such as the Garpenberg mine owned by Boliden and the Zinkgruvan mine owned by Lundin.
Bergslagen is widely viewed as a Tier-1 jurisdiction based on its large mineralised systems, highly developed infrastructure and pro-mining regime.
George said: “The full potential in the Greater Falun area has yet to be unlocked.
“To now have Sala in our suite of projects is a significant addition to our portfolio within the Bergslagen area.”