Alicanto Minerals Ltd (ASX:AQI) has delivered a maiden resource it describes as "outstanding" for the Sala Zinc-Silver-Lead Project in Sweden in little more than a year since its acquisition, ranking the project as the largest active undeveloped polymetallic base metals deposit in Sweden.
The JORC 2012-compliant inferred mineral resource estimate (MRE) comprises a total of 9.7 million tonnes at 4.5% zinc equivalent, containing more than 311,000 tonnes of zinc, 15 million ounces of silver and 44,000 tonnes of lead, reported at a 2.5% zinc equivalent cut-off.
A coherent near-surface high-grade breccia zone dominated by semi-massive sphalerite comprises the majority of the resource with 4.5 million tonnes at 6.0% zinc equivalent, containing 8.5 million ounces of silver and 201,000 tonnes of zinc reported at a 4% zinc equivalent cut-off.
Results from the breccia zone include:
- 4.7 metres at 24.4% zinc and 875 g/t silver and 3.7% lead from 258.6 metres;
- 2.8 metres at 12.7% zinc and 22 g/t silver from 516.9 metres;
- 4.3 metres at 20.7% zinc, 165 g/t silver, 1.1% lead from 76.4 metres; and
- 5.9 metres at 20.2% zinc, 0.2% lead from 63.5 metres.
In total, assay data from 135 holes for 35,909 metres were used for the Sala resource.
“Immense growth potential”
Alicanto managing director Peter George said: “This is an outstanding maiden resource which demonstrates the growing scale and quality of the Sala project.
“The fact that we established such a substantial resource in just over a year of taking ownership also highlights the strength of the mineralisation and the immense ongoing growth potential.
“We believe there is significant inventory growth to come, with the mineralisation open in every direction and numerous highly prospective targets to drill.
“We will maintain the pace of drilling to unlock the full value of this asset, creating significant value for Alicanto shareholders in the process.”
Work ongoing
Ongoing diamond drilling is continuing to target near-surface and down plunge extensions of the area, with further assays in the coming weeks.
The resource estimate, independently estimated by leading Perth-based Cube Consulting, is based on the previously reported data by Alicanto, which included more than 20,771 metres of diamond drilling completed since the project was acquired in February 2021.
The mineralisation system remains open for further growth, both at depth below the Prince and Sala lodes and from surface along the prospective lithological horizon.
Alicanto is well-funded to grow the Sala deposit with A$6.1 million in cash as at March 31, 2022.
Long section demonstrating the high-grade zone which totals 4.5 million tonnes at 6.0% zinc equivalent.
Sala background
The Sala project consists of a zinc-silver-lead mineralised limestone-skarn hosted deposit in the Bergslagen volcanic region, widely viewed as a Tier-1 jurisdiction based on its large mineralised systems, highly developed infrastructure and pro-mining regime.
Sala is in a world-class mining province hosting projects with similar geology such as Boliden’s Garpenberg silver and base metals operations, said to be Sweden most modern mine with reserves and resources of 172 million tonnes, and Lundin Mining’s Zinkgruvan with 46 million tonnes.
Production in the Sala region was last undertaken at the Bronäs mine, about 400 metres from Sala in 1962, where more than 200 million ounces of silver had been produced at grades of up to 7,000 g/t as well as 35,000 tonnes of lead.
A drill program undertaken in 2012 showed that the Sala mineralisation continues to plunge to the northwest from the historic mine area and remains open and untested to the north and down-dip.
Sweden is the largest producer of zinc in Europe and leads the world’s green transition with its 98% fossil fuel free electricity supply, making the Sala project a crucial one that Alicanto is keen to get up and running soon.