Alicanto Minerals Ltd (ASX:AQI) has inked a binding agreement to purchase the world-class Falun copper-gold-zinc mine in Sweden and the surrounding tenements, adding the tenure to its existing Greater Falun Project and expanding its landholding to 312 square kilometres.
The Falun mine historically produced about 28 million tonnes of ore at 4% copper, 4 g/t gold, 5% zinc and 35 g/t silver before the mine was closed in 1992 due to low commodity prices.
“This is an exceptional acquisition opportunity. There has been no exploration of any note at Falun since it closed in 1992 amid low commodity prices, meaning there is substantial upside,” Alicanto Minerals managing director Rob Sennitt said.
Alicanto is moving to investigate this upside.
The company’s geologists have begun to compile and review existing data, while on-site a diamond drill hole at the new Skyttgruvan-Naverberg target has revealed visual polymetallic massive to semi-massive sulphide mineralisation, just 3.5 kilometres along strike from the Falun mine.
A second drill hole is underway, and core samples from the first have been dispatched to the laboratory for analysis
AQI has agreed to pay $200,000 in total consideration, with an immediately payable deposit of $10,000, a cash payment on completion of $40,000 and Alicanto shares to the value of $150,000.
“Part of major mineralised belt”
“The strength of the opportunity is demonstrated by Falun’s location along strike from our Greater Falun project, where we have just intersected visible zinc, copper and silver in the first hole at the new Skyttgruvan-Naverberg target,” Sennitt continued.
Map of Falun regional geology showing the location of the acquisition in red.
“This result builds on our thesis that the Greater Falun project is part of a major mineralised belt that includes the historic Falun mine.
“The opportunity to acquire the tenements associated with this historically significant mine allows us access to some of the most prospective tenure in the area while further consolidating our interests in the region.
“We will now own over 300 square kilometres in this highly prospective mining district.
"Combined with our Sala Project, where we recently defined our maiden resource, Alicanto now has two outstanding assets.”