District Metals Corp. Unveils Promising Drill Results at Stollberg Property

In the ever-evolving landscape of mineral exploration, District Metals Corp. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) (FSE: DFPP) has made significant strides with its recent drill assay results from the Stollberg Property in Sweden's Bergslagen Mining District. The Fall 2024 drill program, conducted in collaboration with Boliden Mineral AB, has yielded impressive findings that could reshape the future of this polymetallic property.

The Stollberg Property, located in south-central Sweden, has a rich history dating back to the operation of the Gränsgruvan Mine from 1943 to 1978. The recent drilling campaign, which spanned from mid-October to mid-December 2024, focused on five drill holes around the historic mine. A total of 2,438 meters was drilled, revealing high-grade polymetallic mineralization that has sparked renewed interest in the area.

One of the most notable intersections was in drill hole GRAGR-152, which intersected 28.00 meters at 3.68% Zn, 0.70% Pb, 23 g/t Ag, 0.11 g/t Au, and 0.05% Cu. This included a higher-grade section of 11.00 meters at 5.80% Zn, 1.1% Pb, 20 g/t Ag, 0.16 g/t Au, and 0.10% Cu. Another significant intersection was in drill hole GRAGR-154, which intersected 9.85 meters at 4.52% Zn, 2.44% Pb, 21 g/t Ag, 0.1 g/t Au, and 0.01% Cu, including a 4.5-meter section at 7.81% Zn, 3.57% Pb, 34 g/t Ag, 0.14 g/t Au, and 0.01% Cu.

These results are particularly encouraging when compared to historical data and previous drilling campaigns. The recent findings not only confirm the presence of high-grade mineralization but also provide a better understanding of the geological structure at the Stollberg Property. The down-hole electromagnetic surveys showed multiple off-hole conductors in all drill holes, suggesting potential sulphide mineralization. This is consistent with the historical interpretation that the main limestone unit and perhaps the mineralization were folded. The current drill program has confirmed that the mine stratigraphy is tightly folded, which could explain why the high-grade mineralization could not previously be traced along strike and to depth at Gränsgruvan.

The Stollberg Property's similarities to the Garpenberg Mineralized Trend further enhance its potential. The alteration system and style of mineralization at the Stollberg Property are analogous to that at Boliden's operating Garpenberg Mine, which is located approximately 50 km east. As a reference point, 3.5 million tonnes with grades of 3.4% Zn, 1.5% Pb, 97 g/t Ag, and 0.33 g/t Au was mined at the Garpenberg Mine in 2024. This tonnage and grades from the Garpenberg Mine provide context for the potential mineralization at the Stollberg Property.

The collaboration between District Metals Corp. and Boliden Mineral AB is a strategic move that could significantly influence future exploration and development activities at the Stollberg Property. Under the terms of a definitive agreement dated October 27, 2023, Boliden and District will collaborate in the development of District's wholly-owned polymetallic Tomtebo Property and Boliden's wholly-owned polymetallic Stollberg Property. Initially, Boliden will be granted the right to earn up to an eighty-five percent (85%) interest in the Tomtebo Property through an "Earn-In Option." Following the exercise of this option, the Tomtebo Property will be contributed to a joint venture, along with Boliden's Stollberg Property, under which District will control an initial fifteen percent (15%) interest.

This partnership allows for shared expertise and resources, enhancing the efficiency and effectiveness of exploration efforts. Boliden brings its extensive experience in mining and exploration in the Bergslagen Mining District, while District Metals contributes its technical and geological expertise. The collaboration has already yielded positive results, as evidenced by the drill assay results from the Fall 2024 program. The drilling program revealed that the mine stratigraphy is tightly folded, with mineralization occurring as massive to semi-massive polymetallic sulphide lenses. Down-hole electromagnetic surveys showed multiple off-hole conductors in all drill holes, suggesting potential sulphide mineralization. The property shows similar characteristics to Boliden's operating Garpenberg Mine, located 50km east, which provides a strong reference point for the potential of the Stollberg Property.

In conclusion, the recent drill assay results from the Stollberg Property indicate the presence of high-grade polymetallic mineralization, provide a better understanding of the geological structure, and reveal similarities to the Garpenberg Mineralized Trend. These insights suggest that the Stollberg Property has significant mineralization potential. The collaboration between District Metals Corp. and Boliden Mineral AB is strategically significant as it combines the strengths of both companies, provides a clear development pathway, and has already yielded positive exploration results. This partnership is likely to influence future exploration and development activities at the Stollberg Property by fostering a cooperative approach, leveraging shared expertise, and enhancing the potential for successful mineral discovery and extraction.