New Dimension Acquires 3 High-Grade Gold and Copper Projects
VANCOUVER, BC, Aug. 11, 2020 /PRNewswire/ - New Dimension Resources Ltd. (TSXV: NDR) (the "Company", New Dimension" or "NDR") is pleased to announce that it has now cemented its diversification strategy by executing an option and purchase agreement with EMX Royalty Corporation (NYSE American: EMX; TSX Venture: EMX) for the acquisition of 100% interests in the Southern Gold Line Project in central Sweden, and the Løkken and Kjøli copper-zinc-gold projects in central Norway (Figure 1). The Southern Gold Line project consists of a group of licences adjacent to Dragon Mining Limited's Fäboliden gold development project, whilst the Løkken and Kjøli licences cover both past-producing, high-grade copper(-zinc-gold) mines as well as drill-ready regional exploration targets.
Highlights of the Acquisition
- New Dimension to acquire 100% interests in three advanced-stage Scandinavian projects: the Southern Gold Line project in central Sweden, and the Løkken and Kjøli projects in central Norway.
- The Southern Gold Line project forms a group of licences surrounding the Fäboliden gold development project, and hosts both orogenic-style gold mineralization along granite-greenstone contacts as well as intrusion-related gold mineralization (Figure 2).
- Løkken and Kjøli are copper-rich, volcanogenic massive sulfide("VMS")-style projects. The past-producing Løkken mine (production ended in 1987) was known as one of the premier examples of a Cyprus-type copper-rich VMS deposit, with historical production estimated at 24Mt @ 2.3% Cu + 1.8% Zn (plus gold credits)1. Kjøli is located in the productive Røros mining district, which forms part of the renowned Røros-Tynset-Folldal belt of VMS deposits in central Norway (Figures 3-5).
- Significant upside potential for new discoveries in all properties, including "brownfields" discoveries around known mineral deposits and "greenfields" discoveries in satellite bodies.
- Both Sweden and Norway offer stable mining jurisdictions with competitive operating costs.
- Potential funding to be raised as announced August 6, 2020 will be primarily used to advance these properties to drill-ready status.
Eric Roth, New Dimension's CEO, commented today: "I am very pleased to be reporting the acquisition of these three highly-prospective gold and copper properties in Sweden and Norway from EMX. The Southern Gold Line represents a highly underexplored extension of the Swedish Gold Line, and our focus here will be to advance targets hosting gold mineralization in similar geologic and structural settings to the adjacent Fäboliden deposit. At both Løkken and Kjøli, we are excited by the potential for new discovery given that VMS deposits typically occur in clusters and existing geological and geophysical datasets suggest numerous untested anomalies along strike from previous mining operations. Indeed, some of these anomalies represent "walk-up" drill targets for the Company and we look forward to drilling these as quickly as possible. I look forward to keeping the market informed as we move towards drilling on all three projects".
1 Historic production values quoted for Løkken are from Grenne T, Ihlen PM, Vokes FM (1999) Scandinavian Caledonide metallogeny in a plate-tectonic perspective. Mineral Deposita 34:422–471, Neither NDR or EMX have performed sufficient work to verify the published data reported above, but both Companies believe this information to be considered reliable and relevant.
Acquisition Terms for 100% Interest in the Southern Gold Line, Løkken and Kjøli Projects
- New Dimension will pay EMX USD 25,000 in cash upon signing.
- Upon completion of all on-site Due Diligence (expected by September 1, 2020), an initial 12-month option period will begin, and the Company will issue EMX 3 million common shares of NDR.
- During the initial option period (September 1, 2020 to September 1, 2021), New Dimension will be required to invest a minimum of USD 100,000 in exploration in each of the three projects.
- Until NDR has completed financings to the value of CAD 4,500,000, EMX will retain a free-carried 9.9% shareholding in NDR. Afterwards, EMX retains the option to participate in future financings at its own discretion.
- During the second year from signing (September 1, 2021 to September 1, 2022), NDR will be required to invest a minimum of USD 500,000 on all three projects. During subsequent years, NDR will be required to drill a minimum of 1,000m on each project.
- From the second anniversary of signing (September 1, 2022), NDR will be required to make advanced royalty payments to EMX of USD 25,000 per project, increasing USD 5,000/year up until reaching a maximum of USD 75,000/year per project.
- NDR to make additional payments of USD 500,000 to EMX upon:
- The filing of a Preliminary Economic Assessment technical report
- The filing of a National Instrument 43-101 ("NI-43101) complaint feasibility study
- EMX to retain a 2.5% NSR in the projects, with 0.5% being purchasable for USD 1M within 6 years
Scandinavian Project Overview
Løkken Project, Norway. Løkken is considered to be the largest ophiolite-hosted Cypress-type VMS deposit to be developed in the world. Production at Løkken commenced in 1654 and continued until closure in 1987, producing some 24Mt @ 2.3% Cu and 1.8% Zn (plus gold credits)1, with multiple satellite bodies of mineralization that also saw varying degrees of development. Several zones of drill defined mineralization remain undeveloped in the district, where clear evidence is seen for mineralization developed in multiple stratigraphic horizons and along strike of the major deposits. Historic data sets also include extensive geophysical surveys, with multiple untested anomalies. The Løkken concessions cover approximately 210 square kilometers (21,000 Ha) of prospective stratigraphy along strike from the former mining operations.
Both Løkken and Kjøli (see description below) are part of a broader geologic terrain that was originally linked geologically to the VMS districts in Newfoundland-New Brunswick-Maine and the Appalachian Mountains of North America. This terrain constitutes one of the most prolific VMS belts in the world.
Kjøli Project, Norway. Like the Løkken District, the Kjøli Project represents an extensive trend of VMS-type occurrences and historic mines. Kjøli is positioned along the northern extension of the belt of VMS deposits in Norway that comprise the greater Røros district, which as seen mining for over 300 years beginning in the mid-1600's. The Kjøli project contains the Killingdal mine, which operated 1674-1986 and produced over 2.9 Mt @ 1.7% Cu + 5.5% Zn2. Recent airborne geophysical surveys identified numerous exploration targets on the Kjøli project that have not yet been followed up. The Kjoli Project covers an area of approximately 120 square kilometres (12,000 Ha).
2 Historic production figures are from Birkeland, A. (1986) Mineralogisk og geokjemisk undersokelseav Killingdal gruver, Sor-Trondelag. M. Scient. Thesis, University of Oslo in Geological Survey of Finland, Special Paper 53 pg. 86.
Southern Gold Line, Sweden. The Southern Gold Line project is located in central Sweden and consists of six prospective licenses in the vicinity of, and along trend of, Dragon Mining Ltd's Fäboliden development project3. The Southern Gold Line Project consists of over 500 square kilometres (50,000 hectares) of exploration concessions which cover areas with similar geologic and structural settings as the Fäboliden deposit. Reconnaissance sampling and mapping programs are ongoing in the area, with initial BLEG samples collected across portions of the licenses showing multiple areas with enrichment of gold in stream sediments.
3 References made to nearby mines and analogous deposits provide context for the Southern Gold Line project, but are not necessarily indicative that the project hosts similar tonnages or grades of mineralization.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a director and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr. Roth has over 25 years of experience in international minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
Eric Roth, Ph.D., FAusIMM
President & CEO
About New Dimension Resources
New Dimension is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and base metal deposits. The Company's current focus is on the discovery through exploration and discovery of high-grade gold deposits on its newly-acquired Southern Gold Line Project (Sweden), as well as on its existing 100%-owned Savant Lake project in Ontario and 29.6% interest in the Domain JV in Manitoba (Canada). In addition, the Company has acquired a 100% interest in two large properties covering the past-producing Løkken and Kjøli copper-rich massive sulfide deposits in central Norway.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in New Dimension's most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE New Dimension Resources Ltd.