TSX-V: NDR
VANCOUVER, BC, Aug. 11, 2020 /CNW/ - 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.
|
Link to figures:
https://newdimensionresources.com/site/assets/files/13220/2020-08-scandinavia-acquisition.pdf
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.
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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.
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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"
___________________________
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.
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SOURCE New Dimension Resources Ltd.