VANCOUVER, BC, May 23, 2023
/CNW/ - Capella Minerals Ltd (TSXV: CMIL) (OTCQB:
CMILF) (FRA: N7D2) ("Capella" or the "Company") is pleased to
provide the following update on exploration activities being
undertaken on the Company´s 100%-owned copper-zinc-cobalt
("Cu-Zn-Co") projects in the Hessjøgruva-Kjøli District, Trøndelag
Province, central Norway. The
Hessjøgruva-Kjøli District consists of the advanced
exploration-stage Hessjøgruva VMS Project, the former mining /
mineral processing centre at Kongensgruve, and the Kjøli VMS
Project (Figure 1), with Hessjøgruva representing the Company´s
cornerstone asset in the District.
Figure 1. Locations of the high-grade Cu-Zn-Co
Hessjøgruva, Kongensgruve, and Kjøli Projects, Trøndelag Province,
central Norway.
Hessjøgruva Drill Permits
Approved
Capella is pleased to advise that it has received the key
approvals required for initiating diamond drilling at the
Hessjøgruva Cu-rich massive sulfide ("VMS") Project on or after
July 1, 2023. The issuance of the
drill permits is a reflection of the strong community support that
the Company has received for advancing the Hessjøgruva project,
which has essentially remained idle since the completion of
12,035m / 67 holes of historical
diamond drilling in the 1970´s (see Capella´s Canadian National
Instrument 43-101 or "NI 43-101" compliant technical report as
filed on SEDAR on September 7, 2022;
www.sedar.com).
The Hessjøgruva permitting was based on the completion of a
minimum of 3,000m / 6 holes of both
infill and step-out drilling on the high-grade Hessjøgruva Lens A
deposit (Figure 2), one of three main copper mineralized lenses on
the property. The upcoming drill program has been designed to
assist the Company with its goal of completing a maiden NI 43-101
compliant Mineral Resource Estimate for Hessjøgruva, in addition to
providing fresh core for metallurgical testwork and baseline data
for initial development studies.
Figure 2. Massive sulfide
(pyrrhotite-chalcopyrite-sphalerite) style mineralization from
historical drill hole DDH-240, central portion of the Hessjøgruva
deposit. Section view to NW.
Kjøli Scout Drill
Program
Capella completed an initial 1,412m / 8 hole diamond drill program at the
Kjøli Cu-Zn-Co VMS project (Figure 3; Table 1). The eight scout
holes were targeted on combined geological and geophysical
(electromagnetic and gravimetric) anomalies - considered favourable
for the discovery of massive sulfide-type mineralization - in the
Guldalsgruva/Rørosmenna area (4 holes), the Kjøli East/Rundhaugen
area (2 holes), and the 2km-long Kjøli Deeps target (2 holes,
although KJ-008 is a redrill of hole KJ-001 which missed the target
due to excessive deviation).
Copper and zinc assays have now been received for drill holes
KJ-001 to KJ-007; assays for drill hole KJ-008 (the redrill of
KJ-001) at Kjøli Deeps are pending. Locations of completed drill
holes and significant intervals returned are indicated below.
Figure 3. Location of scout drill holes at Kjøli.
Significant Intervals to Date –
Kjøli Scout Drill Program
KJ-004 (Guldalsgruva Sector)
2.9m @ 1.4%
Cu from 8.25m downhole
(including 0.4m @ 5.3%
Cu from 9.5m downhole)
1.2m @ 0.2%
Cu + 0.7% Zn from 110.9m
downhole
KJ-005 (Rørosmenna Sector)
1m @ 1.5% Zn
+ 0.4% Cu from 33.35m
downhole
0.4m @ 0.8%
Cu + 1.4% Zn from 36.4m
downhole
KJ-007 (Rørosmenna Sector)
1.8m @ 3.0% Zn + 0.6% Cu from
69.65m downhole
No significant intercepts are reported for drill holes KJ-001,
KJ-002 and KJ-006.
Figure 4. Semi-massive chalcopyrite and pyrrhotite
in drill hole KJ-004, Guldalsgruva sector. Upper core interval
(8.25-9.5m) returned 1.3% Cu, lower
core interval (9.5-9.9m) returned
5.3% Cu.
Table 1. Drill hole collars - Kjøli
Drill
Hole
|
Easting
|
Northing
|
Altitude
(m)
|
Azimuth
(Deg.)
|
Dip
(Deg.)
|
Depth
(m)
|
Comments
|
KJ-001
|
635,373
|
6,973,345
|
1,010
|
140
|
-60
|
330.05
|
Kjøli Deeps;
Excessive
deviation, missed target
|
KJ-002
|
635,729
|
6,973,844
|
967
|
120
|
-60
|
248.9
|
Kjøli East
|
KJ-003
|
635,334
|
6,974,471
|
1,011
|
140
|
-60
|
129.1
|
Rundhaugen
|
KJ-004
|
629,905
|
6,970,380
|
949
|
180
|
-60
|
122.55
|
Guldalsgruva
|
KJ-005
|
628,635
|
6,969,791
|
872
|
0
|
-90
|
120.5
|
Rørosmenna
|
KJ-006
|
629,840
|
6,970,529
|
929
|
180
|
-50
|
120.05
|
Rørosmenna
|
KJ-007
|
628,428
|
6,969,869
|
882
|
160
|
-60
|
80.4
|
Rørosmenna
|
KJ-008
|
635,358
|
6,973,277
|
1,010
|
100
|
-60
|
260.55
|
Redrill of KJ-001;
Assays
Pending
|
Eric Roth, Capella´s President
and CEO commented: "We are very pleased to be announcing the
issuance of drill permits for our advanced exploration-stage
Hessjøgruva project. In conjunction with exploration efforts being
undertaken at the adjacent Kongensgruve and Kjøli projects, we
continue to work towards unlocking the resource potential of the
broader Hessjøgruva-Kjøli District. I look forward to keeping the
market updated as our exploration programs advance."
Quality Assurance/Quality Control
(QA/QC) - Kjøli Drill Core
Capella implemented a Quality Assurance/Quality Control (QA/QC)
program to ensure that the logging and processing of the Kjøli
drill core was conducted in accordance with NI 43-101 standards and
industry best practice. Drill core samples were NQ-sized and were
logged, photographed, and marked-up for sampling by Company
geologists at a logging facility in the nearby town of Ålen. Core
for sampling was then transported to the NGU (Norwegian Geological
Survey) core facility in Løkken for cutting with a diamond saw,
with one half being dispatched to the analytical laboratory and the
other half remaining in storage at the NGU core facility. Sample
lengths were typically 1.0 meter but locally adjusted to respect
mineralogical contacts and narrower sulfide-bearing zones.
Samples for analysis were then sealed in plastic bags and
couriered to MS Analytical in Stensele, Sweden, for sample preparation. All samples
were dried and crushed to 70% passing 2mm, with a 250g
representative split then being taken and further pulverized to a
pulp with 85% passing 75 microns. All pulps were subsequently
analyzed for Au, Pt, and Pd (30g fusion with ICP-AES finish; Code
FAS-113) plus a multi-element package (4 acid digestion with
ICP-AES/MS finish; Code IMS-230). Ore grade intervals of Cu and Zn
were further reanalyzed using the ICF-6Cu/6Zn analytical
techniques. Internal controls of analytical results were provided
through a mix of Certified Reference Materials (standards),
duplicates, and blanks inserted by both Capella and MS Analytical
in to the analytical sequence.
Qualified Persons and Disclosure
Statement
The technical information in this news release relating to the
Hessjøgruva and Kjøli projects 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 35 years of experience in international
minerals exploration and mining project evaluation.
On Behalf of the Board of Capella Minerals Ltd.
"Eric Roth"
___________________________
Eric Roth, Ph.D., FAusIMM
President
& CEO
About Capella Minerals
Ltd
Capella is engaged in the acquisition, exploration, and
development of quality mineral resource properties in favourable
jurisdictions with a focus on European base and battery metals
projects.
In Norway, the Company's focus
is on: i) the advanced exploration-stage Hessjøgruva copper-cobalt
project and the adjacent Kongensgruve and Kjøli projects in the
northern Røros mining district, Trøndelag province, ii) the
discovery of satellite high-grade copper-cobalt deposits around the
past-producing Løkken copper mine, Trøndelag province, and iii) the
discovery of new copper-cobalt deposits in the former
Vaddas-Birtavarre mining district of northern Norway.
The Company is also exploring the Northern Finland Gold-Copper
(NFGC) project in the Central Lapland Greenstone Belt, together
with JV partner Cullen Resources Ltd (ASX: CUL). A total of six
exploration permit applications are awaiting formal approval at
NFGC, including the priority Killero Cu-Au target. In central
Finland, the Company´s focus is on
the discovery of lithium and rare-earth element deposits at both
its Perho reservation, in addition to an extensive package of
properties in the broader Keliber district through a JV with
European Energy Metals Corp (formerly Hilo Mining)(TSXV: FIN).
Capella also retains exposure to exploration success in precious
metals projects through its active Canadian Joint Ventures with
Prospector Metals Corp. (TSXV: PPP) at Savant (Ontario) and Agnico Eagle Mines Ltd (formerly
Yamana Gold Inc.)(TSX/NYSE: AEM) at Domain (Manitoba). The Company also holds a 49%
interest in the Sierra Blanca low sulfidation gold-silver project
in Santa Cruz, Argentina, which is currently being explored
by Austral Gold Ltd (TSXV: AGLD; ASX: AGD).
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
Capella, 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 Capella 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 Capella's most recently filed MD&A. Capella 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 Capella Minerals Limited