CAPELLA MINERALS LIMITED The Hessjogruva project is located approximately 20km SW of the Company's 100%-owned Kjoli Cu-Zn-Co project and has a current mineral inventory (non-Canadian National Instrument NI 43-101 compliant mineral resource) of 3MT @ 1.7% Cu + 1.4% Zn1,2 (or 2.2% Cu equivalent3) based on a total of 12,139m / 68 holes of historical diamond drilling.
The Hessjogruva project provides Capella with a potential near-term development asset which complements the Company's ongoing exploration activities at the adjacent Kjoli project. Both Hessjogruva AS and local government / communities will benefit directly from the successful advancement and development of the Hessjogruva project, with copper and cobalt also being key metals required for zero-carbon energy transmission and for battery/energy storage.
Highlights
Capella to acquire a 100% interest in the advanced-stage Hessjogruva Cu-Zn-Co project.
Hessjogruva's current mineral inventory (non-Canadian National Instrument NI 43-101 compliant mineral resource) is 3MT @ 1.7% Cu + 1.4% Zn1,2 (or 2.2% Cu equivalent3), based on 12,139m / 68 holes of diamond drilling completed by previous operators in the 1970's. Historical assaying was focused principally on copper and zinc (but not cobalt).
The Cu-Zn-Co mineralization at Hessjogruva is massive-sulfide ('VMS')-type, identical to the mineralization type being targeted at Kjoli. The Hessjogruva mineralization occurs primarily in three lenses, all of which extend from surface to >400m vertically below surface and all remain open down-dip. Mineralization is dominated by chalcopyrite, pyrite/pyrrhotite, and sphalerite, with Cu content observed to increase with depth in the deposit.
The average thickness of the highest-grade Lens A is approximately 10m1, with the thickest and highest-grade intercept reported from the historical drilling being 14.5m @ 4.35% Cu + 1.3% Zn (or 4.8% Cu equivalent2) (approximate true thickness) from 455.5m to 470m downhole in DDH-312. This Cu-Zn-Co mineralization remains open down dip.
As part of a due-diligence process, the Company completed a systematic resampling program of the Hessjogruva drill core stored at the NGU storage facility in Lokken. A total of 113 quarter core samples were taken for analysis and confirmed: i) the reliability of copper and zinc grades reported from historical drilling, and ii) the existence of elevated cobalt concentrations (ranging from below detection limit to 0.1% Co) within the re-assayed core intervals.
The combined Hessjogruva and Kjoli projects provide Capella with both a potential near-term development project as well as significant exploration upside within the past producing
Reader is also referred to 'Disclosure Relating to Historical Estimate' section.
Copper equivalent grades have been calculated using 2022 Year-to-Date average copper and zinc prices of
Our strict compliance to ESG (Environmental, Social and Governance) principles will also ensure that we continue to work with net zero-carbon emission standards and with maximum respect towards both local communities and the environment.
We expect our first priority to be the completion of an NI 43-101 compliant mineral resource for the project, which is expected to also lead to further infill and step-out drilling. Subsequently, we expect to initiate some of the development-related studies (such as metallurgical testwork) that a scoping-level mining study would require. I look forward to keeping all stakeholders updated as the Hessjogruva project moves forward.'
About
Capella is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and copper(-zinc-cobalt) deposits. The Company also holds 1,000,000 common shares (on a post-consolidation basis) in
The Company's copper(-zinc-cobalt) focus is currently on the discovery of high-grade VMS-type deposits within 100%-owned, district-scale land positions around the past-producing Lokken, Kjoli, and now Hessjogruva copper mines in central
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.
Contact:
Email: info@capellaminerals.com
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