The Southern Gold Line project consists of a group of licences adjacent to Dragon Mining Limited's Fäboliden gold development project
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.
- 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). 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.
- 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”.
Source: Company Press Release