Alicanto Minerals Ltd (ASX: AQI) has entered into a binding agreement to acquire the historical Falun mine and surrounding tenements in Sweden.
The Falun mine historically produced 28Mt at 4% copper, 4g/t gold, 5% zinc, 2% lead and 35g/t silver.
Highlights
- The combination of Falun and Alicanto’s existing adjacent Greater Falun Project means the company now controls over 60km of the target limestone horizon within a total landholding of 312 sq. km.
- Total consideration is A$200,000 comprising an immediately payable deposit of A$10,000, a cash payment on completion of A$40,000 and Alicanto shares to the value of A$150,000
- Alicanto geologists are now compiling and reviewing the data from the historic Falun mine; despite its world-class credentials, Falun received very little follow up modern exploration since the mine closure in 1992
- This acquisition follows the recent announcement of significant visual polymetallic massive to semi massive-sulphide mineralisation in the first drill hole at the Skyttgruvan-Naverberg target located only 3.5km along strike and hosted within the same lithological horizon as the Falun Mine
- A second follow up diamond drill hole is now underway at that target and core from the first hole has been dispatched to the laboratory for analysis. Assay results from the first drill hole are expected this quarter
This is an exceptional acquisition opportunity. There has been no exploration of any note at Falun since it closed in 1992 amid low commodity prices, meaning there is substantial upside,” Managing Director Rob Sennitt said.
“The strength of the opportunity is also demonstrated by Falun’s location along strike from our Greater Falun project, where we have just intersected visible zinc, copper and silver in the first hole at the new Skyttgruvan- Naverberg target.
“This result builds on our thesis that the Greater Falun project is part of a major mineralised belt that includes the historic Falun mine.
“The opportunity to acquire the tenements associated with this historically significant mine allows us access to some of the most prospective tenure in the area while further consolidating our interests in the region. We will now own over 300sqkms in this highly prospective mining district.
“Combined with our Sala Project, where we recently defined our maiden Resource, Alicanto now has two outstanding assets.”
The Acquisition
The Greater Falun Project is contiguous to the historic Falun mine.
The company has entered into a binding agreement to acquire the historic Falun Mine and associated tenements from the current owners, Explora Mineral AB. This acquisition allows Alicanto to consolidate its interests in this highly prospective district and extends its total tenement area to 312 sq. km.
