The Løkken project is located 50 km southwest of the regional administrative city of Trondheim and surrounds the historic Løkken mine. The Løkken deposit was 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 24 million tonnes averaging 2.3% copper and 1.8% zinc, with multiple satellite bodies of mineralization that also saw varying degrees of development**. Several zones of historic 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 providing immediate upside exploration potential.
In August 2020 EMX announced the execution of an option agreement for Løkken project with New Dimension Resources (renamed to Capella Minerals TSX-V: CMIL, FRA: N7D2)(“CAP”) which provides EMX with up to a 9.9% equity interest in CAP, annual advance royalty payments, 2.5% Net Smelter Returns (“NSR”) royalty interests in the Projects and other considerations. See Company news release dated August 11, 2020 for more information.
*Sources: Norwegian Geological Survey Ore Deposit Database (1636-015), 2019; Metallognenic Areas in Norway, in Mineral Deposits and Metallogeny of Fennoscandia, Geological Survey of Finland, Special Paper 53, p. 35-138, 2012; Greene, 1989, Løkken Massive Sulfide Deposit, in Economic Geology, v 84., p 2173-2195.
** Historic production figures are from Mineral deposits and metallogeny of Fennoscandia. Geological Survey of Finland, Special Paper 53., Chapter: Mining history of Fennoscandia., Publisher: Geological Survey of Finland, Editors: Pasi Eilu, pp.19-32. EMX has not performed sufficient work to verify the “historic” estimates of mineral inventories and production figures, which are not compliant with NI43-101 standards for disclosure of mineral resources. EMX is not treating the estimates as current mineral resources, and these estimates should not be relied upon until they can be confirmed. However, the deposit size and production figures, as widely published in multiple sources, are considered relevant.