Scout Drilling Update At The Kjøli Copper Project

VANCOUVER - Capella Minerals Ltd reported on its maiden scout core drill program at the Kjøli copper-cobalt-zinc massive sulfide (VMS) project in Trøndelag province, central Norway. Six holes for 1,080m of drilling have been completed to date on targets along the Kjøli Mine trend (Kjøli Mine and Guldalsgruva sectors) and at Kjøli Deeps (a coincident electromagnetic and gravity anomaly underlying the former Kjøli copper mine). Remobilized, semi-massive copper-rich (chalcopyrite-pyrrhotite) mineralization has been locally intersected in drilling along the Kjøli Mine trend, especially around Guldalsgruva. However, the first hole at Kjøli Deeps (KJ-001) experienced significant downhole deviation and failed to intersect the target. A subsequent downhole electromagnetic (EM") survey has confirmed the existence of an off-hole EM conductor in the vicinity of KJ-001 and this target is expected to be redrilled shortly.      

The scout diamond drill program of approximately 1,250m was initiated at the Kjøli copper-zinc-cobalt project in late-January. The Kjøli project is located approximately 20km NE of the Company's advanced-exploration stage Hessjøgruva project.A total of six holes / 1,080m of drilling has been completed to date on targets along the Kjøli Mine trend (Kjøli Mine and Guldalsgruva sectors) and Kjøli Deeps (a coincident electromagnetic and gravity anomaly underlying the former Kjøli copper mine). Remobilized, semi-massive copper-rich (chalcopyrite-pyrrhotite) mineralization has been locally intersected in drilling along the Kjøli Mine trend. Significant deviation in the first drill hole KJ-001 has resulted in the key Kjøli Deeps target currently remaining untested. Contractor Geovista has just completed a downhole electromagnetic ("EM") survey confirming the existence of an off-hole EM conductor in the vicinity of KJ-001 at approximately 240m downhole. This target is expected to be redrilled shortly.

Eric Roth, President and CEO, said, "In spite of difficult winter conditions and some technical issues, we have been able to make good progress on our scout core drill program at the Kjøli project. Our main focus has been on testing the potential for new copper-zinc-cobalt discoveries along both the known Kjøli Mine trend, as well as at the new Kjøli Deeps target which has never seen any drilling. Unfortunately we have not been able to adequately test Kjøli Deeps to date, but we do expect to be able to do so in the near term. First assays from this scout drill program are currently anticipated to become available by early April.

In parallel, Capella is working towards final permitting and funding for further drilling at the advanced-exploration stage Hessjøgruva VMS project in addition to a maiden drill program at Åmot (Løkken) commencing late Q2, 2023. So we expect to see a lot of activity on our Norwegian portfolio over the next 6 months or so. I look forward to keeping the market updated on progress at all of our Norwegian copper projects.”