ASX-listed junior Alicanto Minerals Ltd (ASX: AQI) has found itself looking to redevelop two historic polymetallic projects in one of northern Europe’s leading mining and green transition countries, while actively looking for further base and precious metal opportunities in tier-one locations.
Early last year, the Western Australian exploration house completed its initial drill program at the Falun copper-gold project in Sweden, an undertaking that focused on three key target areas ‒ Skyttgruvan-Naverberg, Krondiket and Galgberget.
Located in the country’s Bergalagen minerals region some 197 kilometres northwest of Stockholm, the target area hosts the now-closed Falun mine, which has a long-established mining history dating back over the best part of 1000 years, producing 28 million tonnes of high-grade copper and gold-rich polymetallic ore (grading 4 per cent and 4 grams/t respectively), as well as high-grade silver (35g/t), zinc (5 per cent) and lead (2 per cent), before closure during 1992.
AQI’s second major project is Sala, a former zinc-silver-lead operation that, in its day, yielded more than 200 million ounces of silver at an estimated average grade of 1244g/t, making it Europe’s biggest producer of the precious metal. It was shut down in 1962.
Situated 118.5km northwest of Stockholm, Sala ‒ which is also in the Bergalagen mining region ‒ now boasts the largest active undeveloped zinc-silver-lead mineral resource in Sweden of 9.7Mt at 4.5 per cent zinc equivalent, a figure that was determined by 20,000 metres of diamond drilling.
When broken down, this resource contains 311,000t of zinc, 14.7Moz of silver and 44,000t of lead in a system that remains open along strike and at depth.
In terms of Faun, AQI’s focus is to complete the first systematic district scale exploration in a province proven to host world class volcanic massive sulphides, discover a new Falun-style polymetallic sulphide deposit and extend the historic deposit at depth and along strike.
So far, at Skyttgruvan-Naverberg, drilling has intersected mineralisation with interpretations indicating a significantly larger mineralised system than previously thought.
Meanwhile, field work at Galgberget tested the southern extension of the Falun deposit, where AQI has already identified significant copper and zinc mineralisation intercepting strong footwall alteration as well as identified a second off-hole electromagnetic conductor.
As for Krondiket, there are indications of gravity targets between Falun and Skyttgruvan-Noverberg.
At Sala, previous exploration work completed by AQI has identified several resource extension opportunities and additional silver targets outside of the existing resource, including silver-galena rich structures north of the historic Sala and Bronäs mines (interpreted as Sala repeat structures) and Finntorpet, a broad zone of Sala-style silver-galena mineralisation in the previously untested Hyttskogen fault zone, which itself is the parent fault to the Sala main fault.
“AQI continues to evaluate advanced project acquisition opportunities, with a number of global projects currently under review,” the company said in its 2024 half-year report.
“AQI is in active discussions with potential strategic partners for Falun, Greater Falun and Sala, with the aim of progressing systematic exploration to unlock the potential of these highly prospective projects.”
In an investment note issued by Evolution Capital, it was pointed out that, over a few centuries, Sweden had developed a significant polymetallic base metals (and precious metals) mining industry ‒ including recycling and smelting capacity.
The country accounts for 36 per cent of Europe’s zinc production and is the second largest producer next to Russia.
“Considering the sanctions against Russia, more pressure is being put onto Sweden to supply the region with green zinc,” the broker observed.
“Sweden is leading the green transition in Europe with its 98 per cent fossil fuel free electricity supply.”
Moreover, Evolution Capital said, the Swedish government was quite supportive of the project and was “very keen” to see Sala get up and operating.
