viewGungnir Resources Inc.

Gungnir Resources hunting for gold in mining-friendly Sweden, but has nickel in mind too as prices rise


Gungnir has made three new drill discoveries at Knaften in as many years

Gungnir Resources Inc. -

Quick facts: Gungnir Resources Inc.

Price: 0.07 CAD

Market: TSX-V
Market Cap: $5.36 m
  • Has made three new drill discoveries in as many years
  • Sweden is the leading mining nation in Europe
  • Gungnir is an experienced explorer and knows the Scandinavian country

What Gungnir Resources does:

Gungnir Resources Inc (CVE:GUG) (OTCPINK:ASWRF) is an explorer with gold and base metal permits in the prolific Vasterbotten district of Sweden, which has a long history of mining.

The district hosts 12 million ounces of gold, which has been defined in existing and mined resources. The area is also home to several past-producing and producing volcanogenic massive sulphide (VMS) base metal mines.

For example, there is the is the Boliden mine, a 4 million ounce (Moz) past-producer, and the Agnico Eagle joint ventured Barsele gold deposit where over 2 million ounces of the yellow metal had been defined as of February last year..

Gungnir's main focus is the Knaften project, which lies at the south end of the so-called Knaften-Barsele Arc (Gold Line), which hosts a number of gold deposits including Faboliden and Svartliden (Dragon Mining), and the above mentioned Barsele Gold-VMS project. The asset hosts high-grade gold, VMS (zinc-copper) and copper-nickel targets, all open for expansion.

Notably, in the past three years - 2017, 2018 and  2019 - the company has carried out drilling it has made three new discoveries at Knaften.  

Gungnir also holds permits covering two nickel deposits called Lappvattnet and Rormyrberget, which together host about 71 million pounds of nickel in historic resources, and lie 100 kilometres (km) and 60 km, respectively, from Knaften, covering 471.3 hectares.

It also holds the Norrbotten gold and base metal claims, namely five permits totalling 25 square kilometres (sq km). The permits cover significant gold, silver and copper mineralized boulders/blocks along a north-west trending corridor, which sits around 200 km north of the Knaften project.

How is it doing:

Gungnir has said it is fully funded to continue drilling in 2020. On August 7, it reported material exploration news, saying it had "significantly" expanded mineralization via drilling at the Knaften 300 gold zone at the Knaften project.

Last year at the zone, Gungnir identified a stacked gold system including a new lower zone with high-grade gold including 59.6 grams per ton (g/t) gold over 1 metre within a broader interval grading 14.07 g/t  of the yellow metal over 4.25 metres at Knaften.

Gold mineralization at Knaften 300 is associated with disseminated arsenopyrite zones ranging from about two to 20 metres wide, typically five metres, the firm has said. The zone is open at depth and along strike, and regionally, a magnetic low trend is an obvious target extending several kilometres along strike.

In 2018, the firm discovered a new VMS target called Rodingstrask and only nine holes have so far tested it, while in 2017 it discovered a Knaften copper-nickel target.

In July 2020 the group reported re-sampling results of archived drill core from its two nickel deposits. At Rormyrberget, the results included 2.33% nickel over 12.5 metres.

Looking ahead, Gungnir says the next steps at Knaften are to drill-test several targets focused on high-grade gold.

East of Knaften, the firm plans to update historic nickel-copper-cobalt resources on its Lappvattnet and Rormyrberget claims. Also at these assets, Gungnir continues to evaluate archived drill core for platinum group metals (PGEs).

Inflection points:

  • More exploration results
  • Gold and, or base metals moves

What the boss says:

In a statement in July, Gungnir's chief executive Jari Paakki said: "The next planned step at our nickel projects is to update the historic estimates to current resources with a view of strengthening nickel prices in the near-future. Our current exploration focus in Sweden is gold."

"Drilling is on-going at our Knaften project focused on expanding our 2019 high-grade gold discovery of 59.60 g/t Au over 1.0 metre within a mineralized interval grading 14.07 g/t Au over 4.25 metres. Results of our exploration work will be made available through the summer and fall," he added.

Contact the author at [email protected]

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