The Viken Project located in Jämtland County, Sweden (570 km north-northwest of Stockholm), accessible by paved highway with ample access to infrastructure (power, water, labour, and transportation) readily accessible.
The Viken project ranks as the 3rd largest vanadium resource globally. The Project is host to a National Instrument 43-101 (“NI 43-101”) polymetallic Mineral Resource, representing an in-situ vanadium (V2O5) Mineral Resource of 163 million pounds in the Indicated classification and 16.7 billion pounds in the Inferred classification.
The Project has seen a significant amount of work with a 2010 Preliminary Economic Assessment (PEA) outlining an open pit mine for vanadium, molybdenum and nickel; followed by a 2014 Updated PEA to evaluate the use of bio heap leaching. More recently, E.U. Energy has engaged P&E Mining Consultants Inc. to evaluate a more efficient footprint, lower CAPEX, vanadium-focused operation with the potential for significant by-product metal production.
The Viken project is located in the province of Jämtland, approximately 570 km NW of Stockholm, Sweden. The Property is accessible through all-weather roads, with a railroad connection and airport located 42km by road from the project, and high-power (300 kV) power located within 40 km with low-power within 1 km. The region is fully-equipped to provide services and supplies to the operation. Sweden ranks as a top 10 mining friendly jurisdiction (c.f. Fraser Institute 2017).
GEOLOGY & MINERALIZATION
The Viken MMS Licence is underlain by Middle and Upper Cambrian age, black shales interlayered with subordinate quartzites, limestones and ‘stinkstones’ (bituminous limestone) known as the Alum Shale. This assemblage is overlain in parts of the licence area by Ordovician limestones. The Alum Shale occurs as both autochthonous (in situ) and allochthonous (fault detached) blocks, the latter having greater potential for economic mineralization due to imbrication of mineralized blocks. The allochthonous blocks can be subdivided into Middle Cambrian and Upper Cambrian, with the higher grades of mineralization occurring in the Upper Cambrian blocks. The Alum Shale is unique because of an enrichment of uranium, vanadium, molybdenum and nickel significantly greater than average bituminous shale.
Diamond drill information suggests that a North-West-trending zone approximately 1,000 m wide that traverses the entire Viken MMS Licence is underlain by Alum Shale exposed at surface.
The project has an extensive history with mining of the Alum Shale (host formation for mineralization at Viken) dating back as far as the 1600’s. Systematic exploration for uranium after World War II was done by the SGU on behalf of the Swedish Oil Shale Company, and later by the Atomic Energy Company (“Atomenergi AB”) focused in the Västergötland and Närke areas. Mining of the Alum Shale commenced with a small plant operating from 1965-1969. The project was systematically explored by Continental Precious Minerals Inc. from 2005 through 2009 culminating in the delivery of a NI 43-101 Resource Estimate in 2009 and followed by a number of subsequent Preliminary Economic Assessments in 2010 and 2014.
American Battery Metals entered into a non-binding letter of intent (“LOI”) dated April 25th, 2019 to acquire a 90% interest in the Viken project from E.U. Energy Corp., a private Canadian company.
Under the terms of the LOI, American Battery Metals would issue 20 million shares in exchange for 90% of the issued and outstanding shares of E.U. Energy, in addition to the right for E.U. Energy to nominate one member to the Board. The Proposed Transaction is subject to, but not limited to, a concurrent non-brokered private placement for CDN$1.5 million, a bridge loan to E.U. Energy, due diligence, finalization by both parties to enter into a definitive agreement, in addition to regulatory approvals.