• Cu: $
  • Au: $
  • FRA: N7D2

Hessjøgruva Copper-Zinc-Cobalt VMS Project

Capella Minerals 100%

Advanced-Stage Copper-Rich VMS Deposit in the northern Røros Mining District, Norway

Capella announced the acquisition of a 100% interest in the advanced-stage Hessjøgruva copper-zinc-cobalt (“Cu-Zn-Co”) project from local company Hessjøgruva AS on April 6, 2022.  The Hessjøgruva project is located approximately 20km SW of the Company’s 100%-owned Kjøli Cu-Zn-Co project (Figure 1) and has a current mineral inventory (non-Canadian National Instrument NI 43-101 compliant mineral resource) of 3MT @ 1.7% Cu + 1.4% Zn1,2 (or 2.2% Cu equivalent3) based on 12,139m / 68 holes of historical diamond drilling.

The Hessjøgruva project provides Capella with a potential near-term development asset which complements the Company’s ongoing exploration activities at the adjacent Kjøli project. Both Hessjøgruva AS and local government/communities will benefit directly from the successful advancement and development of the Hessjøgruva project, with copper and cobalt also being key metals required for zero-carbon energy transmission and for battery/energy storage. 

Project Snapshot


20km S of Ålen, Trøndelag Province, central Norway


100% Capella Minerals Ltd
2.5% NSR to Hessjøgruva AS, with 0.5% purchasable for Euro 1M


Advanced exploration and resource definition

Deposit types

High-grade copper-rich VMS deposit

Host Rocks

Meta-volcanic and sedimentary sequences


Cambro-Silurian, Ordovician orogeny

Main Economic Elements

Copper, Zinc, Cobalt (minor Silver, Gold)


All weather paved highways and gravel roads

The Hessjøgruva property is favourably located adjacent to the main Trondheim-Røros highway and railway line. Low-cost hydroelectric power is also available in the district.

Hessjøgruva Project - Highlights

  • Capella has acquired a 100% interest in the advanced-stage Hessjøgruva Cu-Zn-Co project.
  • Hessjøgruva’s current mineral inventory (non-Canadian National Instrument NI 43-101 compliant mineral resource) is 3MT @ 1.7% Cu + 1.4% Zn1,2 (or 2.2% Cu equivalent3), based on 12,139m / 68 holes of diamond drilling completed by previous operators in the 1970’s. Historical assaying was focused principally on copper and zinc (but not cobalt). 
  • The Cu-Zn-Co mineralization at Hessjøgruva is massive-sulfide (“VMS”)-type, identical to the mineralization type being targeted at Kjøli. The Hessjøgruva mineralization occurs primarily in three lenses (A-C, with Lens A hosting most of the high-grade mineralization; Figures 2&3), all of which extend from surface to >400m vertically below surface and all remain open down-dip. Mineralization is dominated by chalcopyrite, pyrite/pyrrhotite, and sphalerite, with Cu content observed to increase with depth in the deposit.
  • The average thickness of the highest-grade Lens A is approximately 10m1, with the thickest and highest-grade intercept reported from the historical drilling being 14.5m @ 4.35% Cu + 1.3% Zn (or 4.8% Cu equivalent2) (approximate true thickness) from 455.5m to 470m downhole in DDH-312. This Cu-Zn-Co mineralization remains open down dip.
  • As part of a due-diligence process, Capella completed a systematic resampling program of the Hessjøgruva drill core stored at the NGU storage facility in Løkken. A total of 113 quarter core samples were taken for analysis and confirmed: i) the reliability of copper and zinc grades reported from historical drilling, and ii) the existence of elevated cobalt concentrations (ranging from below detection limit to 0.1% Co) within the re-assayed core intervals.

1 Geological Survey of Norway Report 2007.023; The Hersjø ore deposit, evaluation of ore potential.
2 Reader is also referred to “Disclosure Relating to Historical Estimate” section.
3 Copper equivalent grades have been calculated using 2022 Year-to-Date average copper and zinc prices of USD 9,900/T and USD 3,700/T, respectively, with no adjustment having been made for metallurgical recovery as these are unknown at this time (metal price data: London Metal Exchange, www.lme.com).

Figure 1. Location map of the Hessjøgruva and Kjøli Projects, central Norway.

Figure 2. Plan view of diamond drill-holes in high-grade Cu-Zn-Co mineralization in Lens A, with the surface projection of mineralization shown in Figure 4 also indicated (source: Geometric and Qualimetric Modeling of the Hessjø deposit; Nørsett, S.J. 2016; NTNU M.Sc. Thesis).

Figure 3. Section showing high-grade Cu-Zn-Co mineralization in Lens A (source: Geometric and Qualimetric Modeling of the Hessjø deposit; Nørsett, S.J. 2016; NTNU M.Sc. Thesis). Location of a potential future adit to access high-grade mineralized zones is also shown.

Terms of the Hessjøgruva Acquisition

Capella may acquire a 100% interest in the Hessjøgruva Cu-Zn-Co project in return for:

  1. Capella managing and funding exploration / development activities on the project.
  2. Capella paying Hessjøgruva AS a one-time amount of Euro 500,000 upon completion of a positive Bankable Feasibility Study.
  3. Capella providing Hessjøgruva AS with a 2.5% Net Smelter Royalty (“NSR”) on all future metal production from the project, retaining an option to buy-back 0.5% of this NSR at any time prior to the commencement of commercial production for Euro 1,000,000.
  4. Capella to cover the cost of annual property payments and basic administration costs.

2022 and Beyond Work Program

The Company’s expected work plans for the Hessjøgruva project commencing immediately are:

  1. The completion of a Canadian National Instrument 43-101 (“NI 43-101”) compliant Mineral Resource Estimate (“MRE”). In addition to producing a formal MRE, this study would identify those areas where infill drilling is required (in order to potentially upgrade the category of the existing mineral inventory) in addition to determining where step-out drilling would have the highest probability of extending known mineralization.
  2. After the completion of the MRE and further recommended drilling, Capella would initiate a Preliminary Economic Assessment in order to evaluate potential mining, mineral processing, and infrastructure requirements of the project.
  3. Evaluate the possible construction of an adit at around the 700m level from the adjacent Hessdalen Valley, in order to provide direct access to the high-grade mineralized horizons and to facilitate further drill testing from underground.

Disclosure Relating to Historical Estimate

In accordance with Section 2.4 of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), an issuer may disclose an historical estimate, using the original terminology, if the disclosure identifies the following:

Source and date of the historical estimate, including any existing technical reports

  • Information relating to this historical estimate is summarized from a 2007 technical report prepared for the Geological Survey of Norway (“NGU”) by Terje Bjerkgård (“Report 2007.023: The Hersjø ore deposit, evaluation of ore potential”).

Relevance and reliability of the historical estimate:

  • The historical estimate for Hessjøgruva was derived from drilling undertaken by three mining companies - Røros Kobberverk AS, AS Sydvaranger, and Killingdal Grubelskap AS - up until 1977. Whilst Capella does not consider the historical estimate to have been completed in accordance with current NI 43-101 standards, it is considered relevant to reporting on the project.

Key assumptions, parameters and methods used to prepare the historical estimate:

  • Original (pre-1977) technical reports relating to the calculation of the historical estimate and outlining the assumptions / parameters used have not been sighted by Capella.

Resource category used:

  • As the historical estimate is not believed to have been completed in accordance with current NI 43-101 standards, Capella utilizes the terminology “mineral inventory” rather than either mineral resources or mineral reserves to classify the known mineralization.

More recent estimates or data available to the issuer:

  • No more recent estimates are currently available to the issuer. A study completed during 2016 (Geometric and Qualimetric Modeling of the Hessjø deposit; Nørsett, S.J.; NTNU M.Sc. Thesis) confirmed most aspects of the geometry of the Cu-Zn-Co mineralization and distribution of Cu-Zn-Co grades as utilized in the historical estimate.

Work needed to be done to upgrade or verify the historical estimate as current mineral resources or mineral reserves:

  • An independent Qualified Person (“QP”) has not yet done sufficient work to review the historical data and historical estimate to determine what further work would be required to prepare a technical report in accordance with NI 43-101. Capella is in the process of engaging a QP with suitable experience in the deposit style being evaluated in order to prepare a technical report in accordance with NI 43-101.   

Capella is not treating the historical estimate as current mineral resources or reserves. At this time, a Qualified Person has not done sufficient work on behalf of Capella to classify this historical estimate as current mineral resources or reserves. Investors should not rely on the historical estimate as a current mineral resource estimate until it has been verified and supported in a technical report in accordance with NI 43-101.