The Company's Kjøli copper-rich massive sulfide ("VMS") project represents a district-scale land position in the northern part of the Røros copper mining district, central Norway. The Røros district saw production from a number of high-grade VMS deposits from the mid-1600's until their closure in the mid-1980's due to low copper prices. The Kjøli project covers the former Kjøli and Killingdal copper mining operations, together with approximately 15km strike of underexplored but highly-prospective stratigraphy for the discovery of new copper-rich VMS deposits.

Previous work completed at Kjøli included field mapping and an airborne geophysical survey (magnetics and electromagnetics), with this work having successfully identified numerous exploration targets for follow-up work. Field work completed during Q4, 2020, was focused on drill target generation within a 4.5 km-long segment of the 15km strike of prospective stratigraphy for copper-rich VMS deposits. This segment contains 4 known (and previously undrilled) occurrences of high-grade copper mineralization: Svenskmenna, Rorosmenna, Guldalsgruve, and Godthap. The Q4, 2020 work program included a detailed ground magnetic survey and trial Ionic Leach geochemical survey.

The original 120 square kilometre Kjøli claim block as acquired from EMX Royalty Corp. (NYSE:EMX; TSXV:EMX) was also expanded by 25% (30 square kilometres) through the staking of new exploration claims over previously unexplored surface occurrences of VMS mineralization. These represent additional targets for Capella to evaluate during the 2021 summer field season.

Project Snapshot

Kjøli Project Area

The Kjøli project is located in the northern portion of the Røros Mining District, central Norway

The original Kjøli claim block with local geology, known mines / mineral occurrences, and the initial Q4 2020 work area (brown rectangle)

VMS-style Mineralization at Kjøli and Recent Work

Undrilled outcrop of massive sulfides at Guldalsgruve. Channel sample returned 2.5m @ 2.2% Cu.

Mine/working dumps near the Rorosmenna target

Ground magnetic survey completed at Kjøli during Q4, 2020

Ground Magnetic Survey

A high-resolution 195-line kilometre ground magnetic survey was completed over the initial 4.5km target area. Whilst detailed interpretations are still in progress, three key initial observations include: i) the definition of a NE-trending "main mineralized corridor" (interpreted to indicate pyrrhotite which is intimately associated with copper-zinc-silver-gold mineralization) across the entire 4.5km strike length of the survey area, ii) additional potential satellite bodies of massive sulfide mineralization W of Rorosmenna and around Godthap, and iii) the potential for buried massive sulfide systems beneath a thrust fault located at the northern end of the survey area.

Soil Ionic Leach Geochemistry

The Kjøli project consists of flat to undulating terrain and is typically covered by thin soil and local bog cover. A total of 382 soil samples were collected for a trial Ionic Leach analytical survey in the Guldalsgruve and Rorosmenna sectors, with strong copper anomalies (> 1,000 parts per billion Cu or "ppb") being returned by 133 soil samples taken from around, and along strike from, known workings. A total of 55 samples returned > 10,000 ppb Cu in soils and these represent priority areas for follow-up work and drill testing.

Ionic Leach Geochemical Survey completed at Kjøli during Q4, 2020

2021 Work Program

Capella's 2021 work program at Kjøli will consist primarily of two main components:

1. Advancing targets within the initial 4.5km area through permitting and onward to drilling, and 
2. Evaluation of new targets within the remainder of the 150 square kilometre land package.

In addition to Capella's in-house field activities, Windfall Geotek has been contracted to perform a CARDS Artificial Intelligence ("AI") and Data Mining evaluation for the entire Kjøli claim block using all available geological and geophysical data sets. The CARDS analysis will allow Capella to accelerate the definition of high-probability VMS targets at Kjøli during the northern winter season.