The firm owns 45% of the property, while joint venture partner Agnico Eagle has the rest (55%), and the main goal is to define a gold deposit of between 1.5 million (mln) and 2mln ounces.
Significantly, until the ongoing pre-feasibility study is delivered, Agnico is responsible for all costs.
The total land package, 600km north of Stockholm, encompasses around 83,700 acres and there is potential for silver and copper at VMS (volcanic massive sulphide) deposits. It has been the scene of exploration for three decades.
There are major gold deposits nearby, including Bjorkdal, owned by Mandalay Resources (TSE:MND), Dragon Mining's Svartliden, as well as a major polymetallic VMS deposit - Bolidan Mining's Kristineberg underground mine, from which comes zinc, copper, lead, gold and silver.
Indeed, Barsele's management have form and the same team found Orko Silver Corp’s La Preciosa SilverGold deposit in Durango, Mexico.
Exploitation licences have been in place on the known area of mineralisation since 2007, which makes this a more advanced project than some.
Geology at a glance
Gold mineralisation mainly lies in an intrusion, where there major zones of gold have been identified - the Central, Avan & Skiråsen Zones.
A fourth mineralized gold zone, Skirträskbacken, lies around 3 km southeast of the Central Zone and extends into the Risberget gold prospect.
Meanwhile, the Norra Zone consists of massive sulphide mineralisation some 300 metres (m) in strike-length varying from 5m to 50m in width.
So what's Barsele hosting?
An NI 43-101 report four years ago resource showed, using a 0.6% g/t (gram per tonne) cut off, a higher confidence indicated resource of 14.1 million tonnes grading 1.21 gold grams per tonne (g/t) or 547,000 contained ounces of gold on the Central-Avan-Skiråsen gold zones (43% higher than a 2011 report).
Meanwhile, the inferred resource was put at 20.2 million tonnes grading 0.97 gold grams per tonne (g/t) or 627,000 contained ounces of gold - a very slight decrease on the previous report.
Exploration has been a success..
Work was extensive last year against a backdrop of rising commodity prices with 135 holes totaling 1,366 meters of basal till drilling with 1,040 samples collected.
In October alone, 6,000 metres of core was produced and 6,525 samples sent for analysis, with 2,452 results received.
One hole sunk along the trend between the Central and Avan zones, for example, yielded 23 meters grading 7.90 g/t (grams per ton) gold uncut (5.36 g/t gold cut) at a depth of 275 meters below surface - described as 'highly significant' by Barsele.
Basic environmental assessment and surface water and hydrogeology studies are ongoing and Agnico Eagle plans to release a new resource estimate for the Avan, Central, Skirasen, and Norra deposits around mid-February this year.
Catalysts for 2017
The firm says these include ongoing drill assays, the increasing gold price and the potential for a takeover, so plenty to look forward to this year.