ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

Beowulf Eyes Long-Term Demand for Iron Ore

Share On Facebook
share on Linkedin
Print

High hopes are being placed on mineral resources explorer Beowulf Mining plc (LSE:BEM) with the release of assay results from its iron ore project in Sweden.

Shares soared 10.5% in early morning trading today and settled at 10.25 pence by 12:00 PM GMT, after the Sweden-focussed “guardian of treasure” said significant high-grade iron mineralisation reaching up to 54.6% was encountered at the southern extension of its Kallak North deposit, taken from nine out of 16 holes drilled.

“The initial results received are better than anticipated, with high grade sections of iron mineralisation of significant widths being encountered at substantial depths,” the company said in a statement.

Beowulf is conducting a tw0-part exploration programme comprising about 7,000 metres at its 100% owned Kallak North deposit. The first part of the drilling campaign was concluded in July 2012, with about 1,572 metres drilled and over 4,300 metres out of the 5,400 metres have already been drilled for the whole of the programme.

The 500-hectare licence was reported to initially contain 121 million tonnes of iron ore with average grades between 35%-42%, as assessed independently, and hopes to increase the resource after the drilling campaign concludes.

Test mining will be conducted once the Environmental Impact Assessment is approved, expected by the fourth quarter of 2012, to provide samples for future customers, Beowulf stated.

The company hopes to become a producer in time for the renewed demand for the steelmaking ingredient in the United States as well as to fill in the potential decline of production in Brazil, affected by the country’s infrastructure programme.

Also, according to Beowulf, while China’s growth slowed down, iron ore demand will still be sizable especially with the Chinese Government’s Five-Year Plan to stimulate growth, and also the deteriorating production of the mineral in India.

“As such, the Company remains positive on the medium and longer term trends and outlook for iron and confident of the prospects for its flagship Kallak iron ore project,” Beowulf’s Executive Chairman, Clive, Sinclair-Poulton stated within the half year results released today, which reveals the company is yet to make money out of its business.

Company Spotlight

Beowulf Mining plc is a UK-incorporated mineral exploration company focussing on iron, copper, gold, and uranium deposits with a primary base of operation in Sweden.

Share of the company are traded on both the Alternative Investment Market of the London Stock Exchange, where it has primary listing, and the Stockholm Stock Exchange under the ticker “BEM”.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com