TIDMBEM
RNS Number : 8319A
Beowulf Mining PLC
03 June 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
3 June 2019
Beowulf Mining plc
("Beowulf" or the "Company")
Drilling Extends Higher-Grade Western Zone at Aitolampi
Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, is pleased to announce that
recent drilling at Aitolampi has extended the higher-grade Western
Zone.
Oy Fennoscandian Resources AB ("Fennoscandian"), the Company's
graphite business, is pursuing a strategy to develop a 'resource
footprint' of natural flake graphite prospects that can provide
'security of supply' and help to enable Finland to achieve its
ambition of self-sufficiency in battery manufacturing.
Fennoscandian is also seeking to move downstream and develop its
know-how in processing and manufacturing of value-added graphite
products.
Drilling Highlights:
-- Additional 100 metres ("m") strike extension added to the
higher-grade (> 5 per cent Total Graphitic Carbon ("TGC")
Western Zone. The Western Zone remains open in all directions.
-- Drill hole AITDD19019 intersected 102.04m at 5.07 per cent
TGC, which included 46.68m at 6.09 per cent TGC. Mineralised
intercepts are the down-hole widths and are not the true
widths.
-- Drill hole AITDD19020 intersected 94.69m at 5.76 per cent
TGC, which included 11.43m at 7.13 per cent TGC.
-- Drill hole AITDD19021 intersected 96.83m at 5.01 per cent
TGC, which included 22.65m at 6.0 per cent TGC.
-- Drill hole AITDD19022 intersected 91.13m at 5.03 per cent
TGC, which included 42.69m at 6.16 per cent TGC.
-- The results from the 2019 drilling programme will be used to
upgrade the maiden Mineral Resource Estimate ("MRE") for Aitolampi,
published in August 2018.
-- Drill core will also be sampled and used for ongoing baseline
environmental studies, for graphite purification and
spheroidization testwork, and the further assessment of Aitolampi
graphite for battery applications as part of the Business Finland
funded BATCircle Project.
-- The Company is reviewing its plans for a Scoping Study for
Aitolampi, which was postponed last year allowing more baseline
environmental data to be collected.
-- Finnish contractor Northdrill Oy was contracted to do the drilling.
See website www.beowulfmining.com for plans, sections and JORC
Code Table 1.
Kurt Budge, CEO, commented:
"The Fennoscandian team is having a busy year and will continue
to do so.
"We will use the latest drill results to upgrade the Aitolampi
MRE and then we have plans to initiate a Scoping Study later in the
year, which we postponed last year allowing for more baseline
environmental data to be collected.
"The exploration team will soon be back in the field, with a
summer work programme, including bedrock mapping, outcrop sampling
and ground geophysics, on four recently granted Claim Reservation
areas.
"Also, we have work programmes under the Green Minerals and
BATCircle projects, using the funding we have received from
Business Finland, as we seek to develop know-how in processing and
manufacturing of value-added graphite products.
"I look forward to updating markets as we continue to make
progress."
2019 Drilling
In March and April 2019, five holes, totalling 838.2m, were
diamond drilled. Four holes tested for higher-grade mineralisation
to the south-east of drill hole AITDD18018, which was completed
last year, and which intersected 92.5m at 6.19 per cent TGC.
The fifth hole, AITDD19023, targeted a high-priority
frequency-domain electromagnetic ("FDEM") anomaly. A Geophysical
Data Review, Processing, Imaging and Target Generation Report for
Aitolampi was prepared by Resource Potentials PTY Ltd in March
2019. The report identified a total of 13 priority FDEM target
areas untested by drilling. Some of the targets have a strike
length of up to 500m.
Drill Results:
Hole ID From To (m) *Width **TGC Location - Comments
(m) (m) %
50m SE of AITDD18017 (drilled
2018), up-dip AITDD19021,
profile 6935163N. Test strike
DD19019 23.96 126.00 102.04 5.07 length of Western Zone.
------- ------- ------- ------ ----------------------------------
including 56.00 102.68 46.68 6.09
------- ------- ------- ------ ----------------------------------
including 93.70 102.68 8.98 7.19
------- ------- ------- ------ ----------------------------------
Down-dip AITDD19022, 50m
SE of AITDD19021, profile
6935142N. Test Western Zone
interpreted brittle fault
DD19020 81.05 175.74 94.69 5.76 structure.
------- ------- ------- ------ ----------------------------------
including 138.57 150.00 11.43 7.13
------- ------- ------- ------ ----------------------------------
50m SE of AITDD18018 (drilled
2018), down-dip AITDD19019,
profile 6935163N. Test strike
DD19021 89.91 186.74 96.83 5.01 length of Western Zone.
------- ------- ------- ------ ----------------------------------
including 124.00 146.65 22.65 6.00
------- ------- ------- ------ ----------------------------------
Up-dip AITDD19020, 50m SE
of AITDD19019, profile 6935142N.
Test strike length of Western
Zone and interpreted brittle
DD19022 18.74 109.87 91.13 5.03 fault structure.
------- ------- ------- ------ ----------------------------------
including 67.18 109.87 42.69 6.16
------- ------- ------- ------ ----------------------------------
including 78.50 97.00 18.50 7.13
------- ------- ------- ------ ----------------------------------
Exploration drill hole on
untested anomaly, 110m SE
DD19023 139.40 206.6 67.20 4.20 of AITDD19020, profile 6935004N.
------- ------- ------- ------ ----------------------------------
including 151.16 173.00 21.84 5.05
------- ------- ------- ------ ----------------------------------
*Lengths in metres, and mineralised intercepts are the down-hole
widths and are not the true widths.
** No cut-off grade applied.
Background Information
The Aitolampi and Pitkäjärvi graphite prospects were discovered
in 2016 and are eastern extensions to the Haapamäki prospect.
Aitolampi and Pitkäjärvi are areas of graphitic schists on a fold
limb, coincidental with an extensive electro-magnetic ("EM")
anomaly. Many of the EM zones are obscured by glacial till, but
graphite observations in road cuttings and outcrops are also
associated with abundant EM anomalies. Haapamäki is in eastern
Finland approximately 40 kilometres southwest of the
well-established mining town of Outokumpu.
2018 Developments
During the year, the Company made significant progress with
Aitolampi. Metallurgical testwork has demonstrated the potential to
produce battery grade graphite products and further to completing a
second drilling campaign, the Company announced a maiden MRE.
Drilling confirmed wide graphite lenses extending along strike,
at least 350m along the Eastern zone (EM anomaly extends for 700m),
and at depth.
For the two parallel higher-grade zones previously identified
("Western Zone"), mineralisation has a strike length of at least
150m (the two parallel conductive zones extend for 300m and 250m),
and these zones seem to merge to form one body of
mineralisation.
Metallurgical Testwork/Market Assessment
Concentrates from the SGS testwork conducted in 2017 were sent
to ProGraphite Gmbh ("ProGraphite") based in Germany. ProGraphite
specialises in the processing and evaluation of graphite materials.
The results were as follows:
-- Alkaline purification produced 99.86 per cent Total Carbon
("C(t)") for +100-mesh concentrate and 99.82 per cent C(t) for
-100-mesh concentrate.
-- Results from acid purification were also promising and
reached 99.6 per cent C(t) for the +100-mesh and 99.41 per cent
C(t) for the -100-mesh concentrate.
-- The alkaline and acid purification results indicate that,
with some process optimisation, Aitolampi concentrates may meet the
purity specification of 99.95 per cent C(t) required for the
lithium ion battery market.
-- Aitolampi graphite shows high crystallinity, with the degree
of graphitisation measuring approximately 98 per cent, which is
almost perfect crystallinity, an important prerequisite for high
tech applications, such as lithium ion batteries.
-- Volatiles are low, which is an attractive product attribute
in many applications, including refractories, lubricants,
crucibles, and foundries.
-- Specific Surface Area ("SSA") is comparable to that of
high-quality flake graphite from China.
-- Oxidation behaviour is comparable with Chinese graphite of
the same flake size, used for refractories, and other high
temperature applications.
MRE Highlights (2018)
-- A global Indicated and Inferred Mineral Resource (reported in
accordance with the JORC Code (2012 edition)) of 19.3 Mt at 4.5 per
cent TGC for 878,000 t of contained graphite, reported from all
material within the eastern and western lenses which are
interpreted above a nominal 3.0 per cent TGC cut-off grade;
-- A higher-grade Western Zone with an Indicated and Inferred
Mineral Resource of 9.8 Mt at 5.0 per cent TGC for 490,000 t of
contained graphite;
-- An Eastern Zone with an Indicated and Inferred Mineral
Resource of 9.5 Mt at 4.1 per cent TGC for 388,000 t of contained
graphite;
-- Reporting above a 4.0 per cent TGC cut-off grade based on the
grade-tonnage curve for Aitolampi, gives an Indicated and Inferred
Mineral Resource of 12.8 Mt at 5.0 per cent TGC for 639,000 t;
and
-- The MRE was prepared by CSA Global PTY Ltd ("CSA Global") of Australia.
Other Developments
In April 2018, Beowulf signed a Graphite Collaboration Agreement
between Fennoscandian, and Åbo Akademi University ("Åbo"), located
in Turku, Finland and joined a Cooperation Network of existing and
new entrant raw materials suppliers to the emerging battery
manufacturing industry in Finland.
The Cooperation Network includes the cities of Vaasa and
Kokkola; Freeport Cobalt, the world's largest cobalt refinery and
producer of battery chemicals; Nornickel, the producer of
world-class nickel metals and nickel chemicals in Harjavalta;
Terrafame Group, the parent company of Terrafame, producing nickel,
zinc, cobalt and copper in Sotkamo; Keliber, which is preparing to
start lithium production in Kaustinen and Kokkola; as well as
Fennoscandian.
Also, Fennoscandian was granted Euros 161,000 by Business
Finland for a research project entitled "Green Minerals - Graphite,
Exploration to Products". The project runs from 1 January 2018 to
31 December 2019 and has a total budget of Euros 323,750. The
Company will contribute the balance of the funding.
2019 Developments
In March 2019, the Company announced that Fennoscandian is to
receive additional funding from Business Finland, 50 per cent
contribution to a budget of Euros 224,900, for graphite
purification and spheroidization testwork, and the further
assessment of Fennoscandian's graphite for battery applications.
Business Finland has been granted Euro 10 million funding for a
project titled "BATCircle - the development of a Finland-based
Circular Ecosystem of Battery Metals".
2019 Work Programme
Fennoscandian's exploration team continues to evaluate each
prospect in the Company's exploration portfolio, and this summer
will be conducting field work, including bedrock mapping, outcrop
sampling and ground geophysics at the Company's recently granted
Claim Reservation areas Polvela, Tammijärvi, Karhunmäki and
Merivaara, which show potential for flake graphite
mineralisation.
Competent Person Review
The information in this announcement has been reviewed by Mr.
Rasmus Blomqvist, a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy. Mr. Rasmus
Blomqvist has sufficient experience, that is relevant to the style
of mineralisation and type of deposit taken into consideration, and
to the activity being undertaken, to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian
Resources AB, a 100% owned subsidiary of Beowulf.
Mr Blomqvist consents to the inclusion in the announcement of
the information presented in the form and context in which it
appears.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470 0470
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
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END
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