TIDMBEM
RNS Number : 9889N
Beowulf Mining PLC
27 May 2020
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.
27 May 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Drilling Contract Awarded
Beowulf (AIM: BEM; Spotlight : BEO), the mineral exploration and
development company, announces the award of a drilling contract for
Kallak to Kati Oy.
The work programme, scheduled for Autumn 2020, will determine if
a 3D seismic model can be constructed, using the established
seismic characteristics of the Kallak deposit, and whether the 3D
model can be used to identify additional iron ore mineralisation
for the Exploration Target of 90-100 Mt at 22-30 per cent iron
("Fe") at Kallak.
The first Exploration Licence for Kallak was awarded by
Bergsstaten (the "Mining Inspectorate") in 2006. A Mineral Resource
Estimate ("MRE") for Kallak North and South was finalised on 28
November 2014. Following the guidelines of the JORC Code, 2012
edition, an Indicated Resource of 118.5 Mt at 27.5 per cent Fe and
Inferred Resource of 33.8 Mt at 26.2 per cent Fe was defined.
Kallak was first discovered by the Geological Survey of Sweden
("SGU") in the 1940s and was designated an Area of National
Interest ("ANI") by the SGU in 2013. The SGU's latest research on
Kallak was published in May 2020, with the headline 'New light on
the iron ore at Kallak'.
Highlights:
-- Beowulf has awarded a drilling contract to Kati Oy for up to
1,650 metres diamond drilling, targeting additional potential iron
ore mineralisation at Kallak South.
-- The work programme will determine if a 3D seismic model can
be constructed, using the established seismic characteristics of
the Kallak deposit, and whether the 3D model can be used to
identify additional iron ore mineralisation for the Exploration
Target.
-- The work is being undertaken as part of the European Union
("EU") funded PACIFIC Project ("PACIFIC"). The aim of PACIFIC is to
develop a new low-cost and environmentally friendly tool for
exploring for sub-surface mineral deposits. The programme will test
a multi-array method in parallel with drilling at Kallak South,
with noise from drilling providing a passive seismic source.
-- The magnetic signature of mineralisation at Kallak, extends
southwards from Kallak North to Kallak South, and then beyond to
Parkijaure. Interpretation of geophysical data suggests the
potential for additional iron ore mineralisation, which could add
to the Kallak North and Kallak South resource.
-- If successful, the set-up could then be applied to the
Parkijaure nr 6 Exploration Licence, awarded by the Mining
Inspectorate in October 2019, which covers approximately 1,000
hectares and lies immediately to the south of the Kallak
deposits.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"The SGU's latest study, published under the headline 'New light
on the iron ore at Kallak', is a timely reminder of Kallak's
importance to Sweden's iron ore resource inventory. Its publication
preceded, by a matter of days, an earthquake at LKAB's underground
mine at Kiruna, which thankfully spared lives, but disrupted
production.
"The SGU, as a Government Office, acts as the central authority
for geology and mineral issues in Sweden, one of its most important
tasks is to meet society's demand for geological information.
"Despite Kallak being discovered by the SGU in the 1940s, when
it comes to modern exploration, t he Mining Inspectorate, a
separate decision-making body within SGU, awarded the first
Exploration Licence to the Company in 2006.
"This permitted the Company to invest, and, from 2010-2014,
drill 27,895 metres, 131 drillholes. The Company applied for an
Exploitation Concession in April 2013 and announced a Mineral
Resource Estimate in November 2014. In October 2015, the Mining
Inspectorate recommended to the Government that an Exploitation
Concession be granted.
"Beowulf believes in the greater iron ore potential at Kallak
South and Parkijaure and it is exciting to be looking forwards to
an Autumn drill programme, the results of which we hope will
optimize further drilling campaigns thereafter.
" I look forward to providing further updates."
About Kallak
T he Kallak iron ore deposit is located approximately 40
kilometres ("km") west of Jokkmokk in the County of Norrbotten,
Northern Sweden, 80 km southwest of the major iron ore mining
centre of Malmberget, and approximately 120 km to the southwest of
LKAB's Kiruna iron ore mine.
The first Exploration Licence for Kallak was awarded by the
Mining Inspectorate of Sweden in 2006. A Mineral Resource Estimate
for Kallak North and South, based on 27,895 m of drilling conducted
between 2010-2014, 131 drillholes, was finalised on 28 November
2014. Following the guidelines of the JORC Code, 2012 edition, an
Indicated Resource of 118.5 Mt at 27.5 per cent iron content ("Fe")
and Inferred Resource of 33.8 Mt at 26.2 per cent Fe was defined.
In addition, there is an exploration target of 90-100 Mt at 22-30
per cent Fe.
Testwork on Kallak ore has shown that a 'super' high grade
magnetite concentrate can be produced, yielding over 71 per cent
iron content, with low levels of deleterious elements, including
phosphorous and sulphur, lending itself to pelletisation and
consumption in Direct Reduction Iron ("DRI") facilities in Europe
and the Middle East, and attracting a potential price premium.
In April 2013, the Company applied for an Exploitation
Concession for Kallak North (the "Concession") and in October 2015,
the Mining Inspectorate recommended to the Swedish Government that
the Concession be awarded. The Company is still waiting on the
Swedish Government to take a decision.
About PACIFIC
Beowulf is a partner in the European Union ("EU") funded PACIFIC
Project ("PACIFIC"), launched in June 2018. The project has
received EUR3.2 million from the EU's Horizon 2020 research and
innovation programme and has a 36-month programme of activities
being coordinated by Université Grenoble Alpes.
The aim of PACIFIC is to develop a new low-cost and
environmentally friendly tool for exploring for sub-surface mineral
deposits. The PACIFIC consortium is conducting fundamental and
applied research to develop two radically new and complementary
mineral exploration techniques, both based on passive seismic
imagery.
Kallak, including Kallak North, Kallak South and the Parkijaure
licence, has been chosen as one of two PACIFIC test sites.
In September 2019, Phase 1 work was carried out at Kallak, which
included testing the multi-array method, using an array of
receivers at surface, over the known magnetite ore at Kallak South
to provide background data, the seismic properties for the iron ore
and to correlate findings with the geological model for Kallak.
In Autumn 2020, Phase 2 work will commence testing the
multi-array method in parallel with drilling at Kallak South, with
noise from drilling providing a passive seismic source. Testwork
will determine if a 3D seismic model can be constructed, using the
established seismic characteristics of the Kallak deposit, and
whether the 3D model can be used to identify previously
undiscovered magnetite mineralisation for the Kallak South
Exploration Target areas and for Parkijaure. The Company would then
consider further drilling.
About Kati Oy
KATI Oy is a contracting company specialising in ore prospecting
and rock construction, with our main field of operation being
diamond core drillings and related drill hole measurements. The
company has conducted diamond drilling and surveys for over 30
years, from Greenland all the way to the Sahara. The primary focus
of Kati's operations is in the Nordic nations and Europe. KATI was
founded in Kalajoki, Finland, where its headquarters are still
located.
Today KATI Oy employs over a hundred people and drills in excess
of 100,000 metres of rock core samples per annum. The company's
clientele comprises mining industry organisations in addition to
rock construction companies. The company states that "the same
principles internalised at the outset are still nurtured today: we
want to be highly effective, improve our ways of working, develop
our drill rigs, and perform tasks with respect for nature. And of
course to gain customer trust again and again, at every site we
work on."
In 2004 the company had its environmental system certified
according to the ISO 14001 standard, the first company in the
industry to be awarded such in the Nordic region.
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 per cent 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
Officer 6993
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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