TIDMBEM
RNS Number : 4571O
Beowulf Mining PLC
01 June 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.
1 June 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Madjan Peak Shows Epithermal Gold Potential
Beowulf (AIM: BEM; Spotlight : BEO), the mineral exploration and
development company, announces results from the soil sampling
programme completed across the Madjan Peak gold target at Vardar
Mineral's ("Vardar") Mitrovica licence in Northern Kosovo.
Highlights:
-- Extensive gold anomaly identified over an area approximately
1400 metres x 700 metres, with individual soil samples returning up
to 0.36 grammes per tonne ("g/t") gold.
-- The gold anomaly correlates well with anomalous Arsenic,
Copper, Lead, Mercury, Strontium and Antimony, and geological
mapping has shown the presence of extensive argillic
alteration.
-- The scale and size of the anomaly, together with coincidental
multi-element anomalies and extensive hydrothermal alteration, are
comparable to significant high-sulphidation epithermal gold
deposits within the region.
-- Furthermore, a new lead-zinc-copper-gold target has been
identified to the south of Madjan Peak, of particular significance
given its situation, approximately 3 kilometres from the Stan Terg
lead-zinc-silver mine which dates back to the 1930s (historical
production records: 34 million tonnes at 3.45 per cent lead, 2.30
per cent zinc and 80 g/t silver).
-- Vardar is finalising plans to fly an ultra-detailed drone
magnetic survey over Mitrovica. Vardar has acquired the drone,
sensors and support equipment and has developed flight automation
software over the winter period. This software is now in testing
and when completed will assist in flying accurate low-level survey
lines across mountainous terrain.
-- The geophysics programme is being designed to map out
alteration zones and identify potential structural controls to
mineralisation, as well as full 3D IP/DC surveys designed to
directly map sulphides and resistivity contrasts associated with
mineralisation.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"T he results of the soils programme are extremely exciting,
suggesting potential for discovery of an epithermal gold deposit at
Madjan Peak and for lead-zinc-copper mineralisation further south,
a stone's throw away from the World Class Stan Terg
lead-zinc-silver deposit.
"The Mitrovica licence is located immediately to the west and
northwest of the Stan Terg mine, and has already yielded
exploration targets which Vardar believes are all related to a
potentially much larger porphyry style mineralised system, based on
meticulous geological mapping of hydrothermal alteration and
interpretation of trench, drilling and soil geochemical exploration
data.
"Vardar is now finalising plans for ground and airborne
geophysical surveys over Madjan Peak, as soon as COVID-19
restrictions allow resources to be fully mobilised. Drilling would
follow target definition and could take place later this year."
"In addition to the soils programme, 157 rock grab samples have
also been collected and sent for analysis at ALS Bor. Results are
expected mid-June.
"We look forward to keeping the market updated on further
developments."
Madjan Peak - Background
The Madjan Peak gold ("Au") target is defined by a zone of
intense argillic alteration capped by an extensive blanket of
advanced argillic alteration which forms the hilltop. The target
shares many characteristics of a high-sulphidation epithermal gold
system, with distinct gold anomalies, including rock grab sample
results of up to 7.2 g/t, associated with gossanous zones of vuggy
quartz.
The target forms a prominent peak in the centre of an area
notable for its significant lead-zinc-silver ("Pb"-"Zn"-"Ag")
deposits, likely related to the same hydrothermal system, including
the Stan Terg Pb-Zn-Ag mine which dates back to the 1930s
(historical production records: 34 million tonnes at 3.45 per cent
lead, 2.30 per cent zinc and 80 g/t silver) .
Regionally, the Balkan portion of the Tethyan Arc hosts a number
of World Class epithermal Au deposits including : Chelopech (>5
Moz); Bor (9 Moz); and Madjanapek (8 Moz).
Sampling was conducted on a 50 m x 50 m grid, covering an area
of approximately 2.0 km x 1.5 km. A total of 726 samples were sent
to ALS Bor in Serbia for processing and fire assay (ALS code
ICP-22), which included sample replicates, duplicates, blanks, and
control source material. A pXRF was used for multi-element
analysis. Results from this latest programme provided a significant
improvement in resolution compared with the broad regional soil
sample programme undertaken in 2019.
Au anomalies on the Majdan Peak ridge correlate well with
anomalous Arsenic, Copper, Lead, Mercury, Strontium and Antimony,
extending broadly across an area of approximately 1400 m x 700 m.
Distinct higher grade trends are apparent within the broader
anomaly, possibly indicative of structural controls to higher grade
mineralisation.
In addition to the primary Madjan Peak Au target, a new
multi-element anomaly has been delineated to the south of the main
peak. This anomaly correlates well with anomalous rock grab samples
(including individual samples with 0.79 g/t Au) with galena veins
apparent in some of the outcropping gossans.
Investment in Vardar
Beowulf owns 42.2% of Vardar, a UK registered private
exploration company with exploration licences in Kosovo. The
Company funded Vardar's 2019 works programme including diamond
drilling, geophysical surveys, and other activities. Results helped
develop our understanding of the copper and gold porphyry potential
at both the Mitrovica and Viti projects.
Porphyry deposits are exceptionally large, low grade,
polymetallic systems, that typically contain copper along with
other metals, such as gold, silver, zinc, and lead. Examples in the
region include the Kiseljak deposit in Serbia (Inferred Resource:
459 million tonnes at 0.22 per cent copper, 0.2 grammes per tonne
gold. Source: Dunav Resources' announcement, June 2014) and the
Skouries high grade gold-copper deposit in Greece (Measured and
Indicated Resource: 289 million tonnes at 0.43 per cent copper and
0.58 grammes per tonne gold. Inferred Resource: 170 million tonnes
at 0.34 per cent copper and 0.31 grammes per tonne gold. Source:
Eldorado Gold).
At Mitrovica, located immediately to the west and northwest of
the World Class Stan Terg lead-zinc-silver mine, potential not only
exists for the discovery of additional lead-zinc-silver deposits,
but also for the discovery of high-level epithermal gold deposits
and for copper-zinc deposits.
It is simplistic to think of these targets, which occur along a
seven kilometre trend, in isolation. However, Vardar believes the
targets are all related to a potentially much larger porphyry style
mineralised system, based on meticulous geological mapping of
hydrothermal alteration and interpretation of trench, drill and
soil geochemical exploration data.
At Viti, initial stratigraphic holes, drilled in 2019,
intersected the correct alteration type, returning gold and visible
copper mineralisation, that indicates potential for the discovery
of a mineralised copper-gold porphyry in a hitherto unexplored
area.
Glossary:
Induced Polarisation (IP) - Variations in chargeability can be
diagnostic, for example, when aiming to characterize a mineral
deposit (e.g. Mt. Isa), where the chargeability of the mineralized
zone is often higher than the host rock. Often an induced
polarization (IP) experiment is performed with the Direct Current
Resistivity (DCR) hence they are often called DC-IP survey. Both
conductivity and chargeability distribution can be recovered from a
DC-IP survey.
Abbreviations:
m - metres
km - kilometres
m - metres
mm - millimetres
Moz - million ounces
BLEG - Bulk Liquid Extractable Gold
CRMs - Certified Reference Materials
QA/QC - Quality Assurance/Quality Control
XRF - X-Ray Fluorescence
Competent Person Review
The information in this announcement has been reviewed by Mr.
Chris Davies, a Competent Person ("CP"), who is a Fellow of the
Australasian Institute of Mining and Metallurgy. Mr. Davies has
conducted a desktop review of source documents and data which
underpin the technical statements disclosed herein and approves the
disclosure of technical information in the form and context in
which it appears in this announcement, in his capacity as a CP as
required under the AIM rules. Mr. Davies has visited Vardar's
Mitrovica and Viti projects in Kosovo.
Mr. Davies has sufficient experience, that is relevant to the
content of this announcement, to qualify as a CP as defined in the
2012 Edition of the "Australasian Code of Reporting of Exploration
Results, Mineral Resources and Ore Reserves".
Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration,
FAusIMM, is a Non-executive Director of Beowulf and is an
exploration/economic geologist with more than 35 years' experience
in the mining sector.
About Beowulf Mining plc
Beowulf's strategy is to build a sustainable and innovative
mining company, which creates shareholder value by developing
mining assets, delivering production and generating cash flow, and
in so doing meets society's ongoing need for minerals and
metals.
Beowulf is developing a high-quality asset base, which is
diversified by geography and commodity, enabling it to
simultaneously advance several projects up the mining value curve
and create shareholder value.
Additionally, the Board of Directors continues to look beyond
the Company for value creation opportunities.
The Company's first priority remains the award of the
Exploitation Concession for Kallak North, and thereafter completing
the Scoping Study. The introduction of a strategic partner/investor
who understands the value of Kallak as a high-quality asset, which
could be in production within four to five years, is an ongoing
consideration, but does not preclude the Company from continuing to
add value to Kallak in the meantime.
Fennoscandian Resources ("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 enable Finland to achieve its ambition of
self-sufficiency in battery manufacturing. The Company is a
recipient of Business Finland funding, which is supporting
Fennoscandian to move downstream, and develop its knowledge in
processing and manufacturing value-added graphite products.
The Company owns 42.2 per cent of Vardar, a UK registered
exploration company with a focus on the metal endowed Balkan region
and one of the first companies to be awarded exploration licences
in Kosovo. Vardar holds exploration licences for the Mitrovica and
Viti projects. Both projects are located within the Tethyan Belt, a
major orogenic metallogenic province for gold and base metals which
extends from the Alps (Carpathians/Balkans) to Turkey, Iran and
Indochina, and contains several world class discoveries. The
Tethyan Belt of south-east Europe can be regarded as Europe's chief
copper-gold (lead-zinc-silver) province.
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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