Kallak South Update

RNS Number : 4366J

Beowulf Mining PLC

30 June 2011

 



30 June 2011

Beowulf Mining Plc

("Beowulf" or the "Company")

Update re Kallak Iron Ore Project

Highlights:

·     90% of the Company's Kallak South drilling programme has now been completed.

·     Drillholes completed to date have tested approximately 2,000 metres of the Kallak South deposit which is indicated to extend over 2,400 metres in length.

·     The latest assay results received for seven drillholes completed in the southern half of the Kallak South deposit show high grade iron mineralisation extending over significant widths.

·     Vertical depth of the Kallak South deposit confirmed to more than 275 metres.

·     One of the drill rigs will shortly be moved onto Kallak North in order to commence a planned further 1,500 metre drill programme on this nearby deposit.

Clive Sinclair-Poulton, Executive Chairman of Beowulf, commented:

"The results of the Company's expenditure on drilling and analysis to date vindicates our acquisition of this property which is developing into a commercially very attractive asset. The 3,500 metre drill programme on Kallak South is now almost complete and we look forward to announcing assay results for the remaining holes in due course.

In light of the progress made, one of the drill rigs will shortly be moved onto Kallak North to commence a planned further 1,500 metres of drilling in order to help us prove up this wholly owned world class project."

Beowulf (AIM: BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company which owns several exploration projects in Sweden, is pleased to announce that 3,150 metres of its total planned 3,500 metres drilling programme on its Kallak South deposit has now been completed. A similar programme to outline the Company's Kallak North deposit was completed in August 2010 and, together, the two deposits form the Kallak Iron Ore Project.

The drillholes completed on Kallak South to date have tested approximately 2,000 metres of the deposit, which from detailed ground magnetic data is indicated to extend in a N-S direction over 2,400 metres in length with a maximum width of 400 metres in its central zone. Based on the current drilling results and measured size of the detailed ground magnetic anomaly, the deposit is estimated to contain more than 400 million tonnes of iron ore.

The ongoing 32 hole drilling programme is being carried out on planned E-W extending drill sections which cross cut the central zone of the deposit approximately 1,500 metres south of formerly drilled sections. Initial drill results for these sections confirm the presence of high grade iron mineralisation over significant widths of up to 400 metres. To date, the vertical depth of the iron mineralisation at Kallak South has been confirmed to more than 275 metres, with holes in the current programme drilled to more than 300 metres.

Ongoing drilling at E-W extending sections in the central and southern part of the deposit has confirmed the presence of high grade magnetite mineralisation extending from the surface to significant depths. The recently completed drillhole no. KAL 10 045 drilled to a depth of 331.2 metres at 70 degrees inclination, shows magnetite mineralisation extending from bedrock surface to 290 metres along the length of the drill core. Further holes in the same drill section confirm an E-W width of mineralisation for the deposit of more than 250 metres.

The latest assay results received for seven drillholes (approximately 1,112 metres) completed in the southern half of the deposit show high grade iron mineralisation extending over significant widths in several holes as set out in the table below:

Hole No.*	Total depth (m)	Section analysed (m)			Assay results Fe (%)
		From	To	Total Width
KAL 10 043	143.00	**
KAL 10 045 includes	331.20	12.25 110.90	167.08 167.08	154.83 56.18	28.3 35.35
KAL 10 046 includes	140.10	12.10 45.70 84.40	129.00 65.55 110.20	116.90 19.85 25.80	28.4 34.2 38.0
KAL 10 047	125.70	13.75	66.60	52.85	31.2
KAL 10 048 includes	156.50	18.28 75.70	144.50 92.20	126.22 16.50	23.2 40.1
KAL 10 049	62.19	**
KAL 10 050	152.90	16.80	152.40	135.60	24.1
TOTAL:	1,111.59			586.40

Notes:

* - holes KAL 10 045 and KAL 10 046 were drilled at a 70 degree inclination and an azimuth of 250 degrees. All the other holes were drilled at a 45 degree inclination and have an azimuth of 270 degrees.

** - no significant grades returned.

For each drillhole, the longest mineralised intercept with grades higher than 20% Fe is noted, with the length shown in metres and average grade of iron (%Fe). Notably, high grade sections of significant length with more than 30% Fe are also included.

As a result of the angled holes cutting an almost vertical dipping iron mineralised zone, the true thickness of the intercepted mineralised material is estimated to be 70% of the downhole length of the mineralized core in the individual borehole.

A number of encouraging results are noted, such as hole no. KAL 10 048 drilled at 45 degrees inclination in drill section 7 411 600N which contained 23.2% Fe over 126.22m between the interval 18.28m - 144.50m including a 20.0m section at 38.2% Fe and a 16.5m section between 75.70m - 92.2m at 40.1% Fe.  

The results of recent drilling in the central part of the Kallak South deposit further confirm the presence of wide sections of high grade magnetite iron mineralisation of a similar type and quality to that encountered in the Company's Kallak North deposit. Magnetite mineralisation is confirmed to be up to 250 metres wide and extending from surface to more than 250 metres in depth.

Assay results in respect of a further five recently completed drillholes, including the most southerly drilled section at the location 7 411 400 N, are currently expected to be received in late July 2011.

The northerly extension of the Kallak South deposit has generally been found to be covered by thick glacial deposits (mostly till) of more than 15 metres thickness, which is substantially more relative to that of the Kallak North deposit where the overburden thickness noted in drillholes seldom exceeded two metres. Relatively thinner glacial deposits of less than ten metres have been noted to date in the southern sections of the Kallak South deposit.

Bench scale metallurgical tests, including DTR (Davis Tube Recovery) tests on ore grade material from Kallak South, are currently being conducted by MINPRO AB's research laboratory at Stråssa, Central Sweden in order to further assess the quality of the iron ore. The metallurgical tests are being carried out on selected large samples of ore grade drill core sections of the deposit and are being directed towards the production of a high grade magnetite pellet feed product similar to that obtained from the Kallak North deposit. Test results are currently expected to be received early in Q3 2011.

The independent maiden JORC compliant resource estimate commissioned for the Kallak North deposit, based on the Company's 2010 drilling results and historic data, is progressing well but is now expected to be received in late August 2011.

Fieldwork, including baseline environmental studies, in connection with the Environmental Impact Study ("EIS") commissioned on the Kallak project is currently being undertaken by the Swedish consulting company HIFAB, Luleå. The study forms a crucial component of the requisite reports for a planned formal application by the Company in due course to transfer its existing exploration permit for the Kallak project area into an exploitation (mining) licence. In connection with this ongoing work, a number of public information meetings outlining the Company's forthcoming plans for the development of the Kallak project area have been held by the Company with the principal municipal authorities of Jokkmokk and locally affected organisations such as Sami village boards. Initial feedback from these meetings has in general been very positive.

Dr Jan Ola Larsson (Fil. Kand, PhD, DIC), has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Larsson is Technical Director of the Company and has over 30 years relevant experience within the natural resources sector.

Enquiries:

Beowulf Mining Plc
Clive Sinclair-Poulton, Chairman	Tel: [phone]
Strand Hanson Limited
Matthew Chandler / Simon Raggett	Tel: [phone]
Alexander David Securities Limited
David Scott	Tel: [phone]
Lothbury Financial Services Limited
Gary Middleton / Michael Padley	Tel: [phone]
or visit http://www.beowulfmining.net

 

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