3rd Quarter Results

RNS Number : 2437D

Beowulf Mining PLC

30 November 2009

 



Beowulf Mining Plc

("Beowulf" or the "Company")

Third Quarter Update

Beowulf (AIM: BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company, which owns several exploration projects in Sweden, is pleased to announce an unaudited operational and financial update for the nine months ended 30 September 2009.

Highlights:

Operational:

• Acquisition of Agricola Resources Plc's Swedish assets including full control of the Company's Ballek copper-gold-uranium project. New joint venture entered into in respect of the Ballek project with Energy Ventures Limited.
• Metallurgical tests on Ruoutevare ore material produced a final high grade product of sponge iron containing 90% iron and 1.5% titanium. New tests ongoing in respect of the possible production of a high grade pellet feed. 

Post period

• Flotation tests on material from the Lulepotten copper-gold deposit produced a high grade copper concentrate containing 32.4% copper, 5.6 g/t gold, 320 g/t silver and 29 g/t tellurium.
• New Munka exploration licence, hosting Sweden's largest molybdenum deposit, secured thereby strengthening the Company's portfolio of Swedish exploration assets.

Corporate:

• Approximately £321,000 in cash held at the period end. 
• Continued increase in trading in Beowulf's shares on the Aktietorget exchange in the form of Swedish Depository Receipts.
• Beowulf continues to focus on the rapid commercialisation of its existing projects as well as exploration and development.

Clive Sinclair-Poulton, Chairman of Beowulf, commented:

"At the time of the Raw Material Group's ("RMG's") conference in Stockholm a year ago, global financial markets were in free-fall and a general sense of pessimism amongst delegates prevailed.

"Despite the challenging economic backdrop, the executive team at Beowulf was more optimistic as the Company had just announced maiden Inferred Resource estimates, compliant with the JORC code, for its projects at Ruoutevare and Ballek. China had also announced its fiscal stimulus programme which, with its emphasis on infrastructure development, appeared likely to be a positive indicator for natural resource prices.

"In June 2009, during a visit to China to meet with potential investors and partners, I believed that the most promising scenario would see China continue to import natural resources until such time as the West's economies recovered and demand for iron and copper recovered. This optimistic scenario has been borne out subsequently, with continued growth in China and evidence of a gradual economic revival in Europe and the USA. 

"Following our successful equity placing in June 2009 to raise £500,000 gross, we have subsequently sought to increase the depth and breadth of the Company's asset portfolio in Sweden and on 29 September 2009 announced the acquisition of Agricola Resources plc's ("Agricola's") Swedish assets, comprising a package of five highly prospective gold, copper, nickel and uranium exploration licences covering, in aggregate, an area of 148.40 square kilometres in Northern Sweden, near to our existing Ballek Project.

"At the same time, the Company also re-acquired full control of its Ballek copper-gold-uranium project from Agricola and entered into a new joint venture in respect of the Ballek project on more advantageous terms with the Australian resource company, Energy Ventures Limited ("EVE"). Under the terms of the new joint venture, EVE can earn-in a 50 per cent. interest in the Ballek Project if they sole fund and complete 1,600 metres of diamond drilling on-site by 31 March 2010.

"In order to demonstrate the value of our resources, in July 2009 we commissioned the international consultancy group, RMG, to undertake an updated conceptual study on the Company's Ruoutevare iron ore deposit. This scoping study is progressing well and is expected to be finalised early in the first quarter of 2010.

Post Period events

"In June, we also commissioned MINPRO AB's ("MINPRO") research laboratory at Stråssa, Central Sweden to conduct enlarged metallurgical tests on ore extracted from Ruoutevare. On 12 November 2009, we announced that tests on crushed and milled Ruoutevare ore material had shown that a final product of high grade sponge iron powder containing up to 90% iron (Fe) with 1.5% titanium (Ti) was obtainable. Initial grades of Fe 52.1% and TiO2 11.4% from the milled ore material studied, compared very favourably with an historic study carried out in the 1970s by the Geological Survey of Sweden showing grades of Fe 53% and TiO2 12.3%.  Encouraged by these very good results we have recently commissioned further analysis from MINPRO.

"Furthermore, in July, MINPRO were also engaged to conduct metallurgy tests on copper ore from the Ballek Project.  Based upon a small laboratory sample, MINPRO were able to obtain a final copper concentrate, from flotation tests on material from the Lulepotten copper-gold deposit, containing 32.4% copper, 320 grammes per tonne (g/t) of silver, 29 g/t of tellurium and 5.6 g/t of gold. These are, in our opinion, exceptionally good grades and fully justify further work in the Ballek area.

"With gold prices at over US$1,000 an ounce, we are currently looking for a potential joint venture partner for our Grundtrask gold project. With the recent change of government attitudes on nuclear power in the UK, Germany and specifically Sweden, we also believe that the uranium potential we have in our Ballek and Geddaur projects is very promising and may ultimately lead to a joint venture being secured to prove up such potential.

"Sweden continues to be well regarded as an excellent country to work in and has attractive natural resource assets. The Company's decision in March 2008 to secure a trading facility, via Swedish Depositary Receipts ("SDRs"), for the Company's ordinary shares on the AktieTorget market in Stockholm has been highly successful with presently approximately 10 million shares being traded in the form of SDRs on that Exchange.

"We continue to examine ways to increase the value of our asset portfolio which, in turn, should increase the value of the Company and most recently were pleased to announce the award of a new exploration licence to the Company by the Swedish Mining Registrar, in Bergsstaten, in respect of the Munka area in northern Sweden, which covers 800 hectares, and hosts Sweden's largest, drill confirmed deposit of molybdenum.

Summary

"We were optimistic of the Company's prospects back in November 2008 and continue to remain so. The global economic environment continues to show signs of improvement and our portfolio has increased in terms of both quality and quantity.

"We remain thankful to those who work with us and our shareholders for their support and look forward to reporting further progress in the months ahead."

Enquiries:

Beowulf Mining Plc
Mr Clive Sinclair-Poulton, Chairman	[phone]
Strand Hanson Limited
Matthew Chandler / Simon Raggett	[phone]
Alexander David Securities Limited
David Scott / Nick Bealer	[phone]
Lothbury Financial Ltd
Gary Middleton / Ron Marshman	+ 44 (0) 207 011 9411
or visit http://www.beowulfmining.com

Beowulf Mining Plc

Unaudited Income Statement

For the Nine Months Ended 30 September 2009  

	Unaudited Nine months ended 30 September 2009 £000s		Unaudited Nine months ended 30 September 2008 £000s
Revenue
Interest Received	3		17
Expenses
General & Administrative	318		266
Interest paid	3		15
Depreciation	41		51
	362		332
Loss before taxation	359		315
Unaudited Balance Sheet As at 30 September 2009

		Unaudited 30 September 2009 £000s		Unaudited 30 September 2008 £000s
ASSETS
Non-current assets
Development costs		324		256
Investments		60		249
		384		505
Current assets
Debtors		32		36
Deposits and cash		321		432
		353		468
Liabilities
Current liabilities
Creditors		47		33
Taxation		2		2
		49		35
Total assets less current liabilities		688		938
Financial liabilities - borrowings
Interest bearing loans and borrowings		(150)		(250)
Total assets less liabilities		538		688
Shareholders equity
Called up share capital		1,058		809
Share premium account		2,847		2,597
Revaluation reserve		(56)		143
Warrants & capital contribution reserve		52		52
Retained earnings		(3,363)		(2,913)
Total liabilities and shareholders funds		538		688

 

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