Ballek JV Partner earns 50% o

RNS Number : 0881K

Beowulf Mining PLC

13 April 2010

 



13 April 2010

Beowulf Mining Plc

("Beowulf" or the "Company")

JV Partner earns 50% interest in the Company's Ballek Project

Highlights:

·     1,601 metre diamond drilling programme completed at the Ballek copper-gold-uranium JV project.

·     Energy Ventures Limited has now earned a 50% interest in the project.

·     Drilling results expected in May 2010.

·     New company set up to develop the project.

Clive Sinclair-Poulton, Executive Chairman of Beowulf commented:

"We are delighted that even during one of Sweden's coldest winters our JV Partner has completed the required drilling programme on schedule and we look forward to receiving the assay results next month."

Overview

Beowulf (AIM:BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company which owns several exploration projects in Sweden, is pleased to advise that its JV Partner, Energy Ventures Limited ("EVE") (ASX:EVE), has recently completed a diamond drilling programme comprising a total of 1,601 metres at the Ballek copper-gold-uranium project in Northern Sweden. The completion of this drilling programme has satisfied the requirements for EVE to earn a 50% interest in the Company's Ballek project.

Ballek Project Drilling Programme

A programme of diamond drilling at the Ballek copper-gold-uranium project has been undertaken by EVE to test for the continuation, or repetitions of, the known mineralisation at the Lulepotten copper-gold deposit.  A total of 8 holes for 1,601 metres drilling was completed testing a series of geophysical targets to the north and south of Lulepotten (see Table 1).

Table 1: Drilling Programme Summary

Hole ID	Hole Collar Coordinates*		Dip      (o)	Azimuth (o)	Depth (m)	Comment
	Easting	Northing
BAL005 BAL006 BAL007 BAL008 BAL009 BAL010 BAL011 BAL012	1607539 1607378 1609349 1609453 1609154 1610375 1609386 1609760	7328755 7328511 7331740 7331709 7331769 7335558 7331895 7334177	-45 -45 -50 -50 -50 -50 -50 -50	110 110 90 90 90 300 90 300	221 235 82 132 228 250 220 233	Hole abandoned due to an obstruction
Total					1,601

*Swedish RT90 2.5 gon V grid projection

Geological logging of the drill holes and sample preparation is currently in progress.  Assay results for the drilling are expected to be received in May 2010 and will be announced when available.

Ballek Joint Venture

EVE completed a joint venture agreement with the Company on its Ballek copper-gold-uranium project in September 2009.  The project comprises four exploration permits that collectively cover 110 square kilometres in Arjeplog County, northern Sweden. The historical Lulepotten copper-gold deposit, which has a JORC-compliant Inferred Resource of 5.4Mt grading 0.8% copper and 0.3g/t gold (cut-off value of 0.3% for copper), is contained within the project area.

Under the terms of the joint venture agreement with Beowulf, EVE was required to sole fund exploration on the project and to complete a 1,600 metre drilling programme by 31 March 2010 in order to earn a 50% interest in the project.  This earn-in requirement has now been satisfied.

Beowulf has recently incorporated a private company in England, Wayland Copper Limited ("Wayland Copper"), to hold the Ballek Project exploration permits and will transfer a 50% equity interest in this new joint venture company to EVE.  EVE will be the manager and operator of Wayland Copper, which will be jointly funded by EVE and Beowulf in order to complete any further agreed exploration work programme(s) going forwards.

Beowulf will appoint two directors to the board of Wayland Copper as shall EVE. One of Beowulf's appointees, Dr Jan-Ola Larsson, shall also act as Chairman of Wayland Copper.

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 / Nick Bealer	Tel: [phone]
Lothbury Financial Services
Gary Middleton/Michael Padley	Tel: + 44 (0)207 868 2567
or visit http://www.beowulfmining.com

Notes to Editors:

The Ballek copper-gold-uranium project area in the municipality of Arjeplog, Northern Sweden, comprises four licences covering 11 copper prospects, including the Lulepotten copper-gold deposit.  Lulepotten has a JORC-compliant Inferred Resource estimate of 5.4 million tonnes grading 0.8% copper and 0.3 grammes per tonne of gold (cut-off value of 0.3% for copper).

In July 2009, MINPRO AB ("MINPRO") was commissioned to conduct initial metallurgical tests on ore grade material from the Lulepotten copper-gold deposit to facilitate quality testing by potential clients.  Based upon a small laboratory sample of Lulepotten copper-gold ore, MINPRO was able to obtain a final flotation test copper concentrate containing 32.4% copper, 5.6g/t gold and 320 grammes per tonne (g/t) of silver.

Energy Ventures Limited ("EVE") (ASX: EVE; www.energyventures.com.au) is an ASX listed investment company with strategic interests in uranium and base metals projects in Australia, Africa and Europe.  The company's Non-executive Chairman, Dr Ian Duncan, has a wealth of experience in uranium, retiring in 1998 as the General Manager of the Olympic Dam project in Australia, the world's largest uranium deposit, the fourth largest remaining copper deposit and the fifth largest gold deposit. Exploration manager, Lachlan Reynolds, amongst other positions, was involved in the supervision of near-mine exploration at the giant Olympic Dam project. 

 

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