Kallak North Update

RNS Number : 8854E

Beowulf Mining PLC

13 February 2015

 



13 February 2015

Beowulf Mining Plc

("Beowulf" or the "Company")

Mining Inspectorate of Sweden refers the decision regarding an Exploitation Concession for Kallak North to the Swedish Government

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak iron ore project in northern Sweden and its Swedish exploration portfolio, has received notification that the Mining Inspectorate of Sweden has referred the the decision regarding the Exploitation Concession for Kallak North to the Swedish Government.

The Chief Mining Inspectorate has found that the prerequisites for an Exploitation Concession are fulfilled, but leaves the Government to make a decision regarding Chapters 3 and 4 of the Environmental Code, since the County of Administrative Board has not developed their opinion on this in a satisfactory way.

The Company anticipates a decision by the Swedish Government will be made in 2015, the timing of which does not affect the Company's 2015 programme of work for Kallak. 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"We are pleased that the Mining Inspectorate of Sweden has progressed the Company's application to the Swedish Government and that the Inspectorate believes that the fundamental prerequisites for the granting of an Exploitation Concession for Kallak North have been met.  This is a validation of the direction set by the Company's previous management, studies conducted by our Swedish employees and consultants, contained with our submissions, and our focus on addressing matters of concern to our stakeholders. 

"We have met all fundamental requirements set by the Swedish regulations for the Application and as such we remain confident the Exploitation Concession will be approved by the Swedish Government.  We will continue to work with all our Swedish stakeholders in the months ahead to strengthen relationships and advance the future development of Kallak North."

Enquiries:

Beowulf Mining Plc
Kurt Budge, Chief Executive Officer	Tel: [phone]
Cantor Fitzgerald Europe
Stewart Dickson / Jeremy Stephenson / Carrie Lun	Tel: [phone]
Blytheweigh
Tim Blythe / Halimah Hussain / Eleanor Parry	Tel: [phone]
http.//www.beowulfmining.net

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.

About Us

The Kallak North iron ore deposit is located about 40km west of the Jokkmokk municipality centre in the Norrbotten County in Northern Sweden.

Local infrastructure is excellent with all-weather gravel roads passing through the project area and all parts easily reached by well used forestry tracks. A major hydroelectric power station with associated electric power-lines is located only a few kilometres to the south east. The nearest railway (the 'Inland Railway Line') passes approximately 40km to the east. This railway line is connected at Gällivare with the 'Ore Railway Line', which is used by LKAB for delivery of their iron ore material to the Atlantic harbour at Narvik (Norway) or to the Botnian Sea harbour at Luleå (Sweden).

The total Kallak project area is approximately 243km² in size, with the Kallak North and Kallak South orebodies being centrally located, as defined by drilling covering an area approximately 3,700m in length and 350m in width.  The mineral resource estimate for Kallak North and South is based on drilling conducted between 2010-2014, a total 27,895m drilled, including 131 drillholes. 

The latest resource statement for the Kallak project was finalised on the 28 November 2014, following the guidelines of the JORC Code 2012 edition, summary as follows:

	Category	Tonnage [Mt]	Fe [%]	P [%]	S [%]
Kallak North	Indicated	105.9	27.9	0.035	0.001
	Inferred	17.0	28.1	0.037	0.001
Kallak South	Indicated	12.5	24.3	0.041	0.003
	Inferred	16.8	24.3	0.044	0.005
Global	Indicated	118.5	27.5	0.036	0.001
	Inferred	33.8	26.2	0.040	0.003

The Ballek Joint Venture project comprises two exploration permits over a total area of 18.3km2, located in the Norrbotten County in Northern Sweden. In September 2008 Beowulf reported a maiden JORC Code compliant Inferred Resource estimate for the Lulepotten copper-gold deposit of 5.4Mt, grading 0.8% Cu and 0.3g/t Au.

Other attractive portfolio assets include the Nautijaure licence with potential for IOCG, Grundträsk gold project and the Munka licence area, which covers approximately 800 hectares and hosts Sweden's largest, drill confirmed deposit of molybdenum.

 

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