Update for Graphite Drilling in Finland

13 March 2017

See Press Release Update for Graphite Drilling in Finland

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Beowulf (AIM: BEM; AktieTorget: BEO), the mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg polymetallic exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to provide an update on its graphite drilling programme at its Aitolampi prospect, part of Beowulf’s 100 per cent owned Exploration Permit, Pitkäjärvi 1. 

Highlights:

  • Four diamond drill holes completed as part of an eight hole programme.
  • Approximately 505 metres (“m”) drilled in total, with drill holes extended 350m along strike for the main conductive zone.
  • Substantial widths of graphite mineralisation, up to 100m down-hole width, have been intersected, which correspond with identified electromagnetic (“EM”) conductors. It should be noted that the mineralisation intercept is the down-hole width and may not be the true width.
  • Samples are being sent for assay at ALS Minerals in Finland, concurrently with the drilling programme.
  • Please visit www.beowulfmining.com to view plans, relevant to this announcement, showing drill hole locations, and mini-Slingram and Slingram EM anomalies.

Kurt Budge, Chief Executive Officer of Beowulf, commented:  

“We are making excellent progress with the graphite drilling at Aitolampi and, having

completed approximately 505m out of a 1,300m drilling programme, we are encouraged by

the results. We have observed significant lengths of graphite in all holes drilled to date, in

the areas where we have previously identified EM conductors.

“Drilling should be completed shortly, and with sample deliveries, to ALS Minerals in Outokumpu, having already commenced, we look forward to reporting the assay results in April.

“Composite samples are also being prepared, which will be sent to an accredited laboratory, for metallurgical testwork, after drilling is completed.

“All this work will further support our assessment of a potential resource and the commercial prospects of the graphite that we are finding.”

Background

  • The Pitkäjärvi graphite prospect is in eastern Finland approximately 40 kilometres southwest of the well-established mining town of Outokumpu.
  • In 2016, exploration conducted by the Company showed the Aitolampi area, in the eastern most part of Pitkäjärvi, to be prospective for graphite mineralisation, and was considered by the Company’s geologists as a priority target for drilling.
  • The area has extensive EM anomalies (conductive zones) that were first defined by an airborne survey carried out by the Geological Survey of Finland (“GTK”). Graphite is a great conductor and the presence of graphitic schists on a fold limb coincidental with the anomalies suggests potential for extensive graphite mineralisation at Aitolampi.
  • In 2016, the Company carried out its own horizontal loop electromagnetic Slingram surveys (“HLEM”) to further investigate the area. Numerous zones of conductance were further defined from the survey.  Although in most cases glacial till obscured possible graphite mineralisation, at some locations graphite mineralisation was located, mapped, and sampled. These included road cuttings, outcrops and mineralised boulders.
  • On 25 January 2017, the Company announced testwork results for composite “grab” samples taken from its Pitkäjärvi and Aitolampi graphite prospects. Testwork on composite samples for Pitkäjärvi and Aitolampi has produced combined concentrate grades of 94.5 per cent and 94.7 per cent Total Carbon (“Ct”), respectively, and grades of at least 95.7 per cent Ct in all size fractions between 65 mesh and 200 mesh (210-75 micron), with the highest grade of 97.4 per cent Ct obtained from the -80/+100 mesh (180-150 micron) size fraction for Pitkäjärvi (see Company announcement dated 25 January 2017 for details). 
  • Flake size analysis for Pitkäjärvi concentrate showed 83 per cent fine (< 150 micron), 5.6 per cent medium (150-180 micron) and 11.4 per cent large/jumbo (+180 micron) flakes. Flake size analysis for Aitolampi concentrate showed 78.3 per cent fine, 8.8 per cent medium and 12.9 per cent large/jumbo flakes.
  • Analysis was conducted by SGS in Canada.
  • The Company started drilling at Aitolampi on 22 February 2017.

Summary of work

  • Objectives for the drilling programme are to assess the extent, width, depth, and continuity, of sub-surface graphite mineralisation along a major EM conductive zone trending 700m in length, and 200m to 300m in width, to provide representative sample material for assaying and metallurgical testwork.
  • The Company has completed four diamond drill holes and 505.4m drilling.
  • The eight hole programme will deliver up to 1,300m of drill core in total.
  • Observed graphite mineralisation from the first four drill holes is summarised in the table below. It should be noted that these are observations made by the Company’s geologists, which are based on examination of the recovered drill core, and cannot be considered a definitive assessment until the results of assays and metallurgical testwork have been taken into consideration.  Grades will be reported when assay certificates have been received from a certified laboratory.
  • Drill Hole (lengths in metres)
Total length of drill hole
  • Initial graphite intersection - depth from collar
  • *Total observed graphite intersection
Maximum individual graphite intersection
  • AITDD17001
175.0 23.9 100.0 35.15
  • AITDD17002
142.0 Drill hole still being logged  
  • AITDD17003
100.3 13.7 39.4 19.96
  • AIRDD17004
88.1 15.3 34.3 15.75

*It should be noted that the mineralisation intercept is the down-hole width and may not be the true width.

Competent Person Review

The information in this announcement has been reviewed by Mr. Rasmus Blomqvist, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy.  Mr. Rasmus Blomqvist has sufficient experience, that is relevant to the style of mineralisation and type of deposit taken into consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian Resources, a 100 per cent owned subsidiary of the Company.

Enquiries:

Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe (Nominated Advisor & Broker)
David Porter/Craig Francis Tel: +44 (0) 20 7894 7000
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.

Glossary:

Micron - a unit of length equal to one millionth of a metre.

Mesh size - the number of openings in a one US inch of screen is the mesh size e.g. a 4-mesh screen means there are four squares across one linear inch of screen.  A 100-mesh screen has 100 openings, and so on.  As the number describing the mesh size increases, the size of the particles passing through the mesh decreases.  Higher numbers equal finer material.  Mesh size is not a precise measurement of particle size.  If minus (-) and plus (+) plus signs are shown when describing mesh sizes, this is best explained with an example: –200-mesh would mean that all particles smaller than 200-mesh would pass through. +200 mesh means that all the particles 200-mesh or larger are retained.


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Beowulf Mining plc är ett företag engagerat i prospektering och utveckling av malmförekomster av koppar, guld och järn i Sverige.