Base and Precious Metal Exploration Targets Defined in the Southern Part of the Mitrovica License

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

30 September 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Base and Precious Metal Exploration Targets Defined in the Southern Part of the Mitrovica License 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, provides an update on its investment in Vardar Minerals Limited (“Vardar”) and soil sampling results for the prospective southern half of the Mitrovica Project in northern Kosovo.  

Highlights:

Based on soil sample results, associated alteration, existence of gossans and rock grab sample results, three priority target areas have been identified: 

• Mitrovica South exhibits potential for a large mineralised system - Soil sampling results have identified distinctive zinc (“Zn”), copper (“Cu”), lead (“Pb”), silver (“Ag”) and gold (“Au”) anomalies in the southern part of the license, extending laterally from known mineralisation, suggesting that the system may be larger than indicated by initial geological mapping. 

Mitrovica South is less than three kilometres from the Stan Terg lead (“Pb”), zinc (“Zn”) and silver (“Ag”) mine, which dates back to the 1930s and which is estimated to have produced 34 million tonnes at 3.45 per cent lead, 2.3 per cent zinc and 80 g/t silver.

• Madjan Peak Gold target - anomalous Au and Ag assays have been returned for the eastern margin of the license, correspond with previously mapped advanced argillic alteration, identified historic gold workings/pits and anomalous rock chip samples (up to 7.2 g/t Au).
• Madjan Peak Lower Slopes - displays elevated Cu, Zn and Au in soil results possibly correlating with structurally controlled mineralisation.
• Vardar is planning to conduct Direct Current - Induced Polarisation (“DC-IP”) surveys, the results of which, when combined with detailed magnetic data, will be used for defining drill targets.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“The Vardar team has provided the basis for another exciting announcement, with the definition of three exploration targets in the southern part of the Mitrovica license: base, including copper, and precious metals across Mitrovica South; gold at Madjan Peak; and copper-zinc-gold on the lower slopes on Madjan Peak.

“As with Wolf Mountain, the next phase of work for Madjan Peak and Mitrovica South will be DC-IP and magnetic surveys, which will help determine drill targets. 

“The Beowulf Board is convening in Kosovo this week, visiting both Mitrovica and Viti, and discussing, with Vardar, management plans for 2020.

“We are also expecting an update on this year’s exploration programme at Viti and I look forward to keeping the market updated on further progress in Kosovo.’

Swedish Translation:

“Vardar-teamet har definierat ytterligare tre prospekteringsprospekt i den södra delen av Mitrovica-licensen, inkluderat potential för koppar och ädelmetaller i Mitrovica South; guld vid Madjan Peak och koppar-zink-guld i lägre delarna av Madjan Peak.

“I likhet med Wolf Mountain, så kommer nästa steg i arbetet vid Madjan Peak och Mitrovica South att bestå av DC-IP och magnetiska mätningar för att fastställa borrprospekt.

“Beowulfs styrelse sammanträder i Kosovo den här veckan, samt besöker både Mitrovica och Viti för att diskutera Vardar och planerna för 2020.

“Vi förväntar oss också en uppdatering av årets prospekteringsaktivitet vid Viti. Jag ser fram emot att hålla marknaden uppdaterad om ytterligare framsteg i Kosovo.”

Work Summary

Previous Work: 

Previously, Vardar has conducted alteration mapping and sampling across the southern half of the Mitrovica license area.  Of interest is a sub-volcanic sill like body of trachytic composition associated with a hydrothermal breccia zone and with abundant iron oxides. Several samples collected from the breccia zone returned significant metal anomalies including consistent zinc values in excess of 1.0 per cent, along with gold (1.25 g/t) and silver (57 g/t) anomalies.

One kilometre south of the above target, interpretation of magnetic airborne geophysical data has led to the identification of a prominent circular magnetic anomaly with magnetised and demagnetised concentric rings, displaying a typical signature of porphyry targets.  Geological mapping in this area has identified hydrothermal breccias which have returned significant copper assays in grab samples (0.21 per cent and 0.35 per cent). The presence of the magnetic anomaly and associated copper mineralisation is of interest as it may suggest the potential for porphyry style mineralisation at a deeper structural level in basement rocks.

Higher up in the system, at Madjan Peak, also in the southern part of the licence area, several historic gold workings/pits have been discovered, thought to be of Saxon or Roman age.  Rock chip sampling on the slopes of the hill, in an area of advanced argillic alteration, has returned significant gold anomalies of up to 7.0 g/t, suggesting potential for epithermal gold mineralisation.

Soil Sampling:

The soil sampling programme, conducted between May 2019 and August 2019, was designed to provide an additional data layer to assist with target generation for porphyry and epithermal related mineralisation, substantiating, prioritising and delineating mapped mineralisation of interest under the widespread, relatively thin cover, where outcrop quality is limited.

The programme included two grids, one covering the Madjan Peak area in the eastern part of the license and a contiguous second grid focussed on the southern area of the license, Mitrovica South.

1,283 samples were collected on a 200 metre (“m”) x 50m grid with North South sample lines employed in the Madjan Peak area and East West sample lines in the Mitrovica South area. 78 field and sample duplicates, 37 silica blanks and 38 CRMs (Certified Reference Material) were used for QA/QC (Quality Assurance/Quality Control) of results.

All soil samples were targeted to be collected from the B horizon. For each sample an area of approximately 0.5m x 0.5m was cleared of vegetation and overlying organic rich material, ‘A’ horizon. Samples were then collected using a hand auger. Two samples were collected at each position, one for Bulk Liquid Extractable Gold (“BLEG”) analysis and a second for analysis using portable XRF. Samples were screened through a 2mm sieve in the field. The XRF (X-Ray Fluorescence) samples were further screened to -180 µm at Vardar’s core shed in Mitrovica.

BLEG samples were dispatched to ALS Bor in Serbia for sample preparation. Analysis for Au, Ag and Cu was carried out at ALS Loughrea in Ireland using cyanide solution bottle roll with ICP-MS finish (Inductively Coupled Plasma – Mass Spectrometry).

Results: 

Based on soil sample results, associated alteration, existence of gossans and rock grab sample results, three priority target areas have been identified:

• Mitrovica South exhibits potential for a large mineralised system - anomalous assays, showing significant base and precious metal concentrations, in the southern part of the license extend laterally from known mineralisation, suggesting that the system may be larger than indicated by initial geological mapping.   

Geological mapping identified several sill-like trachyte sub-volcanic bodies with contacts commonly marked by a mineralised hydrothermal breccia zone.

Sampling of the breccias returned anomalous Zn ( > 1 per cent), Ag (up to 57 g/t) and Au (up to 1.25 g/t). Soil sampling results have identified distinctive Zn, Cu, Pb, Ag and Au anomalies associated with this area.

Importantly the soil anomalies (Zn in particular) appear to follow the contact between basement phyllites and overlying Oligo-Miocene volcanoclastic, considered a key control to mineralisation present in several neighbouring Trepca ore deposits.

There is a distinct metal zonation across the target trending from a Cu dominant southern part to Zn-Cu-Au-Ag-Pb in the centre and Zn-Pb dominant northern part. The centre-west extent of the target is considered a priority. Combined with alteration mapping, sample results suggest significant potential for a large mineralised system below the volcanoclastic rocks.

• Madjan Peak Gold target - anomalous Au and Ag assays associated with Madjan Peak, on the eastern margin of the license, correspond with previously mapped advanced argillic alteration, identified artisanal pits and anomalous rock chip samples (up to 7.2 g/t Au).

Soil sampling over this prospective Au target confirms and better defines the extent of Au mineralisation associated with intense argillic and advanced argillic alteration. Au values correlate well with arsenic (“As”) which provides a useful (more sensitive) corresponding dataset to define anomaly positions.

• Madjan Peak Lower Slopes - displays elevated Cu-Zn-Au in soil results possibly correlating with structurally controlled mineralisation on the lower slopes of Madjan Peak.

Although less anomalous than Target B, the target is located higher in the stratigraphy where less permeable dacites may have restricted the extent of soil anomalies.

Beowulf’s Investment in Vardar

• On 6 November 2018, Beowulf announced that it had acquired a 14.1 per cent interest in Vardar for the consideration of £250,000, satisfied in cash.  The Company's investment enabled Vardar to complete its 2018 exploration programme.

• On 15 April 2019, the Company announced that it had exercised its option to increase its ownership in Vardar to approximately 37.6 per cent for the consideration of £750,000, satisfied in cash, fully funding Vardar's 2019 Kosovan exploration programme at the Mitrovica and Viti projects.  The Company has an option to invest a further £115,000, which would increase its ownership to 40.1 per cent.

References:

• Stan Terg - Strmić Palinkaš S, Palinkaš LA, Renac C, Spangenberg JE, Lüders V, Molnar F, Maliqi G (2013) Metallogenic model of the Trepča Pb-Zn-Ag skarn deposit, Kosovo: evidence from fluid inclusions, rare earth elements, and stable isotope data. Economic Geology 108:135-162…“With current reserves of 29 Mt of ore at 3.45 per cent Pb, 2.30 per cent Zn, and 80 g/t Ag (ITT/UNMIK 2001 report), together with the past  production of approximately 34 Mt of ore, the deposit represents an important source of metals in the southeastern part of Europe.”

Glossary:

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for example, when aiming to characterize a mineral deposit (e.g. Mt. Isa), where the chargeability of the mineralized zone is often higher than the host rock. Often an induced polarization (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called DC-IP survey. Both conductivity and chargeability distribution can be recovered from a DC-IP survey.

Competent Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a Competent Person ("CP"), who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Davies has conducted a desktop review of source documents and data which underpin the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a CP as required under the AIM rules.  Mr. Davies has visited Vardar's Mitrovica and Viti projects in Kosovo.

Mr. Davies has sufficient experience, that is relevant to the content of this announcement, to qualify as a CP as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a Non-executive Director of Beowulf and is an exploration/economic geologist with more than 35 years' experience in the mining sector.

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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/