Madjan Peak Shows Epithermal Gold Potential

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.

1 June 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Madjan Peak Shows Epithermal Gold Potential

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces results from the soil sampling programme completed across the Madjan Peak gold target at Vardar Mineral’s (“Vardar”) Mitrovica licence in Northern Kosovo. 

Highlights:

• Extensive gold anomaly identified over an area approximately 1400 metres x 700 metres, with individual soil samples returning up to 0.36 grammes per tonne (“g/t”) gold.
• The gold anomaly correlates well with anomalous Arsenic, Copper, Lead, Mercury, Strontium and Antimony, and geological mapping has shown the presence of extensive argillic alteration.
• The scale and size of the anomaly, together with coincidental multi-element anomalies and extensive hydrothermal alteration, are comparable to significant high-sulphidation epithermal gold deposits within the region.
• Furthermore, a new lead-zinc-copper-gold target has been identified to the south of Madjan Peak, of particular significance given its situation, approximately 3 kilometres from the Stan Terg lead-zinc-silver mine which dates back to the 1930s (historical production records: 34 million tonnes at 3.45 per cent lead, 2.30 per cent zinc and 80 g/t silver).
• Vardar is finalising plans to fly an ultra-detailed drone magnetic survey over Mitrovica. Vardar has acquired the drone, sensors and support equipment and has developed flight automation software over the winter period. This software is now in testing and when completed will assist in flying accurate low-level survey lines across mountainous terrain.
• The geophysics programme is being designed to map out alteration zones and identify potential structural controls to mineralisation, as well as full 3D IP/DC surveys designed to directly map sulphides and resistivity contrasts associated with mineralisation.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“The results of the soils programme are extremely exciting, suggesting potential for discovery of an epithermal gold deposit at Madjan Peak and for lead-zinc-copper mineralisation further south, a stone’s throw away from the World Class Stan Terg lead-zinc-silver deposit.

“The Mitrovica licence is located immediately to the west and northwest of the Stan Terg mine, and has already yielded exploration targets which Vardar believes are all related to a potentially much larger porphyry style mineralised system, based on meticulous geological mapping of hydrothermal alteration and interpretation of trench, drilling and soil geochemical exploration data. 

“Vardar is now finalising plans for ground and airborne geophysical surveys over Madjan Peak, as soon as COVID-19 restrictions allow resources to be fully mobilised.  Drilling would follow target definition and could take place later this year.”

“In addition to the soils programme, 157 rock grab samples have also been collected and sent for analysis at ALS Bor.  Results are expected mid-June.

“We look forward to keeping the market updated on further developments.”

Madjan Peak - Background

The Madjan Peak gold (“Au”) target is defined by a zone of intense argillic alteration capped by an extensive blanket of advanced argillic alteration which forms the hilltop. The target shares many characteristics of a high-sulphidation epithermal gold system, with distinct gold anomalies, including rock grab sample results of up to 7.2 g/t, associated with gossanous zones of vuggy quartz.

The target forms a prominent peak in the centre of an area notable for its significant lead-zinc-silver (“Pb”-“Zn”-“Ag”) deposits, likely related to the same hydrothermal system, including the Stan Terg Pb-Zn-Ag mine which dates back to the 1930s (historical production records: 34 million tonnes at 3.45 per cent lead, 2.30 per cent zinc and 80 g/t silver).

Regionally, the Balkan portion of the Tethyan Arc hosts a number of World Class epithermal Au deposits including: Chelopech (>5 Moz); Bor (9 Moz); and Madjanapek (8 Moz).

Sampling was conducted on a 50 m x 50 m grid, covering an area of approximately 2.0 km x 1.5 km.  A total of 726 samples were sent to ALS Bor in Serbia for processing and fire assay (ALS code ICP-22), which included sample replicates, duplicates, blanks, and control source material.  A pXRF was used for multi-element analysis. Results from this latest programme provided a significant improvement in resolution compared with the broad regional soil sample programme undertaken in 2019.  

Au anomalies on the Majdan Peak ridge correlate well with anomalous Arsenic, Copper, Lead, Mercury, Strontium and Antimony, extending broadly across an area of approximately 1400 m x 700 m. Distinct higher grade trends are apparent within the broader anomaly, possibly indicative of structural controls to higher grade mineralisation.

In addition to the primary Madjan Peak Au target, a new multi-element anomaly has been delineated to the south of the main peak. This anomaly correlates well with anomalous rock grab samples (including individual samples with 0.79 g/t Au) with galena veins apparent in some of the outcropping gossans.

Investment in Vardar

Beowulf owns 42.2% of Vardar, a UK registered private exploration company with exploration licences in Kosovo. The Company funded Vardar's 2019 works programme including diamond drilling, geophysical surveys, and other activities. Results helped develop our understanding of the copper and gold porphyry potential at both the Mitrovica and Viti projects.

Porphyry deposits are exceptionally large, low grade, polymetallic systems, that typically contain copper along with other metals, such as gold, silver, zinc, and lead. Examples in the region include the Kiseljak deposit in Serbia (Inferred Resource: 459 million tonnes at 0.22 per cent copper, 0.2 grammes per tonne gold. Source: Dunav Resources’ announcement, June 2014) and the Skouries high grade gold-copper deposit in Greece (Measured and Indicated Resource: 289 million tonnes at 0.43 per cent copper and 0.58 grammes per tonne gold. Inferred Resource: 170 million tonnes at 0.34 per cent copper and 0.31 grammes per tonne gold. Source: Eldorado Gold).

At Mitrovica, located immediately to the west and northwest of the World Class Stan Terg lead-zinc-silver mine, potential not only exists for the discovery of additional lead-zinc-silver deposits, but also for the discovery of high-level epithermal gold deposits and for copper-zinc deposits.

It is simplistic to think of these targets, which occur along a seven kilometre trend, in isolation. However, Vardar believes the targets are all related to a potentially much larger porphyry style mineralised system, based on meticulous geological mapping of hydrothermal alteration and interpretation of trench, drill and soil geochemical exploration data. 

At Viti, initial stratigraphic holes, drilled in 2019, intersected the correct alteration type, returning gold and visible copper mineralisation, that indicates potential for the discovery of a mineralised copper-gold porphyry in a hitherto unexplored area.

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.

Abbreviations:

m – metres

km – kilometres

m – metres

mm – millimetres

Moz - million ounces

BLEG - Bulk Liquid Extractable Gold

CRMs – Certified Reference Materials

QA/QC – Quality Assurance/Quality Control

XRF – X-Ray Fluorescence

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.

About Beowulf Mining plc

Beowulf’s strategy is to build a sustainable and innovative mining company, which creates shareholder value by developing mining assets, delivering production and generating cash flow, and in so doing meets society’s ongoing need for minerals and metals.

Beowulf is developing a high-quality asset base, which is diversified by geography and commodity, enabling it to simultaneously advance several projects up the mining value curve and create shareholder value.

Additionally, the Board of Directors continues to look beyond the Company for value creation opportunities.

The Company’s first priority remains the award of the Exploitation Concession for Kallak North, and thereafter completing the Scoping Study.  The introduction of a strategic partner/investor who understands the value of Kallak as a high-quality asset, which could be in production within four to five years, is an ongoing consideration, but does not preclude the Company from continuing to add value to Kallak in the meantime.

Fennoscandian Resources (“Fennoscandian”), the Company’s graphite business, is pursuing a strategy to develop a ‘resource footprint’ of natural flake graphite prospects that can provide ‘security of supply’ and enable Finland to achieve its ambition of self-sufficiency in battery manufacturing.  The Company is a recipient of Business Finland funding, which is supporting Fennoscandian to move downstream, and develop its knowledge in processing and manufacturing value-added graphite products.

The Company owns 42.2 per cent of Vardar, a UK registered exploration company with a focus on the metal endowed Balkan region and one of the first companies to be awarded exploration licences in Kosovo.  Vardar holds exploration licences for the Mitrovica and Viti projects.  Both projects are located within the Tethyan Belt, a major orogenic metallogenic province for gold and base metals which extends from the Alps (Carpathians/Balkans) to Turkey, Iran and Indochina, and contains several world class discoveries.  The Tethyan Belt of south-east Europe can be regarded as Europe’s chief copper-gold (lead-zinc-silver) province.

Enquiries:

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.