Plans To Investigate Iron Ore Potential At Parkijaure

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. 

24 October 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Plans To Investigate Iron Ore Potential At Parkijaure 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to announce that the Company has been awarded an Exploration Licence for Parkijaure nr 6 which covers almost 1,000 hectares, situated to the south of Kallak North and South deposits, and which is similarly prospective for magnetite iron ore.

The magnetic signature of mineralisation at Kallak, extends southwards from Kallak North to Kallak South, and then beyond to Parkijaure.  Interpretation of geophysical data suggests the potential for additional magnetite mineralisation, which could add to the Kallak North and Kallak South resource.

Parkijaure Geophysics

This week, Beowulf has awarded a contract to GeoVista AB in Sweden to re-assess existing geophysical data and determine if an additional Exploration Target is warranted at Parkijaure, to add to the Kallak South Exploration Target.

PACIFIC Project  

Beowulf is a partner in the European Union (“EU”) funded PACIFIC Project (“PACIFIC”), launched in June 2018.  The project has received €3.2 million from the EU’s Horizon 2020 research and innovation programme and has a 36-month programme of activities being coordinated by Université Grenoble Alpes.

The aim of PACIFIC is to develop a new, low-cost and environmentally friendly tool for exploring for sub-surface mineral deposits. The PACIFIC consortium is conducting fundamental and applied research to develop two radically new and complementary mineral exploration techniques, both based on passive seismic imagery. See project website for more information: https://www.pacific-h2020.eu/ 

Kallak, including Kallak North, Kallak South and the Parkijaure licence, has been chosen as one of two PACIFIC test sites.

At Kallak, Phase 1 work includes: 

•  Testing the multi-array method over the known magnetite iron ore deposit to provide background data;
•  Establishing seismic properties for the iron ore; and
•  Correlating findings with the geological model for Kallak.

Testing of the multi-array method, using an array of receivers at surface, was conducted at Kallak South in September 2019. In early 2020, a similar survey will be conducted at Kallak North, followed by interpretation of the data and correlation with the existing geological model for Kallak North and Kallak South. 

Phase 2 work will include:

•  Testing the multi-array method in parallel with drilling at Kallak South and Parkijaure, with noise from drilling providing a passive seismic source.
•  Testwork will determine if a 3D seismic model can be constructed, using the established seismic characteristics of the Kallak deposit, and whether the 3D model can be used to identify previously undiscovered magnetite mineralisation for the Kallak South Exploration Target areas and for Parkijaure. This work would help better define drill targets for verifying test results and resource drilling.

Testing of the multi-array method in parallel with drilling is planned for Autumn 2020. In anticipation of the Exploitation Concession being awarded for Kallak North, the Company would then consider a follow-up programme of drilling at Kallak South and Parkijaure.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“In anticipation of a decision on the Exploitation Concession for Kallak North, we have been investigating how we can add to the potential 250 million tonnes global resource defined at Kallak North and South.

“Having been awarded the Parkijaure nr 6 exploration licence, we are reviewing existing geophysics and have already begun testing passive seismic technology at Kallak, with a view to using this non-invasive exploration technology to help define additional iron ore resource.

“For a typical mining project, the mineral resource increases as the full potential of a deposit is explored and proven-up over time. With iron ore in Sweden, a good example would be LKAB’s Kiruna, established in 1890 and still producing today.

“I look forward to keeping the market updated on further progress.”

Swedish Translation:

“Vi har i väntan på ett beslut angående bearbetningskonsessionen för Kallak North undersökt möjligheterna att utöka malmpotentialen utöver de 250 miljoner ton redan definierat vid Kallak North och South.

”Efter tilldelat undersökningstillstånd Parkijaure nr 6, så har vi granskat existerade geofysik och påbörjat tester av passiva seismikteknologin vid Kallak, med en ide om att använda prospekteringstekniken i syfte att definiera ytterligare järnmalmsresurser.

”För ett typiskt gruvprojekt, så ökar malmresursen i och med att att den fullständiga potentialen av en fyndighet är undersökt. Ett bra exempel är LKABs Kiruna gruva där produktionen startade 1890 och producerar ännu idag.

”Jag ser fram emot hålla marknaden uppdaterad med fortsatta framsteg.”

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, metals and economic prosperity.

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 40.1 per cent of Vardar Minerals (“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.

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 AB, a 100% owned subsidiary of Beowulf.

Mr Blomqvist consents to the inclusion in the announcement of the information presented in the form and context in which it appears.

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.