Drilling Report

RNS Number : 5924A

Beowulf Mining PLC

03 February 2011

 



3 February 2011

Beowulf Mining Plc

("Beowulf" or the "Company")

Corporate and Operational Update

Highlights:

·     Drilling continues to progress at the Kallak South iron ore project despite Sweden's coldest December for more than 100 years

·     Beowulf has assumed operatorship of its Ballek copper-gold JV project

·     Swedish incorporated subsidiary to be created to facilitate the potential future application for a mining licence(s)

·     Appointment of Fred Boman as a Production Consultant

Beowulf (AIM: BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company which owns several exploration projects in Sweden, announces that its drilling programme on its wholly owned Kallak South iron ore deposit is making progress despite experiencing harsh winter weather conditions. However, drilling operations have been further interrupted with temperatures plummeting to -35 degrees celsius over extended periods. Dagens Nyheter, Sweden's largest newspaper, reported "The winter weather hits new records in December. The month was the coldest for more than 100 years". Conditions have now improved enabling drilling activity to return to more normal levels.

Assay results for the initial 10 (out of the planned 32) drillholes, totalling 951 metres, are now expected to be received by the end of February 2011 and, despite the severe winter weather conditions, drilling of the remainder of the total 3,500 metre programme and final assay results for all of the selected drill cores are still anticipated to be received during Q2 2011.

Beowulf also announces that it has assumed the role of operator at its Ballek, copper-gold joint venture project from Energy Ventures Limited ("EVE"), its joint venture partner. In April 2010, EVE earned a 50 per cent. interest in the project's holding company, Wayland Copper Limited ("Wayland"), following completion of a 1,601 metre drilling commitment which confirmed widespread anomalous copper-gold mineralisation in the Ballek area. EVE has recently increased its focus on a series of uranium projects in America, but will retain its interest in Wayland and continue to assess further exploration drilling targets and development options for the project under Beowulf's operatorship.

Beowulf is currently in the process of setting up a new Swedish subsidiary in order to facilitate the potential future application for a mining licence or exploitation concession.

Further to the Company's excellent drilling results to date in respect of its three iron ore projects, the Company has appointed Fred Boman as a Production Consultant. Mr Boman is a Swedish mining and mineral process engineer with over 35 years experience in the industry. Based in Stockholm, Mr Boman will advise the Company on the options and process for accelerating the development of Beowulf's promising exploration projects towards potential future production. Based on the initial drilling results and measured size of the magnetite anomaly, the Kallak South deposit is estimated to contain more than 400 million tonnes of iron ore and preliminary results from the ongoing independent assessment of the Kallak North deposit indicate the presence of approximately 175 million tonnes of iron ore. The Company's Ruoutevare project currently has a historic inferred JORC resource estimate of 140 million tonnes.

Clive Sinclair-Poulton, Executive Chairman of Beowulf commented:

"The most severe winter in over 100 years in Northern Sweden has served to slightly delay our progress at Kallak South, however I am pleased to report that conditions have now improved and we remain on course to complete drilling and receive final assay results during Q2 2011. Under Swedish law, drill operators must halt operations at temperatures of -25 degrees celsius and at -35 degrees celsius the oil in the drill can freeze.

I would also like to welcome Fred Boman as a consultant to the Company. His proven experience in bringing exploration companies into the production phase will be invaluable to Beowulf at this exciting stage in its development where we are receiving indications of large tonnages of iron ore."

Dr Jan Ola Larsson (Fil. Kand, PhD, DIC), has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Larsson is Technical Director of the Company and has over 30 years relevant experience within the natural resources sector.

Enquiries:

Beowulf Mining Plc
Clive Sinclair-Poulton, Chairman	Tel: [phone]
Strand Hanson Limited
Matthew Chandler / Simon Raggett	Tel: [phone]
Alexander David Securities Limited
David Scott / Nick Bealer	Tel: [phone]
Lothbury Financial Services Limited
Gary Middleton / Michael Padley	Tel: + 44 (0) 207 868 2010
or visit http://www.beowulfmining.net

Notes to editors:

Fred Boman is a Swedish mining and mineral process engineer with over 35 years experience in the industry, 25 of those years in senior management positions. His experience in bringing exploration companies to the production stage will help Beowulf accelerate the development of its promising iron ore projects, Ruoutevare and Kallak (North and South), towards potential future production.

Mr Boman has managed the construction, commissioning and the production start up of a number of mines around the world, managed a bankable feasibility study for the Kittala Gold project in Northern Finland and was President and CEO of Sweden's Boliden International Mining A.B.

 

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