Business
Conceptual Study Completed
Conceptual Study Completed.
About this update from Beowulf Mining Plc
[{"type":"text","content":"\n Beowulf Mining PLC\n24 October 2006\n\n\n BEOWULF MINING PLC\n\n\n Independent Conceptual Study on Ruoutevare Iron Titanium Deposit in Northern\n Sweden\n\nLondon, 24 October 2006. Beowulf Mining PLC (AIM : BEM) the AIM quoted resource\ncompany with iron, titanium, gold and copper projects in Sweden, is pleased to\nannounce that Raw Materials Group (RMG) of Sweden has completed a conceptual\nstudy of the Ruoutevare iron/titanium deposit. RMG suggest an extraction rate of\n10 million tonnes per annum as an economic production rate, requiring further\ncost analysis work to be undertaken on ore transportation.\n\nRMG produced a simplified cash flow analysis for an eight year open pit\nextracting 10 million tons per year. This produced a positive study with a cash\nflow of just over US$50M per year from US$218 million per year of generated\nrevenues, using various assumptions. (Full report is on www.beowulfmining.com ).\n\nRuoutevare is 5 km outside the Sareks Nation Park, and careful attention to the\nlandscaping of the mine and associated facilities will be required. RMG suggest\nthis may cause a delay in permitting of the deposit.\n\nThe study used current forecasts of revenues, capital costs and operational\ncosts applied to a life of mine financial model.\n\nThe Ruoutevare deposit is located in northern Sweden in the county of\nNorrbotten, and is approximately 8 km NW of the small village of Kvikkjokk. The\nproject is at an altitude of 610 meters above sea level and will require for\ntransport purposes a new 15 km road to be built from the site to Kvikkjokk. Here\nit would link up with the existing 180 km road to Murjek and onward road\ntransport or product reloading for rail shipment to the Gulf of Bothnia sea port\nof Lulea. The Swedish iron ore mining company LKAB is shipping out from Lulea\nannually some 4 Mt of magnetite concentrates and pellets to steel plants in\nFinland and Sweden.\n\nThe deposit was originally discovered in the 18th Century. It was assessed by\nSveriges Geologiska Undersonkning (SGU) in the early 1970s during which time\nground geophysics, metallurgical test work and detailed diamond drilling were\ncompleted. SGU determined a resource for the deposit of 116 Mt grading 38% iron\nand 5.6% titanium. This data was reviewed by Snowden Mining Industry Consultants\nLimited (Snowden) in 2006 for Beowulf and...