Beowulf Mining PLC
04 May 2006
BEOWULF MINING PLC
Progess Report on Projects
4 May 2006. Beowulf Mining PLC (AIM:BEM), the AIM listed mineral exploration
company is pleased to give a progress report on several of its projects.
Ruoutevare Iron Titanium Project.
Beowulf has engaged Snowden Mining Industry Consultants Ltd. (Snowden) to review
the ore reserves at Ruoutevare and to give advice on how the reserves calculated
in the 1970's by the Swedish Geological Survey (SGU) can be converted to
JORC-compliant resource estimates.
The reserves from the 1970's SGU study estimate 116 million tonnes, with an
average of 38.2% iron and 5.6% titanium. A richer section of 20 million tonnes
is registered with a grade of 47% iron and 11% titanium oxide.
Beowulf has converted all the drilling results into a digital format. These
results will be used by Snowden to perform their study. Beowulf will conduct
other studies and prepare a pre-feasibility study on the deposit. This is to see
if the deposit can be brought into production.
Grundtrask Gold Project.
A drilling contract has been awarded to Ludvika Borrteknik AB using a 56mm core.
Drilling is to start in the second week of May 2006. To date, Beowulf has
completed nine diamond drill holes on the Grundtrask permits. In 2005 gold
analysis from hole 5004 yielded a 30.23 metre section (16.2 to 46.4 meters) with
an average grade of 1.14 grams per tonne and included a section of 6 metres of
2.16 grams per tonne. The hole was in the 'Central Zone Mineralisation' at
Grundtrask, which is now proven to extend for 675 metres. The Directors believe
that geophysical data indicated that the Central Zone Mineralisation extends for
a further kilometre at both ends.
The planned drilling will use a larger drill core.
Kallak Iron Ore Claim
The company has registered an exploration claim of 500 hectares covering the
Kallak iron deposit located about 5 kilometres to the northwest of of the Majves
claims and about 50 kms east of the Ruoutevare titanium -iron deposit in the
Jokkmokk area, Norrbotten county of Northern Sweden. The deposit which is up to
100 m wide, consists of magnetite and some hematite extending in north-south
direction for about 1000 m. The Kallak Iron deposit was discovered by the
Geological Survey of Sweden in 1947-48. Only scattered drilling has been carried
out and no mining activity has been registered. Calculations based on
geophysical data (gravimetry) have revealed a mineralization of 92 millions
tonnes with 35-42 % Fe, 0.004% P, 0.6% S and 0.4% Mn.
In the light of the rising demand for iron Beowulf intends to restudy available
drill cores and exploration data of the Kallak iron deposit to establish whether
Kallak is an economically viable deposit.
Ballek
Geological studies by Vismand Explorations Inc. and Beowulf on the extensive
diamond drill core collection at the Swedish Geological Survey, have been unable
to find a sodium metasomatic halo around the mineralization at Ballek. These
halos are common around 'iron oxide copper gold' deposits. As a result Vismand
Exploration Inc. has decided not to conduct further exploration on the Ballek
property. Beowulf will continue the program by itself.
Commenting on the progress, Dr. Robert Young, states 'the dymanic exploration
program being conducted by Beowulf results in changes to our direction when
market conditions change. The demand for iron ore from Sweden in the last year
has been dramatic and Beowulf has made new licence applications which it hopes
will lead to early mine production. The price of gold is now at a 25 year high
and extra effort is being made on the pure gold exploration play at Grundtrask.'
For further information contact :-
Dr. Robert Young, Chairman
Beowulf Mining plc Tel: +44-(0)1353 649 701
Gavin Burnell
Ruegg & Co. Limited Tel: +44-(0)207 584 3663
Nick Bealer
King & Shaxson Tel: +44-(0)207 426 5986
Gary Middleton
St Swithin's Public Relations Tel +44 (0) 207 429 4391
This information is provided by RNS
The company news service from the London Stock Exchange