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Following a JORC report Beowulf Mining’s (LSE:BEM) share value has fallen to a 52-week low of 17.25 during morning trading, compared to a 52-week high of 76.75.
The maiden Joint Ore Reserves Committee (JORC) report on Beowulf’s Kallak North iron ore site cited deposits of 131.6 million tonnes grading 28 per cent iron. Combined with estimates of 200-300 million tonnes at Beowulf’s Kallak South site, the levels of iron reserves are significantly lower that had been predicated.
The report was based upon data collected from 800 metres of mineralised strike from a total 3.7 kilometres with a 15 per cent Fe cut off down to a vertical depth of 200 to 300 metres.
An October statement by Beowulf CEO Clive Sinclair-Poulton argued that the two Kallak sites could contain ‘600 million tonnes’ and will be a ‘major orebody’. Following the announcement of the report Beowulf intend to continue with drilling at the Kallak North site, with further drilling phases scheduled following the completion of financing.
Drilling Expansion
Following the report Mr. Sinclair-Poulton stated that “Kallak is the most advanced property within our Swedish portfolio” and that Beowulf has the “aim of substantially building on and enhancing this initial resource statement”.
Listed on the London AIM market in London and the AktieTorget market in Stockholm, Beowulf Mining PLC currently holds 18 exploration permits in Northern Sweden extracting gold, copper, iron, molybdenum and uranium.
Beowulf intends to “embark on an extensive drilling programme” at their Kallak sites and “conduct a two phased drilling campaign”. Starting later this year, the first phases entails 7,000 metre drilling followed by a second phase of 50,000 metre drilling expected to commence on the second quarter of 2012.
In 2010 Beowulf developed contracts with China Hus Dong Corp. and argued that it would be seeking further contracts with Chinese partners.
References↑ SteelGuru: Beowulf Mining shares slide after maiden JORC resource for Kallak North
↑ MineWeb: Beowulf Mining Plc – Operational Update
