TIDMBEM
RNS Number : 5141X
Beowulf Mining PLC
13 August 2018
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.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Kurt Budge, Chief Executive Officer.
13 August 2018
Beowulf Mining plc
("Beowulf" or the "Company")
Aitolampi Maiden Mineral Resource Estimate
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, focused on the Kallak magnetite iron ore
project and the Åtvidaberg polymetallic exploration licence in
Sweden, and its graphite portfolio in Finland, is pleased to
announce a Maiden Mineral Resource Estimate ("MRE") for its
Aitolampi graphite project in Finland. Aitolampi is part of the
Company's 100 per cent owned Exploration Permit, Pitkäjärvi 1.
Highlights:
-- A global Indicated and Inferred Mineral Resource (reported in
accordance with the JORC Code[1]) of 19.3 million tonnes (Mt) at
4.5% Total Graphitic Carbon ("TGC") for 878,000 tonnes ("t") of
contained graphite, reported from all material within the eastern
and western lenses which are interpreted above a nominal 3% TGC
cut-off grade.
-- A higher-grade Western Zone with an Indicated and Inferred
Mineral Resource of 9.8 Mt at 5% TGC for 490,000 t of contained
graphite.
-- An Eastern Zone with an Indicated and Inferred Mineral
Resource of 9.5 Mt at 4.1% TGC for 388,000 t of contained
graphite.
-- Reporting above a 4% TGC cut-off grade based on the
grade-tonnage curve for Aitolampi, gives an Indicated and Inferred
Mineral Resource of 12.8 Mt at 5% TGC for 639,000 t.
-- The Mineral Resource was estimated by CSA Global PTY Ltd ("CSA Global") of Australia.
-- To date, the Company has invested over Euros 760,000 in
Aitolampi and approximately Euros 1.4 million across its graphite
portfolio.
Kurt Budge, CEO, commented:
"It's great news for our exploration team to achieve the
milestone of a Maiden Mineral Resource Estimate for Aitolampi. It
is another building block, to add to the metallurgical testwork
results that we have achieved, and highlights the potential of the
project to serve the developing battery manufacturing market in
Finland and Sweden.
"Tonnes are not in short supply at Aitolampi, as evidenced by
the maiden 19.3 Mt resource, but it's pleasing to see a
higher-grade five percent TGC Western Zone, that could be the focus
for initial production.
"Aitolampi is benefited by its location in Finland, a stable
political, fiscal, legal and permitting jurisdiction, its access to
cheap power, reliable transport infrastructure (roads and ports), a
highly skilled workforce, and by Finland's desire to become a
world-class platform for battery manufacturing.
"In terms of next steps, we are in the process of tendering a
Scoping Study, which will provide a preliminary technical and
economic assessment of the project, the output of which we will use
to support our discussions with local stakeholders.
"In the first half of September, I will be in Finland to support
our Finnish team, meeting key decision makers, in Heinävesi and the
region, to discuss the Aitolampi project in more detail, and
present the Company's approach to developing a modern and
sustainable mining operation in partnership with the community.
"We look forward to updating shareholders on our progress in due
course."
Aitolampi - Background
Aitolampi is in eastern Finland, approximately 13 kilometres
north northwest of the town of Heinävesi, and 40 kilometres
southwest of the well-established mining town of Outokumpu.
Infrastructure in the area is excellent, with road access and good
availability of high voltage power.
Extract from MRE report prepared by CSA Global
The results of the MRE for Aitolampi are shown in the table
below:
Table 1 Mineral Resource estimate for Aitolampi as at 20 June
2018
Zone Classification Million Tonnes TGC% S% Contained Graphite ('000s t)
---------------------- --------------- ----- ----
Western Lens Indicated 5.5 4.9 5.1 273
-------------- ---------------------- --------------- ----- ---- -----------------------------
Inferred 4.3 5.1 5.2 217
------------------------------------- --------------- ----- ---- -----------------------------
Indicated + Inferred 9.8 5.0 5.1 490
------------------------------------- --------------- ----- ---- -----------------------------
Eastern Lens Indicated 1.8 4.1 4.4 74
-------------- ---------------------- --------------- ----- ---- -----------------------------
Inferred 7.7 4.1 4.5 314
------------------------------------- --------------- ----- ---- -----------------------------
Indicated + Inferred 9.5 4.1 4.5 388
------------------------------------- --------------- ----- ---- -----------------------------
Total Indicated 7.3 4.7 4.9 347
-------------- ---------------------- --------------- ----- ---- -----------------------------
Inferred 12.0 4.4 4.8 532
------------------------------------- --------------- ----- ---- -----------------------------
Indicated + Inferred 19.3 4.5 4.8 878
------------------------------------- --------------- ----- ---- -----------------------------
Note: The Mineral Resource was estimated within constraining
wireframe solids defined within the logged graphitic schist host
unit and nominally above a 3% TGC cut-off. The Mineral Resource is
reported from all blocks within these wireframe solids. Differences
may occur due to rounding.
Graphite mineralisation occurs disseminated in
moderately-dipping and probably folded layers of graphite schist
within quartzo-felspathic gneiss. Samples were obtained from
diamond core drilling ("DD").
The quality of drilling/sampling and analysis, as assessed by
CSA Global, is of an acceptable standard for use in a publicly
reportable MRE (as per the JORC Code).
Graphitic carbon was analysed using a standard induction furnace
infrared absorption method by ALS' laboratories in Finland.
Grade estimation was completed using Ordinary Kriging and
checked using an inverse distance weighting to the power of two
estimate. The Mineral Resource was estimated within constraining
wireframe solids interpreted using the logged graphite schist
intersections and with reference to a nominal 3% TGC cut-off. The
Mineral Resource is quoted from all classified blocks within these
wireframe solids.
The estimate was classified as Indicated and Inferred based on
surface mapping, geophysical information, drill hole sample
analytical results, drill hole logging, and assigned density values
based on density measurements. Roughly 25% of the interpreted
mineralisation is extrapolated away from the drilling data.
The likelihood of eventual economic extraction was considered in
terms of possible open pit mining, likely product specifications,
possible product marketability and potentially favourable logistics
and it is concluded that Aitolampi is an Industrial Mineral
Resource in terms of Clause 49 of the JORC Code.
Metallurgical testwork results support the Mineral Resource
classification. The flotation testwork on three diamond drill core
composites demonstrated that approximately 10-20% of the liberated
flakes are larger than 180 <MU>m (100 mesh), approximately
30% are in the range 106-180 micron and approximately 50-60% are
smaller than 106 micron and that final overall concentrate grades
are in the range of approximately 96-98% carbon. Recoveries are in
the range of 78-92%.
Sample 17001 from lower and higher-grade intersections in the
east domain returned the lowest amount of fine flake <106
micron, which suggests that concentrate quality may vary according
to grade domains.
The conventional flotation process produced flake graphite
concentrates of good quality, potentially for markets such as brake
lining pads, lubrication, refractories and batteries. The available
process testwork in conjunction with drill sample observations from
the remainder of the deposit supports the classification of the
Aitolampi deposit as an Industrial Mineral Resource in terms of
Clause 49 of the JORC Code.
CSA Global has concluded that the work at the Aitolampi Project
has generally been completed to a high standard and has
demonstrated that the Mineral Resource at the deposit has
reasonable prospects for eventual economic extraction.
Drilling
During 2017 and 2018, a total of 2,770.7 metres ("m") was
drilled, comprising 18 diamond drill holes.
Drilling shows that mineralisation has a strike length of at
least 350m along the Eastern Zone (the Eastern electro-magnetic
("EM") anomaly extends for 700m) and a strike length of at least
150m along the Western Zone (the Western conductive zone extends
for at least 300m).
Mineralisation for all zones remains open along strike and at
depth.
Within the Company's Pitkäjärvi licence area, several extensive
EM conductors, associated with graphite observed in surface
outcrops, have yet to be drilled, are prospective for graphite
mineralisation, and offer potential upside.
Marketing Assessment
In late 2017, ProGraphite Gmbh ("ProGraphite"), based in
Germany, completed advanced metallurgical testwork and market
assessment for the Company, to determine the suitability of
Aitolampi concentrates for different market applications.
ProGraphite specialises in the processing and evaluation of
graphite materials.
The following tests were undertaken:
-- Concentrate Product Characterisation (LOI/Fixed carbon on
concentrate and mesh fractions, bulk densities, Specific Surfaces
Analysis (SSA), Thermogravimetric Analysis (TGA), Inductively
Coupled Plasma ("ICP") analysis, and X-ray Diffraction ("XRD")
analysis;
-- Purification Processing (Acid purification, Alkaline
purification, and ICP analysis on purified graphite); and
-- Production of Expandable Graphite.
The following results were achieved:
-- Results show that both acid and alkaline purification methods
can produce a very clean concentrate of greater than 99.41% Total
Carbon ("C(t)").
-- The alkaline method, using standard formulation, produced the
highest grades, 99.82% C(t) for the -100-mesh concentrate, and
99.86% C(t) for the +100-mesh concentrate.
-- Results obtained from acid purification reached 99.6% C(t) for the +100-mesh fraction.
-- The alkaline and acid purification results indicate that,
with some process optimisation, Aitolampi concentrates may meet the
purity specification of 99.95% C(t) required for the lithium ion
battery market.
-- There is also a good market for the -100 mesh and greater than 95% C(t) concentrate.
-- Carbon content in all fractions, including the fines, is very
high and ranges from 96.25 to 97.61% C(t). The demand is
significant for fine graphite with high carbon, across various
applications.
-- Aitolampi graphite shows high crystallinity, with the degree
of graphitisation measuring approximately 98%, which is almost
perfect crystallinity, and an important consideration for battery
manufacturers seeking high energy density in cells.
-- Volatiles are low which is an attractive product attribute,
and often a pre-condition, in many applications, including
refractories, lubricants, crucibles, and foundries.
-- SSA is comparable to that of high quality flake graphite from China.
-- Oxidation behaviour, tested with TGA analysis, is comparable
with Chinese graphite of the same flake size, used for
refractories, and other high temperature applications.
-- ICP analysis, for elemental impurities in the alkaline
purified concentrate, showed that impurities could be reduced to
significantly lower levels by intensifying purification, optimising
the amount of chemicals used and process parameters, such as
reaction time and temperature.
Project Development
Pöyry Finland Oy ("Pöyry") has completed an Environmental and
Social Impact Assessment ("ESIA") Roadmap, a detailed plan for
undertaking a comprehensive ESIA study. The Company selected Pöyry
for the roadmap, as it is one of the leading environmental
consultants in the Finnish mining sector, participating in most
mining projects being undertaken in Finland.
In Spring 2018, the Company initiated baseline environmental
surveys for endangered animals, birdlife and vegetation and is
planning to start baseline water quality monitoring.
The Company is also in the process of tendering a Scoping Study
contract for Aitolampi. The Study will provide a preliminary
assessment of the technical and economic feasibility of developing
a mining operation at Aitolampi.
Finnish Battery Manufacturing Initiatives
On 25 April 2018, the Company announced its involvement in a
Cooperation Network of existing and new entrant raw materials
suppliers to the emerging battery manufacturing industry in
Finland.
The Cooperation Network includes the cities of Vaasa and
Kokkola; Freeport Cobalt, the world's largest cobalt refinery and
producer of battery chemicals; Nornickel, the producer of
world-class nickel metals and nickel chemicals in Harjavalta;
Terrafame Group, the parent company of Terrafame, producing nickel,
zinc, cobalt and copper in Sotkamo; Keliber, which is preparing to
start lithium production in Kaustinen and Kokkola; as well as
Beowulf, the 100 per cent owner of the Aitolampi graphite
deposit.
The official announcement regarding the Cooperation Network,
dated 24 April 2018, and titled "The battery industry has enormous
potential to become Finland's new success story. The Vaasa battery
factory project has brought together a large nationwide network of
cooperation partners" can be viewed at:
https://www.gigafactory.fi/press-20180424-en
In addition, Fennoscandian was granted Euros 161,000 by Business
Finland for a research project entitled "Green Minerals - Graphite,
Exploration to Products". The project runs from 1 January 2018 to
31 December 2019 and has a total budget of Euros 323,750. The
Company will contribute the balance of the funding.
Competent Person Review
The in situ 2018 Mineral Resource for the Aitolampi Graphite
Project is based on information compiled by Mr Grant Louw, under
the direction and supervision of Dr Andrew Scogings, who are both
full time employees of CSA Global Pty Ltd. Dr Scogings takes
overall responsibility for the report.
Dr Scogings PhD Geology, MAIG, MAusIMM, RPGeo (Industrial
Minerals) is a Member of both the Australian Institute of
Geoscientists and Australasian Institute of Mining and Metallurgy,
and has sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity he is undertaking, to qualify as a Competent Person in
terms of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources, and Ore Reserves' (JORC Code 2012). Dr
Scogings consents to the inclusion of such information in this
announcement in the form and context in which it appears.
Dr Andrew Scogings approves the disclosure of technical
information in the form and context in which it appears in this
announcement, in his capacity as a Competent Person ("CP"), as
required under the AIM rules.
Dr Scogings is a geologist with more than 25 years' experience
in industrial minerals exploration, product development and sales
management. Andrew has published papers on reporting requirements
of the JORC Code 2012, with specific reference to Table 1 and
Clauses 18 and 19 (industrial mineral Exploration Results) and
Clause 49 (industrial mineral specifications). He has published
numerous articles on industrial minerals, addressing aspects of
QA/QC, bulk density methods and petrography for industrial minerals
exploration. He was recently senior author of two significant
reviews: Natural Graphite Report - strategic outlook to 2020 and
Drilling grade barite - Supply, Demand & Markets published in
2015 by Industrial Minerals Research (UK), and has co-authored
several papers ranking global graphite exploration projects. Andrew
is a Registered Professional Geoscientist (RP Geo. Industrial
Minerals) with the Australian Institute of Geoscientists.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe
(Nominated Adviser & Broker)
David Porter / Peter Malovany Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
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.
Glossary:
Micron - a unit of length equal to one millionth of a metre.
Mesh size - the number of openings in a one US inch of screen is
the mesh size e.g. a 4-mesh screen means there are four squares
across one linear inch of screen. A 100-mesh screen has 100
openings, and so on. As the number describing the mesh size
increases, the size of the particles passing through the mesh
decreases. Higher numbers equal finer material. Mesh size is not a
precise measurement of particle size. If minus (-) and plus (+)
plus signs are shown when describing mesh sizes, this is best
explained with an example: -200-mesh would mean that all particles
smaller than 200-mesh would pass through. +200 mesh means that all
the particles 200-mesh or larger are retained.
[1] Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition.
Prepared by: The Joint Ore Reserves Committee of The Australasian
Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC).
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