Beowulf Mining PLC Kallak Drilling (9747S)
July 14 2020 - 7:30AM
UK Regulatory
TIDMBEM
RNS Number : 9747S
Beowulf Mining PLC
14 July 2020
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.
14 July 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Drilling
Beowulf (AIM: BEM; Spotlight : BEO), the mineral exploration and
development company, announces that drilling at Kallak, scheduled
for Autumn 2020, has been postponed because of COVID-19 and until
such time that resources can be fully mobilised and deployed
safely.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"A recent increase in COVID-19 cases in the region and
continuing movement restrictions mean, at this time, it is
impossible to commit to the drilling programme at Kallak with any
certainty.
"While disappointing not to be pushing ahead and exploring for
additional iron ore resource at Kallak South, it is the right
action to take ."
About Kallak
T he Kallak iron ore deposit is located approximately 40
kilometres ("km") west of Jokkmokk in the County of Norrbotten,
Northern Sweden, 80 km southwest of the major iron ore mining
centre of Malmberget, and approximately 120 km to the southwest of
LKAB's Kiruna iron ore mine.
The first Exploration Licence for Kallak was awarded by the
Mining Inspectorate of Sweden in 2006. A Mineral Resource Estimate
for Kallak North and South, based on 27,895 m of drilling conducted
between 2010-2014, 131 drillholes, was finalised on 28 November
2014. Following the guidelines of the JORC Code, 2012 edition, an
Indicated Resource of 118.5 Mt at 27.5 per cent iron content ("Fe")
and an Inferred Resource of 33.8 Mt at 26.2 per cent Fe was
defined. In addition, there is an exploration target of 90-100 Mt
at 22-30 per cent Fe.
Testwork on Kallak ore has shown that a 'super' high grade
magnetite concentrate can be produced, yielding over 71 per cent
iron content, with low levels of deleterious elements, including
phosphorous and sulphur, lending itself to pelletisation and
consumption in Direct Reduction Iron ("DRI") facilities in Europe
and the Middle East, and attracting a potential price premium.
In April 2013, the Company applied for an Exploitation
Concession for Kallak North (the "Concession") and in October 2015,
the Mining Inspectorate recommended to the Swedish Government that
the Concession be awarded. The Company is still waiting on the
Swedish Government to take a decision.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771
Officer 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470
0470
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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