Shares in Beowulf Mining PLC on Tuesday leapt after reporting a positive update at its Kallak iron ore project.

The Sweden, Finland and Kosovo-focused mining company said environmental baseline studies were progressing in preparation for both the completion of the environmental impact assessment and the submission of the environmental permit application.

A pre-feasibility study has been initiated, with the appointment of SLR Consultant Ltd as lead consultant and samples for metallurgical test work have been selected, negating the need for further metallurgical drilling.

A preliminary roadmap for the next phase of the project’s development has been defined and the firm has begun the search for someone to lead the further development of the project.

Chief Executive Ed Bowie said: ‘Work is ramping up at the Kallak project. The environmental baseline studies, including monitoring sound, vibration, surface water, and natural values continues, building up the required data for the EIA and Environmental Permit application.’

‘In addition, the strategic review of the project is nearing completion. A significant advantage of the Kallak iron ore project is the potential to produce a very high-grade, low impurity concentrate. Such a concentrate would command a premium in the market as a potential direct reduction feed for green steel production. Not only would this deliver significant economic benefits for the project but also support the decarbonisation agenda,’ he added.

Shares in Beowulf Mining rose 11% to 1.52 pence in London on Tuesday.

Copyright 2023 Alliance News Ltd. All Rights Reserved.