7 October 2016
Beowulf Mining plc
("Beowulf" or the "Company")
Åtvidaberg Exploration Update - "Grab" Sample Assays
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg Volcanogenic Massive Sulphide ("VMS") lead-zinc-copper-silver exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to provide an exploration update on its Åtvidaberg licence.
· To date, only a small part of the licence area has been studied, resources have been focused on areas in the vicinity of former mines, and areas with known mineralisation and/or geophysical anomalies. The licence is split into two main areas: Bersbo to the north-east; Mormors to the south-west.
· In the Bersbo area, "grab" samples from road fill of sphalerite (zinc ore) have yielded up to 19.7 per cent zinc, while samples from waste dumps of chalcopyrite (copper ore) have yielded up to 1.7 per cent copper.
· In the Mormor area, two waste dump samples have yielded 4.42 per cent and 8.46 per cent copper.
· In addition, waste dump samples from Mormorsgruvan, with quartz-veined mineralisation, have yielded up to 2.05 ppm gold.
· "Grab" samples were collected in isolation and therefore cannot be considered representative of the grade of mineralisation over a deposit, but nevertheless give a range of values, that are indicative of the potential for the targets being investigated, and which have assisted the Company's exploration team in planning future work.
· All samples have been assayed for the Company by ALS Minerals ("ALS") in Sweden.
Kurt Budge, CEO, commented:
"I am pleased to provide this further update on the Åtvidaberg licence. It's early days, but it's exciting to find such high grade "grab" samples at former mine sites, and to have identified so many targets to follow-up on.
"We've only scratched the surface, focusing our efforts on areas in the vicinity of former mines, and areas with known mineralisation and/or geophysical anomalies.
"Our magnetics interpretation has given us a further 26 targets to investigate, for which we are planning geological mapping and ground geophysics to be carried out in 2017.
"The field season is far from over, the exploration team will shortly be starting a regional till sampling programme, and I look forward to updating shareholders on our progress in due course."
Overview of Work
Following a 'first impressions' visit to the area in May 2016, a three-week fieldwork programme was conducted during mid-summer. The programme included reconnaissance geological mapping, evaluation of the mineral potential, ground magnetic surveys and "grab" sampling from waste dumps and outcrops. The Company has also completed a review and interpretation of a series of magnetic datasets over the licence area. A structural framework, focussed geological interpretation of the district, has been compiled from a combination of detailed and regional aero-magnetic data.
Overall, the work completed has given the Company's exploration team a better understanding of the geology of the area and the setting of different types of mineralisation. This has led to the definition of a number of "blind" exploration targets i.e. limited outcrops because of glacial till cover, and the identification of promising areas for further exploration.
The licence area is divided in two by the north-northwest south-southeast striking Loftahammer-Linköping deformation zone. In both lithotectonic domains the geology consists of a sequence of metavolcanic rocks that are intruded by several granitic suites. Mineralisation in the Bersbo mine area is characterised by copper-zinc mineralisation, with some evidence of gold and silver, together with pyrrhotite, that is stratabound in interlayered felsic and mafic volcanic rocks. The mines in this area are marked by narrow aeromagnetic anomalies.
In the western Mormors area, there are four former mines where mineralisation occurs in deformation zones in potassium-altered gneisses. The host rocks are altered to quartz-biotite-garnet schists in which chalcopyrite occurs as veins and lenses. The Mormor-type mineralisation is not obviously associated with aeromagnetic anomalies.
So far, our findings for the Åtvidaberg licence continue to be positive. Below is a summary for the main prospects to be investigated further:
· Former mines in the Bersbo area, including the Grönhög mine, show evidence of high grade zinc mineralisation, that seems to have been previously classed as waste, which is found in both waste dumps and as road fill.
· "Grab" samples of sphalerite have yielded up to 19.7 per cent zinc, while waste samples with chalcopyrite, have yielded up to 1.7 per cent copper.
· The Bersbo ore occurs stratabound within interlayered felsic and mafic metavolcanic rocks.
· The ore is often associated with pyrrhotite, which means that aeromagnetic data can be used to trace potential mineralisation.
· Mineralisation in the Mormors area appears to contain predominantly copper, and no zinc.
· Two waste dump samples from the area have yielded 4.42 per cent and 8.46 per cent copper.
· Quartz-veined samples from dumps at Mormorsgruvan have yielded up to 2.05 ppm gold.
· The Company will continue to explore for copper ore and quartz-veined gold mineralisation.
· The ore in the Mormors area is not consistently linked to high magnetic susceptibility minerals, with aeromagnetic data for the area showing that former mines do not lie on magnetic high anomalies, but rather on the gradients.
· In contrast, electromagnetic data shows that the former mines lie on high conductivity zones, possibly resulting from the presence of conductive copper mineralisation, together with abundantly evident pyrite.
· Mineralisation occurs in retrograde shear zones in potassium-altered felsic rocks. The host rocks are often enriched in biotite and quartz, are garnet-bearing, and often show intense deformation.
· Intense alteration by silification in metavolcanics west of the Mormors mine area appears to be accompanied by an increase in magnetite, but, as yet, no significant mineralisation has been identified.
Other Promising Areas:
Härstorp (Bersbo Area)
· An aeromagnetic anomaly at Härstorp, south of the former Grönhög mine, has been classed as a high priority target, with visible zinc mineralisation showing at the centre of the anomaly.
· The anomaly occurs in the same stratigraphic sequence as mines in the Bersbo area.
· Minor pyrite and pyrrhotite mineralisation occurs in rocks at the anomaly, but is insufficient to explain the intensity of the anomaly. There is the potential for "blind" deposits, given that mineralisation is poorly exposed.
Sluttorp (northwest of Bersbo)
· A sequence of three isolated, and very intense anomalies at Sluttorp is comparable to what would be expected from a sequence of steeply dipping ore bodies in the Bersbo area, and has also been classed as a high priority target.
· None of the three anomalies are exposed, the southern anomaly lies in a valley, while the two northern ones are buried underneath glacial till.
· The three anomalies occur in the northern extension of the metavolcanic sequence at Bersbo; with pyrite and pyrrhotite mineralisation occurring in gossanous rocks adjacent to the southern anomaly.
Hultsätter (northwest of Bersbo)
· A long and narrow anomaly at Hultsätter occurs in the same stratigraphic sequence as seen in the Bersbo area.
· The weakest part of the anomaly is to the north, with evidence of minor pyrite and pyrrhotite mineralisation, both disseminated and in stringers.
· The main part of the anomaly is not exposed and forms a small valley.
Fagerdal (northwest of Bersbo)
· "Grab" samples of zinc mineralisation at Fagerdal have yielded up to 2.2 per cent zinc.
· The mineralisation at Fagerdal is the northern extension of the Hultsätter anomaly.
Kønserum (south-east of Åtvidaberg)
· At Kønserum, molybdenum and tungsten mineralisation within two "grab" samples of outcrops contained 1.71 per cent and 1.75 per cent molybdenum, and 0.40 per cent and 0.56 per cent wolframite.
· In addition, high levels of bismuth and rhenium, associated with quartz veining, were observed.
· The mineralisation occurs in a very poorly exposed valley, possibly in a fault or shear zone that can be traced for at least one kilometre.
· The licence area covers 225 square kilometres ("km2") and is located in the Bergslagen area, southern Sweden. The licence is valid for three years from 30 May 2016.
· Bergslagen is one of Europe's oldest mining districts and yielded a substantial portion of Sweden's mineral wealth in the 1800-1900s, with a number of large mines and hundreds of smaller mines producing copper, zinc, lead, gold, silver and iron ore. Current operating mines in the area include Boliden's Garpenberg and Lundin Mining's Zinkgruvan.
· Most of southern Bergslagen has seen little modern exploration, yet it hosts Bersbo, one of Sweden's largest early copper mines, and Zinkgruvan, Sweden's most important zinc mine.
· Other than at Zinkgruvan, exploration activity in Bergslagen has predominantly focused on finding new outcropping ore bodies. Some former mining areas have not been mapped here since the early 1900s.
· The ore types that Beowulf is exploring for are amenable to modern exploration methods, and the Company hopes to build a detailed picture of what lies at shallow depth. The southern Bergslagen district comprises strong potential for the types of VMS deposits typical in the area, namely exhalative style, exemplified by the nearby Zinkgruvan mine, and replacement-reaction style, exemplified by the Falun mine.
· Beowulf has created a Geographic Information System ("GIS") Database, capturing significant historical data for the area. Beowulf has also established an expert team who are familiar with the area, geological setting, and style of deposit we are exploring for.
· Bersbo contains 15 small former mines that occur at the contact of felsic and mafic volcanic rocks associated with a geophysical airborne magnetic high anomaly.
· The former Grönhög underground mine, situated in Bersbo, extracted copper and zinc to a depth of 250 metres.
· Mine waste dumps examined at Grönhög have been found to be very rich in sphalerite, the principal ore of zinc. This suggests that past mining may have focused on copper, and that zinc ore may still be present, with the potential of undiscovered ore zones below the 250 metre level where mining ceased.
· Examination of the ore showed it to be highly magnetic, confirming the association of the former copper-zinc mines in Bersbo with the aero-magnetic high.
· Mormor contains at least 14 former mines over a mineralised zone five kilometres ("km") in length and 1.5 km in width. Two of the largest mines in operation were Malmviksgruvan and Mormorsgruvan.
· Examination of several large waste dumps at the Malmviksgruvan mine has confirmed the presence of chalcopyrite, the principal ore of copper, in thin veins contained in a pink host rock with high concentrations of potassium, possibly as a result of hydrothermal alteration commonly associated with this type of mineralisation.
· Mining at Malmviksgruvan ceased at approximately 150 metres depth, due to water ingress, and therefore it seems probable that ore will continue below this depth
· Examination of mine waste dumps at the Mormorsgruvan mine has showed traces of chalcopyrite in thin veins in a quartzo-feldspathic-granitoid rock. Former sections for the mine show the orebody to extend over 300 metres in length and to a depth of 407 metres.
Competent Person Review
The information in this announcement has been reviewed by Mr. Rasmus Blomqvist, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Rasmus Blomqvist has sufficient experience, that is relevant to the style of mineralisation and type of deposit taken into consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".
Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian Resources AB, a 100 per cent owned subsidiary of Beowulf.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Beowulf Mining plc
Kurt Budge, Chief Executive Officer
Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter / Phil Davies
Tel: +44 (0) 20 7894 7000
Tim Blythe / Megan Ray
Tel: +44 (0) 20 7138 3204
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 formal 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.
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