TIDMBEM
RNS Number : 6728I
Beowulf Mining PLC
23 March 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.
23 March 2018
Beowulf Mining plc
("Beowulf" or the "Company")
Aitolampi Drilling Results Update
Beowulf (AIM: BEM; Aktietorget: 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 preliminary drilling results for its latest drilling
campaign at its Aitolampi graphite project in Finland. Aitolampi is
part of the Company's 100 per cent owned Exploration Permit
Pitkäjärvi 1.
Highlights:
-- 10 holes have been completed and 1577.6 metres ("m") have been diamond drilled.
-- Longest hole drilled, AITDD18014, was 235.3m, and intercepted
a total length of graphite mineralisation of 127.4m, including a
single intercept of 44.9m. Mineralisation started 24.4m from the
collar. This hole tested all three conductive zones including the
north-western strike extension of the higher-grade parallel
graphite zones intersected in hole AITDD17006 in last year's
drilling programme.
-- Longest single intercept of graphite mineralisation, in hole
AITDD18015, was 99.4m. Total hole length was 150.0m and
mineralisation started at 20.7m from the collar.
-- Infill drilling has confirmed the continuity of graphite
mineralisation between holes drilled in the 2017 drilling
programme.
-- Several holes proved mineralisation down-dip from graphite
intersected in 2017 and intersected wide mineralised zones along
strike and down-dip for some of the previously identified higher
grade mineralised zones.
-- Drilling shows that mineralisation has a strike length of at
least 350m along the main conductive zone (the main
electro-magnetic ("EM") anomaly extends for 700m).
-- For the two parallel higher-grade zones previously
identified, mineralisation has a strike length of at least 150m
(the two parallel conductive zones extend for 300m and 250m).
-- 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.
-- The Company's geologists have completed core logging for all
holes, and samples have been sent to ALS Minerals in Finland for
assay. All samples will be assayed for Graphitic Carbon (C-IR18),
Total Carbon (C-IR07) and Total Sulphur (S-IR08).
-- A map showing the positions of drill holes, assays and EM
conductors can be viewed at the following link:
http://beowulfmining.com/wp-content/uploads/2018/03/BEM_aitolampi_drill_plan_map.jpg
Kurt Budge, CEO, commented:
"Thanks to the rapid progress of our local Finnish contractor,
Northdrill Oy, we've been able to complete the latest drilling
campaign at Aitolampi in one month.
"Now, we wait for assays, but once we have those, and with the
information obtained from our 2017 drilling, we hope to produce a
maiden resource estimate for Aitolampi (JORC Code 2012 edition) in
Q2 2018.
"Thereafter, we will look to start a Scoping Study and baseline
environmental studies, and more closely assess how we can expedite
an application for a mining permit and leverage the growing
enthusiasm for battery minerals in the Nordic region.
"We look forward to updating shareholders on our progress in due
course."
2018 Drilling
The 2018 drilling programme supports our objectives of defining
a maiden resource, following the guidelines of the JORC Code 2012
edition, and conducting a Scoping Study.
Drill Results:
*Lengths in metres, and mineralised intercepts are the down-hole
widths and are not the true widths.
Drill Hole Total length of Initial graphite Total observed *Maximum Targets
drill hole intersection - graphite individual
depth from collar intersection graphite
intersection
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18009 162.1 76.4 40.3 38.4 Down-dip
AITDD17001 and
AITDD17007, Main
Conductive Zone
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18010 119.8 57.7 49.0 38.8 Down-dip
AITDD17002 and
AITDD17008, Main
Conductive Zone
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18011 78.3 19.4 43.2 26.4 Infill between
AITDD17003 and
AITDD17004, Main
Conductive Zone
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18012 133.4 8.0 70.3 45.2 Down-dip
AITDD18011, Main
Conductive Zone,
50m NW strike
extension from
AITDD17005 of
Parallel
Conductive Zone 1
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18013 135.9 4.6 66.4 25.3 Infill between
AITDD17003 and
AITDD18011/12,
Main Conductive
Zone, 50m NW
strike extension
from AITDD18012 of
Parallel
Conductive Zone 1
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18014 235.3 24.4 127.4 44.9 Down-dip
AITDD17003, Main
Conductive Zone,
50m NW strike
extension from
AITDD18013 of
Parallel
Conductive Zone 1,
50m NW strike
extension from
AITDD17006 of
Parallel
Conductive Zone 2
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18015 150.0 20.7 109.8 99.4 Down-dip of
AITDD18012 of
Parallel
Conductive Zone 1,
50m SE strike
extension from
AITDD17006
of Parallel
Conductive Zone 2
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18016 188.8 14.2 99.6 48.0 Down-dip of
AITDD17006 of
Parallel
Conductive Zones 1
and 2
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18017 172.6 26.2 108.3 73.5 Down-dip of
AITDD17005 of
Parallel
Conductive Zone 1,
50m SE strike
extension from
AITDD18015
of Parallel
Conductive Zone 2
----------- -------------------- ------------------- -------------------- ------------------- -------------------
AITDD18018 201.4 6.5 116.8 94.3 Down-dip of
AITDD18017 of
Parallel
Conductive Zones 1
and 2
----------- -------------------- ------------------- -------------------- ------------------- -------------------
Aitolampi - Background
Aitolampi is in eastern Finland, approximately 40 kilometres
southwest of the well-established mining town Outokumpu.
Infrastructure in the area is excellent, with road access and good
availability of high voltage power.
2017 Drilling
In March 2017, the Company completed an eight hole, 1,197m
diamond drilling programme. The aims of the drilling were to test
the potential for economic mineralisation along a major EM
conductive zone and two parallel conductive zones to the south-west
(Parallel Conductive Zones 1 and 2), and to provide representative
sample material for assaying and metallurgical testwork.
During 2017, the Company also completed two rounds of testwork,
first with SGS Mineral Services in Canada to prove attainable
concentrate grades, and second with ProGraphite Gmbh in Germany to
determine possible market applications and end-uses for Aitolampi
concentrate products.
Drill Results:
Drilling confirmed that the EM conductive zones identified at
Aitolampi are associated with wide zones of graphite
mineralisation, with a mineralised strike length of at least 350m
along the main, drill tested, conductive zone, which extends for
700m, continuous along strike and down dip. The zones, which dip
between 40 to 50 degrees to the southwest, can be very broad,
attaining down-hole thicknesses of continuous graphite intercepts
up to 140m.
Mineralised drill intercepts included 202.9m at 3.09 per cent
Total Graphite Carbon ("TGC", also described by some laboratories
as Graphitic Carbon "Cg") (including barren zones with no assays
and assumed to be zero per cent TGC), including higher-grade zones
of 18.95m at 6.33 per cent TGC, and 14m at 6.26 per cent TGC,
141.86m at 3.72 per cent TGC, including a higher-grade zone of
39.48m at 5.02 per cent TGC, and 41.1m at 4.39 per cent TGC,
including 28.4m at 5.1 per cent TGC. Mineralisation intercepts are
down-hole widths and are not true widths; however, it is noted that
the holes were drilled approximately orthogonal to the
mineralisation.
See announcement on the Company's website, dated 24 May
2017:
http://beowulfmining.com/news/graphite-exploration-update/
Metallurgical Testwork
Three samples, MET-17001, MET-17002 and MET-17003, comprising
composited quarter drill core of approximately 10 kilograms each,
were dispatched to SGS Minerals Services in Canada for
metallurgical testwork. The objective of the testwork was to
develop a preliminary understanding of the metallurgical response
of the different samples and to characterise the graphite
concentrate produced, in terms of flake size distribution and total
carbon grades of different size fractions.
-- Sample MET-17001 comprised representative graphite
mineralised drill core from drill holes along the main conductive
zone (average 5.02 per cent Cg).
-- Sample MET-17002, comprised drill core from higher grade
horizons (average 6.47 per cent Cg) in two parallel conductors'
south-west of the main zone.
-- Sample MET-17003 was collected from drill core from the main
conductive zone (average 4.60 per cent Cg).
All three samples produced high grade concentrate grades when
subjected to a preliminary flowsheet, and secondary cleaning
circuits proved highly effective in liberating and rejecting gangue
minerals.
The Total Carbon grades ranged between 92.7 per cent C(t) for
the +48-mesh of the MET-17001 sample and 98.5 per cent C(t) for the
-150/+200 mesh of the MET-17003 sample.
Discounting the lowest grade of 92.7 per cent C(t), all other
size fractions graded 94.4 per cent C(t) or higher.
Even the -400-mesh produced high grades ranging from 95.0 per
cent C(t) for sample MET-17001 to 97.8 per cent C(t) for sample
MET-17003.
See announcement on the Company's website, dated 2 October
2017:
http://beowulfmining.com/news/aitolampi-delivers-high-grade-concentrate-results/
Latest Metallurgical Testwork - Marketing Assessment
The latest round of metallurgical testwork has been conducted by
ProGraphite Gmbh ("ProGraphite") based in Germany. ProGraphite
specialises in the processing and evaluation of graphite
materials.
Concentrates produced by SGS Minerals Services were combined and
sent to ProGraphite in the fourth quarter last year. The objective
of the advanced testwork was to determine the suitability of
Aitolampi concentrates for different market applications.
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 per cent
C(t).
-- The alkaline method, using standard formulation, produced the
highest grades, 99.82 per cent C(t) for the -100-mesh concentrate,
and 99.86 per cent C(t) for the +100-mesh concentrate.
-- Results obtained from acid purification reached 99.6 per cent
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 per cent C(t) required for the
lithium ion battery market.
-- There is also a good market for the -100 mesh and greater than 95 per cent C(t) concentrate.
-- Carbon content in all fractions, including the fines, is very
high and ranges from 96.25 to 97.61 per cent 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 per cent, 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.
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. It should be noted
that the technical disclosure herein, for which the CP takes
responsibility, is based on desk-top review of the drillcore logs
provided by the Company`s geologists, and no drill core inspection
verification works have been carried out by the CP at this time.
Mr. 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. Blomqvist is a full-time employee of Oy Fennoscandian
Resources AB, a 100 per cent owned subsidiary of Beowulf.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Adviser & Broker)
David Porter 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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