TIDMBEM
RNS Number : 9827C
Beowulf Mining PLC
23 October 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.
23 October 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Wolf Mountain Geophysics Results Define High Priority Drill
Targets
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, is pleased to announce results from an Induced
Polarisation ("IP") and resistivity survey undertaken by Vardar
Minerals ("Vardar") at its Wolf Mountain lead-zinc-silver
("Pb-Zn-Ag") target, situated within the Mitrovica licence, located
in northern Kosovo. Beowulf owns 46.1 per cent of Vardar.
Highlights
-- Highly anomalous IP chargeability zones, considered high
priority targets for drill testing, have been defined beneath areas
of laterally extensive Pb-Zn gossans and hydrothermal
alteration.
-- The IP anomalies are located below, often straddling, the
contact between younger Oligo-Miocene ("O-M") volcanoclastic rocks
and ultramafic ("UM") basement, in agreement with mapped and drill
tested mineralisation, adding further support for a source of the
observed mineralisation.
-- Importantly, anomalies follow established regional structural
trends suggesting they may be representative of high-grade Pb-Zn-Ag
feeder structures, often a characteristic of the deposit type.
-- Resistivity results correlate very well with geological
mapping, drilling and trenching, delineating the lateral and
vertical extent of the low resistivity volcanoclastic units over
the higher resistivity UM basement.
-- Vardar is now planning a follow-up drilling programme to test
the main anomalies for high-grade mineralisation.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"It's excellent to see the picture building at Wolf Mountain,
that ties in with previous work and points the way to what we hope
are high-grade lead-zinc feeder structures.
"With IP and resistivity data, and more data to come from a
'state-of-the-art' high-resolution airborne magnetic drone survey,
which is being used as a remote mapping tool to provide information
on underlying geology, alteration and structures which may control
mineralisation, the Vardar team is delivering 'big company'
geoscience on a junior's budget.
"With each phase of work, there is growing potential for a
discovery at Mitrovica. We are not there yet, but with targets at
Wolf Mountain, Majdan Peak and Mitrovica South there is a real
opportunity.
"I look forward to providing further updates on progress in
Kosovo."
Wolf Mountain Overview
The Wolf Mountain target is located in the central part of
Vardar's Mitrovica licence. It represents one of several targets,
which could be mineralised satellite deposits to the world-class
Stan Terg mine, which dates back to the 1930s and is estimated to
have produced 34 million tonnes ("Mt") at 3.45 per cent Pb, 2.3 per
cent Zn and 80 g/t Ag.
In addition to the Wolf Mountain target, potential also exists
at Mitrovica for the discovery of high-level epithermal gold
deposits at Majdan Peak and further base metal deposits in the
southern part of the licence area.
Mineralisation at Wolf Mountain appears to be intrinsically
related to the contact between Jurassic UMs and overlying O-M
volcanoclastic rocks, where relatively flat-lying hydrothermal
breccias are enriched in Pb, Zn and Ag. Below this contact several
high-grade feeder structures have been anticipated and the results
of the IP survey tend to confirm this hypothesis.
A total of 278.5 metres ("m") of trenching and 1,609m of
drilling have been completed at Wolf Mountain. Drilling and
trenching results have confirmed extensive lead-zinc-silver
mineralisation over an area of 800m in length and 400m in
width.
The highlights of these activities include:
-- Trench WM-T01: 18 grammes/tonne ("g/t") Ag, 2.01 per cent Pb
and 3.17 per cent Zn over 12.5m, within a longer 51m in length
cross-section returning 11 g/t Ag, 1.43 per cent Pb and 1.87 per
cent Zn;
-- Trench WM-T02: 14 g/t Ag, 3.6 per cent Pb and 0.64 per cent Zn over 8m;
-- Drillhole WM004: 8 g/t Ag, 1.27 per cent Pb and 0.91 per cent
Zn over 6.6m (estimated true thickness); and
-- Drillhole WM007: 16 g/t Ag, 2.69 per cent Pb and 0.4 per cent
Zn over 4.3m (estimated true thickness).
The results suggest a mineralisation model analogous to the
nearby Zijaca deposit, located 3 kilometres south-east of Wolf
Mountain (non-JORC compliant 5.2 Mt containing 2.83 per cent Pb,
2.83 per cent Zn and 16 g/t Ag), and Crnac, (non-JORC compliant 3.5
Mt containing 8.1 per cent Pb, 3.2 per cent Zn, 120 g/t Ag) in
northern Kosovo.
IP Survey
The survey was completed as a full 3D programme using a
combination of conventional 2D IP-DC lines using electrode spacings
of 50m and 100m with additional Iris Instruments FullWaver units
positioned on adjacent lines. All the receiver electrodes were
measured simultaneously for each current injection point (with up
to 70 dipoles measured per current injection) which allowed for the
construction of detailed 3D chargeability and resistivity
volumes.
The resistivity results correlate very well with the completed
drilling, mapping out the extent of the low resistivity
volcanoclastic units over higher resistivity UM basement.
Importantly the IP anomalies occur below this contact often
straddling the lower contact and extending towards the surface
where outcropping mineralised gossans have been mapped, providing
support for a mineralised source to the anomalies. The correlation
of the IP anomalies with regional structural trends is supportive
of these representing high-grade feeder structures.
References:
Stan Terg - Strmić Palinkaš S, Palinkaš LA, Renac C, Spangenberg
JE, Lüders V, Molnar F, Maliqi G (2013) Metallogenic model of the
Trepča Pb-Zn-Ag skarn deposit, Kosovo: evidence from fluid
inclusions, rare earth elements, and stable isotope data. Economic
Geology 108:135-162..."With current reserves of 29 Mt of ore at
3.45 per cent Pb, 2.30 per cent Zn, and 80 g/t Ag (ITT/UNMIK 2001
report), together with the past production of approximately 34 Mt
of ore, the deposit represents an important source of metals in the
southeastern part of Europe."
Crnac - Resource estimate from the Mineral Deposits of Serbia -
Ore deposit database... "In 1981, the Crnac mine produced 60,000
tonnes at 7 per cent Pb and 2 per cent Zn, by sub-level open
stoping. Output should reach 150,000 tonnes/year by 1983. ITT/UNMIK
Mission (12/2000): Past production (1967-2000): 2,060,000 tonnes at
4.3 per cent Pb, 2.2 per cent Zn and 53 g/t Ag. Resources:
1,415,000t at 8.1 per cent Pb, 3.2 per cent Zn and 120 g/t Ag."
Zijaca (or Zijaçë or Zijača) - 1999 PhD thesis in Albanian
translated as "Geological and Structural Setting in the Trepča
Region".
Glossary:
Gossan - Gossan is intensely oxidized, weathered or decomposed
rock, usually the upper and exposed part of an ore deposit or
mineral vein.
Hydrothermal Alteration - also referred to as wallrock
alteration, is a general term that encompasses many processes by
which rock-forming minerals are altered due to reactions
accompanying the flow of heated aqueous fluids along fractures and
grain boundaries.
Induced Polarisation (IP) - Variations in chargeability can be
diagnostic, for example, when aiming to characterize a mineral
deposit, where the chargeability of the mineralised zone is often
higher than the host rock. Often an induced polarization (IP)
experiment is performed with the Direct Current Resistivity (DCR)
hence they are often called DC-IP survey. Both conductivity and
chargeability distribution can be recovered from a DC-IP
survey.
Competent Person Review
The information in this announcement has been reviewed by Mr.
Chris Davies, a Competent Person ("CP"), who is a Fellow of the
Australasian Institute of Mining and Metallurgy. Mr. Davies has
conducted a desktop review of source documents and data which
underpin the technical statements disclosed herein and approves the
disclosure of technical information in the form and context in
which it appears in this announcement, in his capacity as a CP as
required under the AIM rules. Mr. Davies has visited Vardar's
Mitrovica and Viti projects in Kosovo.
Mr. Davies has sufficient experience, that is relevant to the
content of this announcement, to qualify as a CP as defined in the
2012 Edition of the "Australasian Code of Reporting of Exploration
Results, Mineral Resources and Ore Reserves".
Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration,
FAusIMM, is a Non-executive Director of Beowulf and is an
exploration/economic geologist with more than 35 years' experience
in the mining sector.
About Beowulf Mining plc
Beowulf's strategy is to build a sustainable and innovative
mining company, which creates shareholder value by developing
mining assets, delivering production and generating cash flow, and
in so doing meets society's ongoing need for metals.
Beowulf is developing a high-quality asset base, which is
diversified by geography and commodity, enabling it to
simultaneously advance several projects up the mining value curve
and create shareholder value.
Additionally, the Board of Directors continues to look beyond
the Company for value creation opportunities.
The Company's first priority remains the award of the
Exploitation Concession for Kallak North, and thereafter completing
the Scoping Study. The introduction of a strategic partner/investor
who understands the value of Kallak as a high-quality asset, which
could be in production within four to five years, is an ongoing
consideration, but does not preclude the Company from continuing to
add value to Kallak in the meantime.
Fennoscandian Resources ("Fennoscandian"), the Company's
graphite business, is pursuing a strategy to develop a
resource/production base of natural flake graphite that can provide
'security of supply' and enable Finland to achieve its ambition of
self-sufficiency in battery manufacturing. The Company is a
recipient of Business Finland funding, which is supporting
Fennoscandian to move downstream, and develop its knowledge in
processing and manufacturing value-added graphite products.
The Company owns 46.1 per cent of Vardar, a UK registered
exploration company with a focus on the metal endowed Balkan
region. Vardar holds exploration licences for the Mitrovica and
Viti projects in Kosovo. Both projects are located within the
Tethyan Belt, a major orogenic metallogenic province for gold and
base metals which extends from the Alps (Carpathians/Balkans) to
Turkey, Iran and Indochina, and contains several world class
discoveries. The Tethyan Belt of south-east Europe can be regarded
as Europe's chief copper-gold (lead-zinc-silver) province.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 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.
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