TIDMBEM
RNS Number : 6947W
Beowulf Mining PLC
22 August 2022
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement, this inside information is now considered to
be in the public domain.
22 August 2022
Beowulf Mining plc
("Beowulf" or the " Company ")
Exploration Drilling in Kosovo Discovers Large Polymetallic
Epithermal System
Beowulf (AIM: BEM; Spotlight : BEO), the mineral exploration and
development company, is pleased to announce the first exploration
results from the Majdan Peak ("MP") prospect, within the Mitrovica
licence, in Kosovo and the discovery of a large polymetallic
epithermal system. Polymetallic epithermal deposits (copper, gold
and lead-zinc) form at shallow depths within the earth's crust and
are important sources of base and precious metals and therefore
constitute highly desirable exploration targets.
Highlights:
-- 11 widely spaced diamond drillholes covering an area 1,400 metres by 700 metres ("m").
-- All drillholes intersected abundant sulphides, intense
alteration, and multiple generations of veining which are all
factors indicative of a large polymetallic epithermal system.
-- In particular, drillhole MP0006, which produced highly
anomalous gold-copper-silver intersections is extremely encouraging
and is interpreted by the Vardar Minerals ("Vardar") team to be on
the periphery of potential feeder structure(s), providing the
source of the abundant metals being found.
-- Significant gold-copper-silver, lead-zinc-silver and gold intersections include:
o Drillhole MP006 (Figure 2): 10.8m at 0.48 g/t gold ("Au"), 0.1
per cent copper ("Cu") and 18 g/t silver ("Ag"), including 3.2m at
1.1 g/t Au, 0.2 per cent Cu & 50 g/t Ag;
o Drillhole MP006 (Figure 2): 6.8m at 4.1 per cent lead ("Pb"),
0.6 per cent zinc ("Zn") and 15 g/t Ag; and
o Drillhole MP013 (Figure 5): 16.1m at 0.21 g/t Au.
-- The above supports the belief in the potential for epithermal
mineralisation of economic grades to be present.
-- Mineralisation is similar to that seen at the Chelopech
copper-gold deposit in Bulgaria, owned by Dundee Precious Metals (
https://www.dundeeprecious.com/ ) . The orebodies at Chelopech
range from 40-200 metres in length, are 20-130 metres in thickness
and can extend for up to 400 metres down plunge. Based on the
similarities in the style of mineralisation at Majdan Peak, the
Vardar team considers Chelopech to be a potential analogue deposit
formed in this geological environment (Chelopech copper-gold
deposit: Proven and Probable ore reserves of 1.6 million ounces of
gold and 336 million pounds of copper).
Beowulf's Investment in Vardar
Since Beowulf's first investment in Vardar in November 2018, the
Company has now committed approximately GBP3.1 million and owns
59.5 per cent of Vardar. Vardar gives Beowulf exposure to the
highly prospective exploration potential of the Tethyan Belt, a
major orogenic metallogenic province for gold and base metals.
Throughout the last four years, the Vardar team has delivered
exciting results for both the Mitrovica licence which has several
exploration targets, including lead, zinc, copper and gold, and
also the Viti licence which is showing potential for copper-gold
porphyry mineralisation and lithium. With Beowulf's support, Vardar
is focused on making a discovery and these latest results for
Majdan Peak are another step forwards to achieving that goal.
The world-class Stan-Terg deposit is a neighbour to Vardar's
Mitrovica licence (63 million tonnes at 3.5 per cent lead, 2.3 per
cent zinc and 80 grammes per tonne ("g/t") silver - based on past
production and estimated remaining reserves at the same grade
).
Looking to the future, Beowulf has several options as it
continues to develop Vardar, which include further investments by
Beowulf, or in the event of a discovery the introduction of
third-party investors or, if the right exploration package is
created and supports a standalone business, then the possibility of
spinning-out Vardar. Beowulf is keeping these options under
review.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"These results represent a fantastic start to our exploration
drilling on Majdan Peak, having discovered the presence of a large
polymetallic epithermal system.
"To be drawing an analogue comparison with the Chelopech
copper-gold deposit in Bulgaria, on the basis of the evidence being
presented, and the potential for epithermal mineralisation of
economic grades to be present at Majdan Peak, is a massive step
forward.
"We made the right call in 2018 to invest in Vardar, backing a
credible exploration team with in-country presence, and adding
diversification to Beowulf's portfolio and the opportunity to
create additional value for both the Company and our
shareholders.
"Sincere congratulations to the Vardar team in Kosovo. Their
strong efforts ensured that the drilling programme was completed on
time and under budget, despite very difficult conditions.
"Over the next few weeks, we will complete our analysis of all
drilling data, but there's a real prospect that we can get back on
the ground in Kosovo and complete a second round of drilling before
winter arrives. These very promising results show that Vardar has
great potential.
Adam Wooldridge, Director of Vardar Minerals, who led the
exploration programme, commented:
"We're delighted with the results from the first drilling into
Majdan Peak, which has confirmed the presence of a large
polymetallic epithermal system.
"While it was initially thought to be purely a gold target, it
is now clearly a large multi-phase polymetallic prospect. The fact
that every drillhole into the 1,400 metres by 700 metres area at
Majdan Peak intersected significant sulphide mineralisation, is
testament to the scale and volume of metals in this extensive
system, and it should be remembered that the world-class Stan Terg
deposit is located only one kilometre to the southeast.
"So far, the intersections drilled are typical of the peripheral
zones of a large epithermal system, which would be controlled by
higher-grade feeder structures and potential economic
mineralisation. This provides us with clear targets for the next
phase of drilling."
Majdan Peak ("MP") - Additional Technical Information
The MP prospect is located in the central portion of the
Mitrovica licence area, defined by a zone of intense argillic
alteration capped by an extensive blanket of advanced argillic
alteration which forms the ridge tops. Exceptional gold and base
metal soil and rock sampling results are associated with the 1,400
metres by 700 metres MP prospect. A full 3D Induced Polarisation
and Resistivity (IP/DC) survey delineated prominent
high-chargeability anomalies within the prospect, which provided
the first set of drill targets for the 2022 programme. A locality
map illustrating the 2022 drill collar locations and extent of the
alteration system is provided in Figure 1.
A total of 11 diamond core holes, totalling 2,497 metres, were
drilled into MP between April and July of 2022. All drillholes
intersected intense argillic alteration with zones of advanced
argillic alteration. Abundant pyrite (often in excess of 10 per
cent by volume), typical of large-scale epithermal systems,
provides the causative source for the prominent IP anomalies.
All drill core was cut along the orientation line before
selecting half-core samples for analysis. Samples were prepared and
analysed at ALS Laboratories along with appropriate reference
material and duplicates using multi-element ICP-MS, gold fire assay
and SWIR spectrometry.
Drilling Results
Drillholes were targeted using a combination of IP anomalies,
soil sampling and outcrop mapping to test a variety of possible
target types and to assist with navigation through the larger
hydrothermal system. Based on drill results, alteration and
intersected base and precious metal concentrations appear to follow
steeply dipping structures which splay out along more porous,
mainly volcaniclastic host rocks forming a layer cake of intense
and advanced argillic alteration zones. Mineralisation is likely to
relate to multiple episodes of hydrothermal activity with distinct
assemblages of gold, gold-silver-copper-antimony, lead-zinc-silver
and zinc. This finding, together with clay mineralogy and
alteration mapping, provides a vector to higher-temperature
portions of the system. According to classic epithermal models, the
gold-silver-copper-antimony mineralisation is likely to occur
within, and in proximity to, hydrothermal breccias related to
feeder structures. The latter are the main targets for follow-up
drilling. Given the size and complexity of the system, it is
expected that several polymetallic targets will be identified
rather than a simple gold target as initially envisaged.
Drill results have already defined the first significant
polymetallic target (MP-T1) which was intersected in drillholes
MP006 and MP009 (Figure 2). The target follows a distinct WNW trend
evidenced in geophysical and soil sampling datasets. Mineralisation
in this target includes several distinct phases, such as a
gold-copper-silver-antimony and a lead-zinc-silver phase. In both
intersections, mineralisation is largely stratabound, likely
reflecting the dispersion of metal-rich fluids from a proximal
feeder structure into the surrounding intensely altered host rock.
The mineralisation intersected in MP006 is typical of what can be
expected on the margins of a high-grade feeder zone which is
further supported by resistivity data (Figure 3). For comparison, a
section illustrating the metal distribution at the Chelopech
deposits is shown in Figure 4. Note the limited spatial extent of
the copper-gold-antimony mineralisation providing support for the
proximal (with respect to the feeder zone) location of the
intersection in drillhole MP006.
In addition to gold-copper-silver anomalies, drilling has
intersected numerous shallow zones of gold mineralisation (Figure
4) associated with advanced argillic alteration. These zones may
represent leakage into the upper portion of the mineralising system
on the periphery of proximal higher-grade feeder structures, the
existence of which is interpolated from anomalous grades in rock
grab samples assays (with values of up to 14 g/t Au). Using SWIR
results, the advanced argillic zones with gold intersections
typically have a kaolinite-dickite-alunite signature, indicative of
being proximal to the target vuggy-quartz facies rather than higher
in the system. The quartz-alunite facies intersected in MP013 is
considered particularly close to vuggy zones where high-grade gold
is anticipated.
Follow-up drilling will initially focus on intersecting thicker
and/or higher-grade extensions to gold-copper-silver mineralisation
intersected in drillhole MP006.
Tables of significant intersections
Hole From To Length Gold intersection Including
======= ======= ======= ======= ================== ==========================
10.2m @ 0.25
MP005 2.5 12.7 10.2 g/t Au
======= ======= ======= ================== ==========================
29.5m @ 0.21 10.8m @ 0.48 g/t Au, 0.1%
MP006 196.7 226.2 29.5 g/t Au Cu & 18 g/t Ag
======= ======= ======= ================== ==========================
2.1m @ 0.21
MP008 10.8 12.9 2.1 g/t Au
======= ======= ======= ================== ==========================
1.1m @ 0.20
MP008 61.1 62.2 1.1 g/t Au
======= ======= ======= ================== ==========================
3.1m @ 0.20
MP008 109.2 112.3 3.1 g/t Au
======= ======= ======= ================== ==========================
1.1m @ 0.28
MP009 165.45 166.5 1.05 g/t Au
======= ======= ======= ================== ==========================
1.1m @ 0.21
MP010 116 117.1 1.1 g/t Au
======= ======= ======= ================== ==========================
2.0m @ 0.26
MP010 239.8 241.8 2 g/t Au
======= ======= ======= ================== ==========================
1.2m @ 0.20
MP011 146.05 147.25 1.2 g/t Au
======= ======= ======= ================== ==========================
8.0m @ 0.21
MP012 24.7 32.7 8 g/t Au 2.0m @ 0.54 g/t Au
======= ======= ======= ================== ==========================
6.9m @ 0.24
MP012 42.3 49.15 6.85 g/t Au 1.6m @ 0.60 g/t Au
======= ======= ======= ================== ==========================
4.6m @ 0.24
MP012 69.16 73.8 4.64 g/t Au
======= ======= ======= ================== ==========================
16.4m @ 0.21
MP013 42.8 59.2 16.4 g/t Au
======= ======= ======= ================== ==========================
0.9m @ 0.25
MP014 4.6 5.5 0.9 g/t Au
======= ======= ======= ================== ==========================
0.5m @ 0.24
MP014 12.4 12.9 0.5 g/t Au
======= ======= ======= ================== ==========================
0.9m @ 0.33
MP014 13.5 14.4 0.9 g/t Au
======= ======= ======= ================== ==========================
4.2m @ 0.20
MP014 136.1 140.3 4.2 g/t Au
======= ======= ======= ================== ==========================
10.6m @ 0.21
MP014 165.7 176.3 10.6 g/t Au 3.2m @ 0.50 g/t Au
======= ======= ======= ================== ==========================
Hole From To Length Lead composite intersections
======= ======= ======= ======= ======================================
MP006 157.25 158 0.75 0.8m @ 1.30% Pb, 0.5% Zn & 7 g/t Ag
======= ======= ======= ======================================
MP006 197.8 199 1.2 1.2m @ 1.34% Pb, 0.4% Zn & 12 g/t Ag
======= ======= ======= ======================================
MP006 239.5 241 1.5 1.5m @ 16.44% Pb, 0.8% Zn & 54 g/t Ag
======= ======= ======= ======================================
MP006 244.1 246.3 2.2 2.2m @ 1.21% Pb& 0.8% Zn
======= ======= ======= ======================================
MP006 249.6 252.3 2.7 2.7m @ 1.14% Pb & 1.4% Zn
======= ======= ======= ======================================
MP007 305.5 306.7 1.2 1.2m @ 4.21% Pb, 0.7% Zn & 10 g/t Ag
======= ======= ======= ======================================
MP008 188 189 1 1.0m @ 1.22% Pb & 2.3% Zn
======= ======= ======= ======================================
MP009 206.4 215.15 8.75 8.8m @ 1.61% Pb & 1.4% Zn
======= ======= ======= ======================================
MP009 217.15 219.15 2 2.0m @ 2.20% Pb & 1.3% Zn
======= ======= ======= ======================================
MP010 91.75 92.5 0.75 0.8m @ 1.34% Pb & 0.7% Zn
======= ======= ======= ======================================
https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure1.jpg
Figure 1. Locality map illustrating the extent of the alteration
system (grey) from field mapping with high-chargeability IP
anomalies overlain (pink). Drill collars are illustrated as green
circles. An example of the scale of a 2 Mt gold deposit (yellow)
has been illustrated for comparison purposes only. Ideally the
epithermal system would host several of these deposits in proximity
to feeder structures. Note the position of the Stan Terg
skarn/carbonate-replacement deposits on the periphery of the
system. The current announcement discusses results from Majdan Peak
highlighted as the area of interest.
https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure2.jpg
Figure 2. Plan (top) and oblique 3D view (bottom) illustrating
intersections into the MP-T1 target.
https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure3.jpg
Figure 3. Section through drill holes MP006, MP007 and MP008.
Profile plots of gold (yellow), copper (green), silver (light
blue), lead (dark blue) and zinc (grey-blue). Resistivity data from
3D survey with interpreted bounding feeder structure and target
model illustrated.
https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure4.jpg
Figure 4. Geological target model for the Chelopech deposit
([1]) .
Note the limited extent of the copper-gold-antimony
mineralisation and association with underlying lead-zinc-manganese.
MP006 is likely very close to target.
https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure5.jpg
Figure 5. Plan (top) and oblique 3D view (bottom) illustrating
intersections into shallow gold mineralisation associated with
advanced argillic zones.
Glossary
g/t - grammes per tonne
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 characterise a mineral
deposit, where the chargeability of the mineralised zone is often
higher than the host rock. Often an Induced Polarisation (IP)
experiment is performed with the Direct Current Resistivity (DCR)
hence they are often called IP-DC survey. Both conductivity and
chargeability distribution can be recovered from an IP-DC
survey.
Inductively coupled plasma mass spectrometry (ICP-MS) is a type
of mass spectrometry that uses an inductively coupled plasma to
ionize a sample.
Shortwave infrared (SWIR) spectroscopy is a non-destructive and
rapid technique used to identify alteration minerals and
approximate their composition, detecting minerals such as
phyllosilicates, clays, carbonates, and selected sulphates.
Qualified Person Review
The information in this announcement has been reviewed by Mr.
Chris Davies, a Qualified Person ("QP"), 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 QP 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 Competent Person
("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.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 7583 8304
Officer
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill Tel: +44 (0) 20 3470 0470
/ Adam Cowl
BlytheRay
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.
[1] From Martin, I (2021). Geochemical vectors in mineral
exploration: integration, interpretation and modelling of high
precision multielement and hyperspectral datasets. Lecture
series.
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