London: 27 March 2006: Beowulf Mining PLC (AIM:BEM), the AIM listed mineral exploration company, with projects in Sweden, announces that the Swedish state mining authority, Bergsstaten, has granted an exploration permit to Beowulf for a new area within the Jokkmokk County, called Ruoutevare. The permit covers a large ore deposit of iron and titanium. (See previous announcement 26 January 2006)
The reserves reported in the latest study in 1975 by the Geological Survey of Sweden (SGU) are estimated at 116 million tonnes with an average 38.2% Fe (iron), 5.6% Ti (titanium) and 0.17% V (vanadium). A richer section of 20 million tonnes is registered with a grade of 47% Fe, 11% TiO2 and 0.15% V2O5.
These figures are based on analytical results of 32 drill holes and do not follow present JORC or NI43-101 standards. Beowulf is entering all the data from this previous drilling into a data base and intends to work with an international mining consultancy group to determine whether the reserve estimate will conform to the more modern standards. If it does then the directors of Beowulf intend that the same group will prepare a feasibility study on the mining of the deposit.
The mineralization consists of magnetite, ilmenite, spinel and smaller amounts of pyrrhotite, chalcopyrite and pentlandite. Beowulf will obtain a bulk sample of the titaniferous iron deposit either from outcrop or a composite from the previous diamond drilling to work with LKAB, the Swedish Iron Ore Company, in order to see if a titanium and iron metallurgical separation can be obtained economically.
Commenting on the news, Dr. Robert Young, Beowulf's Chairman said, "Beowulf is working efficiently to translate the reserves at the Ruoutevare iron titanium deposit into proven reserves that conform to international standards. This will involve engaging an international mining group to analyse the drilling data so far obtained and possibly more diamond drilling."
For further information contact:-
- Dr. Robert Young, Chairman - Beowulf Mining Plc - Tel: +44 (0)1353 649 701
- Gavin Burnell, Ruegg & Co. Limited - Tel: +44 (0)207 584 3663
- Nick Bealer, King & Shaxson Capital Limited - Tel: +44 (0)207 426 5986
- Gary Middleton, St Swithins PR Ltd - Tel. +44 (0)207 929 4391
