Exploration Update – Åtvidaberg
3 August 2016
Beowulf Mining plc
(“Beowulf” or the “Company”)
Exploration Update – Åtvidaberg
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 an exploration update on its Åtvidaberg licence.
Beowulf’s geologists have completed an initial assessment of the Company’s Åtvidaberg VMS (Volcanogenic Massive Sulphide) lead-zinc-copper-silver exploration licence, located in the Bergslagen area in southern Sweden.
Bergslagen is one of Europe’s oldest mining areas and contains one of the world’s main VMS districts, with ore deposits characterised by high contents of zinc, lead, copper and sometimes silver and gold. It 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.
Several reconnaissance field excursions have been made to the licence area, to establish ‘first impressions’ and assess the geological environment, the structural setting, style and type of mineralisations present.
Two main areas have been visited, Bersbo and Mormor, where old mine workings, waste dumps and exploration pits were examined. Our initial assessment of the Åtvidaberg licence is very positive, and our main findings are summarised below.
- Bersbo contains 15 small historic 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 were 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 historic mines over a mineralised zone 5 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 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 showed traces of chalcopyrite in thin veins in a quartzo-feldspathic-granitoid rock. Historic sections for the mine show the orebody to extend over 300 metres in length and to a depth of 407 metres.
Based on the preliminary findings of our fieldwork at Åtvidaberg, we are planning and budgeting the next stages of our exploration programme, which has already commenced and includes:
- Ground magnetic surveys to define areas of high magnetic relief, which might potentially indicate mineralisation, particularly in poorly exposed areas covered by glacial till, concealing ‘blind’ deposits;
- Rock chip sampling; and
- Geological and structural mapping.
Looking further ahead, if results continue to be positive, we will undertake geochemical till sampling, and additional geophysical surveys, to best define targets for drilling during 2017.
Kurt Budge, CEO, commented:
“We have not wasted anytime getting on the ground at Åtvidaberg and starting work.
“As I wrote when we were awarded the licence, Åtvidaberg diversifies our current portfolio and is a further demonstration of the Company’s commitment to investing and doing business in Sweden.
“Our hypothesis, to explore in the backyard of producing mines, and areas that have been mined in the past, is already delivering positive findings, such as visible high grade mineralisation lying in dumps, and mining records that show the potential for new discoveries, and extensions to known orebodies.
“With both Åtvidaberg and our graphite portfolio in Finland, we are focused on ‘intelligent exploration’. This includes managing our costs, understanding all the historic data that is available, efficiently committing resources to fieldwork to develop our knowledge base, to eventually define the best possible targets for drilling.
“I look forward to updating shareholders on our progress in due course.”
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% owned subsidiary of Beowulf.
- The licence area covers 225 square kilometres (“km2”) and is located in the Bergslagen area, southern Sweden. The licence is valid for 3 years from the 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 historic 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 to 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.
Beowulf Mining plc
Kurt Budge, Chief Executive Officer
Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
Stewart Dickson / Phil Davies / Carrie Drummond
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 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.