Overview

  • Discovered in the 1940s, the Kallak magnetite iron ore deposit is located about 40 kilometres (“km”) west of the Jokkmokk municipality centre in the County of Norrbotten in Northern Sweden.
  • Kallak was designated, in February 2013, by the Swedish Geological Society as an Area of National Interest for minerals, affording it protection against competing land use and measures that may hinder future potential mineral extraction.
  • Testwork on Kallak North ore has produced a market leading ‘super’ high grade concentrate of over 71 per cent iron content and with low deleterious elements. This higher grade and quality product lends itself to pelletisation and consumption in Direct Reduction Iron (“DRI”) facilities in Europe and the Middle East, and a price premium.
  • A global resource of 250 million tonnes (“Mt”) is achievable, if the current exploration target in middle of Kallak South is drilled and converted. The exploration target represents potential ore, specifically in the gap between the northern and southern ends of Kallak South, and below the pit shells modelled for the resource statement. The Kallak North orebody remains open at depth and to the north.
  • The latest resource statement for the Kallak project was finalised on the 28 November 2014. The total indicated resource is 118.5Mt at 27.5 per cent iron, with an additional total inferred resource of 33.8Mt at 26.2 per cent iron and an exploration target of 90-100Mt at 22-30 per cent iron.
  • Local infrastructure is excellent with all-weather gravel roads passing through the project area and all parts are easily reached by well used forestry tracks. A major hydroelectric power station with associated electric power-lines is located only a few kilometres to the south east. The nearest railway (the ‘Inland Railway Line’) passes approximately 40km to the east. This railway line is connected at Gällivare with the ‘Ore Railway Line’, which is used by Luossavaara-Kiirunavaara (“LKAB”) for delivery of its iron ore material to the Atlantic harbour at Narvik (Norway) or to the Botnian Sea harbour at Luleå (Sweden).

Geology

  • The Kallak North and Kallak South orebodies are centrally located and cover an area approximately 3,700 metres (“m”) in length and 350m in width, as defined by drilling. The mineral resource estimate for Kallak North and South is based on drilling conducted between 2010-2014, a total 27,895m was drilled, including 131 drill holes.
  • The latest resource statement for the Kallak project was finalised on the 28 November 2014, following the guidelines of the JORC Code 2012 edition, summary as follows:

 

Category

Tonnage Mt

Fe %

P %

S %

Kallak North

Indicated

105.9

27.9

0.035

0.001

 

Inferred

17.0

28.1

0.037

0.001

 

 

 

 

 

 

Kallak South

Indicated

12.5

24.3

0.041

0.003

 

Inferred

16.8

24.3

0.044

0.005

 

 

 

 

 

 

Global

Indicated

118.5

27.5

0.036

0.001

 

Inferred

33.8

26.2

0.040

0.003

 

  • While external observers were expecting higher maiden resource tonnages for Kallak South, it is worth pointing out that the 2014 drilling programme for Kallak South focused on defining the potential extent of the orebody. The geophysical magnetic signature of mineralisation, evidence of the presence of magnetite, extends through the gap giving confidence for an exploration target, but insufficient drilling precludes any additional resource classification.

Exploitation Concession

  • Beowulf continues to engage with the Mining Inspectorate of Sweden, the County Administrative Board for the County of Norrbotten and local stakeholders regarding the award of an Exploitation Concession for Kallak North.
  • The Company will update the market regarding the Exploitation Concession when appropriate. Updates can be found in the ‘News’ section of this website.

 

Overview-Kallak