Fully funded now for 14-18 months. Third party looking are going to start due diligence to acquire part or whole of iron ore assets. This is potentially a buyout of 600-800Mt of iron ore which is worth aroung 50p/t according to recent market valuations. They said in the presentation last week we will get details about this very soon. They are also about to start drilling more of the deposit to get it all to JORC standard. The SP took a dive because part of the deposit do not make it into the JORC because Geovista want more drilling done to increase confidence. BEM are about to resolve this and this should result in the share price correcting back up in the short term.
A dispute with local indigenous people, sami, has resulted in the drilling being halted whilst they and BEM discuss the matter to come to an agreement if possible. The dispute revolves around the work plan and the time to which it applies. The mining inspector are over seeing the correspondence and will rule if necessary. The latest is that an agreement has occurred and drilling will recommence in May. The Kallak north area will have a work plan applying until October. Details for Kallak South are as yet unknown. There will be more drilling at KS so a longer timeframe is necessary. There has also been news from the technical director, Fred Boman, saying that there will be more drilling rigs.
The dispute is over. Beowulf have returned to drilling indefinetly now. The sami have requested that they are notified 10 days before the start of drilling which Beowulf have done. The drilling campaign is in two stages with phase 1 focusing on the northern extension of Kallak North and the join between Kallak North and South to determine if the deposit is one large iron body. The drill rigs used for this campaign are able to drill much deeper than the previous campaign. Around 500m depth is possible. The phase 1 campaign has already yielded excellent results over the length of the drill cores and they were drilled very deep. They currently have 2 drill rigs operating on this campaign and this is expected to increase in future. Phase 2 is 28km of drilling that will be carried out on Kallak north and Kallak south. The drilling is in-fill drilling. This will increase the JORC on the deposit to Indicated/Measured. Both phases will increase the tonnage. A new study on the iron ore will take place to confirm the quality. This will support the previous study that found exceptional quality iron ore with very low impurities, it found that the iron can be sold as a premium product with minimal processing. The EIA is currently being worked on and will be submitted with the application for test mining in the short term. There is a lot of news flow coming with the drilling and assay results. In the past this has generated a lot of interest in the share and driven the share price strongly.
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