(Alliance News) - Beowulf Mining on Wednesday said it has awarded a drilling contract for Kallak in Sweden to Kati Oy.
Shares in Beowulf closed up 20% at 5.44 pence in London on Wednesday.
The contract covers up to 1,650 metres of diamond drilling at Kallak, which will target further potential iron ore mineralisation at Kallak South.
The work programme is intended to find out it a 3D seismic model can be constructed and, if so, whether the model might be used to identify further iron ore mineralisation.
The first Kallak exploration licence was awarded in 2006 with a mineral reproduce estimate for Kalla North and South finalised in November 2014.
"Beowulf believes in the greater iron ore potential at Kallak South and Parkijaure and it is exciting to be looking forwards to an Autumn drill programme, the results of which we hope will optimise further drilling campaigns thereafter," said Chief Executive Kurt Budge.
The Swedish government has been sitting on Beowulf's application for mining at Kallak since July 2017. The mine is located in a region of land resided by the indigenous Sami people, who have previously resisted further operations at Kallak.
On Tuesday, Beowulf said a written question had been submitted to Ibrahim Baylan, the Swedish minister for Business, Industry & Innovation when the government plans to make its decision on mining activity at Kallak. It is awaiting an answer, which is expected later this week.
By Anna Farley; annafarley@alliancenews.com
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