Beowulf Regulatory News (BEM)

6 Jun 2007 09:43

Beowulf Mining PLC06 June 2007 BEOWULF MINING PLC Press Release Diamond Drill Results from Grundtrask Gold Project LATEST DRILLING AT GRUNDTRASK GOLD PROSPECT, NORTHERN SWEDEN SHOWS GOLD MINERALISATION PRESENT OVER 800 METRES OF STRIKE LENGTH AND OPEN AT BOTH ENDS AND AT DEPTH London: 6 June 2007 Beowulf Mining PLC (AIM:BEM), the AIM-traded mineral exploration company ispleased to announce that analytical results have been received from the latestdiamond drilling programme on the company's 100% owned Grundtrask gold projectin the Skellefte Mining District, N. Sweden. The drill programme tested thesouthern extension where higher gold grades were noted from previous drilling in2005 by Beowulf. During 2006 and early 2007 an additional 10 diamond drill holes were completedon the Grundtrask project. The holes were all targeted on the structure, nowcalled the Southern Gold Structure, that was identified by DDH 05004. Drilling just completed, has outlined a sigmoidal shaped mineralised zoneconsisting of dense sheet-veining over a strike length of greater than 160m withwidths of up to 20 metres. Gold grades of up to 5.2m at 4.28g/t have beenreturned from the Southern Gold Structure and these are summarised in the tablebelow. Geological interpretation of drill core from Grundtrask has demonstrated theexistence of a mineralised corridor in which sigmoidal gold bearing structures,of which the Southern Gold Structure is just one example, occur over a strikelength of in excess of 800m. The three sigmoidal structures that have beeninterpreted to date are believed to be generated by compressional tensiondomain. The mineralised structures are characterised by intense micro-veining of quartz,arsenopyrite and chalcopyrite in a host of silicified intermediate lavas of theVargfors Formation. Conspicuous molybdenite, (the major ore mineral ofmolybdenum), also occurs in veins in some of the drill holes. The gold, isbelieved to be carried in the chalcopyrite. Highlights of the recent drill campaign include 5.2m at 4.28g/t Au from 5.8m and16.9m at 1.86g/t Au from 15.5m in DDH 06002, 18m at 1.77g/t Au from 41m in DDH06005. Details of all drill holes are given in Table 1 below. The drill core sampleshave been assayed for gold by Fire Assay techniques and additional metalelements by ICP at the ALS/Chemex Laboratory in Vancouver. Analysis of thesamples involved analysis of blank, duplicate and random standard referencesamples. Table 1. GRUNDTRASK GOLD DIAMOND DRILL RESULTS Gold Hole No From To Length (m) Grade g/t #04001 53.00 57.62 4.62 2.80 #04002 49.70 50.70 1.00 1.17 #04003 NSI #05001 NSI #05003 NSI #05004 27.85 41.80 13.95 1.94 #06001 16.60 18.50 1.90 2.11 plus 27.90 33.60 5.70 2.53 plus 61.90 62.15 0.25 8.22 #06002 5.80 11.00 5.20 4.28 plus 15.50 32.40 16.90 1.86 #06003 10.10 17.70 7.60 2.43 plus 20.90 24.40 3.50 3.79 plus 26.10 27.80 1.70 3.40 plus 31.30 37.20 5.90 2.47 #06004 65.10 65.30 0.20 4.29 plus 62.60 63.60 1.00 1.11 #06005 41.00 59.00 18.00 1.77 #06006 22.60 24.41 1.81 1.10 #06007 NSI #06008 7.55 8.20 0.65 2.20 plus 18.00 22.00 4.00 1.01 plus 32.00 33.00 1.00 2.10 plus 79.00 85.00 6.00 1.02 #06009 34.00 35.00 1.00 1.16 plus 41.00 44.00 3.00 1.26 plus 51.10 51.46 0.36 1.30 plus 63.00 64.00 1.00 1.22 #06010 NSI NSI = No significant intercept. Commenting on the results Dr. Jan-Ola Larsson, Beowulf's Technical Director,stated that "The drilling has encountered gold bearing sulphide mineralisationat shallow depths starting at 12 metres or less, making the deposit amenable toopen pit mining. The latest results show that this mineralised structure is nowover 800 meters long. The mineralisation is now attracting the interest of several companies who haveexpressed an interest in a joint venture arrangement. Beowulf will continuediamond drilling in 2007 and programme scale depends on the outcome of jointventure discussions." In accordance with AIM Rules, the information in this announcement has beenreviewed and signed off by Dr. Jan Ola Larsson, (Fil. Kand, PhD, DIC). TechnicalDirector of the Company, who has over 30 years relevant experience within thesector. 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 * Charles Dampney - City Capital Securities Ltd - Tel: +44 (0) 207 822 7107 * Gary Middleton, St Swithins PR Ltd - Tel. +44 (0)207 929 4391 This information is provided by RNS The company news service from the London Stock Exchange