Beowulf Mining PLC Regulatory News (BEM)

13 Sep 2006 09:47

Beowulf Mining PLC13 September 2006 PRESS RELEASE BEOWULF MINING REPORTS HIGH GRADE GOLD OVER SUBSTANTIAL WIDTHS FROM LATEST DRILLING AT GRUNDTRASK GOLD PROSPECT, NORTHERN SWEDEN. MINERALISATION PRESENT OVER 750 METRES OF STRIKE LENGTH AND OPEN AT BOTH ENDS AND AT DEPTH London 13 September: Beowulf Mining PLC (AIM:BEM), the AIM quoted mineralexploration company is pleased to announce that analytical results have beenreceived from the latest diamond drilling programme on the company's 100% ownedGrundtrask gold project in the Skellefte Mining District, N. Sweden. The drillprogramme tested the southern extension of the "Central Gold Zone" where highergold grades were noted from previous drilling in 2005 by Beowulf. Four inclined drill holes for a total of 265 metres were drilled. The latest drilling has revealed higher gold assays than previous intersectionsobtained from 2003-2005. Several meter-sections displaying gold grades of morethan four grams per tonne ("g/t") were obtained, and the highest gold assay of12.67 g/t over 1.20 m is recorded in a magnetite rich section of drill hole06-002. This high-grade sample occurs within a 27.50m section of continuous goldmineralisation for 27.50 m (between 5.80-33.30m) with an average grade of 2.05 g/t. Similar high grade gold grades are noted in drill hole 06-003 with 2.06 g/tobtained over 27.10 metres (from 10.10 to 37.20m). Combined with results of earlier drilling by Beowulf the mineralised structuredefined as "The Central Gold Zone" can now be traced over a strike length of 750metres, with an average width of 25 metres. The mineralisation is open at bothends and at depth. In order to verify the extent of the gold mineralisation both in length andwidth, the company is planning to carry out further drilling on the indicatedextensions at both ends of the Central Zone Gold Mineralisation. 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 duplicate samples. 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 and extending to 37.20 metres,making the deposit amenable to open pit mining. The latest results show thatthis mineralised structure carries higher gold grades. This is of greatimportance and enhances the economic potential of the project. The extension ofthese high grade gold bearing zones will be the focus of our forthcomingdrilling programme at Grundtrask". Table 1 Gold assay results and technical details of drillholes DDH 06-001, 06-002,06-003 and 06-004 of the Grundtrask Gold Project area, N. Sweden. +-------+------------+-----------+-------+-------+-------+----------------------+---------------+| Drill |Co-ordinates|Over-burden| Core |Azimuth| Angle | Interval | ||Hole No| | metres |Length |degrees|degrees| (metres) | || | (UTM) | |metres | | | | || | | | | | | | || | | | | | | | Gold || | | | | | | | || | | | | | | | Assay || | | | | | | | || | | | | | | | g/t |+-------+------------+-----------+-------+-------+-------+----------------------+---------------+|06-001 | 7229 713/ | 7.50 | 7.50- | 210 | 45 |16.60 - 37.85 = 21.25m| 1,17 g/t || | | | | | | | || |1666 531 | |71.90 | | |29.40 - 33.60 = 4.20 m| 2.93 g/t || | | | | | | | || | | | | | |61.90 - 62.15 = 0.25 m| 8.22 g/t |+-------+------------+-----------+-------+-------+-------+----------------------+---------------+|06-002 | 7229 724/ | 5.80 | 5.80- | 210 | 45 | | || | | | | | | | || |1666 518 | |47.85 | | |5.80 - 33.30 = 27.50 m|2.05 g/t || | | | | | | | || | | | | | |5.80 - 11.00 = 5.20 m | 4.28 g/t || | | | | | | | || | | | | | |5.80 - 7.00 = 1.20 m | 12.67 g/t |+-------+------------+-----------+-------+-------+-------+----------------------+---------------+|06-003 | 7229 750/ | 4.50 | 4.50- | 210 | 60 | | || | | | | | | | || |1666 449 | | 70.20 | | |10.10 - 37.20 = 27.10m|2.06 g/t || | | | | | | | || | | | | | |21.80 - 23.60 = 1.80 m|6.26 g/t |+-------+------------+-----------+-------+-------+-------+----------------------+---------------+|06-004 | 7229 853/ | 11.50 |11.50- | 210 | 45 |62.60 - 63.60 = 1.00 m| 1.11 g/t || | | | | | | | || |1666 405 | |75.00 | | |65.10 - 65.30 = 0.20 m| 4.29 g/t || | | | | | | | |+-------+------------+-----------+-------+-------+-------+----------------------+---------------+ Total amount of drilling: 265 m Technical background: The Beowulf exploration permits of the Grundtrask area cover 43 squarekilometres. Within the permits anomalous gold anomalies in basal till samplesextend over large areas. Detailed ground geophysical surveys (IP) have outlineda number of bedrock structures possibly being associated with these goldanomalies. Drill testing by Beowulf has now confirmed that only one of thesebedrock structures defined as "The Central Zone Gold Mineralisation" has apotentially gold bearing extension of over 750 metres with an average width ofmore than 25 metres. At the most southerly intersection the average gold gradeis more than 2 g/t where also the highest gold grade so far recorded is 12.7 g/tover 1.2 m of length of drillcore. The gold bearing zone remains wide open atboth ends. However, this mineralised structure alone cannot explain the highlevels of gold encountered in most of the basal till samples and the Directorsbelieve, that further gold bearing bedrock structures remain to be discoveredwithin the Grundtrask property. A number of favourable factors are of importance in consideration for a miningoperation to start up in the Grundtrask area. The terrain consists of gentlyrolling hills extending parallel with the Central Zone mineralisation. The welldrained area of relatively thin cover of glacial deposits is extensively coveredby pine and spruce forests. The road network is excellent with good forestryroads crosscutting the area. A major, high standard road runs only 500 m awayfrom the Central Zone mineralisation. This road is used by the Lundin andBoliden mining companies for transporting ore, between the Storliden minelocated nearby to a concentrator plant at Boliden. The nearest majorhydroelectric power station is located at the Skellefte River only twokilometres away. All four drill holes, in 2006, have cut through sulphide mineralisation oversubstantial widths. Arsenopyrite is abundant in all drill cores and occurs asmassive veins and as disseminated smaller grains. Although gold is encounteredin all sulphide sections higher gold grades are found in narrow magnetite bandsmainly associated with pyrite or pyrrhotite. Black tourmaline is observed beingassociated with the mineralisation. Some holes display wide fracture zoneswithin the mineralised sections, which caused some difficulty in drilling andcore retrieving. The sulphide mineralisation is hosted by mafic metavolcanicswithin the Vargfors formation of the Skellefte vaolcanic belt.. Notes to Editors. Beowulf Mining PLC ('Beowulf') is focused primarily on the exploration anddevelopment of mineral deposits in Sweden. Beowulf has six areas claimed in Northern Sweden. All areas are considered tohave commercial potential. Two of these are defined as project areas where fieldexploration is on going by the Company. The project areas are:- 1. Ruoutevare Iron Titanium Project Drilling in the 1970's by the Swedish Geological Surrey study estimated 116million tonnes, with an average of 38.2% iron and 5.6% titanium. A richersection of 20 million tonnes is registered with a grade of 47% iron and 11%titanium oxide. Beowulf is conducting surveys to a pre-feasibility study on thedeposit. This will determine if the deposit can be brought into production. 2.Grundtrask Gold Project The Company has three exploration permits in the Skellefte Mining District.Drilling in 2003, 2004, 2005 and 2006 has outlined a gold mineralization definedas "Central Zone" of more than 750 metres of length. Gold grades of about onegram per tonne have been obtained in the northern part but recent drilling onthe southern extension shows substantially higher gold grades. Further work isrequired to better define higher gold grade zones of this structure as well aselsewhere on the licences. For further information :- Dr. Robert Young, ChairmanBeowulf Mining plc Tel: +44-(0)1353 649 701 Gavin BurnellRuegg & Co. Limited Tel: +44-(0)207 584 3663 Nick BealerKing & Shaxson Tel: +44-(0)207 426 5986 Charles DampneyCity Capital Securities Limited Tel: +44-(0)207 822 7107 Gary MiddletonSt Swithin's Public Relations Tel: +44 (0) 207 429 4391 This information is provided by RNS The company news service from the London Stock Exchange