Beowulf Regulatory News (BEM)

13 Jun 2006 09:32

Beowulf Mining PLC13 June 2006 BEOWULF MINING plc PRESS RELEASE Diamond Drilling Intersects Further Sulphide Mineralization Over Substantial Widths at Grundtrask Gold Prospect, N. Sweden London 13 June, 2006: Beowulf Mining PLC (AIM:BEM), the AIM listed mineralexploration company is pleased to announce that a diamond drilling program hasbeen completed on the Company's 100% owned Grundtrask gold project in theSkellefte Mining District, N. Sweden. The drill program has tested the southernextension of the "Central zone gold mineralisation" outlined from earlierdrilling by Beowulf. Four inclined drill holes for a total of 264.95 metres have been drilled by thecontractor Ludvika Borrteknik HB using a lightweight, highly mobile GMG-100wireline drill rig. All four holes have encountered abundant sulphidemineralisation over substantial widths. The sulphides are composed of relativelyfine grained arsenopyrite, pyrite and chalcopyrite appearing as massive veinsand disseminations. The structure hosting the mineralization is at least 750m in length and is openat both ends. The drilling has encountered the sulphide mineralisation atshallow depths and it is interpreted to be sub outcropping along most of itsextension under a relatively thin cover (12 metres or less) of glacial till andsediments making the deposit amenable to open pit mining. A total of 132 meter lengths of drill cores have been submitted for sawsplitting and sampling. The samples will be analysed for gold by Fire Assaytechniques and additional elements by ICP at the ALS/Chemex laboratory inVancouver, Canada. The assay results are expected in July 2006. Technical background: The Beowulf exploration permits of the Grundtrask area cover 43 squarekilometres. Within the permits anomalous gold anomalies of basal till samplingextend over large areas. Detailed ground geophysical surveys have outlined anumber of bedrock structures possibly being associated with these goldanomalies. Drill testing by Beowulf has now confirmed that only one of thesebedrock structures has a potential gold bearing extension of over 750 metreswith an average width of more than 25 metres. Still this mineralised structurealone cannot explain the high levels of gold encountered in basal till samplesand the Company believes that further gold bearing bedrock structures remain tobe discovered within 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, is running only 500 maway from the Central Zone mineralisation. This road is used by the Lundin andBoliden mining companies for the ore transports between the nearby locatedStorliden mine to a concentrator plant at Boliden. Nearest major hydroelectricpower station is located at the Skellefte River only two kilometres away. Table 1. Technical details of drill holes DDH 06 001, 002, 003 and 004 of the GrundtraskGold Project area, N. Sweden. Drill Co-ordinates Overburden Core Orientation Angle Mineralized CoreHole No metres Length degrees section (UTM) metres degrees selected for analysis (metres) 06001 1666 531/ 7.50 7.50- 210 45 12.40 - 40.20 = 27.80m 7229 713 71.90 06002 1666 518/ 5.80 5.80- 210 45 5.80 - 36.90 = 31.10m 7229 724 47.85 06003 1666 449/ 4.50 4.50- 210 60 5.55 - 70.20 = 64.55m 7229 750 70.20 06004 1666 405/ 11.50 11.50- 210 45 62.60 - 72.00 = 9.40m 7229 853 75.00 Total amount of drilling: 264.95 m Notes to Editors. Beowulf Mining PLC ('Beowulf') is focused primarily on the exploration anddevelopment of mineral deposits in Sweden. Beowulf is working on six projects in Northern Sweden which it considers havecommercial potential. The areas are:- 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 studies to a pre-feasibility study on thedeposit. This is to see if the deposit can be brought into production. Kallak Iron Ore Claim The company has registered an exploration claim of 500 hectares covering theKallak iron deposit. The Kallak Iron deposit was discovered by the GeologicalSurvey of Sweden in 1947-48. Only scattered drilling has been carried out and nomining activity has been registered. Calculations based on geophysical data haverevealed a mineralization of 92 millions tonnes with 35-42 % Iron. Ballek Copper Gold Project The Company has three licences that cover 11 copper prospects, including theLulepotten copper-gold deposit which was drilled by the Geological Survey ofSweden (SGU) between 1960 and 1971 and found to contain 5.1 million tonnes of0.73% copper and 0.25 grams per tonne of gold. Jokkmokk Copper Gold Project The Company has four licences over copper-gold projects. 2004 drilling revealeda copper gold ore body with an intersection of 110 metres of 0.82% copperequivalent. The 2005 drilling tested outlying geochemical and geophysicaltargets without finding other major copper-gold ore bodies. Exploration will becontinued on the main copper gold zone located in 2004. Grundtrask Gold Project The Company has three exploration permits in the Skellefte Mining District.Drilling in 2003, 2004 and 2005 defined gold mineralization defined over a"Central Mineralised Zone" of 600 metres with grades of about 1 gram per ton.Further work is required to establish if a higher grade can be located on thelicences. Ussalahti Copper Project The Company has three licence exploration permits prospective for massivesulphide copper and gold deposits. 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 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