Last checked at 9 Jul 2008 09:16
PRESS RELEASE BEOWULF ANNOUNCES THE TERMS OF A FARM-IN AGREEMENT ON THE KALLAK IRON ORE PROJECT, NORTHERN SWEDEN
09 JULY 2008. The directors of Beowulf Mining PLC ('Beowulf') the AIM listed mineral exploration company with iron, gold, copper and uranium projects in Northern Sweden are pleased to announce that it has signed an agreement with WAG Limited ('WAG') to cooperate in the exploration and evaluation of the Kallak iron project, Jokkmokk municipality, Norrbotten County, Northern Sweden.
WAG is an Australian company whose address is Level 1, 33 Ord Street, West Perth, Western Australia, 6005. Beowulf is quoted on the AIM Market of the London Stock Exchange (AIM: BEM) and has a 5 square kilometre permit over the Kallak project.
Within 60 days Beowulf and WAG will enter into a formal agreement subject to WAG successfully completing a 30 day due diligence investigation. Under the agreement WAG will complete a work programme which will include 25 drill holes of not less than 100 metres each in depth and metallurgical test work before 30 April 2010. On completion of the WAG programme they will earn a 50% interest in the Kallak project.
A previous resource estimate carried out by the Geological Survey of Sweden (Sveriges Geologiska Undersoknning -'SGU') suggested 92 million tonnes at a grade of 35-42% iron. Calculations are based on geophysical data and five diamond drill holes. The deposit is up to 100 metres wide and 1000 metres long and consists of magnetite and some haematite.
Commenting Dr. Robert Young, Beowulf's Chairman, said "This is the second Farm-In agreement on iron ore that Beowulf has signed in Sweden in 2008. The first was on the Ruoutevare iron ore project, on which drilling will start in Q4 2008. The price of iron ore has been increasing, and Beowulf is excited by the exploration drilling and other studies that are about to commence."
Contact:
Dr. Robert Young, Chairman, Beowulf Mining Plc+44 (0)1353 649 701Gavin Burnell, Ruegg & Co Limited+44 (0)207 584 3663
Nick, Bealer/David Scott, Alexander David Securities Limited +44 (0)207 448 9800
Gary Middleton, St. Swithins PR Ltd07951 603 289
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