Beowulf Regulatory News (BEM)

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

5 November 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Majdan Peak Gold Target Shows IP Anomalies For Drill Testing 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to announce results from an Induced Polarisation ("IP") and resistivity survey completed across the Majdan Peak gold target at Vardar Mineral's ("Vardar") Mitrovica licence in Northern Kosovo. Beowulf owns 46.1 per cent of Vardar.

Highlights:

· Highly anomalous IP chargeability targets have been mapped for both Majdan Peak and the target area directly south, Madjan Peak South.

· Chargeability targets correlate well with anomalous rock and soil samples, mapped alteration and zones of demagnetisation identified in the recent high-resolution drone magnetic survey.

· Importantly, the IP anomalies demonstrate depth extent suggesting that the mapped surficial gold mineralisation is related to a potentially large underlying source (over 700 metres in strike length with significant width and thickness).

· Zones of high resistivity correlate well with mapped silicification and advanced argillic alteration which appear to overlay the main IP chargeability target, as would be expected in a typical high-sulphidation gold deposit.

· Shallow IP anomalies follow structural trends mapped in the magnetic data suggesting a structural control to the distribution of mineralisation which may link up to the carbonate replacement lead-zinc ore bodies of the neighbouring Stan Terg deposit.

· Majdan Peak IP-DC Summary Slide:

https://beowulfmining.com/wp-content/uploads/2020/11/Majdan-Peak-IP-DC.pdf

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It's a good time to have a gold target in the portfolio and Vardar's geophysics programme has again delivered an exciting set of results for Majdan Peak, indicating a potentially large source of gold mineralisation below the anomaly defined at surface through gold in soils and alteration intensity.

"Similar to Wolf Mountain, we have significant anomalies, which again are connected to surface mineralisation that has been sampled; these present excellent drill targets.

"With each phase of work at Mitrovica, there is seemingly growing potential for a discovery. We are not there yet, but with targets at Wolf Mountain, Majdan Peak and Mitrovica South there is a real opportunity.

"I look forward to providing further updates on progress in Kosovo."

Madjan Peak - Background

IP and resistivity data were collected over the Majdan Peak using a combination of offset pole-dipole lines combined with Iris instrument Fullwavers which were distributed along adjacent lines. All receiver electrodes were measured for each current injection point in order to create true 3D chargeability and resistivity volumes. Results have been interpreted in combination with available soil and rock sample results, mapping and recently completed high resolution drone magnetic data.

The Majdan Peak gold target is situated in the central portion of the Mitrovica license area. The target is defined by a zone of intense argillic alteration capped by an extensive blanket of advanced argillic alteration which forms the ridge tops. Soil and rock sampling have divided the target into a main Majdan Peak target with a second target to the south, Majdan Peak South.

Anomalous gold ("Au") results on the Majdan Peak correlate well with anomalous Arsenic ("As"), Copper ("Cu"), Lead ("Pb"), Mercury ("Hg"), Strontium ("Sr") and Antimony ("Sb"), extending broadly across an area of approximately 1400 metres x 700 metres. Distinct higher grade trends are apparent within the broader anomaly, possibly indicative of structural control to mineralisation.

Recently completed high resolution drone magnetic data clearly maps out a zone of demagnetisation, which correlates with mapped intense alteration associated with the Majdan Peak target. Furthermore, distinct NW trending structures appear to link up to carbonate replacement lead-zinc ore bodies of the neighbouring Stan Terg deposit, potentially indicative that the gold mineralisation is related to the same substantial hydrothermal system which created the distal replacement type ore bodies.

IP chargeability anomalies have been clearly delineated across the Majdan Peak and Majdan Peak South targets. Shallow chargeable sources correlate well with gold in soil and rock samples, with evidence of a potentially large, gently dipping underlying source, which represents the primary target for drill testing.

Importantly, the IP anomalies are located at the base of resistive units which correlate exceptionally well with mapped silicification, in line with the typical orebody geometry of high-sulphidation gold deposits. The IP anomalies are clearly bounded by the zone of demagnetisation defined in the magnetic data and appear to follow structural controls at shallower depth supporting the soils sampling trends.

Previous RNSs

6 July 2020 - Highlights

· 42 samples have assayed in excess of 0.1 gramme per tonne ("g/t") gold out of a total of 96 samples collected from available outcrop and subcrop.

· Anomalous results correlate well with gold in soils and alteration intensity and confirm the significant scale of the Madan Peak gold anomaly, an area 1400 x 700 metres, which remains open to the east.

· Sample results over 1 g/t gold include: 7.2 g/t; 4.6 g/t; 2.8 g/t; 2.0 g/t; 1.5 g/t; 1.3 g/t; 1.3 g/t; and 1.1 g/t.

· In addition to the primary gold target, a new multi-element anomaly has been delineated to the south of the main peak. This anomaly correlates well with anomalous rock grab samples (including individual samples with 0.79 g/t gold), with galena (lead sulphide) veins apparent in some of the outcropping gossans.

· The link below is a plan showing soil sample gold results, with rock sample gold results overlain and multi-element anomalies delineated. All rock samples with assays > 0.1 g/t have been labelled. Results highlight the spatial extent of the Madjan Peak gold target.

https://beowulfmining.com/wp-content/uploads/2020/07/Madjan-Peak-rock-sample-results.jpg 

1 June 2020 - Highlights

· Extensive gold anomaly identified over an area approximately 1400 metres x 700 metres, with individual soil samples returning up to 0.36 grammes per tonne ("g/t") gold.

· The gold anomaly correlates well with anomalous Arsenic, Copper, Lead, Mercury, Strontium and Antimony, and geological mapping has shown the presence of extensive argillic alteration.

· The scale and size of the anomaly, together with coincidental multi-element anomalies and extensive hydrothermal alteration, are comparable to significant high-sulphidation epithermal gold deposits within the region.

Glossary:

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for example, when aiming to characterize a mineral deposit (e.g. Mt. Isa), where the chargeability of the mineralized zone is often higher than the host rock. Often an induced polarization (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called DC-IP survey. Both conductivity and chargeability distribution can be recovered from a DC-IP survey.

Hydrothermal Alteration - also referred to as wallrock alteration, is a general term that encompasses many processes by which rock-forming minerals are altered due to reactions accompanying the flow of heated aqueous fluids along fractures and grain boundaries.

Argillic Alteration - is hydrothermal alteration of wall rock which introduces clay minerals including kaolinite, smectite and illite. The process generally occurs at low temperatures. Advanced argillic alteration forms at higher temperatures and lower pH conditions. It consists primarily of kaolinite + dickite clay minerals at lower temperatures and pyrophyllite + andalusite minerals at higher temperatures and may also be associated with alunite.

Silicification - a process in which the original minerals of a rock become replaced by silicate minerals, this process is caused by the flow of aqueous silica solution through the rocks pore space and over its surface.

Abbreviations:

m - metres

km - kilometres

m - metres

mm - millimetres

Moz - million ounces

BLEG - Bulk Liquid Extractable Gold 

CRMs - Certified Reference Materials

QA/QC - Quality Assurance/Quality Control

XRF - X-Ray Fluorescence

Competent Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a Competent Person ("CP"), who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Davies has conducted a desktop review of source documents and data which underpin the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a CP as required under the AIM rules. Mr. Davies has visited Vardar's Mitrovica and Viti projects in Kosovo.

Mr. Davies has sufficient experience, that is relevant to the content of this announcement, to qualify as a CP as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a Non-executive Director of Beowulf and is an exploration/economic geologist with more than 35 years' experience in the mining sector.

About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM of the London Stock Exchange and the Spotlight Exchange in Sweden. The Company listed in Sweden in 2008 and is approximately 68 per cent owned by Swedish shareholders.

Beowulf's vision is to build a sustainable and innovative mining company, which creates value by developing mining assets in partnership with communities, delivering production and generating cash flow, and in so doing meets society's ongoing need for metals.

The Company's most advanced project is the Kallak iron ore asset in northern Sweden. A potential 250 million tonne resource which can produce a 'market leading' concentrate of 71.5 per cent iron content and is a potential source of supply for Sweden's fossil-free mining and steel making industries.

Fennoscandian Resources ("Fennoscandian"), the Company's graphite business, is pursuing a strategy to develop a resource/production base of natural flake graphite that can provide 'security of supply' and enable Finland to achieve its ambition of self-sufficiency in battery manufacturing. The Company is a recipient of Business Finland funding, which is supporting Fennoscandian to move downstream, and develop its knowledge in processing and manufacturing value-added graphite products.

The Company is developing the Aitolampi graphite asset, which has a contained graphite resource of 1,275,000 million tonnes, possessing almost perfect crystallinity, an important prerequisite for high tech applications, such as lithium ion batteries.

In Kosovo, the Company owns approximately 46.1 per cent. of Vardar Minerals ("Vardar"), which is focus on exploration in the Tethyan Belt, a major orogenic metallogenic province for gold and base metals. Vardar is delivering exciting results for its Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold. It also has the Viti licence which is showing potential for copper-gold porphyry mineralisation. With Beowulf's support, Vardar is focused on making a discovery.

The Company's asset portfolio is diversified by commodity, geography and the development stage of its various projects, and features metals and minerals in demand to facilitate an economic 'Green Transition' and for addressing the climate emergency.

Kallak is the foundation asset of the Company, but with Vardar and Fennoscandian, the Company has many opportunities to grow, each business area displaying strong prospects.

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Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecasts.