Beowulf Mining PLC Regulatory News (BEM)

26 Jan 2006 07:00

Beowulf Mining PLC26 January 2006 BEOWULF MINING PLC Beowulf expands present holdings in Northern Sweden. Registers new mineral claim hosting large titanium deposit. London 26 January 2006 : Beowulf Mining PLC (AIM:BEM), the AIM listed mineralexploration company, with projects in Sweden, announces that the Swedish statemining authority, Bergsstaten, has registered an exploration permit for Beowulffor a new area called Ruoutevare, covering a large ore deposit of titanium. Theclaim has a total area of 850 hectares and is located in the Caledonidesmountain region, within the Jokkmokk County, approximately 50 km west ofBeowulf's Majves' claims in northern Sweden. (See www.beowulfmining.com). The permit covers the Ruoutevare titaniferous iron deposit, which has been knownof since the 18th century and investigated several times during the lastcentury. As yet no production has occurred. The investigated part of the depositis relatively flat lying, and covers an area of 387,000 m2. The reserves at the latest study in 1975 by the Geological Survey of Sweden(SGU) are estimated at 116 million tonnes with an average 38.2% Fe (iron), 5.6%Ti (titanium) and 0.17% V (vanadium). A richer section of 20 million tonnes isregistered with a grade of 47% Fe, 11% TiO2 and 0.15% V2O5. These figures arebased on 32 drill holes and do not follow present JORC or 43-101 standards.The mineralization consists of magnetite, ilmenite, spinel and smaller amountsof pyrrhotite, chalcopyrite and pentlandite. The dominant silicates in themineralizations are plagioclase, olivine, pyroxene and garnet. The host rock isa large, mafic intrusion defined as anorthosite, which locally grades intogabbro. Commenting on the news, Dr. Robert Young, Beowulf's Chairman said, "In the lightof the present demand by various industrial sectors for titanium Beowulf intendsto re-evaluate available data, and will perform additional local studies anddrilling, and hopes to turn the Ruoutevare deposit into a commercial titaniummine." For further information contact : Dr Robert Young, Beowulf Mining plc Tel. +44 (0) 1353 649 701 Mr Gavin Burnell, Ruegg & Co. Ltd Tel. +44 (0) 207 584 3663 Mr Gary Middleton, St. Swithins PR Tel. +44 (0) 207 929 4391 Mr. Nick Bealer, King & Shaxson Tel. +44 (0) 207 426 5986 Notes on titanium, market etc: Titanium is a metal with many special properties. The metal has an excellentstrength to weight ratio and is almost totally resistant to corrosion anderosion. This makes the metal in great demand by the world's airline industry,which consumes a major part of the present world production. By using titaniumthe airline industry can extend the life of the aeroplanes produced. The presentboom in aircraft building has resulted in a forecast increase in usage oftitanium by the civilian airline industry from an estimated 29,000 tonnes in2004 to 48,000 tonnes by 2008. Because of its unique biocompatible properties titanium is also increasinglyused by the medical sector. The metal has a large range of applications as aneffective material for the manufacturing of hip prosthesis, cardiac pacemakers,artificial jaws, etc. The outstanding strength to weight ratio of titanium hasalso opened up a new and fast growing market with its usage by the sport sectorfor manufacturing heads and shafts for golf clubs. Titanium as titanium oxide (TiO2) is used by the chemical industry. It is awhite pigment, which is used in paints, paper and plastics. The metal is not traded on metal bourses but is sold by local producers, whodetermine the price. The worlds' largest titanium producer is the Russiancompany VSMPO- Avisma. The price of one kilogram of pure titanium plate is todayapproximately 20 USD or about 6-7 times that of stainless steel. With specialalloys the price of titanium plates is much higher. This information is provided by RNS The company news service from the London Stock Exchange