Beowulf Mining PLC Regulatory News (BEM)

4 May 2006 08:47

Beowulf Mining PLC04 May 2006 BEOWULF MINING PLC Progess Report on Projects 4 May 2006. Beowulf Mining PLC (AIM:BEM), the AIM listed mineral explorationcompany is pleased to give a progress report on several of its projects. Ruoutevare Iron Titanium Project. Beowulf has engaged Snowden Mining Industry Consultants Ltd. (Snowden) to reviewthe ore reserves at Ruoutevare and to give advice on how the reserves calculatedin the 1970's by the Swedish Geological Survey (SGU) can be converted toJORC-compliant resource estimates. The reserves from the 1970's SGU study estimate 116 million tonnes, with anaverage of 38.2% iron and 5.6% titanium. A richer section of 20 million tonnesis registered with a grade of 47% iron and 11% titanium oxide. Beowulf has converted all the drilling results into a digital format. Theseresults will be used by Snowden to perform their study. Beowulf will conductother studies and prepare a pre-feasibility study on the deposit. This is to seeif the deposit can be brought into production. Grundtrask Gold Project. A drilling contract has been awarded to Ludvika Borrteknik AB using a 56mm core.Drilling is to start in the second week of May 2006. To date, Beowulf hascompleted nine diamond drill holes on the Grundtrask permits. In 2005 goldanalysis from hole 5004 yielded a 30.23 metre section (16.2 to 46.4 meters) withan average grade of 1.14 grams per tonne and included a section of 6 metres of2.16 grams per tonne. The hole was in the "Central Zone Mineralisation" atGrundtrask, which is now proven to extend for 675 metres. The Directors believethat geophysical data indicated that the Central Zone Mineralisation extends fora further kilometre at both ends. The planned drilling will use a larger drill core. Kallak Iron Ore Claim The company has registered an exploration claim of 500 hectares covering theKallak iron deposit located about 5 kilometres to the northwest of of the Majvesclaims and about 50 kms east of the Ruoutevare titanium -iron deposit in theJokkmokk area, Norrbotten county of Northern Sweden. The deposit which is up to100 m wide, consists of magnetite and some hematite extending in north-southdirection for about 1000 m. The Kallak Iron deposit was discovered by theGeological Survey of Sweden in 1947-48. Only scattered drilling has been carriedout and no mining activity has been registered. Calculations based ongeophysical data (gravimetry) have revealed a mineralization of 92 millionstonnes with 35-42 % Fe, 0.004% P, 0.6% S and 0.4% Mn. In the light of the rising demand for iron Beowulf intends to restudy availabledrill cores and exploration data of the Kallak iron deposit to establish whetherKallak is an economically viable deposit. Ballek Geological studies by Vismand Explorations Inc. and Beowulf on the extensivediamond drill core collection at the Swedish Geological Survey, have been unableto find a sodium metasomatic halo around the mineralization at Ballek. Thesehalos are common around "iron oxide copper gold" deposits. As a result VismandExploration Inc. has decided not to conduct further exploration on the Ballekproperty. Beowulf will continue the program by itself. Commenting on the progress, Dr. Robert Young, states "the dymanic explorationprogram being conducted by Beowulf results in changes to our direction whenmarket conditions change. The demand for iron ore from Sweden in the last yearhas been dramatic and Beowulf has made new licence applications which it hopeswill lead to early mine production. The price of gold is now at a 25 year highand extra effort is being made on the pure gold exploration play at Grundtrask." For further information contact :- 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