Last checked at 16 Jan 2008 15:00
16 January 2008 Beowulf Mining plc ("Beowulf" or "the Company") Re: Ballek Joint Venture with Agricola Resources plc
Agricola Resources plc, a PLUS-traded company ("Agricola") have today announced the following:
AGRICOLA COMMENCES DIAMOND DRILLING PROGRAMME AT BALLEK SWEDEN
SUMMARY:
- Agricola Resources plc has commenced a 3,300m diamond drilling programme to test geophysical targets at the Ballek copper-gold-uranium Joint Venture in northern Sweden.
- Eight high priority geophysical targets have been defined at Ballek through completion of a programme comprising 20.30 line-km of Induced Polarisation surveys and 28.75 line-km of ground magnetic surveys.
- These ground geophysical surveys were sited to test a number of anomalies defined through 3-D inversion modelling of gravity and airborne aeromagnetic data.
- The eight targets selected for drilling represent the best co-incident IP, magnetic and gravity anomalies.
- Drilling to date, in vertical hole BAL08-001, has penetrated felsic and intermediate volcanic rocks with extensive epidote-magnetite and hematite alteration.
- Agricola Resources can earn up to 70% interest in the Ballek JV from Beowulf Mining plc by completing an agreed work programme of ground geophysics and drilling by December 2008, along with a further USD $500,000 exploration expenditure.
The directors of Agricola Resources plc, the Plus Market listed uranium explorer which is 29.9% owned by Energy Ventures Limited, have announced that diamond drill testing of multiple geophysical targets has commenced at the Ballek copper gold uranium joint venture project in the municipality of Arjeplog, Northern Sweden (See diagram 1 at www.agricolaresources.com). A programme of nine diamond drill holes for a total of approximately 3,350m of core has been planned, with the first hole spudded on 5th January 2008.
The Ballek joint venture project contains a large regional gravity anomaly and an associated magnetic anomaly detected by airborne geophysical surveying (See diagram 2 at www.agricolaresources.com). Previously undertaken 3-D inversion modelling of the gravity and magnetic data by Agricola confirmed a series of three-dimensionally co-incident mass (gravity) and magnetic anomalies. Field inspection of limited outcrop close to these anomalies identified andesitic volcanic rocks with widespread epidote and magnetite alteration, and locally marked by the presence of blebs and veinlets of copper sulphides (chalcopyrite and bornite). Inspection of old drill core from the Lulepotten copper gold deposit, which occurs along strike from one of the anomalies , identified veins and narrow zones of magnetite-actinolite-chalcopyrite breccias. These geophysical and geological observations are consistent with iron-oxide copper-gold ("IOCG") styles of mineralisation similar to those found in the Cloncurry District of Queensland in Australia (e.g. Ernest Henry mine) and along the Atacama Fault in Chile (e.g. Candelaria, Manto Verde mines).
Ballek JV Ground Geophysical Survey Results
These observations provided enough encouragement for the Directors of Agricola to approve a programme of Induced Polarisation ("IP") and ground magnetic surveys designed to evaluate the co-incident gravity and magnetic anomalies. These programmes were completed in October 2007, with a total of 28.75 line-km of ground magnetic data and 20.30 line-km of IP and resistivity data collected by Swedish company GeoVista AB.
Interpretation of the IP and ground magnetic survey data by GeoVista AB and by Agricola's geophysical consultants has identified a number of IP anomalies where resistivity highs are also marked by increased IP effect and the presence of magnetic anomalism (See example given in Diagram 3,
www.agricolaresources.com). A number of such anomalies are also co-incident with the gravity and magnetic anomalies derived from the 3-D inversion modelling, and eight of these have been prioritised for testing by diamond drilling.
Ballek JV Drilling Programme
On the basis of the interpretation of the geophysical data described above, a programme of approximately 3,300m of diamond drilling commenced on 5th January 2008 by Finnish contractor SMOY. Nine diamond drill holes have been planned to test the eight targets, with planned depths of between 300m and 450m, and either vertical or inclined holes dependant on the specific geometry of the target. Drilling to date, in vertical hole BAL08-001, has penetrated felsic and intermediate volcanic rocks with extensive epidote-magnetite and minor hematite alteration showing evidence of multiple phases of hydrothermal alteration. and locally blebs and disseminations of copper sulphides. This hole has not yet reached its target depth of 450m. Drilling is expected to take approximately two months to complete.
Background
Agricola has signed an option and earn-in agreement with Beowulf, the AIM listed copper, gold and uranium explorer on the Ballek 2, 3, 4 and 5
exploration permits that cover 110 square kilometres of Arjeplog County of Northern Sweden, and which are considered prospective for iron-oxide, copper-gold-uranium (IOCG) style mineralisation.
Agricola has been granted an option to acquire a 51% interest in the licences by undertaking ground geophysical surveys, followed by 3,000 metres of diamond drilling by December 31 2008. Agricola's interest can be increased to 70% through funding a further USD $500,000 of exploration expenditure.
Ends
The information in this announcement has been reviewed and signed off by Dr. Jan Ola Larsson, (Fil. Kand, PhD, DIC). Technical Director of the Company, who has over 30 years relevant experience within the sector.
Contact : Dr. Robert Young, Chairman Beowulf Mining plc Tel: +44-(0)1353 649 701 Gavin Burnell Ruegg & Co. Limited Tel: +44-(0)207 584 3663 Nick Bealer King & Shaxson Capital Limited Tel: +44-(0)207 426 5986 Gary Middleton
St Swithin's Public Relations Tel : +44-(0) 207 929 4391
BEOWULF MINING PLC