Beowulf Regulatory News (BEM)

22 Aug 2006 09:33

Beowulf Mining PLC22 August 2006 BEOWULF MINING PLC News Release Scoping Study of Ruoutevare Titanium Iron Deposit, Northern Sweden by Raw Materials Group. 22 August 2006. Beowulf Mining PLC (AIM-BEM), the AIM-listed iron, titanium,gold and copper exploration and development group has commissioned the RawMaterial Group of Sweden, ("RMG" www.rmg.se) to prepare a scoping study of theRuoutevare deposit. RMG will make an assessment of the potential value of theiron, titanium, vanadium project and examine capital costs, operational costsand the potential revenue receivable from exploiting the Ruoutevare deposit atvarious mining outputs. The Raw Material Group is one of Europe's leading groups of mineral economists.It has recently published "The Iron Ore Market 2005-2007" which was compiled forthe United Nations Conference on Trade and Development. Commenting on the report, Dr. Robert Young, Chairman of Beowulf, states "Thedirectors have decided to prepare the scoping study on Ruoutevare prior tocompleting the extra diamond drilling for the JORC-compliant resource report,which is now planned for 2007. This will give a better understanding of theeconomics of the project". 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 Charles Dampney Tel: +44-(0)207 822 7107City Capital Securities Limited Gary MiddletonSt Swithin's Public Relations Tel +44 (0) 207 429 4391 Notes to Editors :- In March 2006, Beowulf Mining PLC the AIM-quoted mineral exploration company wasgranted an exploration permit by the Swedish state mining authority(Bergsstaten) for the Ruoutevare area in the Jokkmokk County of northern Sweden.A previous resource estimate carried out by the Geological Survey of Sweden(Sveriges Geologiska Undersoknning -"SGU") in 1975 reported a resource of 116 Mtof material averaging 38% iron, 5.6% titanium and 0.17% vanadium based on 32drill holes. A richer section of 20 Mt is registered with a grade of 47% iron,10% titanium and 0.14% vanadium. Snowden Mining Industry Consultants Limited ("Snowden") previously completed atechnical review of the previous work and has also completed a preliminarygeostatistical analysis of the drill holes to support the preparation of aJORC-compliant resource report. Snowden is a world class Australian group expertin Resource Evaluation. Snowden concluded that the volumes, tonnages and average grades of the 116 Mtresource are of the order of magnitude reported by the SGU in 1975. However theycannot be regarded as being equivalent to a JORC-compatible Inferred Resource,and they suggested further drilling to produce a JORC Resource. Beowulf is also working on five other projects in Northern Sweden which itconsiders have commercial potential. The areas are:- Kallak Iron Ore Claim The company has registered an exploration claim of 500 hectares covering theKallak iron deposit. The Kallak Iron deposit was discovered by the GeologicalSurvey of Sweden in 1947-48. Only scattered drilling has been carried out and nomining activity has been registered. Provisional estimates based on geophysicaldata have suggested a potential for 92 millions tonnes with 35-42 % Iron. Ballek Copper Gold Project The Company has three licences that cover 11 copper prospects, including theLulepotten copper-gold deposit which was drilled by the Geological Survey ofSweden (SGU) between 1960 and 1971 and found to contain 5.1 million tonnes of0.73% copper and 0.25 grams per tonne of gold. This resource estimate is notJORC compliant. Jokkmokk Copper Gold Project The Company has four licences over copper-gold projects, which were drilled in2004 with positive results, and again in 2005 with somewhat disappointingresults. Grundtrask Gold Project The Company has three exploration permits in the Skellefte Mining District.Drilling in 2003, 2004 and 2005 defined gold mineralisation defined over a"Central Mineralised Zone" of 600 metres with grades of about 1 gram per ton.Further work is required to establish if a higher grade can be located on thelicences. Ussalahti Copper Project The Company has three licence exploration permits prospective for massivesulphide copper and gold deposits. This information is provided by RNS The company news service from the London Stock Exchange