Beowulf Regulatory News (BEM)

30 Jan 2007 07:01

Beowulf Mining PLC30 January 2007 BEOWULF MINING PLC NEWS RELEASE UPDATE ON THE BALLEK PROJECT AREA, N. SWEDEN • Beowulf Mining expands Ballek project area with a new explorationlicence "Ballek 5" covering a uranium occurrence . • Copper-rich boulder find in licence area "Ballek 2" highlights localtarget area for copper mineralisation. London: 30 January, 2007: Beowulf Mining PLC ("Beowulf" or "the Company"), theAIM quoted mineral exploration company (AIM:BEM) with projects in northernSweden, is pleased to announce that a new exploration licence, defined as"Ballek 5" and located in the municipality of Arjeplog in northern Sweden, hasbeen registered with the Swedish state mining authority, Bergsstaten. It covers1,200 hectares and borders the Company's Ballek 2 licence. With the new licencethe total Ballek project area now covers 10,600 hectares. In the early 1970's the Geological Survey of Sweden made a discovery of uraniummineralisation called W. Rebraur in the Ballek 5 licence area. 15 drill holeswere completed and uranium mineralisation was confirmed over a distance of 150metres. The mineralised zone ranges in width between 1 metre and 8 metres withgrades reaching 700 ppm (0.07%) uranium. Surface boulders with between 0.1% and0.5% uranium were found by the Geological Survey of Sweden. At the 2006 annual prize ceremony of the "Mineraljakten" ("The mineral hunt"), acompetition organized by the Geological Survey of Sweden and open for privateprospectors to find new mineral prospects of economical interests in northernSweden, a top prize was awarded to a local prospector for the discovery of aboulder with unusually high grades of copper (14.9%), gold (4.52 grams pertonne) and silver (196 grams/tonne). The boulder is within the Ballek licencearea. Commenting on the new application, Dr. Robert Young stated that "Beowulf hadpreviously reported on uranium finds on the Ballek licence. We are interested inlocating an IOCG (iron oxide-copper-gold deposit) at Ballek and these types ofdeposits are often accompanied by uranium". For further information contact: Dr Robert Young Mr Gavin BurnellBeowulf Mining plc Ruegg & Co. LimitedTel. +44 (0) 1353 649 701 Tel. +44 (0) 207 584 3663 Mr Gary Middleton Mr Nick BealerSt. Swithins PR King & Shaxson Capital LimitedTel. +44 (0) 207 929 4391 Tel. +44 (0) 207 426 5986 Mr Charles DampneyCity CapitalTel +44(0) 207 822 7107 Technical background: A number of copper-gold deposits are known within the Ballek licence area. Thelargest of these is the Lulepotten deposit, which was drilled between 1960 and1971 by the Geological Survey of Sweden (SGU). This deposit is estimated tocontain 5.1 million tonnes of 0.73% copper, 0.25% gold and 7 grams per tonne ofsilver. Re-analysis of a selected drill core from the Lulepotten deposit byBeowulf resulted in the idenitification of higher metal grades than the originalanalyses reported in the 1970s by the SGU. For instance, an interesting sectionwith grade of 9 metres of 1.91% copper and 3.37 grams per tonne of gold at adepth between 98 and 107m was found (including a one-metre section containing20.5 grams per tonne of gold). This information is provided by RNS The company news service from the London Stock Exchange