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Beowulf has a wide range of exploration projects in a portfolio of different commercially attractive resources.
They are all in Northern Sweden and are being developed to increase their value and so that of the company.
Beowulf chairman assures investors over progress at Kallak South iron ore project
Beowulf Mining (LON:BEM) chairman Clive Sinclair-Poulton today likened the Arctic blast that has disrupted drilling on the Kallak South iron ore project to an “act of God”.
Northern Sweden has been gripped by the worst weather conditions in a century as the mercury plummeted to minus 35 degrees Celsius, rendering it almost impossible to carry out exploration work.
The company has drilled just 10 of a planned 32 holes for 951 metres of a 3,500 metre campaign.
However, Sinclair-Poulton is confident the programme will be quickly back on track to deliver assay results at some point in the second quarter of this year. In fact data from the initial phase of drilling is due later this month.
“People are disappointed, and some are perhaps assuming there is something nasty lurking there and we are reticent talking about. This is not the case at all,” the Beowulf chairman told Proactive Investors.
“We have said all along we will have the assays through in Q2 with the first bunch coming out before the end of February.
“So we can get back on track and build some momentum - and go ahead and show people there isn’t anything untoward here.
“The fact is in Sweden you are forced to close down when it gets below minus 25.
“We did have a few days when we were able to go out there. But this weather can only be likened to an act of God. There is nothing we can do about it. By law you can’t go out and drill.
“It is unfortunate, but not down to any fault on our side. The assets won’t evaporate or melt. It is still there. We are just a little behind schedule.
“I am personally disappointed. We have always achieved what we set out to and delivered on time and on budget.”
The company owns the twin projects Kallak South and Kallak North in northern Sweden that are expected form the basis of a world class iron project ideally situated for the European market.
Last month the group revealed the ‘Kallaks’ could contain more than 600 million tonnes of iron ore.
So far it has covered around 600 metres across an extension of the most northerly part of the target. Detailed magnetic data indicates that this extends for more than 2,400 metres, and it has a maximum width of 400 metres in the centre.
Separately, Beowulf revealed it had assumed the role of operator of the Ballek copper-gold joint, also in northern Sweden, after earning a 50 per cent stake from partner Energy Ventures.
It did so by drilling just over 1,600 metres that confirmed “widespread anomalous copper-gold mineralisation”.
At the same time Beowulf revealed it had appointed Fred Boman as production consultant to the company.
He is a Stockholm-based mining engineer with 35 years of experience. And will advise the group on accelerating its projects towards production.
Sinclair-Poulton said: “I would also like to welcome Fred Boman as a consultant to the company.
“His proven experience in bringing exploration companies into the production phase will be invaluable to Beowulf at this exciting stage in its development where we are receiving indications of large tonnages of iron ore."
We will be carrying a full interview with Clive tomorrow where he talks about the plans and hopes for the project and the other Beowulf assets.
