Beowulf Mining’s (LON:BEM) new chief executive said the company will expend "a great deal of effort" in the coming months to get mining approval for its Kallak North prospect in Sweden.
The Mining Inspectorate has passed the decision on to the Swedish government and chief executive Kurt Budge said its advisory team in the country wants an early positive outcome.
"We will be addressing outstanding matters in order to satisfy the Swedish Government that our application has met the requirements of the Swedish regulations and that our proposed development plan for Kallak North is a responsible one.”
At the end of 2014, Beowulf upgraded the resource at Kallak North and published a maiden resource on Kallak South.
The overall resource is now 118.5mln tonnes at 27.5% iron with an additional inferred resource of 33.8Mt at 26.2% iron and an exploration target of 90-100Mt at 22-30% iron.
Budge added that while external observers had expecting higher maiden resource tonnages for Kallak South, the 2014 drilling programme focused on defining the ends of the ore-body.
He added that the US$90 per tonne price used in the 2014 resource statement also reflected its long term outlook for iron ore, rather than the currently depressed price.
The spot price also relates a 62% iron product, while Kallak North ore yields a high grade concentrate of over 69% iron, with a recovery of 95% for magnetite, showing very low levels of phosphorous and sulphur.
This higher grade and quality product lends itself to pelletisation and consumption in Direct Reduction Iron (DRI) facilities in Europe and the Middle East, which would enable it to sell at a premium.
Beowulf posted a loss of before and after taxation in 2014 of £3.1mln (2013: £2.2mln), of which £2mln (£1.1mln) related to a loss on derivatives.
Cash at the year-end was £0.2m since when it has received £150,000 from the ending of a facility with Lanstead.