REG - Beowulf Mining PLC - Drilling into Majdan Peak Targets in Kosovo

Beowulf MiningAnnouncement

21/11/2022 07:00

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RNS Number : 9856G  Beowulf Mining PLC  21 November 2022

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

21 November 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Start of Drilling into Majdan Peak Polymetallic Targets in Kosovo

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development
company, is pleased to announce that follow-up drilling, Phase 2, has started
into the recently discovered polymetallic targets 1  (#_ftn1) at, and
surrounding, Majdan Peak ("MP"), part of the Mitrovica licence in Kosovo.
Drilling will include a short campaign of five diamond holes, followed by
another round of drilling in Spring 2023. A total drill programme of up to
3,500 metres is estimated.

Exploration results, from fieldwork, geophysical surveys and drilling,
continue to support the case for further investment and work in Kosovo.  The
main objective is to discover an economic deposit, and recent findings show
the potential of MP and Majdan Peak South ("MPS") and other targets to host
economic concentrations of base and precious metal.  Each phase of
exploration is adding data and building the picture.

Highlights:

Phase 2 drilling will include:

·    Up to three holes into the MP high-sulphidation polymetallic target,
which have been designed to test for:

§ Feeder structures to mineralisation intersected in drillhole MP006 (10.8m
at 0.48 grammes per tonne ("g/t") gold, 0.1 per cent copper and 18 g/t
silver); and

§ High-grade feeder structures on the eastern side of the MP target based on
clay alteration modelling and anomalous gold in rock grab (up to 11 g/t gold),
soil (up to 1.2 g/t gold) and drill results at MP014 (10.6m at 0.21 g/t gold)
and MP005 (10.2m at 0.25 g/t gold).

·    Two further holes to be drilled at the Majdan South ("MPS")
intermediate sulphidation target, which have been designed to test for higher
grade extensions to the gold and silver-lead-zinc-copper mineralisation
intersected in drillholes MP001 (8.8m at 0.34 g/t gold) and MP003 (36.4m at 19
g/t silver, 0.5 per cent lead and 0.2 per cent zinc).

·    A final drillhole targeting anomalous gold in rock samples (up to 7.2
g/t) and associated Induced Polarisation ("IP") anomaly at the Gold Ridge
target.

MP, given the size and complexity of the epithermal system, could deliver
several polymetallic  mineralised zones.  While MPS is highly prospective
for both gold-silver and silver-copper-lead-zinc mineralisation.

See Figure 1 for the location of the planned drill holes, soil and rock sample
assays, IP and results from this year's Spring-Summer campaign.

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It's great to be back in Kosovo this week for the restart of drilling at
Majdan Peak and to meet with the Vardar Minerals team on site.

"The announcement of the discovery, in August, of the large polymetallic
epithermal system at Majdan Peak was an exciting find and represents a
fantastic opportunity for Beowulf, warranting this further exploration
campaign. There followed a further announcement in September, with the results
of drill intersections for Majdan Peak South and more drill targets, adding to
the significant potential of the Mitrovica licence.  The progress this year
speaks volumes about the Vardar team, their discovery, and their exploration
capabilities.

"This latest drill campaign is designed to test very specific targets stemming
from the excellent, and more so, comprehensive exploration work, analysis and
interpretation the Vardar team has done following the Spring-Summer drilling.
As a group, we are excited to learn more of the potential being shown by the
polymetallic epithermal system at Majdan Peak."

 

Further information on the exploration targets:

Majdan Peak ("MP")

The MP prospect is located in the central portion of the Mitrovica licence
area, defined by a zone of intense argillic alteration and capped by an
extensive blanket of advanced argillic alteration which forms the ridge tops.
Exceptional gold and base metal soil and rock sampling results are associated
with the 1400 x 700 metres MP prospect. A full 3D Induced Polarisation and
Resistivity ("IP/DC") survey delineated prominent high-chargeability anomalies
within the prospect, which provided the first set of drill targets for the
Spring-Summer 2022 programme.

A total of 11 diamond core holes, totalling 2,497 metres, were drilled into MP
earlier this year.  All drill holes intersected intense argillic alteration
with zones of advanced argillic alteration. Abundant pyrite (often in excess
of 10 per cent by volume), typical of large-scale epithermal systems, provides
the causative source for the prominent IP anomalies. Drill holes were designed
using a combination of IP anomalies, soil sampling and outcrop mapping to test
a variety of possible target types and to assist with navigation through the
larger hydrothermal system.

Based on drill results, alteration and intersected base and precious metal
concentrations appear to follow steeply dipping structures which splay out
along more porous, mainly volcaniclastic host rocks forming a layer cake of
intense and advanced argillic alteration zones. Mineralisation is likely to
relate to multiple episodes of hydrothermal activity with distinct assemblages
of gold, gold-silver-copper-antimony, lead-zinc-silver and zinc. This finding,
together with clay mineralogy and alteration mapping, provides a vector to
higher-temperature portions of the system.

According to classic epithermal models, the gold-silver-copper-antimony
mineralisation is likely to occur within, and in proximity to, hydrothermal
breccias related to feeder structures. The latter are the main targets for
follow-up drilling. Given the size and complexity of the system, it is
expected that several polymetallic mineralised zones could be identified.

Majdan Peak South ("MPS") and Gold Ridge

Distinct ridges to the south of the main MP prospect define the MPS and Gold
Ridge targets both of which are related to the same significant hydrothermal
system, which is also responsible for mineralisation at the neighbouring
skarn/carbonate-replacement Stan Terg deposit.

A 3D IP/DC survey carried out over the entire prospect in 2020/21 identified
prominent chargeability anomalies associated with both MPS and Gold Ridge
targets. Both targets have highly anomalous rock grab gold results, with Gold
Ridge, in particular, returning several samples with over 1 g/t gold,
including one sample with 7.2 g/t gold.

Three holes totalling 644 metres were drilled into the MPS target in early
Spring 2022 using the prominent chargeability anomaly to site the hole
positions. All three holes intersected intense argillic alteration, with
several zones of advanced argillic alteration, along with abundant sulphides
including base metal mineralisation (galena, sphalerite and chalcocite). The
logged pyrite content correlates well with the position of the IP anomaly
confirming the causative source. This target is highly prospective for both
gold-silver and silver-copper-lead-zinc mineralisation.

Recent Announcements:

22 August 2022 - Exploration Drilling in Kosovo Discovers Large Polymetallic
Epithermal System

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/wvj8epw
(https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/wvj8epw)

8 September 2022 - Majdan Peak analysis generates additional compelling
exploration targets and increase the significant 'district' potential

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/xl81vpw
(https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/xl81vpw)

Beowulf's Investment in Vardar Minerals ("Vardar")

Since Beowulf's first investment in Vardar in November 2018, the Company has
now committed approximately £3.1 million and owns 59.5 per cent of Vardar.
Vardar gives Beowulf exposure to the highly prospective exploration potential
of the Tethyan Belt, a major orogenic metallogenic province for gold and base
metals.

Throughout the last four years, the Vardar team has delivered exciting results
for both the Mitrovica licence which has several exploration targets,
including lead, zinc, copper and gold, and also the Viti licence which is
showing potential for copper-gold porphyry mineralisation and lithium. With
Beowulf's support, Vardar is focused on making a discovery and results so far
in 2022 for Majdan Peak are another step forwards to achieving that goal.

The world-class Stan-Terg deposit is a neighbour to Vardar's Mitrovica licence
(63 million tonnes at 3.5 per cent lead, 2.3 per cent zinc and 80 grammes per
tonne ("g/t") silver - based on past production and estimated remaining
reserves at the same grade).

Looking to the future, Beowulf has several options as it continues to develop
Vardar, which include further investments by Beowulf, or in the event of a
discovery the introduction of third-party investors or, if the right
exploration package is created and supports a standalone business, then the
possibility of spinning-out Vardar. Beowulf is keeping these options under
review.

 

Figure 1. Locality map illustrating MP, MPS and Gold Ridge Targets along with
soil, rock grab and drill highlights. Planned holes for the current 2022
programme are highlighted.

Qualified Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a
Qualified Person ("QP"), who is a Fellow of the Australasian Institute of
Mining and Metallurgy.  Mr. Davies has conducted a desktop review of source
documents and data which underpin the technical statements disclosed herein
and approves the disclosure of technical information in the form and context
in which it appears in this announcement, in his capacity as a QP as required
under the AIM rules.  Mr. Davies has visited Vardar's Mitrovica and Viti
projects in Kosovo.

 

Mr. Davies has sufficient experience, that is relevant to the content of this
announcement, to qualify as a Competent Person ("CP") as defined in the 2012
Edition of the "Australasian Code of Reporting of Exploration Results, Mineral
Resources and Ore Reserves".

 

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a
Non-executive Director of Beowulf and is an exploration/economic geologist
with more than 35 years' experience in the mining sector.

 

Glossary:

 

Hydrothermal Alteration - also referred to as wallrock alteration, is a
general term that encompasses many processes by which rock-forming minerals
are altered due to reactions accompanying the flow of heated aqueous fluids
along fractures and grain boundaries.

 

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for
example, when aiming to characterize a mineral deposit, where the
chargeability of the mineralised zone is often higher than the host rock.
Often an induced polarization (IP) experiment is performed with the Direct
Current Resistivity (DCR) hence they are often called DC-IP survey. Both
conductivity and chargeability distribution can be recovered from a DC-IP
survey.

 

Polymetallic epithermal deposits (copper, gold and lead-zinc) form at shallow
depths within the earth's crust and are important sources of base and precious
metals and therefore constitute highly desirable exploration targets.

 

Enquiries:

 Beowulf Mining plc
 Kurt Budge, Chief Executive Officer        Tel: +44 (0) 20 7583 8304
 SP Angel

 (Nominated Adviser & Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470
 BlytheRay
 Tim Blythe / Megan Ray                     Tel: +44 (0) 20 7138 3204

 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecasts.

 1  (#_ftnref1) See announcements 22 August and 8 September 2022. Links
provided later in this announcement.

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