22 augusti 2022

Beowulf Mining plc

("Beowulf" eller "Bolaget")

Prospekteringsborrning i Kosovo visar på upptäckt av stort polymetalliskt epitermalt system

Beowulf (AIM: BEM; Spotlight: BEO), mineralprospekterings- och utvecklingsbolaget, meddelar att de första provborrningsresultaten från Madjan Peak ("MP") prospektet, inom Mitrovicalicensen, i Kosovo visar på upptäckten av ett stort polymetalliskt epitermalt system. Polymetalliska epitermala fynd (koppar, guld och bly-zink) bildas på grunda djup i jordskorpan, är viktiga källor till basmetaller samt ädelmetaller och utgör därför mycket önskvärda prospekteringsmål.

• 11 diamantborrhål med stora avstånd vilka täcker ett område om 1400 meter gånger 700 meter ("m").
• Samtliga borrhål genomkorsade rikligt med sulfider, omfattande förändringar och flera nivåer av ådror, vilket alla utgör faktorer som tyder på ett stort polymetalliskt epitermalt system.
• Särskilt borrhålet MP0006, visade på mycket avvikande guld-koppar-silver-sektioner, är mycket uppmuntrande och tolkas av Vardar Minerals ("Vardar") team som att det ligger i utkanten av en potentiell matningsstruktur(er), vilken skulle kunna vara källan till de rikliga metaller som hittats.
• De betydande guld-koppar-silver, bly-zink-silver och guldsnitten inkluderar:
• Borrhål MP006 (figur 2): 10,8 m med 0,48 g/t guld ("Au"), 0,1 procent koppar ("Cu") och 18 g/t silver ("Ag"), inklusive 3,2 m med 1,1 g/t Au, 0,2 procent Cu och 50 g/t Ag;
• Borrhål MP006 (figur 2): 6,8 m med 4,1 procent bly ("Pb"), 0,6 procent zink ("Zn") och 15 g/t Ag; och

• Borrhål MP013 (figur 5): 16,1 m med 0,21 g/t Au.

• Ovanstående resultat stödjer tron på att det finns potential för existens av epitermal mineralisering med ekonomiskt värde.

• Mineraliseringen liknar den för Chelopech koppar-guldfyndigheten i Bulgarien, som ägs av Dundee Precious Metals (https://www.dundeeprecious.com/). Malmförekomsterna i Chelopech är 40-200 meter långa, 20-130 meter tjocka och kan sträcka sig upp till 400 meter på djupet. Baserat på likheterna i mineraliseringsstilen vid Majdan Peak anser Vardar-teamet att Chelopech är en potentiell analog fyndighet som bildats i denna geologiska miljö (Chelopech koppar-guldfyndigheten, med bevisade och sannolika malmreserver på 1,6 miljoner brittiska ounces guld och 336 miljoner brittiska ounces koppar. 

Beowulfs investering i Vardar

Sedan Beowulfs första investering i Vardar i november 2018, har bolaget nu investerat cirka 3,1 miljoner pund och äger 59,5 procent av Vardar. Vardar exponerar Beowulf för den mycket prospektiva prospekteringspotentialen i Tethyan Belt, en viktig orogen metallogen provins för guld och basmetaller.

Sedan Beowulfs första investering i Vardar i november 2018 har bolaget nu engagerat cirka 3,1 miljoner pund och äger 59,5 procent av Vardar. Vardar ger Beowulf tillgång till prospekteringspotentialen i Tethyan Belt, med omfattande potential, viktiga bergskedjebildande rörelser i en metallberikad provins avseende guld och basmetaller. 

Under de senaste fyra åren har Vardar-teamet levererat spännande resultat för både Mitrovica-licensen, som har flera prospekteringsmål, inklusive bly, zink, koppar och guld samt Viti-licensen, som visar potential för koppar-guldporfyrmineralisering och litium. Med Beowulfs stöd fokuserar Vardar på att göra en upptäckt och de senaste resultaten för Majdan Peak gör att bolaget tar ytterligare steg framåt mot att nå det målet.

Världsklassfyndigheten i Stan-Terq är granne med Vardars Mitrovica-licens (63 miljoner ton med 3,5 procent bly, 2,3 procent zink och 80 gram per ton ("g/t") silver - baserat på tidigare produktion och beräknade återstående reserver med samma halt).

Med siktet på framtiden, ser Beowulf flera alternativ för bolaget allteftersom man fortsätter att utveckla Vardar, bland annat ytterligare investeringar från Beowulf, eller i händelse av en upptäckt, introduktion av tredjepartsinvesterare eller, om rätt prospekteringspaket skapas och stödjer en fristående verksamhet, möjligheten att avknoppa Vardar. Beowulf utvärderar alternativen löpande.

Kurt Budge, VD för Beowulf, kommenterar:

"Dessa resultat utgör en fantastisk start för vår prospekteringsborrning på Majdan Peak, eftersom upptäckten visar på förekomsten av ett stort polymetalliskt epitermalt system.

"Att kunna göra en analog jämförelse med koppar-guldfyndigheten i Chelopech i Bulgarien, utifrån de bevis som lagts fram, och potentialen för epitermal mineralisering med ekonomiskt värde vid Majdan Peak, är ett stort steg framåt.

"Vi tog rätt beslut under 2018 med vår investering i Vardar, där vi stöttar ett trovärdigt prospekteringsteam med lokal närvaro, diversifierar Beowulfs portfölj och frambringar möjligheter för att skapa ytterligare värde för både bolaget och våra aktieägare.

"Varma gratulationer till Vardar-teamet i Kosovo. Deras starka insatser säkerställde att borrprogrammet slutfördes i tid och under budget, trots mycket svåra förhållanden.

"Under de kommande veckorna kommer vi att slutföra vår analys av all borrdata, men det finns goda möjligheter för att vi skulle kunna slutföra en andra omgång borrningar innan vintern. Dessa mycket lovande resultat visar att Vardar har stor potential.

Adam Wooldridge, Direktör för Vardar Minerals, ledare av prospekteringsprogrammet, kommenterar:

"Vi är mycket nöjda med resultaten från den första borrningen i Majdan Peak, som har bekräftat förekomsten av ett stort polymetalliskt epitermalt system.

"Även om man från början trodde att det var ett rent guldmål är det nu tydligt att det är ett stort polymetalliskt prospekt med flera lager. Det faktum att varje borrhål i det 1 400 meter gånger 700 meter stora området vid Majdan Peak genomskär betydande sulfidmineraliseringar vittnar om omfattningen och volymen av metaller i detta omfattande system, och man bör komma ihåg att Stan Terg-fyndigheten som är i världsklass bara ligger en kilometer sydost om området. 

"Hittills är de genomskärningar som borrats typiska för de perifera zonerna i ett stort epitermalt system, som skulle kontrolleras av högre grader av matningsstrukturer och potentiell ekonomisk mineralisering. Detta ger oss tydliga mål för nästa borrningsfas.

Majdan Peak ("MP") - Additional Technical Information

The MP prospect is located in the central portion of the Mitrovica licence area, defined by a zone of intense argillic alteration 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 1,400 metres by 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 2022 programme. A locality map illustrating the 2022 drill collar locations and extent of the alteration system is provided in Figure 1.

A total of 11 diamond core holes, totalling 2,497 metres, were drilled into MP between April and July of 2022. All drillholes 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.

All drill core was cut along the orientation line before selecting half-core samples for analysis. Samples were prepared and analysed at ALS Laboratories along with appropriate reference material and duplicates using multi-element ICP-MS, gold fire assay and SWIR spectrometry.

Drilling Results

Drillholes were targeted 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 targets will be identified rather than a simple gold target as initially envisaged.

Drill results have already defined the first significant polymetallic target (MP-T1) which was intersected in drillholes MP006 and MP009 (Figure 2). The target follows a distinct WNW trend evidenced in geophysical and soil sampling datasets. Mineralisation in this target includes several distinct phases, such as a gold-copper-silver-antimony and a lead-zinc-silver phase. In both intersections, mineralisation is largely stratabound, likely reflecting the dispersion of metal-rich fluids from a proximal feeder structure into the surrounding intensely altered host rock. The mineralisation intersected in MP006 is typical of what can be expected on the margins of a high-grade feeder zone which is further supported by resistivity data (Figure 3). For comparison, a section illustrating the metal distribution at the Chelopech deposits is shown in Figure 4. Note the limited spatial extent of the copper-gold-antimony mineralisation providing support for the proximal (with respect to the feeder zone) location of the intersection in drillhole MP006.

In addition to gold-copper-silver anomalies, drilling has intersected numerous shallow zones of gold mineralisation (Figure 4) associated with advanced argillic alteration. These zones may represent leakage into the upper portion of the mineralising system on the periphery of proximal higher-grade feeder structures, the existence of which is interpolated from anomalous grades in rock grab samples assays (with values of up to 14 g/t Au). Using SWIR results, the advanced argillic zones with gold intersections typically have a kaolinite-dickite-alunite signature, indicative of being proximal to the target vuggy-quartz facies rather than higher in the system. The quartz-alunite facies intersected in MP013 is considered particularly close to vuggy zones where high-grade gold is anticipated.

Follow-up drilling will initially focus on intersecting thicker and/or higher-grade extensions to gold-copper-silver mineralisation intersected in drillhole MP006.

Tables of significant intersections

Hole From To Length Gold Including
intersection
MP005 2.5 12.7 10.2 10.2m @0.25
g/t Au
MP006 196.7 226.2 29.5 29.5m @0.21 10.8m @0.48 g/t Au,
g/t Au 0.1% Cu & 18 g/t Ag
MP008 10.8 12.9 2.1 2.1m @0.21
g/t Au
MP008 61.1 62.2 1.1 1.1m @0.20
g/t Au
MP008 109.2 112.3 3.1 3.1m @0.20
g/t Au
MP009 165.45 166.5 1.05 1.1m @0.28
g/t Au
MP010 116 117.1 1.1 1.1m @0.21
g/t Au
MP010 239.8 241.8 2 2.0m @0.26
g/t Au
MP011 146.05 147.25 1.2 1.2m @0.20
g/t Au
MP012 24.7 32.7 8 8.0m @0.21 2.0m @0.54 g/t Au
g/t Au
MP012 42.3 49.15 6.85 6.9m @0.24 1.6m @0.60 g/t Au
g/t Au
MP012 69.16 73.8 4.64 4.6m @0.24
g/t Au
MP013 42.8 59.2 16.4 16.4m @0.21
g/t Au
MP014 4.6 5.5 0.9 0.9m @0.25
g/t Au
MP014 12.4 12.9 0.5 0.5m @0.24
g/t Au
MP014 13.5 14.4 0.9 0.9m @0.33
g/t Au
MP014 136.1 140.3 4.2 4.2m @0.20
g/t Au
MP014 165.7 176.3 10.6 10.6m @0.21 3.2m @0.50 g/t Au
g/t Au

Hole From To Length Lead composite intersections
MP006 157.25 158 0.75 0.8m @1.30% Pb, 0.5% Zn & 7 g/t Ag
MP006 197.8 199 1.2 1.2m @1.34% Pb, 0.4% Zn & 12 g/t Ag
MP006 239.5 241 1.5 1.5m @16.44% Pb, 0.8% Zn & 54 g/t Ag
MP006 244.1 246.3 2.2 2.2m @1.21% Pb& 0.8% Zn
MP006 249.6 252.3 2.7 2.7m @1.14% Pb & 1.4% Zn
MP007 305.5 306.7 1.2 1.2m @4.21% Pb, 0.7% Zn & 10 g/t Ag
MP008 188 189 1 1.0m @1.22% Pb & 2.3% Zn
MP009 206.4 215.15 8.75 8.8m @1.61% Pb & 1.4% Zn
MP009 217.15 219.15 2 2.0m @2.20% Pb & 1.3% Zn
MP010 91.75 92.5 0.75 0.8m @1.34% Pb & 0.7% Zn

https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure1.jpg

Figure 1. Locality map illustrating the extent of the alteration system (grey) from field mapping with high-chargeability IP anomalies overlain (pink). Drill collars are illustrated as green circles. An example of the scale of a 2 Mt gold deposit (yellow) has been illustrated for comparison purposes only. Ideally the epithermal system would host several of these deposits in proximity to feeder structures. Note the position of the Stan Terg skarn/carbonate-replacement deposits on the periphery of the system. The current announcement discusses results from Majdan Peak highlighted as the area of interest.

https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure2.jpg

Figure 2. Plan (top) and oblique 3D view (bottom) illustrating intersections into the MP-T1 target.

https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure3.jpg

Figure 3. Section through drill holes MP006, MP007 and MP008. Profile plots of gold (yellow), copper (green), silver (light blue), lead (dark blue) and zinc (grey-blue). Resistivity data from 3D survey with interpreted bounding feeder structure and target model illustrated.

https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure4.jpg

Figure 4. Geological target model for the Chelopech deposit[[[1]]].

Note the limited extent of the copper-gold-antimony mineralisation and association with underlying lead-zinc-manganese. MP006 is likely very close to target.

https://beowulfmining.com/wp-content/uploads/2022/08/BEM_Figure5.jpg

Figure 5. Plan (top) and oblique 3D view (bottom) illustrating intersections into shallow gold mineralisation associated with advanced argillic zones.

Glossary

g/t - grammes per tonne

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 characterise a mineral deposit, where the chargeability of the mineralised zone is often higher than the host rock. Often an Induced Polarisation (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called IP-DC survey. Both conductivity and chargeability distribution can be recovered from an IP-DC survey.

Inductively coupled plasma mass spectrometry (ICP-MS) is a type of mass spectrometry that uses an inductively coupled plasma to ionize a sample.

Shortwave infrared (SWIR) spectroscopy is a non-destructive and rapid technique used to identify alteration minerals and approximate their composition, detecting minerals such as phyllosilicates, clays, carbonates, and selected sulphates. 

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.

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] From Martin, I (2021). Geochemical vectors in mineral exploration: integration, interpretation and modelling of high precision multielement and hyperspectral datasets. Lecture series.