REG - Beowulf Mining PLC - Gállok/ Kallak Iron Ore Project Update

Beowulf MiningAnnouncement

16/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240716:nRSP4951Wa&default-theme=true

RNS Number : 4951W  Beowulf Mining PLC  16 July 2024

 

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

 

 

16 July 2024

 

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

Gállok/ Kallak Iron Ore Project Update

 

Beowulf (AIM: BEM; Spotlight: BEO) and its wholly owned Swedish subsidiary
Jokkmokk Iron Mines AB ("Jokkmokk Iron") are pleased to provide an update on
the Gállok or Kallak Iron Ore project ("Gállok" or "the Project").

 

 

Highlights

 

Environmental permitting

·    Formal consultation process for the Environmental Impact Assessment
("EIA") to be initiated following the summer

·    This process will inform the completion of the EIA and subsequent
Environmental Permit application

·    Reindeer Herding analysis, World Heritage Impact Assessments ("WHIA")
and local stakeholder engagement ongoing

·    Submission of the Environmental Permit application now targeted for
Spring 2025

 

Pre-Feasibility Study ("PFS")

·    Final results from metallurgical test-work anticipated within coming
weeks

·    Initial indications confirm that Gállok can produce a very high
grade, low impurity concentrate

·    Infill drilling programme, focused on upgrading Inferred resource to
Measured and Indicated category, now expected to commence in Autumn 2024

·    Following this drilling, the Mineral Resource Estimate ("MRE") will
be updated and form the basis of mine planning and reserve estimation

·    Other workstreams including metallurgy, mineral processing, waste
management, site infrastructure and transportation and logistics are being
advanced or nearing completion

·    Conclusion of the PFS now anticipated in Q2 2025 to allow focus on
environmental permitting activities

 

 

 

 

Dmytro Siergieiev, Project Director of Jokkmokk Iron, commented:

 

"We are gearing up activity towards the initiation of the consultation process
after the summer when Government agencies and other stakeholders return from
their break. The consultation is a critical element of the EIA process and
will inform the subsequent Environmental Permit application. In parallel with
this, we continue to progress numerous studies critical for the permitting
process including the Reindeer Herding analysis, WHIA and Waste Management
Plan.

 

"We have an excellent team of consultants supporting us and I am confident we
will submit a comprehensive permit application."

 

 

Ed Bowie, Chief Executive Officer of Beowulf, commented:

 

"Under Dmytro's leadership, we continue to make excellent progress at Gállok.
The timeline for the submission of the Environmental Permit application has
been extended to allow for a thorough EIA consultation process and the
ultimate submission of a robust application.

 

"Many of the workstreams continue to advance in preparation of the PFS and
these will feed directly into the EIA and Environmental Permit submissions.
The Gállok project has been well drilled historically and we therefore have
strong confidence in the current MRE. Indeed, over 80% of the material within
the mining schedule from the Scoping Study was in the Indicated category. We
have therefore taken the decision to defer the drill programme until the
Autumn, enabling us to focus fully on the consultation and permitting process.
The objective of the drill programme will be to convert Inferred resources
into the Indicated category, as required for inclusion within a PFS, with a
focus on near-surface material that will be mined in the earlier years of the
mine life and therefore have the greatest impact on the Project's near-term
cash flow and overall economics.

 

"The delay to the drilling will have a knock-on effect to the PFS, which we
now anticipate completing in the Spring of 2025. However, the overall
development timeline for the Project will be determined by the permitting
process and therefore this remains our primary focus at this stage."

 

 

Environmental Permitting

 

The initial step in the Environmental Permitting process is the completion of
an EIA. This requires the broad parameters of the Project to be presented to a
range of stakeholders including Government agencies and local communities. The
initial consultation documentation is being prepared and the intention is to
initiate the consultation process during Q3 2024. It is anticipated that the
consultation process will take approximately six weeks to complete.
Thereafter, feedback from the consultation will be incorporated within the
final EIA and subsequent Environmental Permit application.

 

In parallel with the EIA consultation, a range of studies are required as part
of the Environmental Permit application including:

·    Hydrogeological assessment

·    Surface water impact assessment

·    Dust assessment

·    Noise assessment

·    Biodiversity assessment

·    Reindeer herding analysis

·    Ecological compensation plan

·    Social impact assessment

·    World Heritage impact assessment

·    Waste management plan including mine closure plan

 

The Environmental Permit application is submitted to the Environmental Court
for review under the Environmental Code. The final submission of the
application is anticipated in Spring 2025. Based on recent precedents in
Sweden, the Environmental Court is now expected to take approximately two
years to review the application. Following the approval of the Environmental
Permit, the Company will also require a Land Designation Permit and
Construction Permit prior to construction of the Project.

 

 

Pre-Feasibility Study

 

The PFS consists of a broad range of workstreams assessing the technical and
economic viability of the Project. Those that are well-advanced include:

·    Metallurgy

·    Mineral Processing

·    Site Infrastructure

·    Logistics and Transportation

·    Water Management

·    Waste Management

 

With the infill drilling programme deferred until the autumn, the following
workstreams are yet to be initiated although they will clearly build on the
work already completed in the preparation for the Scoping Study released in
2023. These workstreams include:

·    Mineral Resource Estimate

·    Mine Engineering and Scheduling

·    Mineral Reserve Estimation

 

With the conclusion of the technical studies, the economics of the project
will be assessed including market studies and analysis of capital and
operating costs.

 

It is currently anticipated that the PFS will be completed in Q2 2025, after
which a Feasibility Study will be initiated which is expected to take
approximately 12 months to conclude.

 

 

Enquiries:

 

 Beowulf Mining plc
 Ed Bowie, Chief Executive Officer          ed.bowie@beowulfmining.com

 SP Angel
 (Nominated Adviser & Joint Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470

 Alternative Resource Capital
 (Joint Broker)
 Alex Wood                                  Tel: +44 (0) 20 7186 9004

 BlytheRay
 Tim Blythe / Megan Ray                     Tel: +44 (0) 20 7138 3204

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland, and Kosovo. Beowulf's portfolio is diversified
by commodity, geography, and stage of development of the projects, and
consists primarily of iron ore, graphite, gold, and base metals. Beowulf
Mining is headquartered in London, England.

 

 

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
forecast.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDDDGDRGDBDGSU