REG - Beowulf Mining PLC - Portfolio update

Beowulf MiningAnnouncement

16/12/2024 07:00

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RNS Number : 1942Q  Beowulf Mining PLC  16 December 2024

 

16 December 2024

Beowulf Mining Plc

("Beowulf" or the "Company")

 

Portfolio update

 

Beowulf (AIM: BEM; Spotlight: BEO), the European mineral exploration and
development company, is pleased to provide an update on progress made across
its portfolio of assets over the past twelve months and expectations for the
coming year.

 

Highlights

In Sweden:

·    Appointment of Dmytro Siergieiev as Project Director to lead the
development of the Kallak Iron Ore Project ("Kallak")

·    Working with industry-leading consultants in preparation of the
Kallak Pre-Feasibility Study ("PFS") and Environmental Permit application

·    Positive verdict from the Supreme Administrative Court upholding the
original award of the Kallak Exploitation Concession

·    Metallurgical test-work demonstrated the ability for Kallak to
produce a market leading concentrate with >70% iron ("Fe") content and very
low impurities, making it a suitable feedstock for the decarbonisation of the
steel industry

·    Initiation of the Consultation Process in preparation for the Kallak
Environmental Impact Assessment ("EIA") and Environmental Permit application

 

In Finland:

·    Updated strategy to fast-track full Graphite Anode Materials Plant
("GAMP") process to capture more of the anode material production value-chain
and ensure a secure supply chain

·    Test-work for the GAMP demonstrated the ability to produce battery
grade material

·    Further optimisation studies demonstrated the potential to reduce
both energy and reagent consumption and recycle reagents thereby reducing cost
and environmental impact

·    Completion of the BATCircle2.0 project with €530,000 grant funding
received from Business Finland and initiation of BATCircle3.0 programme with a
further grant of €232,000 received

 

In Kosovo

·    Consolidation of 100% interest in Vardar Minerals providing full
operational control and significantly reducing overhead

·    Ismet Krasniqi appointed to the Board of Vardar Minerals

·    Ongoing low-cost exploration activities focused on generating and
refining targets

 

Ed Bowie, CEO of Beowulf, commented:

"2024 has been a transformational year for Beowulf. We have made very
significant progress in advancing our two core assets. At Kallak, we have
demonstrated that we can produce a market-leading concentrate with very low
impurities, developed a collaborative engagement with key local stakeholders
and are focused on delivering the PFS and submitting the Environmental Permit
application in the first half of 2025. The GAMP PFS is on track for completion
in Q1 2025 with test-work delivering very positive results. The Business
Finland BATCircle3.0 funding and the completion of the BATCircle2.0 project
shows the continued belief and support for Grafintec.

"The progress made during 2024 has significantly de-risked both assets and has
further highlighted their potential. With the completion of the respective
PFSs, 2025 promises to be another busy and exciting year.

"The market for junior resource equities and the funding of development
projects remains challenging. The Beowulf team continue to work to demonstrate
the significant underlying value of the portfolio and to focus its resources
on critical workstreams. I would like to take this opportunity to thank our
shareholders, employees and other stakeholders for their continued support."

 

Sweden

Jokkmokk Iron Mines AB ("Jokkmokk Iron") continues to make significant
progress under the direction of Dmytro Siergieiev as Project Director in the
preparation of the Kallak PFS and Environmental Permit application. Jokkmokk
Iron, a wholly-owned subsidiary of Beowulf, is supported by a team of
consultants who are industry-leading experts in their respective disciplines.

Studies undertaken in preparation for the Environmental Permit application
include nature values, biodiversity, hydrogeology, waste characterisation, air
quality, cultural heritage, social, reindeer herding and World Heritage impact
assessments. The Consultation Process, initiated in September 2024, is a key
element of the Kallak EIA and Environmental Permit application, enabling
Jokkmokk Iron to capture the views of local stakeholders and Government
agencies and authorities.

Work in preparation for the PFS has also progressed. Metallurgical test-work
demonstrated the ability for Kallak to produce a market leading concentrate
with >70% Fe content and very low impurities making it a suitable feedstock
for the decarbonisation of the steel industry. Importantly, test-work has
indicated that this concentrate can be produced through physical separation
with no chemicals used in the upgrading process. Geotechnical investigative
studies were completed on the planned open pit and the site for the tailings
management facility, the waste rock dump, the beneficiation plant and other
critical on-site infrastructure. A trade-off study was initiated on potential
transportation solutions from the mine to the planned rail terminal,
approximately 40 kilometres away. The options under investigation include
trucking, a conveyor and a pipeline. A modest drilling programme, designed to
convert some Inferred category resource into the higher confidence Indicated
category, has been deferred into 2025 to allow the company to focus resources
on the critical Environmental Permit related workstreams.

The Environmental Permit process is expected to determine the overall
timeframe for the ultimate development of Kallak and therefore workstreams
directly relating to the application have been prioritised. The Company has
made significant progress in developing an open and transparent dialogue with
local stakeholders and Government authorities and agencies and is committed to
maintaining this approach. The positive verdict, received from the Supreme
Administrative Court in June 2024, upholding the original award of the Kallak
Exploitation Concession was a further critical milestone for Kallak.

The Company continues to work towards submitting the Environmental Permit
application for Kallak in the first quarter of 2025 and completing the PFS by
the middle of the year.

 

Finland

Test-work in support of the GAMP PFS is nearing completion. Optimisation work
has demonstrated the ability to increase the overall yield of the
Spheronisation process to over 60% by weight and for the Purification process
to produce battery grade material with up to 99.99% graphitic carbon content.
These results can be achieved at lower temperatures and with less reagents,
indicating the potential to significantly reduce operating costs.

Further test-work on the wastewater stream, a secondary process, has
demonstrated the ability to recover and recycle over 90% of sodium hydroxide,
the critical reagent in the process. This not only reduces the need for
primary sodium hydroxide but also the overall environmental footprint of the
plant. High quality calcium carbonate is produced as a by-product of this
wastewater treatment and may be used for neutralisation of the acidic
wastewater or potentially sold to other industries.

Grafintec Oy, the wholly owned Finnish subsidiary of Beowulf, has been
successful in completing the BATCircle2.0 project with €530,000 grant
funding received from Business Finland and has been awarded a further
€232,000 grant funding from Business Finland, as part of the BATCircle3.0
consortium, in support of the development of GAMP. The Company has held a
reservation over a plot in the GigaVaasa industrial hub. This reservation
expired in August 2024 and, following positive and constructive ongoing
discussions with the municipality of Korsholm and the GigaVaasa team,
Grafintec has opted not to apply for an extension at the present time. The
Company understands that the municipality of Korsholm is working on further
refining the planning for the plots which may result in some adjustments and
with Grafintec progressing the PFS, which in turn may result in changes in the
Company's requirements, the administration and potential cost of an extension
was not considered necessary. The parties maintain a very positive working
relationship and will look to progress discussions following completion of the
PFS in Q1 2025.

 

Kosovo

Beowulf consolidated 100% ownership of Vardar Minerals ("Vardar") during April
2024. This not only provided Beowulf with full control and optionality, but
also, through bringing management and administrative functions in-house,
significantly reduced the overall running cost to Beowulf. In connection with
the consolidation, Ismet Krasniqi was appointed to the Board of Vardar.

Vardar has undertaken focused low-cost exploration during the year, defining
new targets and upgrading existing targets with surface sampling and mapping.
During the year, a number of applications were submitted for licence renewals.
These renewals have been formally lodged with the relevant authority and are
expected to be approved within the coming months.

Beowulf continues to focus its resources on Kallak and GAMP and has engaged
with a number of major and mid-tier mining companies in relation to the Vardar
licences and other exploration assets within the portfolio. The objective is
to find partners who will assist in advancing the exploration portfolio,
reducing the burden on Beowulf whilst retaining exposure to potential upside
from future exploration success.

 

 

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

 

 

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.

 

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