REG - Beowulf Mining PLC - Rääpysjärvi Results and Graphite Anode Value Chain

Beowulf MiningAnnouncement

07/10/2022 07:00

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RNS Number : 0900C  Beowulf Mining PLC  07 October 2022

 

 

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. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

7 October 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Rääpysjärvi Exploration Results and Graphite Anode Value Chain

 

Beowulf (AIM: BEM; Spotlight: BEO), is pleased to provide an update on the
progress being made by the Company's wholly owned Finnish subsidiary Grafintec
Oy ("Grafintec") and the results of an electromagnetic ("EM") survey and
assays for the Rääpysjärvi flake graphite prospect and the Company's
broader raw material supply initiatives in support of its ambitions to develop
a Finnish graphite anode value chain.

Rääpysjärvi Exploration Summary:

Comparing the exploration results with those from the Company's Aitolampi
project, the EM conductive anomalies at Rääpysjärvi are more extensive,
which indicates significant potential for a larger tonnage of graphite
mineralisation in the area.  Rääpysjärvi EM conductive areas cover 1.1
square kilometres, whereas Aitolampi EM conductive areas cover 0.3 square
kilometres. In addition, while most of the assays at Rääpysjärvi are
similar to what was sampled prior to drilling at Aitolampi, the >50%
graphite assay from the quarry at Rääpysjärvi is exceptional and indicates
the potential for localised very high-grade mineralisation.

Results Highlights:

·    13 highly conductive EM zones have been identified, with isolated
zones extending for up to 850 metres ("m") strike length and 250m width.

·    Analysis of eight grab samples from outcrops in the area range from
0.52 to >50 per cent total graphitic carbon ("TGC"). The sample assaying
more than 50 per cent TGC (limit of the analysing methodology) was taken from
a historic graphite quarry situated close to the north-western limit of one of
the largest EM conductive zones.

·    Six holes drilled in the 1980s have also been re-sampled and
re-assayed for TGC. Two of the drill holes intersected significant graphite
mineralisation:

·    TN/SM-2: 19.29m at 5.62 per cent TGC (from 177.11m); and

·    TN/SM-3: 9.84m at 6.70 per cent TGC (from 226.16m) and 35.55m at 4.98
per cent TGC (from 266.45m).

·    Previous metallurgical testwork on a 10kg composite grab sample has
produced a concentrate grade of 97.4 per cent TGC.

·    The encouraging exploration data set indicates significant potential
for natural flake graphite mineralisation suitable for graphite anodes across
Rääpysjärvi.

 

Graphite Anode Value Chain

The development of downstream capabilities is a key part of Grafintec's
strategy and the Company continues to form partnerships with other companies
to achieve this. On 26 September 2022, Beowulf announced that Grafintec had
signed a Memorandum of Understanding ("MoU") with Qingdao Hensen Graphite Ltd
("Hensen"), which includes an agreed framework and key terms on which both
companies are collaborating with regards to establishing an anode materials
hub in Finland.

Formed in 1985, Hensen has been operating in the graphite industry for 37
years; throughout that period supplying traditional markets, with increasing
focus on natural flake graphite-based anode materials and synthetic
graphite-based anode materials. Hensen has been producing graphite-based anode
materials since 2003.

To support a sustainable graphite anode value chain in Finland, Grafintec is
focused on expanding its resource footprint and increasing its raw materials'
inventory, primary and recycled, feeding downstream processing, leveraging
renewable power, targeting net zero CO(2) emissions ("Net Zero") across the
supply chain.

The Company's most advance natural flake graphite project, Aitolampi, has an
Indicated and Inferred Mineral Resource of 26.7 Mt at 4.8 per cent TGC for
1,275,000 tonnes of contained graphite, possessing almost perfect
crystallinity, an important prerequisite for high tech applications such as
lithium-ion batteries. The Mineral Resource was estimated by CSA Global of
Australia in accordance with the JORC Code, 2012 Edition. In addition to
Aitolampi, the Company has other graphite exploration prospects, including
Rääpysjärvi.

While projects in Finland are still in development, the Company has other
initiatives to secure raw materials supply, natural flake graphite and
recycled graphite, to feed downstream processing.  In May this year,
Grafintec signed an MoU with Dominik Georg Luh Technografit GmbH
("Technografit"), establishing the basis for a commercial partnership for
securing sustainable supply of natural flake graphite for Grafintec's planned
graphite anode materials plant; samples are now being tested by Hensen and
processed to anode material. Also, the Company has testwork programmes on
recycled graphite containing waste to assess whether it can be processed to
suitable feedstock for anode materials production.

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

 

"We follow the announcement of our partnership with Hensen and firm plans for
anode materials production, announced on 26 September, with positive
exploration results, as Grafintec continues to explore and seeks to expand
both its resource footprint and inventory of natural flake graphite in
Finland.

"The work carried out by the Geological Survey of Finland ("GTK") for the
Company follows a solid history of graphite exploration at Rääpysjärvi and
is part of the MoU signed between GTK and Grafintec earlier this year,
establishing a framework and a platform to promote cooperation in the fields
of graphite exploration, mineral processing, and circular economy as
pertaining anode materials for the lithium-ion battery market and other
value-added markets.

"The Company is focused on long-term sustainable graphite supply to its
downstream projects, and with Rääpysjärvi and Aitolampi being located close
to one another, as a concept, there could be possible synergies for future
development of these two sites, such as shared processing infrastructure. In
addition, we continue to develop options for securing supply of natural flake
graphite in advance of mining in Finland, such as the MoU with Technografit,
and ongoing testwork on graphite containing waste generated from recycling.

"Back to exploration, fieldwork is now continuing at Rääpysjärvi with
detailed geological mapping and sampling in areas proximate to the newly
identified EM conductive zones.  With new information, we will start
drawing-up plans for a possible trenching and drill programme. I look forward
to providing further progress updates on this work and our work with Hensen."

 

Exploration Results

The Rääpysjärvi exploration permit is located in the municipality of
Tuusniemi in Eastern Finland, 8km north-northwest of the Aitolampi graphite
project. In June 2022, GTK were contracted to carry out an EM survey. The
survey used a portable GEM-2 instrument over an area of approximately five
square kilometres. GEM-2 is a hand-held, digital, multi-frequency broadband EM
sensor which measures the ground conductivity. High EM ground conductivity can
be a typical indicator of graphite bearing rocks.

The GEM-2 survey identified 13 highly conductive EM zones, with isolated
south-east to north-west striking zones extending for up to 850m strike length
and 250m width, see Figure 1.

In addition, outcrops in the area have been mapped and sampled during
fieldwork carried out in 2017 and in June 2022.  A total of eight grab
samples from outcrops have been analysed with assays ranging between 0.52 and
>50 per cent TGC.

 Sample       Total Graphitic Carbon %
 2017-HN-052  > 50
 2017-ME-077  3.30
 2017-ME-106  0.79
 2017-ME-113  0.52
 2017-ME-114  6.85
 2017-ME-126  6.59
 RAA-SR22003  9.46
 RAA-SR22005  10.20

 

The sample assaying  more than 50 per cent TGC (limit of the analysing
methodology) was taken from a historic graphite quarry mined in the 1940s and
situated close to the north-western limit of one of the largest EM conductive
zones.

Six holes drilled by Outokumpu Oy in the 1980s have also been re-sampled and
re-assayed for TGC. Two of the drill holes intersected significant graphite
mineralisation:

 

·    TN/SM-2: 19.29m at 5.62 per cent TGC (from 177.11m); and

·    TN/SM-3: 9.84m at 6.70 per cent TGC (from 226.16m) and 35.55m at 4.98
per cent TGC (from 266.45m).

 

 

Metallurgical Testwork

In 2018, a 10kg composite grab sample from boulders and outcrops sampled in
2017 was sent to SGS Mineral Services in Canada. The testwork produced a
combined concentrate grade of 97.4 per cent TGC, with 18.8 per cent in the
large and jumbo flake fraction (+180 micron). The head grade of the composite
grab sample was 19.8 per cent TGC.

The encouraging metallurgical testwork results, combined with high grade
graphite sampled from outcrops associated with extensive EM conductive zones
show significant potential for flake graphite mineralisation suitable for
anode materials in the area.

Figure 1: The map shows the location of the 13 EM conductive zones and TGC
assay results from  outcrops and drilling.

About Grafintec:

Beowulf Mining's 100 per cent owned subsidiary Grafintec Oy ("Grafintec") is
recognised in Finland as one of the main companies in the anode space and
continues to be supported by Business Finland, the Finnish governmental
organization for innovation funding and investments.

In 2021, Grafintec was granted EUR 791,000 funding by Business Finland as part
of the BATCircle2.0 (Finland-based Circular Ecosystem of Battery Metals)
consortium. The funding will be used to develop a sustainable technological
solution, utilizing renewable energy, to spheronise and purify graphite within
a Finnish industrial ecosystem, for use in the manufacture of lithium-ion
battery anodes.

The project has three objectives, which are to:

·    Validate a process to support progress to a Bankable Feasibility
Study for construction of a commercial scale unit within three to five years.

·    Secure and protect any arising intellectual property.

·    Deliver a detailed strategic marketing and commercialisation plan.

 

Qualified Person Review:

 

The information in this announcement has been reviewed by Mr. Rasmus
Blomqvist, a Qualified Person ("QP") who is a Member of the Australasian
Institute of Mining and Metallurgy.  Mr. Rasmus Blomqvist has sufficient
experience relevant to the technical statements disclosed herein and approves
the disclosure of technical information in the form and context in which it
appears in his capacity as a QP as required under the AIM rules.

Mr Blomqvist qualifies as a Competent Person as defined in the 2012 Edition of
the "Australasian Code of Reporting of Exploration Results, Mineral Resources
and Ore Reserves".  Mr. Rasmus Blomqvist is a full-time employee of Grafintec
Oy, a 100% owned subsidiary of Beowulf.

 

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.

 

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