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.