Beowulf Mining plc is optimistic about its flagship project in Sweden. The Kallak South and Kallak North exploration drilling program have shown interesting and positive assay results. Bewoulfe Mining says it is greatly encouraged by the results of the drilling at the large iron ore resource.
Clive Sinclair-Poulton, Beowulf Mining’s executive chairman said that they had consistently stated their belief that the Kallak deposits had both depth and breadth, and the drilling results have confirmed this with initial results for the two Kallak areas combined suggesting the presence of a substantial iron ore asset estimated to be in excess of 600 million tonnes.
He added that the recent drilling has also confirmed the quality of the ore, with high grades of more than 30 per cent iron being recorded. They believe that Kallak South and Kallak North were one large ore body and the presently ongoing 1,500-metre campaign will include drilling holes at locations between Kallak North and South to seek to verify this he said.
The exploratory drilling at Kallak South showed the ore body there extends 2.2 kilometres north-to-south, more than 200 metres east-to-west and its depth extends to more than 275 metres. They have drilled 22 holes and 3,500 meters at the Kallak South resource.
A company statement said that despite the general market turmoil and uncertainty our key asset is iron ore and the price of this commodity has remained remarkably resilient in the course of the past few months. More crucially, indications are that the price will continue to be firm in the months ahead due to a combination of Chinese demand for imports and low Indian exports.
The company said that it expected a significant boost if the company was able to demonstrate that Kallak was one deposit.