BEOWULF MINING (LSE:BEM)

3.2500
Today's low: 3.0000
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3.5000
Today's high: 3.2920
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Last trade:
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Change:
 -0.1250 (-3.70%)
Volume:
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Delayed price:
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Encouraging iron ore tests propel Beowulf

Encouraging iron ore tests propel Beowulf

The markets responded enthusiastically to the drilling update from Beowulf Mining (BEM) on Friday, with shares up 5% in morning trading.

The mineral exploration group reported "encouraging" assay results from its first six drill holes at the Kallak South iron ore site in northern Sweden.

One drill hole yielded a sample containing 32% iron, while a second had 55% iron, the company said. Executive chairman Clive Sinclair-Poulton said this is the highest average grade of iron mineralisation ever found on the site.

The initial phase for the drill programme has now been completed, with 16 holes of about 4,000 metres. The next phase aims to complete another 1,500 metres of drilling before the end of October.

"We expect to receive the next set of assay results in the fourth quarter of 2013 and are endeavouring to complete as much of our planned further drilling as practicable prior to the scheduled expiry of the current work plan," said Sinclair-Poulton. He added that the drilling at Kallak North is also progressing well, with six holes completed to date and field work should be completed by the end of the third quarter.

Investor view

Interactive Investor discussion board users responded enthusiastically to the announcement, viewing this as a confirmation as what they had long hoped. "With luck we've finally turned a corner," concluded 'Londonmark'.

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