29th Nov 2013 10:23
LONDON (Alliance News) - Beowulf Mining PLC Friday said its drilling progress at Kallak in Sweden has been slowed due to equipment damage by protesters.
The mineral exploration company, with operations in northern Sweden, said 400 tonnes of mineralised material from test mining in Kallak North in August has now been transported for analysis and the initial report for the ore is expected to be received at the end of March 2014.
The company said that test mining fieldwork was completed ahead of schedule, but the rigs on site and associated equipment have had to be removed for repairs after protesters damaged the equipment. The company also accused protesters of harassing its contractors at the site and is in discussions with the community after the protesters have left the site.
Beowulf said that the damage to equipment, coupled with unfavourable ground conditions has resulted in limited progress since the end of August on the company's two Kallak drilling programmes.
The company said a new work plan has been sent to the mining inspectorate and the relevant land owners, which includes 18,000 metres of drilling until December 31, 2015, on similar conditions as the last plan. Beowulf said its subsidiary Jokkmokk Iron Mines AB intends to recommence work on the site as soon as possible.
Beowulf also said its loss before and after taxation widened to GBP903,000 for the three months ended September 30 from GBP674,000 the previous year. The company, which is not yet booking revenue, said it had roughly GBP2.4 million cash in hand at the end of the third-quarter period.
Beowulf shares were down 7.3% to 6.14 pence, putting it in the top AIM losers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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