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14 December 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Red Lead - Highly prospective Lead-Zinc-Silver Exploration Target Identified

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to announce new results from detailed geological mapping over the highly prospective Red Lead target, located within the Mitrovica licence, in Kosovo, being explored by Vardar Minerals Ltd ("Vardar"), which Beowulf is a 59.5 per cent. shareholder of.

Red Lead shares similarities observed at the neighbouring world-class Stan Terg deposit, such as the same host rocks, trachyte heat source, hydrothermal breccias and hydrothermal alteration patterns. The Stan Terg deposit is located just two kilometres to the east of Red Lead and has a resource of 63 million tonnes at 3.5 per cent. lead, 2.3 per cent. zinc and 80 grammes per tonne silver - based on past production and estimated remaining reserves at the same grade, and therefore Red Lead is highly prospective for the same metals and possible economic mineralisation.

Chris Davies, Non-Executive Director and Kurt Budge, CEO were in Kosovo a few weeks ago to see the drilling operation on Majdan Peak.  Three full days were spent reviewing technical aspects of the exploration programme, which proved invaluable, giving us a thorough appreciation of the excellent and high-quality work being performed by the local Vardar team.

Highlights:

·    The Red Lead target is defined by a two kilometres East-Northeast trending lead-zinc-copper-gold soil sample anomaly along with:

o  Mineralised trachyte bodies (with up to three per cent zinc from rock sampling);

o  Prominent induced polarisation ("IP") anomalies indicative of potential sulphide metal sources; and

o  Hydrothermal breccias and gossanous outcrops.

·    Detailed mapping has identified marble units along with gossans, trachyte bodies and carbonate alteration, further highlighting the potential for carbonate-replacement style lead-zinc-silver mineralisation.

·    Several outcrops of marble in the basement host rocks could provide an ideal trap-site for metal-rich hydrothermal fluids.

·    This important target shares the same host rocks, trachyte heat source, hydrothermal breccias and hydrothermal alteration pattern as the neighbouring Stan Terg deposit which is located equidistant from the Majdan Peak high-sulphidation epithermal target.

·    The developing picture is as expected with text-book geological models (see Figure 2). 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"Following on from the announcement of the discovery, in August, of the large polymetallic epithermal system at Majdan Peak and the announcement in September, with the results of drill intersections for Majdan Peak South and more drill targets, these results lead us to believe that Vardar's licences could hold some of the most prospective exploration tenure in Europe for gold and base metals.

"As the weather finally turns colder in Kosovo, drilling will shortly be suspended until Spring 2023.  We have assays from the latest programme expected in January 2023 and work will continue on interpreting latest findings.

"To add to the growing list of exploration targets at Mitrovica, we now have Red Lead, which displays all the key geological markers of the neighbouring Stan Terg deposit and mine, and which is a priority target for drilling in Spring 2023."

Red Lead

The Red Lead target is defined by an extensive two kilometres soil anomaly (Figure 1) which follows an East-Northeast trend to the neighbouring Stan Terg deposit.

The target is hosted in Mesozoic basement rocks in proximity to the Majdan Peak high-sulphidation epithermal target and is considered part of the same Oligocene mineralising event (Figure 2).

The target includes a number of trachyte (latite) bodies with associated hydrothermal breccias which often display highly anomalous metal concentrations (e.g. zinc values > three per cent).

Recent mapping has identified several outcrops of marble in the basement host rocks which would provide an ideal trap-site for metal-rich hydrothermal fluids. Importantly these outcrops have coincident IP anomalies providing further evidence of a potential sulphide-rich metal source.

Given the similarities in host rock geology, trachyte dykes, alteration and metal associations with Stan Terg, Red Lead is considered a priority target for follow-up drill testing (Figure 2).

Beowulf's Investment in Vardar

Since Beowulf's first investment in Vardar in November 2018, the Company has now invested approximately £3.1 million and owns 59.5 per cent of Vardar. Vardar gives Beowulf exposure to the highly prospective exploration potential of the Tethyan Belt, a major orogenic metallogenic province for gold and base metals. 

Throughout the last four years, the Vardar team has delivered exciting results for both the Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold, and also the Viti licence which is showing potential for copper-gold porphyry mineralisation and lithium.

Looking to the future, Beowulf has several options as it continues to develop Vardar, which include further investments by Beowulf, or in the event of a discovery the introduction of third-party investors or, if the right exploration package is created and supports a standalone business, then the possibility of spinning-out Vardar. Beowulf is keeping these options under review.