Beowulf Mining's shares plummeted below 22 per cent early Wednesday as the company updated the market on its resource estimate for the Kallak North deposit.
The Joint Ore Reserves Committee (JORC) compliant tonnage at Kallak North, an iron ore deposit in northern Sweden, was increased by 9.5%.
It is now estimated to hold about 144m tonnes (mt), of which includes 88.8Mt in the indicated category grading at 27.7% iron and 55.3mt classified as inferred at 28.2% iron.
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The estimate was based on results of 51 diamond drill holes at a total of 10,800 metres of drilling.
The mineralised area for the deposit was estimated to be 1,100 metres long from south to north and, at its widest point in the central part, about 350 metres wide.
"It is clear that we need to perform further work at Kallak North in order to define the full extent at depth of this ore body and enhance this latest resource statement," said Executivve Chairman, Clive Sinclair-Poulton.
"We therefore intend to conduct an additional 11,000-metre drill campaign on the northern and southern parts of the deposit later this year, subject to receiving the requisite work plan approvals."
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