Beowulf upbeat on first results from Kosovo's Majdan Peak

Minerals explorer and developer Beowulf announced the first exploration results from the Majdan Peak prospect in Kosovo’s Mitrovica licence on Monday, and the discovery of a large polymetallic epithermal system.

The AIM-traded firm said polymetallic epithermal deposits of copper, gold and lead-zinc form at shallow depths within the earth's crust, and are important sources of base and precious metals, and thus constitute highly-desirable exploration targets.

It said 11 widely-spaced diamond drill holes were made, covering an area 1,400 metres by 700 metres.

All holes intersected “abundant” sulphides, intense alteration, and multiple generations of veining, which were all factors indicative of a large polymetallic epithermal system.

In particular, hole MP0006, which produced highly-anomalous gold-copper-silver intersections, was said to be “extremely encouraging”, and was interpreted by the Vardar Minerals team to be on the periphery of potential feeder structures, providing the source of the abundant metals being found.

Significant gold-copper-silver, lead-zinc-silver and gold intersections included hole MP006 with 10.8 metres at 0.48 grams of gold per tonne, 0.1% copper and 18 grams of silver per tonne, including 3.2 metres at 1.1 grams of gold per tonne, 0.2% copper and 50 grams of silver per tonne.

Hole MP006 returned 6.8 metres at 4.1% lead, 0.6% zinc and 15 grams of silver per tonne, and hole MP013 returned 16.1 metres at 0.21 grams of gold per tonne.

The board said those results supported their belief in the potential for epithermal mineralisation of economic grades to be present.

It said the mineralisation was similar to that seen at the Chelopech copper-gold deposit in Bulgaria, owned by Dundee Precious Metals.

The orebodies at Chelopech ranged from 40 to 200 metres in length, were 20 to 130 metres in thickness and extended for up to 400 metres down plunge.

Based on the similarities in the style of mineralisation at Majdan Peak, the Vardar team considered Chelopech to be a potential analogue deposit formed in the geological environment.

“These results represent a fantastic start to our exploration drilling on Majdan Peak, having discovered the presence of a large polymetallic epithermal system,” said chief executive officer Kurt Budge.

“To be drawing an analogue comparison with the Chelopech copper-gold deposit in Bulgaria, on the basis of the evidence being presented, and the potential for epithermal mineralisation of economic grades to be present at Majdan Peak, is a massive step forward.

“We made the right call in 2018 to invest in Vardar, backing a credible exploration team with in-country presence, and adding diversification to Beowulf's portfolio and the opportunity to create additional value for both the Company and our shareholders.”

Budge said that over the coming weeks the analysis of all drilling data would be completed, but added that there was “a real prospect” that a second round of drilling could happen before winter.

“These very promising results show that Vardar has great potential.”

At 0857 BST, shares in Beowulf Mining were up 0.02% at 5.4p.

Reporting by Josh White at Sharecast.com.