Beowulf Mining (LON:BEM) rallied in early trade after securing the approval for the second part of the ongoing initial phase drilling at its Kallak North iron ore deposit in Sweden.
The company has also submitted an application for test mining at Kallak North along with an environmental impact assessment.
It was noted that such approval is only required for programmes of 30 holes or more, Beowulf decided to make an application for the initial 18 hole programme as a precaution.
In the year to date, Beowulf has drilled 1,522 metres at Kallak North, deepening its pre-existing holes.
All of the extensions have intersected strong iron mineralisation at substantial depths, indicating similar characteristics to those encountered in the earlier shallower zones that the maiden resource was based on.
“We are pleased to confirm further progress on our Kallak project and were delighted with the swift approval received from the County Administrative Board of Norrbotten for the ongoing initial phase of our Kallak North drilling programme,” said executive chairman of Beowulf Clive Sinclair-Poulton.
“The submission of our test mining application with the associated EIA marks a further important step and we continue with our communications programme seeking to engender support from the local communities for our exciting development plans.”
The second part of the initial phase 2012 programme on Kallak North will include 5,400 metres using the same two rigs that are already on the site.
The drilling will be aimed at determining the width and depth of the southern expansion of the deposit as well as defining its eastern and western limits.
In the meantime, MINPRO AB's laboratories are currently conducting metallurgical tests on six drill core samples from the Kallak North deposit. The results will help the company select trenches for test mining.
It is anticipated that around 85 percent of the total drill cores from the ongoing initial phase of the 2012 drill programme will be analysed with the first assay results expected in August.
Beowulf rose 5.5 percent to trade at 12 pence per share at 10am, valuing the group at £25.25 million.