The Board of Beowulf Gold PLC ("Beowulf") are pleased to report the interim results to 30 June 2004. They are also pleased to announce considerable exploration success in its two areas of interest in Northern Sweden D Jokkmokk and Grundtraesk.
Beowulf has exclusive prospecting rights over 82 square kilometres in the Jokkmokk Region. Over these rights Phelps Dodge Exploration Sweden AB ("Phelps Dodge") has signed a Joint Venture Agreement with Beowulf. Under its terms, Phelps Dodge will have the right to earn up to 80% (eighty per cent) ownership of any development project by funding all exploration costs, including the cost of a full ("bankable") feasibility on any deposit found. Following a decision to proceed to development Beowulf will have to fund its development costs to retain its interest, or revert to a 1.5% Net Smelter Return. Phelps Dodge Exploration Sweden AB is a subsidiary of the Phelps Dodge Corporation, which together with its subsidiaries, is one of the world's leading producers of copper and molybdenum.
Phelps Dodge has tested two targets on Beowulf's licences in the Jokkmokk area. Drill hole MAJ001, was drilled at an angle of 60 degrees to a depth of 197.20 metres, and recorded 27.70 metres with grades of 0.6% copper and 1 gram per ton of gold, between 91 and 119 metres. In addition, from 121 to 125 metres, 4.50 meters of 1% copper and 0.5 grams per ton of gold were recorded. Additional mineralized sections of the drill core are presently being analysed. The intersection confirms copper D gold mineralization previously found by the Swedish Geological Survey, in diamond drill core.
Beowulf is very encouraged by the discovery of the copper and gold mineralization in the area. Phelps Dodge is presently conducting mobile metal ion geochemistry in the area of the mineralization to optimise the next phase of diamond drilling.
In the Grundtraesk region Beowulf has mineral rights over 43 square kilometres, which are 100% owned. It has completed six diamond drill holes, which have located gold mineralization. Geological prospecting has located an extensive mineralized boulder field to the south of this gold mineralization. Values of 1.1% copper, 10 grams per ton gold and 220 grams per ton of silver have been returned from these boulders. Future drilling on the Grundtraesk area will concentrate on an induced polarization (IP) geophysical anomaly adjacent to this mineralized boulder field.
On 22 March 2004 Beowulf sold the exploration rights for platinum on the Sandison's Property on the Isle of Unst, Shetland Islands for 7,500,000 shares of GBP0.01 each in Agricola Resources plc, plus a royalty on production of US$1 per ounce of platinum produced.
On 24 March 2004 Mr Anthony Scutt joined the Board of Directors as a Non Executive Director. On 13 August 2004 Beowulf changed its Corporate Advisers to Ruegg & Co. Limited.
The Board of Directors are expecting exciting exploration results from the two exploration areas in the second half of 2004.
Shareholders will be aware that your Board is planning to seek admission to AIM. The recent weaker market conditions and a sharp increase in the number of new listing introductions over the summer months has led us to be circumspect in the choosing of our timing and in selecting our eventual advisers and backers for this operation. Shareholders will be kept informed of our progress.
Meanwhile your support will remain crucial to our achievements and our aspirations.
R. D. Young, Chairman
1 September 2004
INDEPENDENT REVIEW REPORT
Introduction
We have been instructed by the company to review the financial information set out on page 1 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatement or material inconsistencies with the financial information
Directors Responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for ensuring that the accounting policies and presentation applied to the interim figures are consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modification that should be made to the financial information as presented for the six months ended 30 June 2004.
Price Bailey LLP
Chartered Accountants
Richmond House
Broad Street
Ely, Cambs.
UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2004
PROFIT AND LOSS ACCOUNT
|
3 Months
to 30/6/04
|
3 Months
to 30/6/03
|
|
GBP
|
GBP
|
| TURNOVER |
Nil
|
Nil
|
| GROSS PROFIT |
Nil
|
Nil
|
| Administrative expenses |
(80,864)
|
(59,633)
|
|
|
|
| OPERATING LOSS |
(80,864)
|
(59,633)
|
| Interest Receivable |
672
|
450
|
| Profit on sale of fixed assets |
69,488
|
-
|
| LOSS ON ORDINARY ACTIVITIES |
(10,704)
|
(59,175)
|
| Taxation |
-
|
-
|
|
------------
|
------------
|
| LOSS ON ORDINARY ACTIVITIES AFTER TAX |
(10,704)
|
(59,175)
|
| BASIC LOSS PER SHARE |
(0.03p)
|
(0.17p)
|
| DILUTED LOSS PER SHARE |
(0.02P)
|
(0.12P)
|
