Beowulf Mining has temporarily suspended drilling on its Kallak North deposit in Sweden pending formal approval of its work plans from the country mining inspectorate.

The company said an administrative oversight was to blame the new 2011/2012 work plan not being filed with the inspectorate. The previous work program expired in late 2010.

Beowulf said in a statement to investors that “The company can confirm that its new work plan for Kallak North has now been duly filed and notified. Accordingly, operations have been voluntarily halted pending completion of the requisite consultation process with the local communities and the Mining Inspector.”

In the meantime, the two drill rigs onsite are being redeployed to Kallak South.

Beowulf said due to the Christmas and New Year holiday season, work will not commence at Kallak South until early 2012.

Last month the group raised GBP 6.7 million through a placing at 15p per share last week, which will fund its exploration plans. It followed the posting of its maiden JORC resource for the northern portion of its Kallak iron ore deposit.

Independent consultant GeoVista estimated the Kallak North resource to be 131.6 million tonnes grading 28 per cent iron. Those initial resource estimates were based on 800 metres of mineralized strike from a total 3.7 kilometres.

Boss Clive Sinclair-Poulton said the next phase of drilling would cover up to 57,000 metres and include both the north and south parts of the deposit.

(Sourced from www.proactiveinvestors.co.uk)