Beowulf took a 14.1% stake in Balkan-focused explorer Vardar Minerals late in 2018, later increasing its interest to 37.6%. Beowulf said Tuesday that Vardar had confirmed extensive lead-zinc-silver mineralisation at its Wolf Mountain target in northern Kosovo.

"Drilling and trenching results have confirmed extensive mineralisation over an area of 800 metres in length and 400 metres in width in the northern part of Wolf Mountain, with significant potential for high-grade feeder structures," said Beowulf.

Vardar drilled 14 holes totalling 1,609 metres. Highlights included 14.1m at 10g/silver, 1.2% lead, 0.36% zinc, and 20.9m at 1.4% zinc.

Drilling showed that mineralisation was more complex than initially assumed, Beowulf said.

John Meyer from investment firm SP Angel said the drilling results were "interesting but appear insufficient to support mining at this stage. We hope a higher grade zone may be identified on further drilling to support sufficient tonnage for a development decision."

Wolf Mountain is located 6 kilometres from the Stan Terg lead-zinc-silver mine, which dates back to the 1930s and which - according to Beowulf - is estimated to have produced 34 million tonnes at 3.45 per cent lead, 2.3 per cent zinc and 80 g/t silver.