Drilling Report

RNS Number : 9707F

Berkeley Resources Limited

22 January 2010

 



22 January 2010

BERKELEY RESOURCES LIMITED

HIGHLY ENCOURAGING CONFIRMATORY DRILLING RESULTS

AT THE SALAMANCA URANIUM PROJECT

Berkeley Resources Ltd is pleased to provide further results from the confirmatory diamond drilling program on the Salamanca Uranium Project. 

The strong correlation between results from these first 29 holes and the historic exploration data for the Mina D, Sageras and Alameda deposits provides a high level of confidence about conversion of Berkeley's exploration targets for the Project into JORC compliant resource estimates. 

Additionally, the intersection of previously unknown mineralisation at depth illustrates the excellent potential of the Project to add substantial resources.  

Berkeley has completed and calculated e-grade estimates for 29 diamond drill holes of a campaign of 60 holes at the Mina D, Sageras and Alameda deposits. The campaign is designed to validate historical drill hole data for the deposits, allowing estimation of JORC compliant resources. Berkeley has previously published exploration targets for these deposits totaling 28-34Mt of ore at a grade of 440-540ppm U3O8. Significant results include:

Deposit	Hole ID	From (m)	To (m)	Interval (m)	eU3O8 (ppm)
Alameda	ASD-001	3.1	6.3	3.2	5,904
Alameda	ASD-002	3.8	51.3	47.5	2,120
Alameda	ASD-003	6.2	33	26.7	495
Alameda	ASD-003	44.2	80.9	36.8	539
Mina D	MDD-003	45.7	76.9	31.2	446
Mina D	MDD-007	43.7	51.6	7.8	3,104
Mina D	MDD-011	46.4	56.3	9.9	1,579
Sageras	SGD-001	4.1	31.6	27.5	707
Sageras	SGD-002	43.6	65.4	21.9	587
Sageras	SGD-003	19.7	69.2	49.5	1,225
Sageras	SGD-007	33.3	100	66.7	391
Sageras	SGD-009	5.2	43.6	38.4	848
Sageras	SGD-010	2.2	38	35.8	508

Table 1 - Significant intersections from drilling to date

Berkeley presently has 4 diamond drill rigs working. Following conclusion of the confirmatory drilling campaign in February, estimations of JORC compliant resources will be completed. Reverse circulation drilling campaigns are also planned to commence shortly, to upgrade the JORC resources and further test the lateral and depth extensions of the deposits.

Berkeley's Managing Director, Ian Stalker, commented on the results: 

"We are well on the way to generating substantial additional JORC compliant resources at our Salamanca Uranium Project in the current quarter. This will be a major step in fast tracking our Feasibility Study on the Project, aiming at a projected production level of 2.1mlbs U308 per year in the near term. Equally important is the growing knowledge of the outstanding exploration potential in the Project area, an example of which is the section 700020E within the Sageras deposit, where mineralisation extends substantially below the limit of historical drilling".

Enquiries -    Managing Director:          Ian Stalker    Tel: [phone]

                     RBC Capital Markets:     Martin Eales    Tel: [phone]

NOTE - The ENUSA deposits have been extensively explored by ENUSA but are not classed as mineral resources. The quantity and grade of Berkeley's exploration targets for the ENUSA deposits are conceptual in nature and based on a review of the available data on the projects to date. As there has been insufficient exploration to estimate a Mineral Resource in accordance with the JORC Code, it is uncertain whether further exploration will result in the determination of a Mineral Resource. 

  Further Information

The Salamanca Uranium Project comprises a cluster of metasedimentary hosted uranium deposits located in the western part of Salamanca Province, Spain. The deposits are near surface accumulations of open pittable uranium all within close proximity to the licensed Quercus uranium ore processing plant.

The current 60 hole diamond drilling campaign commenced in October 2009 and the planned 5,000m will be completed in February. The main objectives of the campaign are to provide geological and assay data to enable the calculation of JORC complaint resources and also to produce representative material for metallurgical testwork.

In conjunction with the diamond drilling campaign, Berkeley is re-probing those historic drill holes in the deposits which remain accessible. To date, over 150 roto percussion holes at Mina D and Sageras have been relogged and the comparison of the Berkeley eU3O8 grades with the historic eU3O8 grades is excellent.

The Mina D Deposit

Fifteen drill holes have been completed at the Mina D deposit. The first 14 holes intersected strong mineralisation consistent with the historic data. Petrography identifies the uranium minerals as pitchblende and coffinite that formed during a late stage, low temperature hydrothermal event. The most significant mineralised intersections are hosted in thick, variably dipping fault breccias within the metasedimentary package. Lesser mineralisation is hosted within an irregular stockwork of narrow high grade veins proximal to these structural zones that often form a halo around the major structures. 

The equivalent U3O8 grades (expressed as eU3O8 ppm) calculated from the down hole radiometric logs are presented in Table 2 at the end of this statement. In addition to the calibration of the gamma probe at the Adelaide and ENUSA facilities, chemical assay (XRF) results from 120, half metre, full core samples at Mina D have confirmed the accuracy of the e-grade calculations. 

The results of the Berkeley drilling placed over the grade contours generated from the historical drilling demonstrate how well both datasets correlate. This comparison provides strong confidence in the historic drill data, upon which Berkeley's exploration targets are based. The results also show the previously untested mineralisation intersected in MDD-010 and MDD-006, below the limits of the previous drilling.

  The Sageras Deposit

To date 10 diamond holes have been completed at the Sageras deposit. The e-grade results from these holes are presented in Table 3. Mineralisation is hosted entirely within metasedimentary rocks very similar to those at Mina D. The uranium minerals were also formed by low temperature, hydrothermal fluids and are hosted within narrow high grade veinlets and fractures that form a stockwork of considerable vertical and lateral extension with localised, higher grade breccias.

The comparison in all holes to the historical drill data is excellent, in particular SGD-001 and the closest roto percussion hole (collars less than 5 metres apart) where the e-grades have a very strong match in width and grade over the entire mineralised section.

In addition to providing confidence in the historic data, the drilling at Sageras demonstrates the strong exploration potential below the limits of the previous drilling. Hole SGD-007 not only confirmed the historic results in the upper parts of the hole, but also intersected significant and previously untested mineralisation to depths of 35 metres below the limits of the previous drilling. RC drilling will target potential extensions indicated by these highly promising results.

Diamond drilling at Sageras is expected to be completed by the middle of February. A subsequent campaign of RC drilling is planned to test the apparent lateral and depth extensions of the deposit and also to provide further data for less densely drilled areas of the deposit. 

Alameda South Deposit

Geologically, the Alameda South deposit is similar to the Sageras and Mina D deposits, with the principal difference being intense contact metamorphism effects on the host lithologies and the intrusion of numerous thin granitic dykes and sills. The uranium mineralisation has a strong structural control being present on fractures and within quartz carbonate sulphide veins.

Drilling at the Alameda South deposit commenced in December and the 4 holes completed to date have targeted the higher grade centre of the deposit. The e-grade results from these holes are listed in Table 4 below, with thick and/or high grade intersections in all holes. Noteworthy is the near surface, high grade mineralisation in ASD-001, with e-grades up to 6,000 ppm only 3 metres below ground surface.

Again, the excellent correlation between the recent drill data and the historic data, both in thickness and in grade, provides a high level of confidence in the historical data. 

The diamond drilling campaign at Alameda South comprises 19 diamond holes and is expected to be completed by the end of February.

  Table 2 - Mina D Drill Hole Intersections

Hole ID	Easting	Northing	Elevation	Depth	From	To	Interval	eU3O8
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(ppm)
**MDD-001	701418	4500972	628.2	71.96	47.2	55.9	8.7	7,949
**MDD-002	701395	4500984	627.7	84.00	57.6	68.8	11.3	906
MDD-003	701389	4500551	660.9	105.00	38.5	39.7	1.2	318
					45.7	76.9	31.2	446
**MDD-004	701178	4500782	655.0	90.00	55.2	63.2	8.1	3,299
**MDD-005	701425	4500674	641.5	65.00	38.8	41.0	2.3	3,250
MDD-006	701388	4500552	661.0	144.00	35.9	37.3	1.4	1,151
					81.6	97.2	15.7	519
					110.7	127.8	17.1	490
					132.4	133.7	1.3	312
MDD-007	701440	4500697	637.0	90.35	43.7	51.6	7.8	3,104
MDD-008	701113	4500816	639.0	103.80	29.6	31.4	1.9	710
					83.9	85.3	1.4	1,234
MDD-009	701442	4500642	641.3	75.00	30.9	38.9	8.0	752
					52.8	54.7	1.8	888
MDD-010	701337	4500584	657.1	150.75	51.1	52.2	1.1	513
					92.1	93.3	1.2	548
					113.3	130.7	17.4	225
					124.4	125.4	1.0	606
					129.7	130.7	1.0	681
MDD-011	701093	4500820	633.5	111.35	46.4	56.3	9.9	1,579
					97.1	98.4	1.3	288
MDD-012	701109	4500873	639.0	89.30	10.6	11.8	1.1	467
					51.2	53.2	2.0	622
					66.4	68.1	1.7	805
					70.9	72.1	1.2	784
MDD-013	701134	4500842	643.2	102.35	90.0	91.8	1.8	294
MDD-014	701060	4500908	642.7	109.60	67.2	68.8	1.6	1,801
					85.8	87.1	1.2	1,157
MDD-015	701274	4500562	657.6	112.75	Hole didn't reach target
** Egrades released Nov 09 now revised using new calibration

Table 3 - Sageras Drill Hole Intersections

Hole ID	Easting	Northing	Elevation	Depth	From	To	Interval	eU3O8
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(ppm)
SGD-001	700357	4502816	645.3	70.10	4.1	31.6	27.5	707
					48.2	53.6	5.4	893
SGD-002	700392	4502851	646.6	100.55	13.0	28.0	15.0	261
					43.6	65.4	21.9	587
SGD-003	700021	4502843	663.5	85.12	19.7	69.2	49.5	1,225
SGD-004	700020	4502892	670.0	100.36	25.9	68.9	43.0	369
					79.3	80.7	1.4	2,458
					89.0	90.3	1.3	577
SGD-005	700440	4502588	650.4	40.07	4.5	17.0	12.5	632
SGD-006	700481	4502628	653.4	64.00	48.2	53.3	5.0	254
SGD-007	700019	4502943	672.9	110.60	33.3	100.0	66.7	391
SGD-008	700411	4502555	655.2	51.65	22.7	24.1	1.3	512
SGD-009	700336	4502795	643.9	51.75	5.2	43.6	38.4	848
SGD-010	700325	4502775	642.7	54.45	2.2	38.0	35.8	508

  Table 4 - Alameda South Drill Hole Intersections

Hole ID	Easting	Northing	Elevation	Depth	From	To	Interval	eU3O8
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(ppm)
ASD-001	689176	4500731	733.4	51.09	3.1	6.3	3.2	5,904
					12.7	14.9	2.1	628
ASD-002	689224	4500722	736.5	62.65	3.8	51.3	47.5	2,120
ASD-003	688980	4500779	729.7	123.10	6.2	33.0	26.7	495
					44.2	81.0	36.8	539
					94.6	110.5	15.8	480
ASD-004	689137	4500896	743.8	80.11	20.0	24.2	4.2	1,433
					32.6	35.8	3.2	502
					44.4	53.3	8.9	451

A full version of this announcement including images can be downloaded from Berkeley's website at www.berkeleyresources.com.au.

  Notes - Grade Estimation from Radiometric Logging

The uranium grades reported in this release are annotated with a sub-prefix "e" because they have been reported as uranium equivalent grades derived from down-hole gamma ray logging results and so they should be regarded as approximations only.  

In general, radiometric logging is the preferred method for estimating the grade and thickness of radioactive uranium zones in drill holes where there are no significant potassium or thorium radioactive minerals. This is primarily because a radiometric log measures a volume that can be up to 50 times larger than a typical drill core and thus gives a more representative sample. In addition a radiometric log can provide a sample every few centimetres up a drill hole thus providing fine detail that is difficult to achieve with chemical assays. However the radiometric probes need to be properly calibrated and various other factors have to be taken into account before an equivalent uranium grade can be derived. 

All the Berkeley drill holes were logged with a GeoVista total count gamma tool. The gamma tool was calibrated in Adelaide at the Department of Water, Land and Biodiversity Conservation in calibration pits constructed under the supervision of CSIRO. The various calibration factors were calculated by David Wilson BSc MSc MAusIMM from 3D Exploration Ltd based in Perth, Western Australia.  

A total of 120, 0.5m full core samples from 3 drill holes in Mina D have been analysed by XRF at ALS Chemex Vancouver and compared directly to the e-grades to check their validity.

Drill hole co-ordinates are in UTM 29 ED 50 Datum grid and have been surveyed using a DGPS. Drill intersections are calculated using a 200 ppm eU3O8 lower cut-off with a minimum 1 metre intersection

The geological units at Mina D are dipping at approximately 30º and the drill holes have been inclined to intersect the mineralisation at right angles so the intervals are approximately true thickness.  At Sageras and Alameda, the mineralisation is horizontal to shallow dipping so the holes have been drilled vertically or angled to intersect the mineralisation at right angles.  

As a check on the down-hole gamma logging data, hand held scintillometer readings were taken along the mineralised sections of the core and averaged out every 50cm. These showed good correlation with the down-hole gamma readings and were used to identify sections which may have been affected by radon. The down-hole gamma results also confirmed visual observations of significant uranium mineralisation in some of the holes.

 

END

 

 

DRLSEISWEFSSEIF