Drilling Report

RNS Number : 1333L

Berkeley Resources Limited

07 August 2013

 



BERKELEY RESOURCES LIMITED 

AIM RELEASE  |  7 AUGUST 2013  s:

·     High grade mineralisation intersected at shallow depths (from 9 metres to a maximum of 84 metres), with thicknesses up to 29 metres at Zona 7, the largest of the Retortillo Satellite Deposits;

·     Drilling extends mineralisation a further 1,200 metres to the southwest of the current resource area;

·     Better intercepts include 29 metres @ 3,391 ppm U3O8, 17 metres @ 1,260 ppm U3O8, 15 metres @ 1,392 ppm U3O8, 25 metres @ 683 ppm U3O8 and 13 metres @ 1,161 ppm U3O8; and

·     Shallow, high grade mineralisation extending well beyond the current resource boundary at Zona 7 is a clear demonstration of the exploration and resource growth potential of the Salamanca Project.

Berkeley Resources Limited ('Berkeley' or 'the Company') is pleased to announce the results of a drilling program at Zona 7, the largest of the Retortillo Satellite Deposits and part of the Company's Salamanca Project in Spain.

Zona 7, which is located within 10 kilometres of the proposed location of the centralised processing plant at Retortillo, currently hosts an Inferred Mineral Resource Estimate ('MRE') of 3.9 million tonnes averaging 414 ppm U₃O₈ for a contained 3.6 million pounds of U₃O₈ (at a 200 ppm U₃O₈ cut-off grade). A recent comprehensive review of all available data for the tenements surrounding the Company's existing resources identified the potential extension of Zona 7 to the southwest as a priority drill target.

Assay results returned from 18 reverse circulation ('RC') drill holes, totalling approximately 1,130 metres, have confirmed that the Zona 7 mineralisation extends a further 1,200 metres to the southwest of the current resource area. The drilling has essentially doubled the strike extent of the mineralised zone and it remains open. Significant high grade intersections have been recorded at shallow depths (from 9 metres to a maximum depth of 84 metres), with thicknesses up to 29 metres. Select intercepts include:

Hole No.	Down Hole Intercept	From Depth (Down Hole)
Z7R-084	29m @ 3,391 ppm U3O8	9m
Z7R-088	17m @ 1,260 ppm U3O8	37m
Z7R-089	4m @ 2,365 ppm U3O8 15m @ 1,392 ppm U3O8 2m @ 2,759 ppm U3O8	39m 63m 82m
Z7R-087	25m @ 683 ppm U3O8	27m
Z7R-090	13m @ 1,161 ppm U3O8	17m
Z7R-085	16m @ 764 ppm U3O8	33m

The Directors consider that the delineation of this zone of shallow, high grade mineralisation extending well beyond the current resource boundary at Zona 7 is a clear demonstration of the exploration and resource growth potential of the Salamanca Project.

The data from the drilling program will now form the basis for an updated MRE for Zona 7 which is anticipated to be completed in the current quarter.

The Company continues to advance the Pre-Feasibility Study ('PFS') for the Salamanca Project. The PFS, which is focussed on the development of only the Retortillo and Alameda deposits, is scheduled for completion in the current quarter. Given the additional existing resources and significant exploration upside associated with Satellite Deposits such as Zona 7, the PFS is considered a base case scenario.

Enquiries:                                          Robert Behets                                  

                                                            Berkeley Resources            

[phone]

Martin Eales

RBC Capital Markets           

[phone]

Introduction

Berkeley's flagship Salamanca Project comprises the Retortillo, Alameda and Gambuta depositsplus a number of other Satellite Deposits located in western Spain.

The Company completed an initial assessment of the integrated development of Retortillo and Alameda in late 2012. The results of this Scoping Study demonstrated the potential of the Salamanca Project to support a significant scale, long life uranium mining operation (refer ASX Announcement dated 29 November 2012).

Following completion of the Scoping Study, Berkeley commenced a Pre-Feasibility Study ('PFS') for the Salamanca Project focussed on the development of Retortillo and Alameda, which is anticipated to be completed in the current quarter.

The Company has also advanced the evaluation of the Gambuta deposit to the Scoping Study stage. Gambuta will ultimately be integrated with Retortillo and Alameda, with a view to potentially increasing the production scale or mine life of the Salamanca Project.

In addition, a comprehensive review of all available data for the regional tenements surrounding the existing resources has been completed, in order to rank and prioritise the identified anomalies/targets, generate new exploration targets and design an exploration work program.

The exploration and resource growth potential in the Retortillo, Alameda and Gambuta regions is considered significant with numerous untested or poorly tested radiometric anomalies, exploration targets under shallow Tertiary cover, and possible extensions to known resources.

Drilling Program

The comprehensive review of all available data for the regional tenements surrounding the existing resources identified the potential extension of Zona 7, the largest Retortillo Satellite Deposit, to the southwest towards Las Carbas as a priority drill target.

Zona 7 is located approximately 10 kilometres to the northwest of the proposed location of the centralised processing plant at Retortillo and currently hosts an Inferred Mineral Resource Estimate ('MRE') of 3.9 million tonnes averaging 414 ppm U₃O₈ for a contained 3.6 million pounds of U₃O₈ at a lower cut-off grade of 200 ppm U₃O₈ (refer ASX June 2012 Quarterly Report).   

An 18 hole, 1,133 metre reverse circulation ('RC') drill program has been carried out on an approximately 400 metre by 100 metre grid to test this priority target. 

Drilling Results

Assay results returned from the 18 RC holes have highlighted that the Zona 7 mineralisation extends a further 1,200 metres to the southwest of the current resource area along the granite-sediment contact. The drilling has essentially doubled the strike extent of the mineralised zone and it remains open to the southwest.

Significant high grade intersections have been recorded at shallow depths (from 9 metres to a maximum depth of 84 metres), with thicknesses up to 29 metres. Select intercepts include:

Hole No.	Down Hole Intercept	From Depth (Down Hole)
Z7R-084	29m @ 3,391 ppm U3O8	9m
Z7R-088	17m @ 1,260 ppm U3O8	37m
Z7R-089	4m @ 2,365 ppm U3O8 15m @ 1,392 ppm U3O8 2 @ 2,759 ppm U3O8	39m 63m 82m
Z7R-087	25m @ 683 ppm U3O8	27m
Z7R-090	13m @ 1,161 ppm U3O8	17m
Z7R-085	16m @ 764 ppm U3O8	33m

All significant intersections returned from the RC drill holes, along with the details of the collar positions, dips, azimuths and depths, are summarised in Appendix A. 

Zona 7 is a vein type deposit hosted in a sequence of fine grained metasediments which are overlain by a conglomerate unit and adjacent to a granite intrusive. The mineralised envelope is generally sub-horizontal and the mineralisation is contained within a stockwork of veins. The uranium mineralisation occurs both within the partially weathered zone and fresh rock.

Whilst the original drilling within the current resource area recorded a number of thick, high grade intersections including 26 metres at 1,356 ppm U₃O₈ and 12 metres at 2,078 ppm U₃O₈, the recent drilling has highlighted a thicker and potentially more continuous zone of high grade mineralisation to the southwest, albeit based on a broad spaced drill pattern.

The data from the drilling program will form the basis for an updated MRE for Zona 7 which is anticipated to be completed in the current quarter.

The current PFS for the Salamanca Project is focussed on the development of only Retortillo and Alameda. Given the additional Mineral Resources and significant exploration upside associated with Satellite Deposits such as Zona 7, which is in close proximity to Retortillo, and Gambuta, the Study is considered as a base case scenario. 

Competent Persons Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Craig Gwatkin, who is a Member of The Australian Institute of Mining and Metallurgy and is an employee of Berkeley Resources Limited.  Mr Gwatkin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Mr Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement

Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

Appendix A:  Summary of Significant RC Drill Intersections - Zona 7

Drill Hole ID	Easting (m)	Northing (m)	Elevation (m)	Azimuth (o)	Dip (o)	Depth (m)	From (m)	To (m)	Interval (m)	U3O8 ppm
Z7R-076	714469	4528008	761.2	360	-90	61	29	31	2	913
Z7R-077	714376	4528058	757.7	360	-90	60	26	27	1	1,662
Z7R-078	714424	4528030	759.5	360	-90	60	No Significant Intersection
Z7R-079	714502	4527976	764.1	360	-90	60	No Significant Intersection
Z7R-080	714311	4528091	755.5	360	-90	67	35	42	7	319
							52	54	2	252
Z7R-081	714338	4528075	756.3	360	-90	60	11	14	3	261
							17	18	1	551
							23	25	2	480
							33	36	3	479
							40	42	2	274
Z7R-082	714191	4527708	756.4	360	-90	70	17	18	1	283
							22	44	22	259
							47	50	3	316
							59	61	2	230
Z7R-083	714266	4527652	759.0	360	-90	60	21	28	7	416
							54	55	1	232
							57	58	1	233
Z7R-084	714069	4527779	750.3	360	-90	64	9	38	29	3,391
Z7R-085	714097	4527743	752.4	360	-90	60	10	11	1	228
							33	49	16	764
Z7R-086	713765	4527482	756.9	360	-90	58	28	29	1	260
Z7R-087	713869	4527414	757.7	360	-90	60	27	52	25	683
Z7R-088	714007	4527345	757.4	360	-90	64	12	13	1	279
							18	25	7	560
							29	32	3	688
							37	54	17	1260
Z7R-089	714066	4527316	763.5	360	-90	94	39	43	4	2,365
							55	58	3	583
							63	78	15	1,392
							82	84	2	2,759
Z7R-090	714000	4527127	762.0	360	-90	56	17	30	13	1,161
Z7R-091	714139	4527279	773.6	360	-90	60	No Significant Intersection
Z7R-092	713652	4527314	764.5	360	-90	55	No Significant Intersection
Z7R-093	713805	4527265	761.8	360	-90	60	31	35	4	599
							38	42	4	836

Notes:

·     Co-ordinates are in UTM Grid (ED1950 Zone 29N) and have been measured by a DGPS (+/- 1m accuracy)

·     RC drill samples are collected over one metre (1m) intervals using representative sampling techniques

·     Drill intersections are calculated using a 200 ppm U₃O₈ cut-off, no upper cut and may include up to 2 metres of internal waste

·     Sample preparation was completed by ALS Chemex laboratory in Sevilla, Spain, with the sample analysis of U by XRF press powder completed by ALS Chemex in Vancouver, Canada

·     Quality control standards, blacks and duplicates are routinely included with all drill samples prior to submission to the laboratory where further laboratory control standards are added

·   The mineralisation is hosted by metasediment, and is interpreted to be flat lying; thus the reported intervals approximate true widths

 

END

 

 

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