Drilling Results

RNS Number : 3581P

Berkeley Resources Limited

18 August 2014

 



BERKELEY RESOURCES LIMITED 

AIM RELEASE  |  18 AUGUST 2014 sected at shallow depths (from surface to a maximum of 73 metres), with thicknesses up to 25 metres at Zona 7, the largest of the Retortillo Satellite Deposits;

·     Outstanding intercepts from the initial 16 reverse circulation drill holes include:

Ø 21 metres @ 3,101 ppm U₃O₈ 

Ø 25 metres @ 2,005 ppm U₃O₈

Ø 21 metres @ 1,535 ppm U₃O₈

Ø 17 metres @ 1,517 ppm U₃O₈ 

Ø 16 metres @ 1,014 ppm U₃O₈

·     Initial results from the 2014 drilling program at Zona 7 confirm continuity of the mineralised zone extending well beyond the current resource boundary, and highlight the significant exploration and resource growth potential of the broader Salamanca Project.

Berkeley Resources Limited ('Berkeley' or 'the Company') is pleased to announce the first set of results from the 2014 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). The results of a drilling program conducted in 2013 revealed that the Zona 7 mineralisation extends a further 1,200 metres to the southwest of the current resource area. Significant shallow, high grade intersections were recorded and the strike extent of the mineralised zone was essentially doubled.

The 2014 drilling program, comprising 38 reverse circulation ('RC') holes for 2,750 metres and three diamond holes for 300 metres, is aimed at infilling the zone of mineralisation delineated by the prior year drilling and extending it further along strike. The current program, which is nearing completion, has been designed to close the broadly spaced 2013 drill pattern down to a notional 100 metre by 100 metre grid to facilitate the estimation of a revised Inferred MRE for Zona 7.

Assay results returned from an initial 16 infill RC holes (reported herein) have shown that there is good continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes. Significant high grade intersections have been recorded at shallow depths (from surface to a maximum depth of 73 metres), with thicknesses up to 25 metres.

Select intercepts include:

Hole No.	Down Hole Intercept	From Depth (Down Hole)
Z7R-102	21m @ 3,101 ppm U3O8	5m
Z7R-101	25m @ 2,005 ppm U3O8 17m @ 1,517 ppm U3O8	11m 50m
Z7R-104	21m @ 1,535 ppm U3O8 10m @ 501 ppm U3O8	2m 26m
Z7R-096	16m @ 1,014 ppm U3O8	5m
Z7R-103	14m @ 891 ppm U3O8	7m
Z7R-105	11m @ 1,087 ppm U3O8 14m @ 543 ppm U3O8	17m 31m
Z7R-106	7m @ 845 ppm U3O8 13m @ 530 ppm U3O8	13m 29m
Z7R-095	10m @ 575 ppm U3O8	Surface

The data obtained from both the 2013 and 2014 drilling programs will form the basis for an upgraded MRE for Zona 7, anticipated to be completed in the December quarter of 2014.

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

Enquiries:                                          Robert Behets                                  

                                                                        Berkeley Resources            

[phone]

John Prior / James Black - Nomad & Broker

Numis Securities

[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 a Pre-Feasibility Study ('PFS') for the integrated development of Retortillo and Alameda in late 2013. The results of this PFS demonstrated the potential of the Salamanca Project to support a significant scale, long life uranium mining operation (refer ASX Announcement dated 26 September 2013). Following completion of the PFS, Berkeley has commenced a Definitive Feasibility Study ('DFS') for the Project.

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, 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. 

A 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, as a priority drill target. Drilling of this target in 2013, which resulted in the delineation of a shallow, high grade zone of mineralisation extending well beyond the current resource boundary at Zona 7, provided a clear demonstration of the potential upside of the Salamanca Project.

2014 Drilling Program - Zona 7

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 dated 31 July 2012).  

The potential extension of Zona 7 to the southwest towards Las Carbas was identified as a priority drill target following a review of all available data for the regional tenements surrounding the existing resources. An 18 hole, 1,133 metre reverse circulation ('RC') drill program was subsequently completed in mid-2013 to test this priority target. 

Assay results returned from this drilling program in August 2013 confirmed that the Zona 7 mineralisation extends a further 1,200 metres to the southwest of the current resource area. The drilling, which was carried out on an approximately 400 metre by 100 metre grid, essentially doubled the strike extent of the mineralised zone and it remains open.

Significant high grade intersections were recorded at shallow depths (from 9 metres to a maximum depth of 84 metres), with thicknesses up to 29 metres. Better intercepts included 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 (refer ASX announcement dated 7 August 2013).

The 2014 drilling program at Zona 7, which comprises 38 RC holes for approximately 2,750 metres and 3 diamond core ('DD') holes for approximately 300 metres, is aimed at infilling the zone of mineralisation defined by the 2013 drilling and extending it further along strike. The program has been designed to close the broadly spaced 2013 drill pattern down to a notional 100 metre by 100 metre grid to facilitate the estimation of a revised Inferred Mineral Resource for the prospect.

The RC drilling component of the 2014 program was recently completed, and the DD drilling will be concluded in mid-September.

The data obtained from both the 2013 and 2014 drilling programs will form the basis for an upgraded Inferred Mineral Resource for Zona 7, anticipated to be completed in the December quarter of 2014.

Drilling Results

Assay results returned from 16 RC drill holes, representing the initial set of results from the 2014 drilling program at Zona 7, are reported herein. All of the holes in this report have been drilled on infill section lines within the new area of mineralisation extending beyond the current Zona 7 resource boundary.

The mineralisation intersected in the new infill holes has shown good continuity of both thickness and grade exists between the previous broader spaced drill holes within the Zona 7 extension. Significant high grade intersections have been recorded at shallow depths (from surface metres to a maximum depth of 73 metres), with thicknesses up to 25 metres. Select intercepts include:

Hole No.	Down Hole Intercept	From Depth (Down Hole)
Z7R-102	21m @ 3,101 ppm U3O8	5m
Z7R-101	25m @ 2,005 ppm U3O8 17m @ 1,517 ppm U3O8	11m 50m
Z7R-104	21m @ 1,535 ppm U3O8 10m @ 501 ppm U3O8	2m 26m
Z7R-096	16m @ 1,014 ppm U3O8	5m
Z7R-103	14m @ 891 ppm U3O8	7m
Z7R-105	11m @ 1,087 ppm U3O8 14m @ 543 ppm U3O8	17m 31m
Z7R-106	7m @ 845 ppm U3O8 13m @ 530 ppm U3O8	13m 29m
Z7R-095	10m @ 575 ppm U3O8	Surface

All significant intersections returned from the new drill holes, along with the details of the collar positions, drilling orientations and depths, are summarised in Appendix A.

Geological Setting

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.

Competent Persons Statement

The information in this announcement that relates to the new 2014 Exploration Results is based on information compiled by Robert Behets, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr. Behets is a holder of shares, options and performance rights in, and is a director of Berkeley Resources Limited. Mr Behets 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Behets consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this Report that relates to the 2013 Exploration Results (refer ASX announcement 7 August 2013) and Mineral Resources (refer ASX June 2012 Quarterly Report dated 31 July 2012) is based on information compiled by Craig Gwatkin, who is a Member of The Australasian Institute of Mining and Metallurgy and was an employee of Berkeley Resources Limited at the time of initial disclosure. 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. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The information in this Report that relates to the Pre-Feasibility Study (refer ASX announcement dated 26 September 2013) is based on information compiled by Neil Senior of SENET (Pty) Ltd. Mr. Senior is a Fellow of The South African Institute of Mining and Metallurgy and 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. Senior consents to the inclusion in this Report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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 (200 ppm U₃O₈ cut-off)

Drill Hole ID	Easting (m)	Northing (m)	Elevation (m)	Azimuth (o)	Dip (o)	Depth (m)		From (m)	To (m)	Interval (m)	U3O8 ppm
Z7R-094	714101	4527850	749.6	360	-90	53		14	23	9	382
							incl.	21	22	1	1,087
								27	30	3	233
Z7R-095	714083	4527815	750.5	360	-90	55		0	10	10	575
							incl.	7	10	3	992
								16	19	3	454
								25	30	5	349
								36	42	6	310
								45	46	1	348
Z7R-096	714191	4527807	752.1	360	-90	64		5	21	16	1,014
							incl.	6	7	1	1,993
							incl.	16	19	3	2,961
Z7R-097	714282	4527766	756.4	360	-90	64		9	12	3	201
								17	18	1	620
								30	31	1	213
Z7R-098	714367	4527721	762.7	360	-90	61		24	25	1	744
Z7R-099	714279	4527542	768.9	360	-90	58		No Significant Intercepts
Z7R-100	714194	4527586	765.5	360	-90	55		No Significant Intercepts
Z7R-101*	714098	4527636	754.8	360	-90	79		11	36	25	2,005
							incl.	12	13	1	8,784
							incl.	16	19	3	4,095
							incl.	23	25	2	5,594
								50	67	17	1,517
							incl.	52	53	1	4,598
							incl.	60	61	1	13,735
								70	73	3	764
Z7R-102	714013	4527682	750.0	360	-90	61		5	26	21	3,101
							incl.	18	22	4	12,940
								30	31	1	312
Z7R-103	714036	4527728	749.7	360	-90	61		7	21	14	891
							incl.	11	13	2	1,441
							incl.	16	17	1	2,806
							incl.	19	20	1	2,382
								32	33	1	641
Z7R-104	713962	4527594	751.8	360	-90	64		2	23	21	1,535
							incl.	3	7	4	3,795
							incl.	8	15	7	2,009
								26	36	10	501
							incl.	31	32	1	1,827
								39	43	4	304
								46	52	6	637
							incl.	50	51	1	1,309
Z7R-105	714055	4527548	754.3	360	-90	67		17	28	11	1,087
							incl.	19	22	3	2,312
							incl.	23	24	1	1,456
								31	45	14	543
								50	53	3	200
Z7R-106	713919	4527504	754.9	360	-90	61		13	20	7	845
							incl.	16	17	1	2,093
								29	42	13	530
							incl.	30	31	1	1,017
							incl.	40	41	1	1,792
Z7R-107	713965	4527459	755.2	360	-90	76		24	27	3	243
								40	50	10	368
								53	57	4	221
								61	66	5	419
Z7R-108	714143	4527501	761.9	360	-90	85		61	65	4	471
								68	72	4	666
							incl.	71	72	1	2,069
Z7R-109	714094	4527414	764.2	360	-90	73		30	31	1	362
								36	38	2	269

* Redrilled after original hole was abandoned at 35m

Appendix B: JORC Code, 2012 Edition - Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Reverse circulation (RC) drill samples are collected over one metre (1m) intervals and split on site using two riffle splitters in cascade to provide an approximately 3-5kg sample. In rare cases, wet samples are split using a cone and quarter method. Field tests show that both methods produce representative samples.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Standards and blanks are inserted into the sample stream to assess the accuracy, precision and methodology of the external laboratories used. In addition, field duplicate samples are inserted to assess the variability of the uranium mineralisation. Approximately 15-20% of all samples relate to quality control. In addition, the laboratories undertake their own duplicate sampling as part of their internal QA/QC processes. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. Drill hole collar locations are surveyed by qualified surveyors (Cubica Ingeniería Metrica S.L) using standard differential GPS (DGPS) equipment achieving sub decimetre accuracy in horizontal and vertical position. Down-hole surveys are undertaken using a Geovista down-hole deviation probe. Measurements are taken every 1cm down hole and averaged every 10m. No strongly magnetic rocks are present within the deposit which may affect magnetic based readings.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	RC drill samples are collected over 1m intervals and split on site using two riffle splitters in cascade to provide an approximate 3-5kg sample. In rare cases, wet samples are split using a cone and quarter method. Scintillometer measurements are taken on all samples and this data is then used to select the samples to be sent to external laboratories for sample preparation and analysis. Indicative mineralised intervals are determined from this data and the sampling extended up and down hole by at least 2-5m. Samples are further split in the core shed using a riffle splitter such that 0.7-1kg samples are sent to ALS laboratories for preparation (Selville, Spain) and analysis (Loughrea, Ireland and Vancouver, Canada). Samples are dried, fine crushed down to 70% below 2mm, split to obtain 250g and pulverised with at least 85% of the sample passing 75µm. 10g of sample is used for uranium analysis by pressed powder X-ray fluorescence (XRF) method.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Drilling was by the RC method drilling using a 140mm diameter face sampling hammer.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	RC drill samples are collected over 1m intervals through a cyclone. Plastic sample bags are strapped to the cyclone to maximise sample recovery. Individual sample bags are not weighed to assess sample recovery but a visual inspection is made by the Company geologist to ensure all samples are of approximately equivalent size.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	The RC drilling rigs utilised suitably sized compressors to ensure dry samples where possible. Plastic sample bags are strapped to the cyclone to maximise sample recovery. Sample logs record whether the sample is dry, moist or wet.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	There is no known relationship between sample recovery and grade. The RC sample recoveries are of an acceptable level and no bias is expected from any sample losses.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Geological logging of RC chip samples includes recording descriptions of lithology, weathering, alteration and mineralisation. A scintillometer reading of counts per second (cps) is recorded for each 1m sample (quantitative).
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Geological logging is qualitative in nature. RC samples and chip trays are photographed.
	The total length and percentage of the relevant intersections logged.	All RC drill holes are logged in full by Company geologists.
Sub-sampling techniques	If core, whether cut or sawn and whether quarter, half or all core taken.	Not Applicable - RC drilling only.
and sample preparation	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	RC drill samples are collected at 1m intervals. RC intervals are sampled by splitting dry samples in the field to 3-5kg using two riffle splitters in cascade and further split in the core shed to 0.7-1kg using a riffle splitter. Where samples are wet they are dried prior to spitting. In rare cases, wet samples are split using a cone and quarter method.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Samples are sent to ALS laboratories for preparation and analysis. Samples are dried, fine crushed down to 70% below 2mm, split to obtain 250g and pulverised with at least 85% of the sample passing 75µm. 10g of sample is used for uranium analysis by pressed powder XRF method. This is considered appropriate for this style of uranium mineralisation.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Previous field tests have determined that the sample size and method of sampling produce representative RC samples. QA/QC procedures involve the use of standards and blanks which are inserted into sample batches at a frequency of approximately 15%.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Duplicate splits of RC samples are taken every 10m down hole within the sampled intervals. The results from these duplicates show acceptable repeatability.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The uranium is typically very fine grained. Previous test work carried out by Berkeley using different sample sizes has demonstrated that the selected sample size is appropriate.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Uranium analysis by pressed powder XRF method. This analytical method reports total uranium content.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	Down-hole gamma logging is undertaken for all probe accessible drill holes to provide eU3O8 ("equivalent" U3O8 grade) data however, it is not currently considered of sufficient quality to replace chemical assay data for the purposes of reporting drilling results at Zona 7. The drill intersections reported in this release are calculated using only chemical assay data.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Standards, blanks and duplicates are regularly inserted into the sample stream with approximately 15-20% of all samples related to quality control. The external laboratories used also maintain their own process of QA/QC utilising standards, repeats and duplicates. Review of the Berkeley quality control samples, as well as the external laboratory quality QA/QC reports, has shown no sample preparation issues, acceptable levels of accuracy and precision and no bias in the analytical datasets.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Reported significant intersections have been checked and verified by Senior Geological management.
	The use of twinned holes.	No twinned holes were drilled in the current RC drilling program.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All primary data is recorded in templates designed by Berkeley. Assay data from the external laboratory is received in spreadsheets and downloaded directly into an Access Database managed by the Company. Data is entered into controlled excel templates for validation. The validated data is then loaded into a password secured relational database by a designated Company geologist. Daily backups of all digital data are undertaken. These procedures are documented in the Berkeley Technical Procedures and Protocols manual.
	Discuss any adjustment to assay data.	Uranium (ppm) assays received from the external laboratory are converted to U3O8 (ppm) using the stoichiometric factor of 1.179.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill hole collar locations are surveyed by qualified surveyors (Cubica Ingeniería Metrica S.L) using standard differential GPS (DGPS) equipment achieving sub decimetre accuracy in horizontal and vertical position. Down-hole surveys are undertaken using a Geovista down-hole deviation probe. Measurements are taken every 1cm down hole and averaged every 10m. No strongly magnetic rocks are present within the deposit which may affect magnetic based readings.
	Specification of the grid system used.	The grid system is UTM ED1950 Zone 29N.
	Quality and adequacy of topographic control.	Topographic control is based on a digital terrain model with sub metric accuracy sourced from the Spanish Geographical Institute (Instituto Geográfico Nacional) and is verified through detailed drill hole collar surveys by a qualified surveyor using a DGPS.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	This RC drilling program has been designed to close the broadly spaced 2013 drill pattern down to a notional 100m by 100m grid.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The data spacing (notionally 100m by 100m) is considered sufficient to imply but not verify geological and grade continuity, and allow the estimation of Inferred Mineral Resources.
	Whether sample compositing has been applied.	No compositing of RC samples in the field has been undertaken.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	The mineralised zone strikes northeast-southwest and is interpreted to be sub-horizontal due to post mineralisation supergene processes.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All RC drill holes are vertical. Due to the interpreted flat lying nature of the mineralisation, no sampling bias is considered to have been introduced by the orientation of the drilling.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by Berkeley. Samples are transported from the drill site by Company vehicle to a sample preparation shed where samples are prepared for dispatch. Samples are sent directly from the sample preparation shed to the laboratory using a certified courier for radioactive materials. No other freight is transported with the samples which are taken directly from the Berkeley facility to the external laboratory. Sample submission forms are sent in paper form with the samples as well as electronically to the laboratory. Reconciliation of samples occurs prior to commencement of sample preparation for assaying.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Sampling techniques and procedures, as well as QA/QC data, are reviewed internally an ongoing basis. Mr Malcolm Titley (Geology Consultant, Maja Mining Limited) has independently reviewed the sampling techniques, procedures and data. He has undertaken a site visit to review and inspect the application of procedures. These reviews have concluded that the sampling and analytical results have resulted in data suitable for incorporation into Mineral Resource estimation.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation		Commentary
Mineral tenement and land tenure status		Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The Zona 7 Prospect lies on the Alisos Investigation Permit PI 6605-20 which is 100% owned by Minera de Río Alagón, a wholly owned subsidiary of Berkeley Resources Limited. The Alisos Investigation Permit is currently in the first year of its second three year term and will expire on 4 January 2017. No historical sites, wilderness or national parks are located within the Permit.
		The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Tenure in the form of an Investigation Permit has been granted and is considered secure. There are no known impediments to obtaining a licence to operate in this area.
Exploration done by other parties		Acknowledgment and appraisal of exploration by other parties.	Previous exploration at Zona 7 was completed initially by Junta de Energía Nuclear (JEN) and then Empresa Nacional de Uranio S.A. (ENUSA), both Spanish state run companies, from the late 1950's through to the mid 1980's. Work completed by JEN and ENUSA included mapping, radiometric surveys, trenching and diamond (DD) and open-hole (OH) drilling. A detailed data assessment and verification of the historic data supplied by ENUSA has been undertaken. No significant issues with the data were detected.
Geology		Deposit type, geological setting and style of mineralisation.	The uranium mineralisation is hosted within Ordovician metasediments adjacent to granite. The mineralisation typically occurs as a sub-horizontal layer occurring between surface and 90m depth. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling associated with brittle deformation. Uraninite and coffinite are the primary uranium minerals. Secondary uranium mineralisation is developed in "supergene-like" tabular zones corresponding to the depth of weathering. Most of the mineralisation is hosted within partially weathered and unweathered metasediment. This deposit falls into the category defined by the International Atomic Energy Association (IAEA) as Vein Type, Sub Type Iberian Type.
Drill hole Information		A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.	Details of all reported drill holes are provided in Appendix A of this release.
		If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	All of this information is Material and has been included in Appendix A of this release.
Data aggregation methods		In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	Reported drill intersections are based on chemical assay data and are calculated using a 200ppm U3O8 cut-off, no high grade cut, and may include up to 2m of internal dilution.
		Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	High grade intervals that are internal to broader zones of uranium mineralisation are reported as included intervals.
		The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values are used.
Relationship between mineralisation widths and intercept lengths		These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	All drilling is planned in such a way as to intersect expected mineralisation in a perpendicular manner. The uranium mineralisation is interpreted to be flat lying so all of the RC holes have been drilled vertically. The reported down-hole intervals are therefore interpreted to approximate true widths however, given the early stage nature of the work, confidence in the orientation of the mineralisation is low.
		If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	The reported down-hole intervals are interpreted to approximate true widths however, given the early stage nature of the work, confidence in the orientation of the mineralisation is low.
Diagrams		Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Appropriate diagrams, including a drill plan and cross sections, are included in the main body of this release.
Balanced reporting		Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results are reported in Appendix A of this release.
Other substantive exploration data		Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Down-hole gamma logging of all holes is undertaken to provide eU3O8 data. Prior comparisons of eU3O8 data with chemical assay data have shown that on average eU3O8 tends to underestimate at higher grades (>600ppm) and overestimate at lower grades (<100ppm). Accordingly, the eU3O8 data is not considered of sufficient quality to replace chemical assay data for the purposes of reporting drilling results. The drill intersections reported in this release are calculated using only chemical assay data.
Further work		The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).	Further work planned for the Zona 7 Prospect includes detailed geological interpretation and an update of the Mineral Resource estimate incorporating the results of the 2013 and 2014 drilling programs. Following the update of the Mineral Resource estimate, additional drilling will be focused on extending the mineralisation further along strike and infilling the current grid to facilitate future upgrading of the resource classification.
		Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	These are shown in the main body of this release.

 

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