Exploration Programme Targeting Zona 7 Deposits

RNS Number : 0645H

Berkeley Energia Limited

05 June 2017

 

BERKELEY ENERGIA LIMITED

NEWS RELEASE | 5 June 2017 7 Style Deposits

The Company is pleased to announce that it has commenced the next phase of its exploration campaign focussed on discovering additional deposits with similar characteristics to Zona 7, which is located close to the surface and without a strong radiometric anomaly present.

The discovery of the high grade extensions at the Zona 7 deposit in late 2014 transformed the economics of the project and changed the Company's geological model for the region.

In parallel with the ongoing development on site, the Company continues to conduct exploration with the potential to increase the project's production profile or mine life.

Following extensive structural mapping and the interpretation of regional geological structures, two areas totalling 100 km² have been selected for an intensive geochemical sampling programme, that will include 2,500 samples on a 200m x 200m grid.

The programme will incorporate the latest uranium exploration techniques with samples being tested for mobile metal ions using the Ionic Leach™ technique. This highly sensitive technique can detect extremely low levels of uranium and other critical elements and is widely acknowledged to be the most adept at identifying subtle anomalies.

To complement the soil sampling/Ionic Leach™ programme, the Company will also undertake ground radiometric survey readings and radon emissions tests at each of the sample collection points.

Two field crews will be focussed on carrying out the planned exploration activities over the two priority areas during the coming months, with the goal of identifying drill targets.

In addition to this new exploration programme, the Company will continue with exploration below Zona 7, where previous high grade intercepts were found beneath the current defined resource, demonstrating continuity of mineralisation and potential for the resource to increase.

Managing Director Mr Paul Atherley, commented:

"Whilst we continue to progress development on site, we are also focussed on completing targeted exploration programmes aimed at unlocking the potential of our 1,160km² landholding within this heavily mineralised province.

Given the transformational effect the shallow, high grade Zona 7 deposit has had on the project's economics, the focus of our upcoming exploration programme is to look for more of the same using a broad array of modern exploration techniques over two prospective areas."

Berkeley Energia Limited	[phone]
Paul Atherley, Managing Director	[e-mail]
Hugo Schumann, Chief Commercial Officer
Peel Hunt LLP (Joint Broker)	[phone]
Matthew Armitt
Ross Allister
Chris Burrows
WH Ireland Limited (Nominated Adviser)	[phone]
Paul Shackleton
Nick Prowting
Jay Ashfield
Buchanan	[phone]
Bobby Morse, Senior Partner	[e-mail]
Anna Michniewicz, Account Director

About Berkeley Energia:

Berkeley Energia's objective is to be one of the world's lowest cost producers reliably supplying the world's leading utilities with fuel for base load clean energy from the heart of the European Union. Once in production, the mine will be one of the world's biggest producers supplying over four million pounds of uranium concentrate a year, equivalent to approximately 10% of the continent's total requirement.

An independent study published in July 2016 by MDM Engineering (part of AMEC Foster Wheeler Group) reported that the project has an NPV of over US$530 million and will produce 4.4 million pounds of uranium per annum at a cash costs of US$15.39 per pound, making it one of the world's lowest cost and a top ten global producer of uranium.

The mine will rejuvenate a community suffering from lack of investment and badly hit by long-term and high youth unemployment. Last year over 25,000 people left the Castilla y Leon region and in many villages houses stand empty.

Skills training programmes commenced last year and will continue throughout the construction phase to equip locals for the 454 jobs the mine will create once in full production. In addition, it has been estimated that over time the mine will indirectly generate an estimated further 2,295 jobs in the region. Local businesses are being prioritized and the local municipalities and communities will be fully supported throughout the life of the mine.

The EURATOM Supply Agency, the governing body for all nuclear fuel transactions within the European Union, is highly supportive of the project:

"We particularly welcome the emergence and development of a new EU based uranium mining project and believe that it will contribute to the security of supply of natural uranium for the Community users."

The European nuclear trade body Foratom has described nuclear power as indispensable to the EU's aim to decarbonise the economy by more than 80% by 2050."

Spain is currently generating around 20% of its electricity from seven nuclear power plants and is aiming to meet its long term carbon reduction targets with a combination of a nuclear zero carbon base load and renewables.

Competent Persons Statement

The information in this announcement that relates to the Definitive Feasibility Study, Mineral Resources for Zona 7, Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure, Production Targets and Cost Estimation is extracted from the announcement entitled 'Study confirms the Salamanca project as one of the world's lowest cost uranium producers' dated 14 July 2016, which is available to view on Berkeley's Energia Limited (Berkeley) website at www.berkeleyenergia.com.

Berkeley confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Mineral Resources, Ore Reserve Estimate, Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially modified from the original announcements.

The information in the original announcement that relates to the Definitive Feasibility Study is based on, and fairly represents, information compiled or reviewed by Mr. Mr Jeffrey Peter Stevens, a Competent Person who is a Member of The Southern African Institute of Mining & Metallurgy, a 'Recognised Professional Organisation' (RPO) included in a list posted on the ASX website from time to time. Mr. Stevens is employed by MDM Engineering (part of the Amec Foster Wheeler Group). Mr. Stevens has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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'.

The information in the original announcement that relates to the Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure, Production Targets and Cost Estimation is based on, and fairly represents, information compiled or reviewed by Mr. Andrew David Pooley, a Competent Person who is a Member of The Southern African Institute of Mining and Metallurgy', a Recognised Professional Organisation' (RPO) included in a list posted on the ASX website from time to time. Mr. Pooley is employed by Bara Consulting (Pty) Ltd. Mr. Pooley has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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'.

 Forward Looking Statements

Statements regarding plans with respect to Berkeley's mineral properties are forward-looking statements. There can be no assurance that Berkeley's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Berkeley 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 Berkeley's mineral properties.

 

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