Drilling Results at Villares Salamanca I

RNS Number : 9222B

Berkeley Resources Limited

24 April 2012

 

24 April 2012

BERKELEY RESOURCES LIMITED

SHALLOW, HIGH GRADE URANIUM MINERALISATION INTERSECTED AT THE 100% OWNED VILLARES PROSPECT, SALAMANCA I PROJECT AREA.

·   Intercepts at a cut-off of 200ppm include:

                        - 15m at 1524ppm U₃O₈ (VIR-001) from 1m below surface

                        - 9m at 2363ppm U₃O₈ (VIR-007) from 6m below surface

Berkeley Resources Ltd ('Berkeley' or the 'Company') is pleased to announce encouraging results from initial drilling at the Villares Prospect, located about 7km north of the Retortillo deposit.  This drilling program has focussed on the Zone 19 and Zone 4 areas, and is the first step in identifying additional resources aimed at increasing and extending production from the proposed heap leach operation to be based at Retortillo.

Assays have been received for only nine of the 59 RC holes (total of 3331m) drilled to date.  All assay results are from the Zone 19 area and significant mineralisation was intersected in four of these holes.  Results include: 15m at 1524ppm U₃O₈ from 1m and 3m at 612ppm U₃O₈ from 25m in VIR-001; 2m at 1990ppm U₃O₈ from 9m in VIR-003; 9m at 2363ppm U₃O₈ from 6m in VIR-007 and 4m at 857ppm U₃O₈ from 4m and 3m at 1299ppm U₃O₈ from 19m in VIR-009 (Table 1).  Comparison of down hole radiometric results and assays for these nine drill holes indicates that anomalous mineralisation has been intersected in another 19 of the remaining holes where only radiometric data is available, including 7 holes at the nearby Zone 4 area.

Table 1: Villares Significant Drill Intersections

	Drill Intersections> 200ppm U3O8
Villares	From	To	Metres	Grade
VIR-001	1.0	16.0	15.0	1524
	25.0	28.0	3.0	612
VIR-003	2.0	5.0	3.0	312
	9.0	11.0	2.0	1990
VIR-007	6.0	15.0	9.0	2363
VIR-009	4.0	8.0	4.0	857
	19.0	22.0	3.0	1299

At Zone 19 the assay and radiometric data has outlined mineralisation ranging from 25-75m in width over a strike length of about 300m.  The thickness ranges from 2-15m at depths from surface to 28m.  Uranium mineralisation is hosted within sediments similar to the host rocks found at Retortillo and Santidad.  It is open along strike to the northwest and southeast, where negotiations are continuing with landowners to gain access to undertake further drilling.

The downhole radiometric data from Zona 4 has outlined potential mineralisation up to 100m in width over a strike length of at least 300m. The thickness ranges from 2-25m at a depth of 5-50m depth.  However, whilst most radiometric grades within this 300m long zone appear to be >200ppm U₃O₈, assay data is required to assess their significance.

The Villares Prospect was first identified in the extensive helicopter-borne radiometric and magnetic survey that Berkeley carried out in 2007.  The potential of the airborne radiometric anomalies at Zone 19 and Zone 4 was confirmed with a ground radiometric survey, and by historical results from localised drilling by ENUSA. Villares, and other anomalies in the Salamanca I area, have remained untested since Berkeley halted exploration in 2008, following onset of the GFC.

These initial results confirm the presence of shallow high grade mineralisation at Villares and show the potential to identify additional uranium resources in outcropping and covered areas within proximity to the Retortillo and Santidad deposits.  Further drilling is planned for the Salamanca I Satellites project over the coming months to test additional targets identified.

For further information, visit the Company's web site at www.berkeleyresources.com.au or contact:

Berkeley Resources	Brendan James (MD)	[phone]
RBC Capital Markets	Martin Eales	[phone]
Tavistock Communications	Emily Fenton / Ed Portman	[phone]

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves 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.

Drill Intersections from Villares

							Drill Intersections> 200ppm U3O8
Hole ID	Easting	Northing	Elev.	Depth	Azim	Dip	From	To	Thick	U3O8
	(m)	(m)	(m)	(m)	(º)	(º)	(m)	(m)	(m)	(ppm)
VIR-001	718548	4527388	711.8	58.0	0	-90	1.0	16.0	15.0	1524
							25.0	28.0	3.0	612
VIR-002	718568	4527433	712.0	50.0	0	-90	No significant intersection
VIR-003	718510	4527405	710.7	50.0	0	-90	2.0	5.0	3.0	312
							9.0	11.0	2.0	1990
VIR-004	718528	4527454	709.6	50.0	0	-90	No significant intersection
VIR-005	718527	4527339	715.3	50.0	0	-90	No significant intersection
VIR-006	718478	4527352	715.5	50.0	0	-90	No significant intersection
VIR-007	718638	4527337	714.3	50.0	0	-90	6.0	15.0	9.0	2363
VIR-008	718655	4527384	714.2	50.0	0	-90	No significant intersection
VIR-009	718618	4527304	716.0	46.0	0	-90	4.0	8.0	4.0	857
							19.0	22.0	3.0	1299

 

END

 

 

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