LONDON (Alliance News) - Berkeley Energy Ltd on Friday said it expects to receive an updated mineral resource for the Salamanca project to incorporate the Zona 7 deposit before the end of September which should significantly improve the economics of the project.
The company, formerly known as Berkeley Resources Ltd, is solely focused on the Salamanca uranium project in Western Spain, and in its most recently completed financial year focused on bringing the Zona 7 deposit into the project and mineral resource, which given its size, high-grade and potentially low extraction cost has the potential to transform the economics of the project.
An infill drilling programme to upgrade the resource to the Indicated category was completed in August 2015 and the final results, along with the updated mineral resource estimate, are expected to be reported before the end of September.
"Given the very positive impact Zona 7 is expected to have on the project's overall economics, the board has decided to push ahead with the permitting required and to rapidly incorporate this resource into the overall development plans," said Berkeley.
The company reported Friday a AUD7.9 million pretax loss in the year ended June 30, slightly wider than the AUD7.5 million loss booked a year earlier, as revenue halved to AUD588,829 from AUD1.2 million.
At the end of June, the company reported a cash balance of AUD13.4 million with no debt.
Berkeley shares were up 1.9% to 20.88 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Berkeley Eng (BKY)