LONDON (Alliance News) - Berkeley Energy Ltd on Wednesday said it has upgraded the mineral resource estimate for the Zona 7 deposit at the Salamanca uranium project in western Spain.
Berkeley said the infill drill programme for the project has been completed, with an increase in resource pounds and with nearly 90% of the resource upgraded into the indicated category.
The inclusion of Zona 7 in the resource estimate should "fundamentally improve" the economics of the Salamanca project, Berkeley said, even at current uranium prices, by increasing the mine life, production rates and reducing operating costs.
The total resource estimate for Zona 7 is now at 31.4 million pounds of uranium, which has increased the overall Salamanca project estimate to 89.5 million pounds.
"With high grades, good recoveries and the potential for some of the lowest costs in the industry the Salamanca project is rapidly emerging as one of the best new projects around," said Berkeley Managing Director Paul Atherley.
Shares in Berkeley Energy were up 7.3% to 22.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Berkeley Eng (BKY)