Berkeley Eng Regulatory News (BKY)

BERKELEY ENERGIA LIMITED

NEWS RELEASE | 27 September 2016 | AIM/ASX: BKY

Amec Foster Wheeler appointed to Salamanca mine

Berkeley Energia is pleased to announce that it has appointed MDM Technical Africa (Pty) Ltd, a wholly owned subsidiary of the Amec Foster Wheeler Group (LSE: AMFW) to undertake the Front End Engineering and Design (FEED) for the Salamanca mine.

The FEED is the execution phase of the project during which the overall engineering and process design is translated into equipment procurement packages and awards to specialist subcontractors.

The FTSE 250 listed Amec Foster Wheeler is a leading global engineering group with extensive experience in delivering uranium mining and processing solutions.

Amec Foster Wheeler's FEED will be based on Berkeley's completed Definitive Feasibility Study with input from a number of Spain's most reputable engineering groups including Madrid IBX-35 listed companies Iberdrola (BME: IBE) and OHL (BME: OHL).

Initial construction has commenced with re-routing of the existing electrical power line to service the project and a four kilometre realignment of an existing road to allow for the commencement of mining of the Retortillo pit. The Salamanca mine is scheduled to start production in 2018.

Managing Director Paul Atherley commented: 

"Amec Foster Wheeler will play a crucial role in the successful development of the low cost Salamanca mine, which is the only uranium mine in the world currently in construction."

For further information please contact:

Further background:

Berkeley Energia's Salamanca project

The Salamanca project, located in Western Spain, is the only major uranium mine in the world currently in construction. The independent DFS published in July 2016 by MDM Engineering (part of AMEC Foster Wheeler) demonstrates that the project, with a NPV of over US$530m, will produce 4.4m lbs per annum of U3O8 at C1 cash costs of US$15.39/lb, making it one if the world's lowest cost and a top ten global producer of uranium, supplying the world's leading utilities with fuel for base load clean energy. First production is anticipated to commence in 2018.

Berkeley has invested over US$60 million in the Salamanca project to date and has recently commenced infrastructure development.

The investment will be a major boost for the local community generating 450 direct jobs and 2000 indirect jobs in a region badly hit by long term unemployment.

Further information is available on www.berkeleyenergia.com.

Amec Foster Wheeler

Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.

Employing around 36,000 people in more than 55 countries and with 2015 revenues of £5.5 billion, the company operates across the oil and gas industry and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.

Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.

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 website at www.berkeleyenergia.com.

Berkeley Energia Limited (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. 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 Statement

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.