Berkeley Eng Regulatory News (BKY)

RNS Number : 7321H

Berkeley Resources Limited

26 February 2010

 

26 February 2010

 

BERKELEY RESOURCES LIMITED

 

BERKELEY DOUBLES RESOURCES TO 52 Mlbs U3O8

 

The Directors of Berkeley are pleased to advise completion of the first stage Mineral Resource Estimates, reported in accordance with the JORC Code (2004), for the Salamanca Uranium Project in Spain. Initial estimates for the Águila Area (previously Mina Fe), and significant additions in the Retortillo Area have doubled Berkeley's total Mineral Resource base to over 52 Mlbs U3O8.

·; Mineral Resources for the Águila Area, which includes the Sageras, Palacios (previously Mina D) and Majuelos deposits, all within 3 kms of the Quercus processing plant, total 22.5 million tonnes at an average grade of 417 ppm for 20.7 Mlbs U3O8. These Mineral Resources include 24% Measured Resources and 26% Indicated Resources as detailed in Table 1.

·; Mineral Resources in the Retortillo Area increased by 33% to a total of 19.9 million tonnes at an average grade of 512 ppm for 22.5 Mlbs U3O8.

·; Total Mineral Resources are now 53.7 million tonnes at 442 ppm for 52.4 Mlbs U3O8, with 31% in the Measured and Indicated categories.

·; Confirmatory drilling at the substantial Alameda deposits (exploration target of 25.5-29 million tonnes @ 450-500 ppm U3O8) is well advanced. It is anticipated that additional Mineral Resources will be reported in accordance with the JORC Code by the end of the current quarter.

 

 

Enquiries - Managing Director: Ian Stalker Tel: +34 608 221 497

RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881

1. MINERAL RESOURCE INVENTORY

 

Berkeley's Mineral Resource Estimates now include three areas: Águila, Retortillo and Gambuta. A detailed breakdown of all deposits, at a 200 ppm U3O8 cut-off, is presented in Table 1. Initial Mineral Resource Estimates reported in accordance with the JORC Code for the fourth area, Alameda, will be completed by the end of the current quarter.

Berkeley's Feasibility Study is focussed initially on the Águila and Alameda areas, with possible extension to the Retortillo area. These three areas form the Salamanca Uranium Project (the "Project").

 

 

NOTE - The Alameda deposits have been extensively explored by ENUSA but are not classed as Mineral Resources. The quantity and grade of Berkeley's exploration targets for the Alameda deposits are conceptual in nature and based on a review of the available data on the projects to date. As there has been insufficient exploration to estimate a Mineral Resource in accordance with the JORC Code, it is uncertain whether further exploration will result in the determination of a Mineral Resource.

 

 

 

 

 Table 1 - MINERAL RESOURCE INVENTORY (200 ppm U3O8 Cut-off)

Deposit	Resource	Tonnes	U3O8	U3O8	U3O8	Category	Estimated
Name	Category	(Mt)	(ppm)	(t)	(Mlbs)	(%)	By 1
	Measured	4.7	380	1,779	3.9	45.6%
	Indicated	2.3	430	977	2.2	25.0%
	Subtotal M+I	7.0	396	2,755	6.1	70.7%
	Inferred	2.8	410	1,143	2.5	29.3%
Sageras 3	Total	9.7	400	3,899	8.6	100.0%	AMC
	Measured	0.9	515	483	1.1	22.7%
	Indicated	2.9	502	1,438	3.2	67.4%
	Subtotal M+I	3.8	505	1,922	4.2	90.1%
	Inferred	0.4	531	211	0.5	9.9%
Palacios North 2, 3	Total	4.2	508	2,133	4.7	100.0%	AMC
Palacios South 2, 3	Inferred	2.2	328	708	1.6	100.0%	BR
Majuelos 3	Inferred	4.9	432	2,111	4.7	100.0%	BR
Majuelos East 3	Inferred	1.6	347	541	1.2	100.0%	BR
	Measured	5.6	403	2,262	5.0	24.1%
	Indicated	5.1	470	2,415	5.3	25.7%
	Subtotal M+I	10.8	435	4,677	10.3	49.8%
	Inferred	11.8	400	4,715	10.4	50.2%
Águila Area 2, 3	Total	22.5	417	9,392	20.7	100.0%
	Indicated	3.8	581	2,208	4.9	37.4%
	Inferred	5.8	637	3,695	8.1	62.6%
Retortillo 5	Total	9.6	615	5,902	13.0	100.0%	MS
	Indicated	1.4	394	552	1.2	29.2%
	Inferred	3.2	417	1,334	2.9	70.8%
Santidad	Total	4.6	410	1,886	4.2	100.0%	MS
Zona 7	Inferred	3.9	414	1,610	3.5	100.0%	BR
Las Carbas	Inferred	0.6	443	262	0.6	100.0%	BR
Cristina	Inferred	0.8	460	363	0.8	100.0%	BR
Caridad	Inferred	0.4	382	165	0.4	100.0%	BR
	Indicated	5.2	531	2,759	6.1	27.1%
	Inferred	14.7	505	7,431	16.4	72.9%
Retortillo Area	Total	19.9	512	10,190	22.5	100.0%
	Measured	5.6	403	2,262	5.0	11.6%
	Indicated	10.3	501	5,174	11.4	26.4%
	Subtotal M+I	16.0	466	7,437	16.4	38.0%
Salamanca	Inferred	26.5	458	12,145	26.8	62.0%
Uranium Project	Total	42.5	461	19,582	43.2	100.0%
Gambuta Area 5	Inferred	11.3	371	4,174	9.2	100.0%	MS
	Measured	5.6	403	2,262	5.0	9.5%
	Indicated	10.3	501	5,174	11.4	21.8%
	Subtotal M+I	16.0	466	7,437	16.4	31.3%
	Inferred	37.7	432	16,319	36.0	68.7%
Berkeley	Total	53.7	442	23,756	52.4	100.0%

1. AMC = AMC Consultants(UK), MS = McDonald Speijers Consultants, BR = Berkeley Resources

2. Águila Area previously referred to as Mina Fe, Palacios deposit previously referred to as Mina D

3. Berkeley has agreed to acquire 90% of the ENUSA State Reserves and any deposits therein by, inter alia, completing a feasibility study and paying €20m to ENUSA. For full details of the Agreement, see Berkeley's announcement dated 10 December 2008

4. All figures are rounded, so differences may occur

5. Previously reported Mineral Resource Estimates

The new and updated Mineral Resource Estimates are based on a combination of chemical and e-grades from historical drilling, supplemented by Berkeley diamond and RC drilling with both chemical and e-grades. The geological models and Mineral Resource Estimates have been developed by a team of in-house and consulting geoscientists following a rigorous program to verify the historical data. This has included the following work:

·; Historical reports, maps and drill logs have been scanned and incorporated into the Berkeley database. Digital historical data provided by ENUSA has been verified from the scanned drill hole logs.

·; Over 1,500 hectares of detailed ground radiometrics (50-100m line spacing) have been completed over the Sageras, Palacios and Alameda deposits.

·; Appraisal and extension of the existing geological mapping has been completed in the Sageras, Palacios and Alameda areas.

·; Issues associated with spatial location of data have been resolved by installing and surveying 15 base stations across the ENUSA project area, permitting transformation parameters to be established between the ENUSA coordinate systems and the national UTM system. Additionally 300 collar locations have been surveyed to assist the process.

·; Historical drill holes have been re-surveyed to reconcile the down hole survey deviation data. Where un-surveyed holes have not been accessible, the average down hole surveys from surrounding holes have been used.

·; Over 150 historical drill holes at Palacios and Sageras have been re-probed and the comparison of Berkeley e-grades with the historical e-grades is excellent.

·; The Berkeley down hole gamma instrument was calibrated at the South Australia Department of Water, Land and Biodiversity Conservation in calibration pits constructed under the supervision of CSIRO.

·; Confirmation drilling has been completed at Sageras and Palacios and all holes have shown good correlation with the surrounding historical drill holes (see announcement dated 22 January 2010 for more details).

·; Three batches of full diamond core samples from the Sageras, Palacios and Alameda South deposits have been dispatched to Chemex in Vancouver for chemical analysis. The results show a good correlation with the e-grades generated from the down hole gamma logging.

·; Independent consultants have reviewed the e-grade calculations, geological models and resource data.

 

2. SALAMANCA URANIUM PROJECT

 

Uranium was first discovered in Salamanca during the 1950's. Production commenced in 1974 at the Fe mine, which grew to become the largest uranium mine in the Iberian Peninsula. The mine closed in 2000 due to low uranium prices and the mining areas have since been restored.

Berkeley's Feasibility Study process for the Salamanca Uranium Project commenced in May 2009, following Cabinet approval of the Co-Operation Agreement between Berkeley and ENUSA. The Study objective is to assess the viability of restarting mining within the Salamanca State Reserves, based on a number of known uranium deposits.

Following successful completion of the Scoping Study, announced in December 2009, the Company has been focused on the estimation of Mineral Resources based on historical exploration targets, as well as acquiring representative samples for a comprehensive program of metallurgical testing. This process has now been completed for the Águila Area, proximal to the Quercus processing plant. Drilling at the Alameda area will be completed shortly with estimation of Mineral Resources expected by the end of March. Final Mineral Resource Estimates for the Definitive Feasibility Study, which are intended to upgrade resource categories, will be available later in 2010 after infill RC drilling and probing of additional ENUSA holes.

 

2.1 Geology

The largest accumulations of uranium within the Project area are hosted in an Upper Proterozoic to Lower Cambrian package of rocks called the Schist Greywacke Complex (SGC). The SGC and associated Hercynian granitic plutons form the basement which is unconformably overlain by continental sediments deposited during the Tertiary Alpine Orogeny. The cover sediments are unmineralised, but uranium mineralisation also occurs in intragranitic veins.

The SGC is affected by the 3 main phases of the Hercynian Orogeny and pre Hercynian deformation has also been recognised. Later Alpine movements rejuvenated earlier Hercynian structures as well as developing new fracture and breccia zones.

The complex was metamorphosed to lower green schist facies during the Hercynian, and well developed contact aureoles and small granitic dykes and sills are common around granite margins.

The deposits are associated with metapelitic sediments which are often carbonaceous and with variable quartz contents. Structural preparation and rock competencies appear to have influenced deposit formation. The official International Atomic Energy Association classification for the metasedimentary hosted deposits is Vein Type - Sub Type Iberian, originally formed by low temperature near surface hydrothermal processes. Variable local weathering effects influence the distribution of mineralisation, the degree of which varies between deposits. Disequilibrium has not been identified as a significant issue.

2.2 Águila Area

The three deposits of the Águila area, Palacios, Majuelos and Sageras, form a continuous zone of mineralisation extending over 5 km from which the bulk of the central Majuelos deposit (formerly Fe) has been mined.

The basement rocks are a steeply dipping structurally complex suite of banded, massive and carbonaceous meta-pelites. A well developed penetrative cleavage occurs throughout and fault and hydraulic breccias with clay, quartz and carbonate infill are common.

Hydrothermal uranium mineralisation occurs as pitchblende and coffinite in two predominant settings:

1. Within breccias and fault zones ranging from 10cm up to 15m thick with regular strike and dips over distances up to 100m. Within these structural zones the mineralisation occurs as veins and fracture coatings generally with a complex internal distribution.

2. Veins from < 0.1cm up to 1cm thick along cleavage and bedding planes and forming a diffuse, extensive stockwork.

 

Strong pervasive weathering and leaching of uranium occurs in the upper 20m. At deeper levels, both iron oxide coatings and sulphides are commonly observed in fractures.

Palacios

The Palacios Deposit (previously know as Mina D) is located within 1 km of the Quercus processing plant and is separated from the Sageras and Majuelos deposits by the Agueda River. The northern area (Palacios North) has been drilled out on a 10m x 10m spacing and Palacios South has been drilled out on a 50m x 50m spacing, therefore the two areas have been estimated separately.

Palacios North

The upper portions of the Palacios North deposit were mined by ENUSA in 3 small open pits during the 1990's. Significant resources remain below the restored open pits and recent drilling by Berkeley has confirmed the thickness and grade of the historical drilling and provided a better understanding of the geology (see ASX announcement of 22 January 2010). Current estimates indicate total Mineral Resources of 4.2 Mt at 508 ppm for a total of 4.7 Mlbs U3O8, with about 90% in the Measured and Indicated categories (see Table 1).

In plan view, the uranium mineralisation occurs as two broad north trending lobes, 600m - 750m in length, separated by a sparsely drilled central corridor up to a few hundred metres in width. The two lobes have mostly been drilled on a 10m x 10m pattern, except for the southern portion of the western zone where the spacing opens up to 20m x 20m and finally to 50m x 50m.

The deposit has been modeled using a drill hole data set of 2,668 drill holes. Most holes are roto-percussion with down hole e-grades. Berkeley's recent 15 hole diamond drilling program covered a series of traverses designed to confirm the historical drilling data. All holes intersected strong mineralisation consistent with the historical data.

Berkeley's geological model is based on interpreted mineralised envelopes which incorporate most +100 ppm U3O8 intersections. In addition, within each envelope a number of zones of more intense mineralisation have been identified, up to 200m to 400m in strike length and scaling down to between 20m and 50m in length.

The resource estimation was undertaken by AMC Consultants (UK) using a base configuration of 5m x 5m x 3m parent cells, and permitting cells to split once in any direction where bounding surfaces are encountered. Horizons of complete and partial oxidation were defined and average bulk density measurements, based on measurements from Berkeley drill core, were assigned to the respective weathering horizons.

Wireframed surfaces of historical open pit voids enabled removal of previously mined blocks within the model. These blocks were assigned a zero grade and a density of 1.8 to represent the restored fill material.

Sample uranium grade statistics were calculated and population characteristics analysed for each of the mineralised zones. High grade capping was applied to four of the zones.

Mineral Resource classifications were determined from confidence levels for criteria such as data density and interpreted grade continuity. Measured Resources were restricted to estimated blocks lying within the internal domains where a minimum number of 20 samples were used to interpolate the grade in the first estimation pass. An Inferred category was assigned to those blocks in the southern parts of the western and eastern areas where the drill spacing was greater than 10m x 10m.

A breakdown of the final resource at a 200 ppm cut-off is shown in Table 1.

An 18 hole RC drilling program is planned to test newly identified potential at depth and the central undrilled corridor between the two mineralised zones as well as infilling the Inferred areas in the southern part of the deposit. It is anticipated that the majority of the Inferred Resource will be upgraded following this program. Re-probing of historical holes is continuing to provide increased confidence in the historical e-grades.

Palacios South

The southern part of the Palacios deposit extends for over 1,200m to the south and has been drilled out on a 50m x 50m grid. The mineralisation occurs in a stacked series of shallow dipping structural zones that become progressively deeper and less continuous southwards beneath Tertiary cover.

Seven separate mineralised zones were identified; all dipping at approximately 15º to the north-west with strike lengths from 200m up to 1,200m. The mineralised zones were wireframed as geologically continuous domains which include significant amounts of low grade material. A density of 2.7 was used based on the average of 146 density measurements taken from 7 historical diamond drill holes at Palacios South.

A block model with a cell size of 25m (along strike) x 25m (across strike) x 5m (vertical) was constructed with assay data composited to 2m after applying a top cut. Blocks were estimated using an ID2 interpolation method and with a minimum of 5 samples required to interpolate a grade into a block.

Total Mineral Resources are estimated at 2.2 Mt at 328 ppm for 1.6 Mlbs U3O8. They have been classified as Inferred due to the 50m x 50m drill spacing and lack of confirmatory drilling in this area.

Sageras Deposit

The Sageras deposit was discovered in 1960 and periodically investigated until the mid 90's. It represents the north western extension of the Majuelos deposit. Surface topography is relatively flat and the deposit is well positioned for shallow open pit mining. Total Mineral Resources have been estimated at 9.7 Mt at 400 ppm for 8.6 Mlbs U3O8, including 71% in the Measured and Indicated categories.

The historical drill hole database for the Sageras and the Mahuelos deposits contains 12,900 drill holes consisting of a combination of 50m x 50m spaced diamond drill holes with chemical assays and 10m x 10m roto-percussion drill holes with e-grades generated from down hole radiometric measurements. The western quarter (formerly Zona M) lies outside the ENUSA wholly owned land and has been drilled on a 50m x 50m spacing. Berkeley recently completed a confirmatory diamond drilling program consisting of 21 holes in a series of traverses across the deposit. The detailed results were announced in January and all of the Berkeley holes intersected strong mineralisation consistent with the historical data.

The mineralisation is hosted in Palaeozoic metasediments and occurs at or close to the surface with widths varying from about 150m in the south-east up to 300m in the north-west. Close spaced drilling indicates a number of shoots with strong continuity in a north-westerly direction, parallel to a major geological trend extending from the restored Mina Fe open pit for a distance of approximately 1.5 km. In cross section, the mineralisation is gently east dipping to sub-horizontal ranging from 10m to 50m in thickness and extends from surface to 100m deep.

Berkeley's geological model is based on a broad outer envelope of mineralisation that captures the majority of the +100 ppm U3O8 grades. It often includes internal sub grade material in order to maintain geological continuity across drill sections. In addition, six internal, higher grade, continuous mineralised zones were identified within the outer envelope. They occur as broad sheets of mineralisation with a very shallow dip, strong north-west continuity and have strike lengths from 50m to 700m.

In the southern part of the deposit, the Sageras mineralisation links up with the remnant Majuelos material below the mined Mina Fe open pit.

Average bulk density values, derived from Berkeley drill core, were assigned to oxidised, transition and fresh blocks and wireframed surfaces of the historical Mina Fe open pit were used to remove previously mined blocks within the model.

The Mineral Resource Estimate was undertaken by AMC Consultants (UK) using a block model configuration of 10m x 10m x 3m parent cells, with cells being permitted to split once in any direction where bounding surfaces are encountered.

Sample uranium grade statistics were calculated and population characteristics analysed for each of the mineralised zones. High grade capping was applied to one of the zones. Variographic analysis was successfully completed for the two dominant mineralised zones and parameters were derived using multi-structure spherical models. Uranium grades were estimated from 2m sample composites, using Ordinary Kriging for the main mineralised zones and inverse distance squared weighting for the remaining zones. Grade interpolation into parent cells was conducted under hard-bounded zonal control, using mostly 25m x 25m x 5m search ellipsoids aligned in the average plane orientation of each zone.

The Mineral Resource classification in Table 1 was based on confidence levels for criteria such as data density and interpreted grade continuity. Measured Resources were restricted to estimated blocks within the central part of the deposit where the drilling density is 10m x 10m and grade continuity is good. A small part of West Sageras was classed as Indicated due to the recent drilling by Berkeley closing the drill spacing from 50m down to 25m. An Inferred category was assigned to those blocks where the drilling density was 50m x 50m or greater, mainly in the Sageras West area and the southern part adjacent to the restored mined Mina Fe pit.

An RC drilling program of 46 holes is planned to test the lateral and depth potential identified in the recent diamond drill program and to increase confidence in areas previously drilled at lower density, such as the southern extension of the main Sageras lode and the area of 50m x 50m drilling in the western sector. It is anticipated that the majority of the Inferred Resource will be upgraded following this program. In addition, re-probing of historical holes is continuing to provide increased confidence in the historical e-grades. A second RC drilling program is also planned to test for extensions to the west of Sageras and along the north-eastern margin where 50m x 50m drill holes indicate the deposit is not closed off.

Majuelos Deposit

The Majuelos deposit encompasses two areas: remnant resources lying below the restored Mina Fe open pit and drilled on a 10m x 10m grid; and a separate zone to the east of the restored pit drilled on a 50m x 50m spacing. Total Mineral Resources have been estimated at 6.4 Mt at 411 ppm for 5.8 Mlbs U3O8, all in the Inferred category (see Table 1).

Most of the remnant resources occur at the margins of the pit, particularly in the south-east where a strongly mineralised zone, dipping at 30 degrees to the north-east, has been drilled to over 180 metres below the surface (historical drill intersection of 10m @ 428 ppm U3O8). There is also a significant amount of unmined material around the north-west margin of the restored open pit and along the western boundary where mineralisation connects to the Sageras deposit.

The mineralisation has been interpreted within an envelope of +100 ppm U3O8 intersections and 17 separate mineralised zones were identified. A block model with a cell size of 10m (along strike) x 10m (across strike) x 2.5m (vertical) was constructed for the remnant zones with original assays composited to 2m. Blocks were estimated using an ID2 interpolation method with a minimum of 5 samples required to interpolate a grade into a block. For the separate eastern zone, a block model with a cell size of 25m (along strike) x 25m (across strike) x 5m (vertical) was constructed. An average density of 2.7 was adopted from the average for partially oxidised and fresh mineralisation at Sageras and Palacios North.

A wireframed surface of the historical Mina Fe open pit was used to remove the previously mined blocks from the model. In addition, there were a significant number of isolated blocks lying directly below the mined surface in the centre of the restored open pit that were manually removed from the model.

 

2.3 Retortillo Area

The 100% owned Retortillo area is located approximately 25km north-east of Águila. It includes several significant uranium deposits with a total Mineral Resource Estimate of 19.9 Mt at 512 ppm for 22.5 Mlbs U3O8. This new estimate is a 33% increase on previous resource estimates for the Retortillo area deposits and results from a 47% increase at the Santidad deposit, 248% at the Zona 7 deposit, and new estimates totaling 1.7 Mlbs at 436 ppm U3O8 in three small deposits (Cristina, Caridad and Las Carbas) close to Zona 7 and previously drilled by Berkeley. These Mineral Resources include 27% in the Indicated category (at Retortillo and Santidad). Full details are recorded in Table 1. Mineral Resources at the Retortillo deposit (13.0 Mlbs at a grade of 615 ppm U3O8, with 38% Indicated) are unchanged from the announcement in November 2007.

Santidad Deposit

The Santidad deposit was discovered by Berkeley in 2007 by testing ground radiometric anomalies 3 km to the north-west of the Retortillo deposit. It occurs in the same sequence of Ordovician steeply dipping metamorphosed shales as Retortillo and is essentially flat lying over a strike length of 2.6 km, averaging about 200m in width with a thickness of 35m in the central area.

A Mineral Resource of 2.9 Mlbs U3O8 was announced in November 2007 based on 87 drill holes. A further 120 diamond and reverse circulation holes were subsequently drilled by Berkeley and an updated Mineral Resource was estimated by independent consultants, McDonald Speijers. It increased resources by 47% to 4.6 Mt at 410 ppm for 4.2 Mlbs of U3O8 and includes about 29% in the Indicated category (see Table 1 for details).

Zona 7 Deposits

The Zona 7 deposits are located approximately 5 km north of the Santidad deposit and consist of the significant Zona 7 deposit (3.5 Mlbs at 414 ppm U3O8) and a cluster of small deposits in close proximity (Las Carbas, Caridad and Cristina). All Mineral Resources are Inferred and total 5.7 Mt at 421 ppm for 5.3 Mlbs U3O8 (see Table 1 for details).

 

The host rocks are Cambrian to PreCambrian chlorite-sericite schists, slates, quartzites and conglomerates and uranium mineralisation appears to be controlled by both structure and supergene enrichment. Berkeley carried out a significant amount of drilling in this area in 2008 (5 Diamond and 178 RC holes).

Zona 7

The Zona 7 deposit is an arcuate east-west trending zone of mineralisation that follows the folded geology. It consists of an irregular distribution of narrow veins and pods of higher grade mineralisation, and reflects the interplay between steeply dipping structures and horizontal weathering.

Berkeley announced a small high grade Mineral Resource Estimate of 1.0 Mlbs U3O8 in November 2007 following completion of 7 diamond holes in the centre of the deposit. Since then, a further 59 RC and 2 diamond holes have significantly extended the mineralisation over a total strike length of 1.2km. An updated Mineral Resource was estimated by Berkeley which increased resources by 248% to 3.9 Mt at 414 ppm for 3.5 Mlbs of U3O8. The deposit is closed off to the east, but open to the south-west where some of the best intersections have been recorded. It is possible that it will link up with the Las Carbas deposit located 1.5km to the south beneath Tertiary cover.

The updated Mineral Resource Estimate is based on chemical assays from Berkeley drilling. Unsampled intervals were assigned a zero grade. The interpretation was based on a nominal +100 ppm U3O8 envelope with wireframes to constrain the estimation. Mineralisation is divided into a western domain (900m long by 300m wide) and a smaller eastern domain (450m by 100m). Chemical assay data was composited to 2m and a top cut of 2,000 ppm was applied to reduce the effect of extreme outlier values. An average bulk density of 2.65 was applied, based on 96 density measurements from diamond drill core.

Grade estimation was carried out using Inverse Distance Weighting squared and the parent block size was 25m x 25m x 5m. A horizontal search ellipse was used with a range of 100m along strike, 40m across strike and 10m vertical, and oriented along strike at 50º for the western domain and 120º for the eastern domain. A minimum of 10 composites were required to estimate a block. The Mineral Resource Estimate was classified as Inferred due to the wide spacing of the Berkeley drilling profiles.

Las Carbas

The Las Carbas deposit is located approximately 1.5km south of Zona 7 and was discovered by Berkeley in 2008 beneath Tertiary cover. Magnetic and radiometric data indicate the possible extension of Zona 7 mineralisation southwards to join up with Las Carbas. An Inferred Mineral Resource of 0.6 Mlbs U3O8 at 443 ppm is based on 22 reverse circulation holes with a total of 179 chemical assays. Wireframes were constructed around the mineralised intersections and a conservative density of 2.5 was used. Blocks were estimated using ID2 after applying a top cut of 1,400 ppm U3O8.

Caridad

The Caridad deposit is located approximately 2.5km south-east of Zona 7. It was briefly mined by JEN in the 1960's and is associated with two strong radiometric anomalies within folded black phyllites and shales. Berkeley has drilled 44 RC and 2 diamond drill holes to test these anomalies and identified continuous mineralisation over widths of 50 to 100m. Although the host rocks appear similar to Zona 7, mineralisation at Caridad appears more influenced by folding and deformation, than by cross-cutting features, with a supergene overprint.

The Caridad database contains 458 chemical assays taken from Berkeley RC and diamond holes drilled on an approximate 50m x 50m pattern. Wireframes were constructed around the mineralised intersections and a density of 2.5 was used. Blocks were interpolated using ID2 after applying a top cut of 1,400 ppm U3O8. An Inferred Resource of 0.4 Mlbs U3O8 at 382 ppm was estimated.

Cristina

Cristina is located within a strong radiometric anomaly about 2km from Zona 7. Historical small scale mining and outcrop indicate near surface secondary mineralisation and historic drilling intersected significant zones of mineralisation. Initial drilling by Berkeley in 2007 (47 RC holes and 1 diamond hole) has defined mineralisation in three separate areas.

The Cristina database contains 714 chemical assays taken from the Berkeley RC and diamond holes drilled on an approximate 50m x 50m pattern. Wireframes were constructed around the mineralised intersections and a density of 2.5 was used. Blocks were interpolated using ID2 after applying a top cut of 2,000 ppm U3O8. An Inferred Resource of 0.8 Mlbs U3O8 at 363 ppm was estimated.

 

2.4 Alameda Area

The Alameda South and North deposits are located 12km to the west of the Águila area, and have combined exploration targets, at a 200 ppm cut-off, of 25.5 to 29 million tonnes at grades ranging from 450 to 500 ppm U3O8. A confirmatory diamond drilling program of 19 holes is nearing completion at Alameda South and will enable an initial Mineral Resource Estimate for that deposit by the end of March. Confirmatory drilling at Alameda North is planned to commence in the June quarter, but a forthcoming review of historical data may encourage an earlier resource estimate.

Mineralisation at Alameda South exhibits many similarities with deposits in the Águila area, including structural control and visible uraninite in fractures and thin, quartz carbonate sulphide veins. However, the host rocks are often more quartz-rich and have experienced contact metamorphism. In addition, numerous thin sills and dykes of granite are present.

NOTE - The Alameda deposits have been extensively explored by ENUSA but are not classed as Mineral Resources. The quantity and grade of Berkeley's exploration targets for the Alameda deposits are conceptual in nature and based on a review of the available data on the projects to date. As there has been insufficient exploration to estimate a Mineral Resource in accordance with the JORC Code, it is uncertain whether further exploration will result in the determination of a Mineral Resource.

 

A full version of this announcement including images can be downloaded from Berkeley's website at www.berkeleyresources.com.au.

3. SUPPLEMENTARY RESOURCE INFORMATION

 

The uranium grades reported in this release are annotated with a sub-prefix "e" because they have been reported as uranium equivalent grades derived from down-hole gamma ray logging results and so they should be regarded as approximations only.

The Berkeley drill holes were logged with a GeoVista total count gamma tool. The gamma tool was calibrated in Adelaide at the Department of Water, Land and Biodiversity Conservation in calibration pits constructed under the supervision of CSIRO. The various calibration factors were calculated by David Wilson BSc MSc MAusIMM from 3D Exploration Ltd based in Perth, Western Australia.

These Mineral Resources Estimates are presented in accordance with the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves" (JORC Code).

The information relating to the Mineral Resource Estimates have been compiled by Berkeley Resources team of geologists and consulting geoscientists.

Mr Chris Arnold (MAUSIMM) conducted the estimates for the Sageras and Palacios North deposits. Mr Arnold is the Principal Resource Consultant with AMC Consultants (UK), a member of the AusIMM, and a geologist whose career includes more than 20 years relevant experience in resource estimation.

Mr Diederik Speijers (FAusIMM) takes responsibility for the estimate of the Santidad Resource. Mr Speijers is an independent consultant with McDonald Speijers and is a geologist with more than 30 years experience in resource estimation. Mr Speijers 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 JORC Code. Mr Speijers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mr Ross Corben (MAUSIMM) conducted the estimates of the Palacios South, Majuelos and the Zona 7 deposits. Mr Corben is currently a Senior Project Geologist with Berkeley Resources and is a geologist with more than 15 years relevant experience in resource estimation.

 

 

This information is provided by RNS

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