Berkeley Eng Regulatory News (BKY)

22 Jun 2007 08:15

Berkeley Resources Limited22 June 2007 22 June 2007 BERKELEY RESOURCES LIMITED INITIAL DRILLING RESULTS CONFIRM SAGUAZAL POTENTIAL The Directors of Berkeley Resources Limited (AIM: BKY.L) are pleased to announcethe initial results of the current drilling programme at the Saguazal project inCaceres Province, Spain. This project is the second mineralised area to betested with confirmatory drilling by Berkeley in its Spanish uranium explorationprogramme. Five of the six diamond core holes drilled to date intersected significantshallow mineralisation with the best results including: Hole SAG-005 22.0 metres @ 0.3072% U3O8 from 5.0m (radiometric equivalent) Hole SAG-002 3.5 metres @ 0.4461% U3O8 from 15.0m (chemical assays) Hole SAG-004 6.45 metres @ 0.2416% U3O8 from 13.3m (radiometric equivalent) The initial Saguazal drilling programme consists of eight vertical and angleddiamond core holes designed to confirm the results of the historical drillingand to clarify the geology and structure of the mineralisation. Six holes havebeen completed, with chemical assays received for the initial two holes. Theseinitial assays have been correlated with the downhole radiometric logs toprovide predictions of the radiometric equivalent assays for the next fourholes, for which chemical assays are awaited. These predictions have been madeby Berkeley Resources' Senior Exploration Consultant, Roger Murphy - formerChief Geologist at the Rossing Uranium Mine. TABLE 1. BERKELEY RESOURCES DRILL DETAILS and INTERSECTIONS (200ppm cut-off) HOLE_ID UTM_E (m) UTM_N (m) RL Inclination EOH From To Interval %U3O8 SAG-001 706,785 4,383,400 420 -90 64.2 8.0 8.5 0.5 0.0533 11.0 11.5 0.5 0.0507 16.1 16.6 0.5 0.0744 28.1 29.1 1.0 0.0391 37.1 38.1 1.0 0.0256 41.0 41.5 0.5 0.0261 SAG-002 706,750 4,383,345 420 -90 69.35 15.0 18.5 3.5 0.4461 SAG-003 706,800 4,383,370 417 -55 to 025 81.1 4.0 9.3 5.3 0.0498 16.3 20.5 4.2 0.0263 SAG-004 706,610 4,383,390 413 -55 to 070 61.0 13.3 19.75 6.45 0.2426 SAG-005 706,758 4,383,392 417 -80 to 300 79.5 5.0 27.0 22.0 0.3072 SAG-006 706,565 4,383,415 412 -90 54.6 No significant mineralisation The Grid has a datum of UTM 29N ED50. Appendix These results provide encouraging validation of previous drilling (mainlyreverse circulation, with minor diamond core drilling) and confirm the presenceof high grade areas within the Saguazal mineralisation. Drilling to date consistently reveals a variably fractured, medium tocoarse-grained granite of the Cabeza de Araya Hercynian granitic intrusion.Higher grade uranium mineralisation (+0.1%U3O8) appears related to a structuralzone in proximity to lithological boundaries within the host granite and/orfluctuations in a shallowly north dipping series of structures. Patchyepisyenitic alteration has been observed. Much of the visible near surface mineralisation appears to be secondary autunite+/- torbanite while the deeper fracture-controlled mineralisation is primarycoffinite and pitchblende associated with pyrite/marcasite in open fractures andzones of brecciation. The main Saguazal mineralisation occurs in a 1km zone near the ESE end of a 4 kmlong, radiometrically anomalous, shallowly dipping shear zone or thrust thatstrikes WNW-ESE and dips at about 300 to the NE. Within this zone themineralised areas appear to be controlled by the intersections of steeplydipping fractures and/or undulations in the shear zone. As shown in Appendix1, only about 1km of the anomalous shear zone has been drill tested to date. The apparently discontinuous nature of the mineralisation along strike, andcomplexity of the structural controls, will require thorough re-interpretationof the historical data in the light of results from the current programme beforea more substantial drilling programme can commence. This work will be aimed atproviding better definition of mineralised shoots and their trends, the role ofsupergene enrichment, and new target areas along the untested strike of theshear zone. The potential of other geophysical methods for drill targeting willalso be assessed. The current drilling programme covers an area where CISA (a joint venturebetween ENUSA, the Spanish State uranium company, and COGEMA, the French companynow called AREVA) concentrated most of their exploration drilling in the 1990's.CISA drilled few holes on the flanks of this main zone of mineralisation, wheretopographic and radiometric lows are associated with alluvium covered drainages(areas of "Limited historical drilling" on the appended plan). CISA also testedother anomalous areas along strike, with some encouraging results as shown inAppendix 1. Best intersections from the previous CISA drilling are included asTable 2 below. TABLE 2. SELECTED CISA DRILL INTERSECTIONS Hole_ID Drilling From To Interval Assaying %U3O8 SAG 1 Roto Percussion 1.8 38.0 36.2 Radiometric 0.112SAG 5 Roto Percussion 2.9 14.2 11.3 Radiometric 0.512SAG 9 Roto Percussion 0 20.8 20.8 Radiometric 0.142SAG 27 Roto Percussion 0 38.3 38.3 Radiometric 0.2SAG 53B DDH 1.8 17.9 16.1 Radiometric 0.386SAG 53T DDH 1 23.3 22.3 Radiometric 0.243SAG 40 Roto Percussion 8.7 11.9 3.2 Radiometric 0.107 18.4 27.5 9.1 Radiometric 0.271 29.4 32.3 2.9 Radiometric 0.132SAG 65 B DDH 0.5 14.1 13.6 Chemical 0.243SAG 65 T DDH 0.8 29.6 28.8 Chemical 0.217SAG 77 DDH 5.2 11.1 5.9 Chemical 0.303 NOTE: Other than the drilling the subject of this announcement, BerkeleyResources has done no work to confirm or validate the previous CISA results,which were extracted from historical reports and plans. The Berkeley drill holes were geologically and radiometrically logged beforebeing sampled (1/4 core) at approximately 1m intervals (intervals varying from0.5 to 2.0m based on geology) for most of the hole length. Duplicate 1/4 coresamples and blank samples were included. Samples were assayed for total uraniumby the Delayed Neutron Count (DNC) method at Activation Laboratories Limited inOntario, Canada. Measured recoveries were good and averaged +97%. Minor core loss occurred in thesurficial soil zone and in clay shear zones (mylonites), neither of which appearto be associated with uranium mineralisation. The technical content of this report has been reviewed and approved by MrPeter Ellis, a Member of The Australian Institute Geoscientists and an employeeof Berkeley Resources Limited. Mr Ellis has sufficient experience which isrelevant to the style of mineralisation and type of deposit under considerationand to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves'. Mr Ellis consents tothe inclusion in the report of the matters based on his information in the formand context in which it appears. Enquiries - Matt Syme Telephone: +61 417 906 717 Managing Director Facsimile: +61 8 9322 6558 Email: info@berkeleyresources.com.au This information is provided by RNS The company news service from the London Stock Exchange