Berkeley Eng Regulatory News (BKY)

6 Sep 2007 07:01

Berkeley Resources Limited06 September 2007 6 September 2007 STOCK EXCHANGE ANNOUNCEMENT NEW DISCOVERY OF URANIUM MINERALISATION IN SALAMANCA, SPAIN The Directors of Berkeley Resources Limited (AIM: BKY.L) are pleased to announcea new discovery of uranium mineralisation at Santidad, 2km northwest of theCompany's main Retortillo deposit. It has resulted from drill testing ofradiometric anomalies in an area untouched by historical exploration within theSalamanca license area. An ongoing campaign of reverse circulation drilling at 50m intervals, along fivetraverses ranging from 65m to 200m apart, has intersected significant uraniummineralisation in 14 vertical drill holes over a strike length of 500m and awidth of approximately 150m. This essentially flat lying mineralised zone isopen along strike in both directions where significant untested radiometricanomalies are apparent, both to the southeast, towards the Retortillo deposit,and to the northeast, up to the limit of Berkeley's ground radiometric survey.Ground radiometric coverage is being extended along strike for a further twokilometres to the northeast. The mineralisation is shallow, with thicknesses ranging up to 39m and gradesvarying from 200-1320ppm U3O8. The 11 holes for which assays and downholeradiometrics are available, have average intersection widths of 18m at 0.034%U3O8 (200ppm cut off), and average overburden thicknesses of only about 9.5m. Atable of results to date is appended and notable intersections include: • 39m from 13m at 0.044% (including 9m at 0.132% eU3O8) in SANR 028• 30m from 5m at 0.044% (including 10m at 0.077% U3O8) in SANR 007• 21m from surface at 0.039% (including 8m at 0.059% U3O8) in SANR 008• 27m from 13m at 0.033% (including 11m at 0.050% eU3O8) in SANR 023• 38m from 9m at 0.020% (including 8m at 0.049% eU3O8) in SANR 027 In addition, scintillometer readings on drill chips from holes SANR 032, 033 and034, on the most south-easterly drill traverse, indicate continuation of themineralisation. These holes have not yet been assayed, or logged withBerkeley's downhole radiometric instrument. The geology at Santidad is similar to Retortillo, with host rocks of Ordoviciangrey-black shales, bounded to the southwest by sub-cropping to outcroppingquartzites. The shales have a sub-vertical penetrative S1 cleavage with anorientation of 120 to 1400. Uranium mineralisation starts between 0 and 20mbelow the surface and can extends up to about 50m below surface; thin graniticintrusions occur in some mineralised holes. The dominant uranium minerals appearto be secondary torbernite and autunite. A thin cover of quartzite scree and/orthe remnants of Tertiary cover are common, above a thin, weak weatheringprofile, 1-5m thick. All holes were drilled with a face sampling hammer and geologically andradiometrically logged before being sampled (1m samples obtained by splittingthe entire dust collected from the cyclone). Sample weights were consistent withexpectations and little water was encountered. Holes lacking downholeradiometric anomalies were not sampled, except for one check hole. Duplicate andblank samples were included in all batches assayed for total uranium by theDelayed Neutron Count (DNC) method at Activation Laboratories Limited inOntario, Canada. Following comparison of chemical assays and downhole radiometrics for holesSANR 007, 008 and 009, radiometric equivalent uranium grades have beencalculated for all subsequent intersections by Berkeley's consultant, RogerMurphy, the former Chief Geologist of the Rossing uranium mine. These early encouraging results indicate that a substantial strike length offavourable stratigraphy remains to be tested at Santidad. Whilst results to dateare very significant when considered in the context of the JORC-compliantinferred resource of 11.9m lbs of U3O8 at an average grade of 723ppm at thenearby Retortillo and Zona 7 deposits, continued success at Santidad will havethe potential to strongly influence development strategies within the Salamancalicense area. Drilling is continuing, with 1 RC and 2 diamond rigs working at Santidad andRetortillo. The information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Mr Peter Ellis,who is a Member of The Australian Institute of Geoscientists and a consultant ofBerkeley Resources Limited. Mr Ellis has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as definedin the 2004 Edition of the 'Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves'. Mr Ellis consents to the inclusionin the report of the matters based on his information in the form and context inwhich it appears. Enquiries - Managing Director: Matt Syme Telephone: +61 417 906 717 Email: info@berkeleyresources.com.au TABLE 1 - Santidad Drill Results HOLE ID UTM UTM North RL Inclination End of Minimum Intersections > 200ppm U3O8 East (Approx) Hole From To Interval eU3O8 % U3O8 % SANR-001 716,296 4,522,964 756 -90 50.00 0.00 9.00 9.00 0.0359 10.00 11.00 1.00 0.0314 SANR-005 716,270 4,522,906 764 -90 50.00 0.00 4.00 4.00 0.0526 8.00 9.00 1.00 0.0266 39.00 40.00 1.00 0.0235 SANR-007 716,512 4,522,702 770 -90 60.00 5.00 35.00 30.00 0.0438 5.00 9.00 4.00 0.0220 12.00 14.00 2.00 0.0247 15.00 16.00 1.00 0.0522 17.00 20.00 3.00 0.0638 21.00 31.00 10.00 0.0770 32.00 33.00 1.00 0.0314 34.00 35.00 1.00 0.0236 38.00 39.00 1.00 0.0292 45.00 46.00 1.00 0.0336 SANR-008 716,543 4,522,748 760 -90 50.00 0.00 21.00 21.00 0.0394 SANR-009 716,570 4,522,793 751 -90 50.00 4.00 5.00 1.00 0.0205 6.00 7.00 1.00 0.0218 SANR-022 716,597 4,522,704 761 -90 50.00 9.00 13.00 4.00 0.0260 29.00 34.00 5.00 0.0310 SANR-023 716,562 4,522,632 769 -90 69.00 13.00 40.00 27.00 0.0330 22.00 33.00 11.00 0.0500 SANR-024 716,541 4,522,620 778 -90 60.00 21.00 29.00 8.00 0.0300 21.00 23.00 2.00 0.0710 SANR-027 716,491 4,522,817 770 -90 57.00 9.00 47.00 38.00 0.0200 14.00 22.00 8.00 0.0490 SANR-028 716,461 4,522,766 778 -90 57.00 13.00 52.00 39.00 0.0440 19.00 28.00 9.00 0.1320 SANR-029 716,446 4,522,724 778 -90 54.00 30.00 34.00 4.00 0.0210 SANR-032 716,748 4,522,609 765 -90 60.00 SANR-033 716,642 4,522,575 771 -90 60.00 SANR-034 716,690 4,522,660 760 -90 50.00 SANR-035 716,610 4,522,530 780 -90 In progress This information is provided by RNS The company news service from the London Stock Exchange