Berkeley Eng Regulatory News (BKY)

6 Jun 2008 08:48



6 June 2008

HIGHLY ENCOURAGING DRILL RESULTS EXTEND GAMBUTA MINERALISATION

RESOURCE ESTIMATE PENDING

The Directors of Berkeley Resources Limited (AIM: BKY.L) are pleased to advise more encouraging results from the current drilling programme at the Gambuta project in Cáceres Province, Spain. 

The ongoing program of reverse circulation and diamond drilling has continued to produce consistently positive results which have extended the strike length of the deposit to 1300m, with widths ranging from 250m in the south-east to 350m at the north-west limit of drilling. Strong mineralisation remains open to the north-west beneath Tertiary cover. 

Since the announcement of results from the first four diamond drill holes on 10 April 2008, 21 RC holes and an additional 6 diamond holes have been completed. In the total of 31 holes drilled to date, 26 (84%) have encountered mineralisation over depths ranging from surface to 94m, with most mineralisation within 50m of surface. These results provide comprehensive confirmation, and extension, of the historical roto-percussion program in which 21 of the 24 CISA holes intersected uranium mineralisation. Assay results are now available for an additional thirteen holes drilled by Berkeley and include:

Results of the downhole probes for the remaining Berkeley holes suggest that assay results will yield similar grades and thicknesses for shallow and deeper mineralisation. 

Drilling to date has twinned a number of the historical roto-percussion holes; completed profiles through the historically defined mineralised zone; successfully tested beneath the previously undrilled Tertiary cover in the central section of the deposit: and extended it beneath Tertiary cover to the north-west. The complete set of available assay results are summarised in the table below.

The Gambuta mineralisation occurs in a 1300m by 250-350m wide north-westerly trending litho-structural zone adjacent to a protrusion in the granite batholith. Host rock lithologies and mineralisation are similar to those recorded at Berkeley's Retortillo project. Within this zone the most strongly mineralised areas occur within a 150m wide zone of steeply dipping shears and fractures to depths of about 100m. 

This structurally disrupted zone has been intruded by aplitic dykes that appear to result in some concentration of mineralisation into thin, higher-grade zones (+0.06% U3O8). In profiles that show intact Tertiary cover, the deeper primary mineralisation is overlain by a wider (up to ~350m) zone of secondary lower grade (~0.03% U3O8) mineralisation which extends up to within about 30m of surface. This secondary mineralisation is about 10m thick in the central section, but thins laterally to about 2-5m. 

Interpretation of the drilling results, recent geological mapping, and an airborne radiometric and magnetic survey, indicate potential for extensions of the mineralised structural zone to the north-west, parallel to the interpreted sub-surface granite contact. Superimposing topography onto the geological and geophysical interpretations of this slightly plunging mineralised zone suggests potential for mineralisation to extend about 1km to the north-west before it is likely to be truncated by incised topography. The granite contact reduces the potential for extensions to the south and east.

Although fire season regulations require cessation of drilling activity in early June, the consistency of Berkeley's results to date, together with remaining assays and the historical information, will generate sufficient data to enable calculation of an inferred resource estimate in the next quarter. This estimate will be followed by a new drilling campaign aimed at infill and testing the limits of the potential north-west extension. 

Enquiries - Managing Director: Matt Syme Tel:  +61 417 906 717

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

TABLE 1. DRILL DETAILS and INTERSECTIONS (200ppm cut-off)

The Grid has a datum of UTM 30N ED50.