Berkeley Eng Regulatory News (BKY)

BERKELEY RESOURCES LIMITED

AIM RELEASE | 8 OCTOBER 2013  | ASX/AIM:BKY

ENVIRONMENTAL LICENCE GRANTED FOR RETORTILLO

Highlights:

· Regional Government has granted a Favourable Declaration of Environmental Impact ('Environmental Licence') for Retortillo following submission and extensive review of the Company's Environmental and Social Impact Assessment ('ESIA'); and

· Approval of the Company's Exploitation and Reclamation and Closure Plans is now the only outstanding prerequisite for the granting of the Exploitation Concession ('Mining Licence') for Retortillo.

Berkeley Resources Limited ('Berkeley' or 'the Company') is pleased to announce that the Environmental Licence for Retortillo has been granted by the Regional Government of Castilla and León. The Retortillo deposit forms part of the Company's flagship Salamanca Project (the 'Project') in Spain and is where production is scheduled to commence.

The grant of the Environmental Licence is a major milestone for the Company and follows substantial work over the last 24 months directed towards permitting of the Project, including environmental and social baseline studies and culminating with the submission of the ESIA, together with the Exploitation Plan and the Reclamation and Closure Plan for Retortillo.

The ESIA and associated documentation were subjected to extensive review by all relevant authorities and key stakeholders, including a 30 day Public Information Period, prior to the grant of the Environmental Licence. The Environmental Licence covers all mining and processing activities, including treatment of loaded resin transported to Retortillo from other deposits.

Key activities undertaken during the ESIA process, which was managed by Berkeley with input from a multi-disciplinary group of specialist consultants, included environmental baseline monitoring studies, census work to understand the flora and fauna within and around the tenement area, ecosystem and habitat sensitivity surveys, noise and air quality studies, surface and underground water studies, and extensive community engagement.

With the grant of the Environmental Licence and the favourable recommendation report recently submitted by the Nuclear Safety Council to the Regional Government, approval of the Company's Exploitation and Reclamation and Closure Plans is now the only outstanding prerequisite for the granting of the Mining Licence for Retortillo. 

The Directors are extremely encouraged by the grant of the Environmental Licence which highlights the positive progress being made with the permitting process for the Project. This milestone follows the recent successful completion of the Project Pre-Feasibility Study ('PFS') which focused on the integrated development of the Retortillo and Alameda deposits. The PFS results clearly demonstrated the Project's potential to support a significant scale, long life, low cost uranium operation (refer ASX announcement dated 26 September 2013).

Using only the current Mineral Resource Estimates for Retortillo and Alameda, as a base case scenario, the PFS showed the Project can support an average annual production of 3.3 million pounds of U3O8 during the seven years of steady state operation and 2.7 million pounds of U3O8 over a minimum eleven year mine life. Operating cost estimates (C1 cash costs) average US$24.60 per pound U3O8 over the life of mine. The initial capital cost (nominally ± 20% accuracy) for the Project was estimated at US$95.1 million. This cost is inclusive of all mine, processing, infrastructure and indirect costs required to develop and commence production at Retortillo. A further US$74.4 million of capital, incurred in the second year of production, is required to develop Alameda and achieve steady state operation. The Project's capital cost reflects the excellent existing infrastructure that services the region, the use of heap leaching as the preferred processing route, and the use of contractor mining.

Enquiries: Robert Behets

Berkeley Resources

+61 8 9322 6322

Martin Eales

RBC Capital Markets

+44 20 7653 4000