Berkeley Eng Regulatory News (BKY)

BERKELEY ENERGY LIMITED

AIM RELEASE | 29 OCTOBER 2015 | AIM/ASX:BKY

Quarterly Report for the period ending 30 September 2015

Following the gazetting of the approval from the Ministry of Industry, Energy and Tourism the Company has now received all the European Union, National, Regional and Provincial level approvals required for the initial infrastructure development of the Salamanca project.

The final stages of the local approvals are well advanced and expected to be finalised well ahead of the target commencement date of mid-2016.

Berkeley received more than 18,000 applications for the first 200 jobs the Salamanca project will be creating in a rural community which has been hard-hit by inter-generational unemployment.

A Mineral Resource Estimate for the Zona 7 deposit was reported, resulting in a significant increase in resource grade, an increase in resource pounds and with almost ninety percent of the resource upgraded to the Indicated category. The Zona 7 deposit is located within 10 kilometres of the approved location of the proposed processing plant.

The inclusion of the important Zona 7 deposit is expected to fundamentally improve the economics of the Salamanca project, even at current Uranium prices, by significantly increasing the mine life, the production rates and by reducing the operating costs from the levels previously reported.

Metallurgical testwork results confirmed that the Zona 7 ore is amenable to low cost heap leaching.

Work continued on a Pre-Feasibility Study (including the Zona 7 deposit) and will allow the overall economics of the project to be reported for the first time.

Early indications from the study, which is expected to be published in the December quarter, show that the project will have lower capital costs than previously reported, benefitting from favourable movements in exchange rates and due to the high grade, low strip ratio and impressive metallurgy it is expected that operating costs will reduce significantly.

Following the Board's decision to push ahead with the overall development of the project and the recent positive announcements on approvals, drill results and metallurgical test work, the Company has received a number of approaches from potential financiers which are now being advanced.

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Major permits in place for the Salamanca project 

On 21 October Berkeley announced that a Ministerial Order was signed by the Secretary of State for Energy and gazetted in relation to the Initial Authorization for the treatment plant as a radioactive facility.

With the Mining Licence and Environmental Licence already obtained, the final approvals comprise the locally issued Urbanism Licence and the Construction Authorisation by the Ministry of Industry, Energy and Tourism.

A co-operation agreement with the relevant municipalities supporting the grant of the Urbanism Licence has been signed and the preparation of the documentation for the Construction Authorisation is well advanced. Both approvals are expected to be granted in advance of the expected commencement of site works in mid-2016.

The Company has now received all the European Union, National, Regional and Provincial level approvals required for the initial infrastructure development of the Salamanca project.

Commencement of recruitment and training

Berkeley received over 18,000 applicants for the first 200 jobs the Salamanca project will be creating in a rural community which has been hard-hit by inter-generational unemployment.

The project is expected to generate over 450 direct jobs and the University of Salamanca has estimated a further 2,300 indirect jobs will be created, making Berkeley one of the largest employers in a community which has suffered badly from the effects of rural desertification.

The Company commenced with a skills training programs for locals, some of whom have previously worked in the local uranium mining operations.

The training program provided the Company with an intimate insight into the benefits that the employment will bring to the local community and has encouraged Berkeley to expand its training programs into other areas.

Resource Upgrade

On 7 October an updated Mineral Resource Estimate, reported in accordance with JORC Code (2012), for the Zona 7 deposit was published and reported grades comparable to the world's highest grade open pit mines in operation, with the bulk of the resource lying within fifty metres of the surface.

Significantly, the Zona 7 deposit is located within 10km of the approved location of the proposed processing plant.

The total Mineral Resource Estimate for Zona 7 now stands at 31.4 million pounds of U3O8 (at a cut-off grade of 200 ppm) including an Indicated resource of 17.1 million tonnes at 735 ppm containing 27.8 million pounds of U3O8.

The overall Mineral Resource Estimate for the Salamanca Project now stands at 89.5 million pounds of U3O8.

Managing Director Paul Atherley commented "With high grades, good recoveries and the potential for some of the lowest costs in the industry the Salamanca project is rapidly emerging as one of the best new projects around."

Impressive metallurgical testwork results on Zona 7

Testwork on representative samples across a range of ore types at Zona 7 indicated that recoveries of over 85% can be expected with low acid consumption (12-18 kg/t) and at a coarse crush size. The ore is easy to crush and has a low abrasion index. It also exhibits good geotechnical properties, suitable for high lifts on the heap leach pads.

The high recoveries were achieved very rapidly in less than thirty days of leaching with virtually 100% of the soluble uranium going into solution and therefore readily recoverable in the proposed processing facilities.

These highly impressive metallurgical testwork results were important as they enhance the economic significance of the Zona 7 deposit and support the Board's decision to rapidly incorporate the deposit into the overall development plans of the Salamanca Project.

Pre-Feasibility Study

Work continued on a Pre-Feasibility Study for the Salamanca project with publication expected during the December quarter.

The study will include the Zona 7 deposit and will allow the overall economics of the project to be reported for the first time.

The inclusion of the important Zona 7 deposit is expected to fundamentally improve the economics of the Salamanca project, even at current Uranium prices, by significantly increasing the mine life, the production rates and by reducing the operating costs from the levels previously reported.

Corporate

Mr Dylan Browne has been appointed Company Secretary and Chief Financial Officer of the Company following the resignation of Mr Clint McGhie as a result of the Company's corporate management base moving to the London office. Mr Browne is a Chartered Accountant and Chartered Secretary who commenced his career at a large international accounting firm and has since worked in the corporate office of a number of listed companies that operate in the resources sector.

The board would like to thank Mr McGhie for his excellent service to the Company from the early stages of exploration of Salamanca through to near term development of the project.

As of 30 September 2015 Berkeley was in a strong financial position with cash reserves of A$11.1 million and no debt.

Competent Persons Statement

The information in this report that relates to the 2015 Mineral Resources for Zona 7 is extracted from the report entitled 'Increase in Zona 7 grade' dated 7 October 2015 and is available to view on Berkeley's website at www.berkeleyenergy.com. The information in the original ASX Announcement is based on information compiled by Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to the 2015 Metallurgical Testwork Results for Zona 7 is extracted from the report entitled 'Impressive Metallurgical Testwork Results on Zona 7' dated 8 September 2015 and is available to view on Berkeley's website at www.berkeleyenergy.com. The information in the original ASX Announcements is based on information compiled by Mintek under the supervision of Mr David Dodd, who is a Fellow of the Southern African Institute of Mining and Metallurgy. Mr Dodd is independent of Berkeley and is an independent consulting metallurgist affiliated to MDM Engineering Limited an independent engineering company based in South Africa. Mr Dodd has sufficient experience which is relevant to metallurgical processing of 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to the Mineral Resources for Retortillo is extracted from the report entitled 'March 2015 Quarterly Report' dated 29 April 2015 and is available to view on Berkeley's website at www.berkeleyenergy.com. The information in the original ASX Announcement that relates to the Mineral Resources for Retortillo was based on information compiled by Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to earlier Mineral Resources (other than the Zona 7 and Retortillo deposits) (refer ASX announcements dated 31 July 2012, 31 October 2012, 7 August 2013 and 26 September 2013) is based on information compiled by Craig Gwatkin, who is a Member of The Australasian Institute of Mining and Metallurgy and was an employee of Berkeley Energy Limited at the time of initial disclosure. Mr Gwatkin 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 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Forward Looking Statement

Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

Table 1: Zona 7 - Mineral Resource Estimate

All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding.

Table 2: Zona 7 - Grade Tonnage Table

Table 3: Salamanca Project Global Mineral Resource Estimate

All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding.

Appendix 1: Summary of Mining Tenements

As at 30 September 2015, the Company had an interest in the following tenements:

No tenements were acquired or disposed of during the quarter ended 30 September 2015. There were no changes to beneficial interest in any mining tenements due to Farm-in or Farm-out agreements. No beneficial interest in Farm-in or Farm-out agreements were acquired or disposed during the quarter.