Last checked at 30 Oct 2009 08:51
30 October 2009
BERKELEY RESOURCES LIMITED
Quarterly Activities Report
For the Quarter Ended
30 September 2009
Key Developments
Berkeley's principal focus in the September quarter was to make a preliminary assessment of the dataset acquired for the Salamanca Uranium Project and to further understand the development potential and decision path for the Project.
In light of the favourable outcomes from work completed to date, the Company expects to provide further information on these studies to shareholders in the December quarter.
The initial confirmation drilling campaign on the Salamanca uranium deposits also commenced in October 2009.
Enquiries - Managing Director: Matt Syme Tel: +61 417 906 717
RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881
Salamanca Uranium Project - Feasibility Study
Preliminary work on the Salamanca Uranium Project (SUP) feasibility study has progressed well during the quarter, culminating in commencement of a confirmatory drilling program in October at the Mina D deposit.
After completing a comprehensive review of the historical data as well as radiometric surveys and field studies, confirmatory drilling projects for Mina D, Sageras/Zona M and Alameda (totalling approximately 60 holes and 5,000m) were submitted to the regulatory bodies (the Nuclear Safety Council and Regional Mines and Environmental Departments) in July. Approval for the drilling at Mina D has been received and 3 diamond drilling rigs mobilised in October.
Following the completion of the assessment of the environmental and radiological conditions by Berkeley, Golder Associates and Ingemisa SA, environmental and radiological base line studies for the drilling projects have been completed at all of the sites.
Ongoing discussions with local Mayors, stakeholders and land owners have been positive and supportive of Berkeley's activities in the area.
Environmental and Radiological
Environmental responsibility, radiological protection and community awareness, engagement and support are paramount considerations for the success of Berkeley's Salamanca Uranium Project.
Environmental and radiological protection studies have been undertaken on Berkeley's behalf by Golder Associates and Ingemisa SA. These studies have included both fieldwork and desktop reviews of the available historical documentation provided by ENUSA.
Fieldwork by Berkeley staff and consultants, assisted by ENUSA personnel, comprised a thorough site reconnaissance of the existing processing facilities, the rehabilitated mined areas and zones around the Sageras and Mina D deposits.
The review of the extensive archives involved examination of key environmental and radiological protection data of the ecological and hydrological situation during mining, restoration and the monitoring periods.
An initial review of the regulatory processes for securing permission to restart mining and uranium processing in Salamanca has also commenced, and will be completed in the December quarter.
Geology and Exploration
Significant advances in the understanding of the deposits within the Salamanca Uranium Project were made during the quarter. The work undertaken continues to provide additional confidence in the quality of the historical data supplied by ENUSA.
Drilling
A confirmatory drilling program consisting of 63 diamond holes commenced in October at the main ENUSA uranium deposits. Approval was received from the Mines Department for drilling at the Mina D deposit and three diamond drilling rigs have been mobilised. The objectives of the program are to:
Confirm the ENUSA radiometric and chemical grades.
Provide geological and structural information.
Provide geotechnical data for use in pit optimisations.
Provide metallurgical samples for heap leach column test work.
Enable density measurements within the ore zones.
The confirmatory drilling program comprises.
| Deposit | Number Of Holes | Drill Metres |
| Sageras | 19 | 1,300 |
| Zona M | 12 | 1,000 |
| Mina D | 14 | 1,300 |
| Alameda | 19 | 1,500 |
|
| 63 | 5,100 |
Table 1 - Planned Drilling
The Mina D Deposit
Three diamond drilling rigs have been mobilised to Mina D. The planned holes have been designed to test a high grade mineralized zone dipping below the previously mined open pit.
The Sageras/Zona M Deposit
The Sageras-Zona M deposit is interpreted as the North West extension of Mina Fe and is located within 2 km of the Quercus processing plant. Sageras is the portion of the deposit that lies within the ENUSA farm boundary and it has been predominantly drilled out by open hole roto-percussion methods on a 10m x 10m drill spacing, with down hole radiometric assaying. Berkeley is planning to drill nineteen diamond holes across the Sageras deposit in a series of traverses across the ore zone.
Zona M is the extension of the Sageras deposit that lies outside the ENUSA farm boundary. It has been tested with 50m x 50m spaced diamond drilling, with chemical assays. Berkeley plans to drill twelve diamond holes to infill around the higher grade ENUSA drill holes. A further RC drilling program will be drilled subsequently with a view to upgrading the resource categorisation.
Additional reverse circulation (RC) holes are also being planned to test for extensions of the ore zones at depth and to the east of the deposit.
The Alameda Deposits
The Alameda deposits are located 13km to the west of the Quercus plant. The main deposit - Alameda South - has been explored by 50m x 50m spaced vertical diamond drill holes, with chemical assays. Berkeley plans to drill nineteen diamond holes across the Alameda South deposit in the current program, to confirm the ENUSA chemical assay grades and to provide metallurgical samples. A further RC drilling program is also planned to infill the diamond drilling, to upgrade the resource categorisation and test peripheral areas.
Ground radiometrics completed over the Alameda deposits have shown good correlation with the mineralisation outlined by drilling. The main high grade central core of the Alameda South deposit is overlain by recent cover, resulting in a radiometric low. This highlights the potential of the areas adjacent to the granite further to the south which are also overlain by Tertiary cover. Berkeley has a large land holding over this prospective area and is currently reviewing the available data.
Mining Studies
An initial review of the historical mining data from the Mina Fe and Mina D deposits has been completed, in conjunction with Golder Associates and AMC Consultants. Along with contemporary costs for the main production inputs, these have provided Berkeley with data to complete pit optimisations on the main Salamanca deposits.
Metallurgical and Processing
In conjunction with consultants Aker Solutions and Kappes Cassidy, Berkeley has completed an initial review of the historical metallurgical and processing data for the Salamanca Uranium Project. As part of the initial phase of the Feasibility Study, Berkeley has also now defined the base parameters, established conceptual flow sheets and modelled initial capital and operating costs for three alternative processing scenarios:
Option 1: Tank Leach Plant to treat all ore
Option 2: Tank Leach Plant coupled with a Heap Leach Facility
Option 3: Heap Leach Plant to treat all ore
Results of this initial study are anticipated in the final quarter of 2009.
Metallurgical Testwork: Retortillo
As reported in June, SGS Lakefield Oretest Pty Ltd in Perth have completed the column leach test work on two representative samples of "oxidized" (Top Composite sample) and "transition/fresh" (Bottom Composite sample) mineralization from the Retortillo deposit. The two column leach tests were conducted over 60 days and indicated the following:
The overall mass loss of the ore was low, with values of 2.0% (w/w) and 2.8% (w/w) for the top composite column and bottom composite column respectively. Acid consumption varied slightly with values of 23.3kg/t and 22.3kg/t. Slump tests conducted were low at 0.3% for both columns.
The final Uranium extraction was calculated at the end of the leach test by analyzing the final leach liquor, the wash liquors and residues. Extractions of 98% in the top composite column were achieved and 92% extraction in the bottom composite.
Extractions were also calculated from leach residue samples collected from top, middle and bottom of the column to provide an indication of the extraction profiles, the values confirmed that the extractions were higher at the top of the column, which was also reflected in the mass loss of the ore.
The introduction of trivalent iron into the column to assist with uranium extraction had an immediate effect on the uranium recovery, which increased from 46% to 70% in the top composite and 47% to 70% in the bottom composite.
On completion of each of the leach tests, a size by size analysis was conducted on the leach residue from each of the columns to determine element and mass distribution. The results showed that, the uranium distribution in each leach residue appears to mirror the mass distribution, suggesting that the uranium is leached evenly across all particle sizes.
These encouraging column leach results for the two representative Retortillo samples open up the possibility of a heap leach operation providing uranium in solution for final recovery at the Quercus plant.
NOTE
The Sageras-Zona M, Mina D and Alameda deposits have been extensively explored by ENUSA but do not presently have JORC compliant resources. Berkeley's targets are conceptual in nature and based on a review of the available data on the projects to date. As there has been insufficient exploration to define a JORC compliant Mineral Resource, it is uncertain whether further exploration will result in the determination of a Mineral Resource.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr. Ross Corben, who is a Member of The Australian Institute of Mining and Metallurgy
and an employee of Berkeley Resources Limited. Mr. Corben 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. Corben consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.