Berkeley Eng Regulatory News (BKY)

31 Jan 2007 08:06

Berkeley Resources Limited31 January 2007 QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 December 2006 Berkeley Resources Limited ("Berkeley") (ASX/AIM Code: BKY) is pleased to reporton activities during the quarter ended 31 December 2006. • Drilling commenced on the Salamanca I project with very encouraging initial results confirming the presence of uranium mineralisation at Retortillo. Two drill rigs are now working at Retortillo. • Berkeley agreed to acquire from the Spanish national uranium company, ENUSA, that company's exploration database for the Salamanca I project. The data is expected to substantially advance the Company's objective of generating JORC compliant resources for the project. • At the Caceres III project, review of a number of high grade previous drill results and extension of a large radiometric anomaly highlighted the potential of this area, with initial drilling expected in the March quarter. • Senor Jose Ramon Esteruelas, a very experienced Spanish executive, was appointed to the Board of Directors. • Berkeley sold its Strelley and Kangan North properties in the Pilbara region of Western Australia for cash and share consideration valued around A$1m. • The Company's shares were admitted to trading on the AIM market in London on 6 December. Enquiries: Matt Syme Telephone: +61 417 906 717 Managing Director Email: info@berkeleyresources.com.au 1 EXPLORATION Exploration in Salamanca Province focused on preparation for the confirmatorydiamond drilling programme which commenced at the Retortillo deposit on 11December. This work included ground radiometric surveys, re-establishment of thebaseline grid, a background radon survey, location of previous drill holes andassessment of historical data. The new geological and structural interpretationof the Salamanca I licence area was extended by data assessment, field mapping,and radiometrics. New target areas have been identified outside of the licencearea and ground acquisition is in progress. SALAMANCA I PROJECT A programme of confirmation drilling of the Retortillo deposit commenced, anddiamond hole RTO-001 was complete before Christmas. A second rig was deployed inJanuary to accelerate progress. Figure 1: Retortillo Drill Plan: Refer to Investor Relations page at www.berkeleyresources.com.au Details for RTO-001 include: • Collar Coordinates: 719318mE, 4520538mN 743mRL (UTM 29N ED50 datum) • Inclination: -90degrees • Final Depth: 97.0m • Water Table: 20.3m The hole was geologically and radiometrically logged before being sampled (1/4core) at approximately 1m intervals (intervals varied from 0.5 to 1.5m based ongeology) for the zone between 1.6m and 97m down-hole. Duplicate 1/4 core samplesand blank samples were included in the 108 samples assayed for total uranium bythe Delayed Neutron Count (DNC) method at Activation Laboratories Limited inOntario, Canada. Acid soluble U assays and Th analysis, plus check assays atother laboratories (including ENUSA), will follow assessment of the initialassay data. Measured core recoveries averaged 92% over the entire hole. The geology consisted of: 0.00 - 1.60m Tertiary cover 1.60 - 16.60m Strongly weathered shales 16.60 - 39.80m Weathered grey shales with FeOx throughout + py from 24.6m. Visible torbernite, meta-autunite, pitchblende on fractures 39.80 - 62.00m Grey-black sheared (sericite) shales with disseminated and vein pyrite - fault at 52.0 - 53.7m 62.00 - 67.00 Late fractured grey-black shales as above 67.00 - 88.00m Competent shales with quartz-chlorite +/- pyrite 88.00 - 97.00m As above with late fractures and talc on fractures The mineralisation appears to be associated with current and past water tablesand with more carbonaceous shale units. Assay results include the following intersections at a 0.02% U3O8 cut-off: 19.4m to 33.2m - 13.8m @ 0.216% U3O8 46.8m to 52.0m - 5.2m @ 0.073% U3O8 67.0m to 73.0m - 6.0m @ 0.095% U3O8 Since the end of the period a further four holes have been drilled. The host rocks are kyanite/andalusite hornfels (formerly grey/black shales)which have been variably fractured altered and weathered. Minor granite dykesalso occur. Most of the uranium mineralisation occurs as torbernite,meta-autunite and pitchblende. The uppermost mineralisation in RTO-001 occurs immediately beneath a zone ofleaching and the water table. The deeper intersections may be related to bothdeeper oxidation and primary mineralisation. Figure 2: RTO 001 Drill log and assays: Refer to Investor Relations page at www.berkeleyresources.com.au The four old JEN diamond drill holes surrounding RTO-001 at a distance of 25m,gave the following mineralised intervals (chemical assays of 25cm intervals): Hole 060E08S (25m to grid west of RTO-001) 16.0m to 26.25m - 10.25m @ 0.291% U3O8 30.00m to 33.75m - 3.75m @ 0.050% U3O8 40.00m to 42.50m - 2.50m @ 0.071% U3O8 53.25m to 54.75m - 1.50m @ 0.031% U3O8 61.75m to 77.75m - 6.0m @ 0.028% U3O8 Hole 062E08S (25m to grid east of RTO-001) 26.00m to 32.75m - 6.00m @ 0.166% U3O8 34.00m to 35.00m - 1.00m @ 0.045% U3O8 39.00m to 41.50m - 2.50m @ 0.040% U3O8 Hole 061E09S (25m to grid south of RTO-001) 39.00m to 39.75m - 0.75m @ 0.086% U3O8 54.25m to 59.50m - 5.25m @ 0.068% U3O8 64.50m to 67.75m - 3.25m @ 0.031% U3O8 Hole 061E07S (25m to grid north of RTO-001) 19.75m to 22.50m - 2.75m @ 0.036% U3O8 25.50m to 28.00m - 2.50m @ 0.052% U3O8 36.25m to 37.75m - 1.50m @ 0.059% U3O8 40.75m to 41.50m - 0.75m @ 0.029% U3O8 The mineralised intervals in hole RTO-001 shows good correlation with theadjacent intersections, particularly with 060E08S. The lower intersections inall holes show consistent correlations. These results increase confidence in theprevious drill data. In parallel with current drilling programme the historic Retortillo drillingdata is being fully evaluated. The aim is to apply the new geological and assayinformation to interpretation of the ENUSA assay and radiometric data for the272 holes drilled previously. The resulting 3D model of the deposit will enablecalculation of a JORC compliant resource. Baseline radiometric, radon and water sampling surveys were completed to providebackground environmental data. The resulting report for the radon survey (176samples) is believed to protect Berkeley/MRA from any future liability relatedto past exploration in the area. Geological mapping and ground radiometrics indicate continuation of thefavourable Retortillo stratigraphy to the north-west, for about four kilometres,and an associated radiometric anomaly of 3.2km x 1km with counts of up to 2775cps. This anomaly is located to the north-west of the Yeltes river and has notbeen tested by previous drilling. Figure 3: Retortillo Radiometric Anomaly: Refer to Investor Relations page at www.berkeleyresources.com.au In early January the Pedreras PI over the Retortillo mineralisation was granted,thus removing prior constraints on drilling of the mineralised zone and itspotential extensions. Elsewhere in Salamanca I the potential also appears to be increasing.Seventy-two diamond holes at Zona 7 show high grade mineralisation at depths of