Berkeley Eng Regulatory News (BKY)

31 Jul 2007 08:36

Berkeley Resources Limited31 July 2007 QUARTERLY ACTIVITIES REPORT To the Australian Stock Exchange For the Quarter Ended 30th June 2007 KEY DEVELOPMENTS • Initial JORC compliant resource of 11.9 million lbs of U3O8 at a grade of 0.072% calculated for the Retortillo and Zona 7 Deposits in the Salamanca I license. • Initial drill testing extends the Retortillo mineralisation 400 m to the southeast. • Initial diamond drill testing of the Zona 7 mineralisation and its potential for extensions was commenced. • Extensions of the Zona 7 ground radiometric anomaly identified a significantly larger radiometric anomaly extending beyond the current tenements. New tenement applications have been made. • Positive results from initial metallurgical test work, with recoveries of U3O8 exceeding 90% on all samples. • Initial drill testing of the defined Saguazal prospect targets in Caceres III was completed. • Acquisition of five new exploration areas, increasing the Company's holding to over 208,000 ha. • Completed a placement of 12.5m shares at $1.85 per share, raising $23.1M (£9.65M), with institutional investors in North America, Europe and Australia. • Mr Scott Yelland joined the Company as Chief Operating Officer. Enquiries - Matt Syme Telephone: +61 417 906717 Managing Director Email: info@berkeleyresources.com.au ACN 052 468 569 Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000 Tel: + 618 9322 6322, Fax: + 618 9322 6558 PO Box Z5083, Perth WA 6831,Australia 1. EXPLORATION SALAMANCA PROVINCE Following completion of the initial JORC compliant resource calculation of 11.9million lbs of U3O8 for the Retortillo and Zona 7 Deposits in the Salamanca Ilicense in early April, exploration in Salamanca Province focussed on drilltesting potential extensions to the southeast of the main Retortillo resourceand extending confirmatory drilling at the Zona 7 deposit. Results to dateconfirm significant extensions to the Retortillo deposits, including 400m alongstrike to the southeast. . Extensions of the ground radiometric survey at Zona 7 defined a largerradiometric anomaly extending >1km to the north of the Mina Cristina area.Historic radiometric data indicates that this anomaly extends for another 5kmto beyond the Salamanca I tenement, resulting in new ground acquisition.Assessment of low resolution regional radiometrics elsewhere in Salamanca alsoresulted in new tenement applications. SALAMANCA 1 Retortillo Re-interpretation of the historic JEN and ENUSA drill data, guided byconfirmatory Berkeley diamond drilling provided the basis of 3D models of theRetortillo and Zona 7 deposits and calculation of JORC compliant resourcesearly in the quarter. The results of this calculation are summarised in the following table. INFERRED RESOURCES AT RETORTILLO & ZONA 7 (200ppm cut-off) Ore Tonnes Grade Contained Resource (Mt) (ppm U3O8) (Mlb U3O8) Retortillo 6.8 720 10.8 Zona 7 0.62 760 1.1 TOTAL 7.42 723 11.9 Subsequent extension and confirmatory drilling at Retortillo was focussed inthe southeast sector. Eleven diamond holes (totalling 1053.3m), six RC holes(totalling 559m) and one roto-percussion hole and six pre-collars (totalling116m) were completed by the end of the Quarter. This work extended the southeastlimit of mineralisation by 400m and full details, including assays received todate, are attached as Appendix 1. Notable intersections (at a cut-off of 200ppm U3O8) include:- Hole RTO-018 3.00 metres @ 0.0696% U3O8 from 66.50m 9.50 metres @ 0.058% U3O8 from 83.00m Hole RTO-024 2.30 metres @ 0.035% U3O8 from 60.90m 2.80 metres @ 0.049% U3O8 from 76.00m Hole RTOR-025 14.00 metres @ 0.0918% U3O8 from 20.00m Hole RTOR-026 11.00 metres @ 0.0547% U3O8 from 43.00m Hole RTO-027 2.00 metres @ 0.2467% U3O8 from 62.00m 2.00 metres @ 0.0904% U3O8 from 69.00m Hole RTO-033 2.05 metres @ 0.132% U3O8 from 63.30m Hole RTO -035 1.80 metres @ 0.048% U3O8 from 54.8m All holes were geologically and radiometrically logged before being sampled (1/4core) at approximately 1m intervals (intervals varied from 0.5 to 1.5m based ongeology) Duplicate 1/4 core samples and blank samples were included and allsamples were assayed for total uranium by the Delayed Neutron Count (DNC) methodat Activation Laboratories Limited in Ontario, Canada. Check assays at otherlaboratories (including ENUSA and ALS ChemEx), and acid soluble U assays and Thanalyses, are being completed on selected samples, based on an assessment of theinitial assay data. ALS Chemex analysed approx 5 % of the samples using XRF, andtheir results indicate acceptable repeatability and mean percentage differencesof < 6% for