Last checked at 25 Mar 2011 08:24
25th March, 2011
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE
Salamanca Uranium Project
Substantial Drilling Program Commenced to Test New Exploration Targets
The Directors of Berkeley (The Company) are pleased to announce the commencement of a substantial programme of reverse circulation (RC) and diamond drilling to test a number of high priority exploration targets in close proximity to the resource areas at Águila, Alameda, Villar and Retortillo.
RC drilling has commenced on the highest priority target in the Alameda area which was identified by Berkeley following a complete review of the historical exploration prospects and incorporating the results of a special study undertaken by the University of Salamanca. This six month study has significantly upgraded the exploration potential of the Salamanca Uranium Project (SUP) and has identified 10 high priority targets that will be tested in 2011 with a substantial programme of exploration, including more than 12,000m of RC and diamond drilling. Importantly, most of these targets are in close proximity to existing deposits. In addition, there is significant potential to extend the existing resources at the Sageras, Alameda South, Alameda North and Villar deposits.
Continuing work with the University of Salamanca specialists will include highly prospective areas in proximity to the satellite Retortillo deposit, where a further 1,500m of exploration drilling is planned in 2011.
Acting Managing Director Henry Horne commented on the startup of exploration drilling: "The results of the collaboration study with the University Of Salamanca have confirmed the near mine exploration potential in the Salamanca region. We are committed to an extensive, fully funded exploration programme in 2011 and are confident that we will be able to increase our resource base close to the planned mining activities."
Enquiries - Acting Managing Director: Henry Horne Tel: +34 923 193 903
RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881
Exploration in 2011
The completion of the confirmatory and resource upgrade drilling at the Sageras, Palacios North and Alameda South deposits in 2010, provided valuable new geological information. During the last six months, Berkeley geologists have worked with the University of Salamanca to apply this knowledge to studies aimed at generating new exploration targets within the State Reserves and contiguous Berkeley tenements.
The first stage of this programme has now been completed with highly encouraging results. It involved detailed mapping of the entire western Salamanca Province, an area of over 500 km2 which includes the majority of the known uranium mineralisation occurrences, by a team of specialist structural geologists from the University of Salamanca, under the direction of Professor Jose Ramon Martinez Catalan.
The new stratigraphic interpretation highlights the strong lithological and structural controls on the location of existing deposits and points to an array of new targets for detailed ground follow up and drill testing. It has also influenced the prioritisation of other targets previously identified by the Company.
As a result, the Company has committed to a substantial programme of field work and drilling in 2011 with a minimum of 7,000m RC drilling allocated to testing five high priority targets. Field work has already commenced and willfocus on identifying new deposits in close proximity to the proposed operations. In addition, the potential for additional mineralisation has been identified at the Sageras, Alameda South, Alameda North, and Villar deposits where a total of 3,000m of RC drilling and 1,000m of diamond drilling is planned.
The collaboration with the University of Salamanca has been extended to include detailed structural studies on drill core and within deposits to refine targeting criteria. The methodology will also be extended to the Retortillo area to assist in better targeting of highly prospective areas under cover, with drill testing planned later in 2011.
Examples of target areas are described below, with the highest priority being the Mimbre target immediately along strike from the substantial Alameda South deposit.
Alameda Area Exploration
Uranium mineralisation at Alameda is hosted within basement metasediments running parallel to the main granite intrusion. It is concentrated in a cluster of deposits located within a 5km long north-south striking corridor, with more than 80% of known resources contained in the Alameda South deposit.
This mineralised corridor continues to the south into an area of extensive Tertiary sediments where only 30cm of cover is sufficient to obscure both basement geology and the radiometric signature of any mineralisation.
The high prospectively of this corridor has been demonstrated by ENUSA who drilled 34 wide spaced (1km x 1km) drill holes along a section from 6km to 15km south of Alameda South. Significantly, 40% of these holes intersected uranium mineralisation with grades up to 1,700 ppm U3O8, and some intersections in excess of 10m. These results clearly highlight the corridor's prospectivity. However, the mineralisation occurs at depths of 80m in basement with significant Tertiary cover. Importantly, this cover thins northwards with the first exposure of basement at Alameda South.
Directly south of the Alameda South deposit, mapping by Berkeley geologists has identified a very thin layer of Tertiary cover previously mapped as outcropping basement. It has been observed over areas of the Alameda South deposit that such a thinlayer of cover is sufficient to mask any radiometric signature from basement rocks. This apparent error in the original mapping may account for the fact that 6km of the corridor, immediately adjacent to a substantial deposit, remains untested. It is anticipated that the cover is relatively thin along much of this strike length and the first 3km will be tested with 1,500m of RC drilling which commenced last week.
Águila Area Exploration
A detailed assessment of the exploration potential close to known mineralisation in the Águila Area has been undertaken by Berkeley geologists, incorporating information from the new stratigraphic and structural interpretation. Although much of this area has been extensively explored over the last 50 years, six high quality targets have been identified. All occur within about 5km of the proposed Águila operations and some are associated with shallow intersections of uranium mineralisation identified in previous exploration.
Three of these prospects, Los Prados, Majuelos North and Capilla, represent potential extensions to existing deposits. The remaining prospects occur in exposed basement or beneath Tertiary cover. Once approval has been received from the Salamanca Mines Department (expected in the second quarter 2011), a 2,000m RC drilling programme will commence in these areas.
Abetos Area Exploration
The Abetos licence was applied for during 2008 and is expected to be granted later this year. Geologically the area is along strike and in the same stratigraphic position as the main Villar deposit which has an Inferred Mineral Resource of 4.9 Mlbs U3O8. During regional field work, Berkeley geologists detected a significant radiometric anomaly in close proximity to the granite contact within this area (El Teso). At this stage, the full extent and magnitude of the anomaly have not been defined because of the presence of unmapped Tertiary sediments that appear to be partially masking the radiometric signature.
Once the license is granted, detailed geological mapping to accurately locate the Tertiary cover ground boundary followed by a more comprehensive ground radiometric survey will be undertaken to identify drill targets.
Retortillo Area Exploration
Significant potential exists in untested areas covered by Tertiary sediments in close proximity to the Retortillo deposit. These areas include favourable stratigraphic and structural settings that will be tested by RC drilling in April. Another drilling programme will commence later in the year once initial targeting studies have been undertaken in consultation with University of Salamanca geologists
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A full version of this announcement including images can be downloaded from Berkeley's website at www.berkeleyresources.com.au.
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.