Quarterly Activities Report

30 Apr 2007 07:52

Berkeley Resources Limited30 April 2007 QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 March 2007 Berkeley Resources Limited (AIM: BKY.L) is pleased to report on activitiesduring the quarter ended 31 March 2007. • Initial JORC compliant inferred resources of 11.9 million lbs of U3O8 calculated for the Retortillo and Zona 7 deposits in the Salamanca I licence. • Targets defined for possible extensions of Retortillo mineralisation to the southeast and northwest. • Acquisition of eight new areas totalling 22,176 ha, covering extensions of favourable stratigraphy to the west and east of the Salamanca I licence, which increases the Company's groundholding to about 185,000 ha. • Drill targets defined at the Saguazal prospect at Caceres III, with testing to commence shortly. • Substantial increase in drilling activity scheduled for June Quarter to test targets at Saguazal and Ojaranzo (Caceres VI) prospects, and infill and extensions of the Retortillo and Zona 7 deposits. • Mr Scott Yelland - a mining engineer with over 25 years experience managing mining operations around the world, including Spain, joined the Company as Chief Operating Officer. • Subsequent to the end of the quarter the Company 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. 1 EXPLORATION SALAMANCA PROVINCE Exploration in Salamanca Province focussed on preparation of resource estimatesfor the Retortillo and Zona 7 uranium deposits, which were announced on the 8thApril, 2007. This work included: • continuation of the confirmatory drilling program at Retortillo, Zona 7 and Mina Caridad; • a critical review and assessment of historical data in the light of the confirmatory drill program results; • inclusion of all historical drill and assay data in a database; • conversion of historical downhole and core scintillometer radiometric logs to digital forms; and • conversion of radiometrics to equivalent radiometric grades in intervals with no chemical assays. Eight new areas, totalling 22,176 ha, were acquired over favourable stratigraphyin proximity to the Salamanca I tenements. This process also enabled the partialconversion of the Salamanca II and III tenements to PI's. Salamanca I Confirmatory drilling of the Retortillo deposit continued with two diamond drillrigs. Eighteen holes totalling 1880.65m were completed by the end of thequarter. Single holes were also drilled into the Mina Caridad (CAR-001) and Zona7 (Z7-001) prospects. Drilling at Retortillo is continuing with hole RTO-022 currently in progress. Details for these holes, including assays received from the first fourteen holes(plus the Caridad and Zona 7 holes), are attached as Appendix I. Results confirm the historical assays and radiometric equivalent grades fromsurrounding JEN and ENUSA drilling and, in some instances, have increased bothgrade and thickness. In addition, the more detailed geological informationacquired by Berkeley Resources has improved our understanding on the controlsinfluencing supergene and primary uranium mineralisation. Notable assays include: Retortillo: RTO-001 19.4 to 40.8m - 21.4m @ 0.153% U3O8 RTO-002 26.0 to 39.5m - 13.5m @ 0.0307% U3O8 RTO-003 13.5 to 25.5m - 12.0m @ 0.0482% U3O8 RTO-004 33.7 to 42.0m - 8.3m @ 0.0706% U3O8 RTO-005 23.0 to 34.0m - 11.0m @ 0.0343% U3O8 RTO-010 33.0 to 40.2m - 7.3m @ 0.0426% U3O8 Zona 7: Z7-001 0.0 to 8.5m - 8.5m @ 0.2841% U3O8 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) for most of the section, from below surficial cover to the end of thehole. Duplicate 1/4 core samples and blank samples were included and all sampleswere assayed for total uranium by the Delayed Neutron Count (DNC) method atActivation Laboratories Limited in Ontario, Canada. Check assays, at otherlaboratories (including ENUSA), and acid soluble U assays and Th analyses arebeing completed on selected samples, based on an assessment of the initial assaydata. Measured core recoveries averaged >93% for the program, and also for each holewith mineralisation (minor core loss occurred in some holes in the Tertiarycover). Historic drilling data for Retortillo has been fully evaluated in parallel withthe current drilling program. The resulting re-interpretation of the historicJEN and ENUSA drill data has provided the basis of the 3D models of theRetortillo and Zona 7 deposits and enabled the calculation of JORC compliantresources. The results of this calculation are summarised below: INFERRED RESOURCES AT RETORTILLO & ZONA 7 (200ppm cut-off) Ore Tonnes (Mt) Grade (ppm U3O8) Contained Resource (Mlb U3O8) at 200ppm cutoff Retortillo 6.8 720 10.8Zona 7 0.62 760 1.1TOTAL 7.42 723 11.9 Retortillo mineralisation appears to be hosted by the more carbonaceous shaleunits which have been altered to kyanite/andalusite hornfels by nearby granite.The importance of weathering is indicated by the association of mineralisationwith current and past water tables. Structural controls are indicated by the fact that the northeastern limit ofthicker mineralisation appears fault-bounded with unmineralised,chlorite-spotted shales to the northeast. Minor granite dykes also occur. MostRetortillo uranium mineralisation occurs as torbernite, meta-autunite andpitchblende, with gummites (oxidized pitchblende) in the Zona 7 area. Mineralisation at Retortillo ranges from