30th Apr 2008 08:25
Berkeley Resources Limited30 April 2008 Quarterly Activities Report For the Quarter Ended 31 March 2008 Key Developments • A scoping study prepared by AMC Consultants confirmed the potential for mining at Salamanca I, forecasting 12.1m lb of U3O8 production over 10 years at a cash cost of US$25/lb. • Interpreted results for the aerial survey completed over the Salamanca I, Salamanca II and Caceres VI areas in the December quarter highlighted the exploration potential of these tenements and generated a significant number of strong anomalies. • Drilling at the enlarged Zona 7 anomaly within Salamanca I extended the strike of mineralisation to over 1.5km and will result in significant additional resources. • Wide-spaced drilling at Santidad, confirmed that the mineralised zone extends for another 3.5km to the north-west of the Santidad deposit. • Results from initial ground work and historic data reviews at the Mina Cristina project indicate strong potential for more extensive uranium mineralisation. • Initial drilling results at the Gambuta project showed extensive, shallow uranium mineralisation. • Initial drilling at Barquilla (Salamanca II Project) encounters near surface mineralisation in a number of holes. Enquiries - Managing Director: Matt Syme Telephone: +61 417 906 717 Email: [email protected] RBC Capital Markets Martin Eales Telephone +44 20 7029 7881 Scoping Study A Scoping Study, prepared by AMC Consultants, was completed in February,confirming the potential economic viability of mining at the Salamanca Iproject. The Study, which is based only upon the project's previously announced JORCinferred and indicated resources of 16.9m lb of U3O8, includes the followingconclusions: • Potential production of approximately 12.1m lb U3O8 over 10 years. • Average cash operating costs of US$25 per lb of U3O8 • Initial capital costs totalling US$109m for a plant rated to process 1.5mtpa. The plant design has been scaled to allow for potential future additional resources • Legal review confirms no impediments to mining • Environmental review confirms no foreseeable major impediments to mining • Good potential to improve financial and operating parameters in a number of areas, including utilising truck or radiometric sorting The details of further testwork, including radiometric sorting, crushing andcomminution studies are being finalised. Completion of this work, and theresultant outcomes, will determine planning for a feasibility study. See the announcement dated 14 February 2008 for further details. EXPLORATION Salamanca I A helicopter-borne survey was flown over the Salamanca I area in December 2007,with results processed and interpreted in January 2008 (see announcement dated 5February 2008). The area flown includes the Retortillo, Santidad and Zona 7 uranium deposits andalso the Mina Caridad and Mina Cristina areas, where previous trial uraniummining by Spanish government entities was undertaken. The survey was limited totarget lithologies with potential for hosting economic mineralisation. The strong radiometric anomalies associated with the Retortillo, Santidad andZona 7 uranium deposits, and also the historic Cristina and Caridad mines,extend well beyond previously known mineralisation. A program of initial testingof the extended Zona 7 anomaly and the Cristina and Caridad anomalies wascommenced with 30 reverse circulation ("RC") holes totalling 670m completed atZona 7 during the quarter. Zona 7 The main radiometric anomaly at Zona 7 is approximately 2.5km long and up to500m wide. Berkeley drilled 7 diamond holes in the area in 2007 to confirm theresults of 71 diamond drill holes drilled by government entities (JEN) in the1960's. Results from the previous Berkeley holes included: Hole Z7-001 8.5metres @ 0.284% U3O8 from 0.0m Hole Z7-007 8.95metres @ 0.063% U3O8 from 2.0m and 9.5metres @ 0.183% U3O8 from 14.8m A small (1m lb) resource was previously calculated around hole Z7-001, based onthis hole and historical results. Drilling in the quarter extended the strike length of the mineralisation toapproximately 1.5km. It remains open to the north and south-west. Notable RC intersections (at an assay cut off grade of 200ppm U3O8) include: Hole ZN7R-010 3.0 metres @ 0.117% U3O8 from 16.0m Hole ZN7R-019 1.0 metre @ 0.080% U3O8 from 6.0m 1.0 metre @ 0.034% U3O8 from 12.0m 1.0 metre @ 0.079% U3O8 from 25.0m and 2.0 metres @ 0.038% U3O8 from 37.0.0m Hole ZN7R-022 2.0 metres @ 0.063% U3O8 from 14.0m 1.0 metre @ 0.046% U3O8 from 24.0m 3.0 metres @ 0.071% U3O8 from 25.0m Hole ZN7R-023 2.0 metres @ 0.081% U3O8 from 23.0m Hole ZN7R-026 3.0 metres @ 0.084% U3O8 from 15.0m 11.0 metres @ 0.049% U3O8 from 23.0m 11.0 metres @ 0.066% U3O8 from 40.0m Hole ZN7R-027 1.0 metres @ 0.041% U3O8 from 39.0m 3.0 metres @ 0.030% U3O8 from 49.0m Hole ZN7R-030 2.0 metres @ 0.037% U3O8 from 47.0m The mineralised host rock is a thermally altered package of Pre-Cambrian toCambrian meta-sediments. A group of muddy shales with thick conglomerates /quartz pebble horizons form the southern footwall to the mineralised sequence.Similar stratigraphy has been identified at both Caridad, 2.5km to thesoutheast, and at Cristina, 2km to the northeast. Work is continuing todetermine the stratigraphic relationships between these three areas,particularly in relation to the possible continuity of both stratigraphy andradiometric anomalies between Zona 7 and Cristina. Geological mapping indicates that the Zona 7 eastern limb is parallel to themain S1 cleavage, whilst the western arm appears to be coincident with are-orientation of the S1 cleavage in to a more NNE-SSW orientation. The natureof this re-orientation is likely to be due to late Hercynian adjustments,through folding, faulting, or Alpine tectonics. The initial results from Zona 7 suggest irregular distribution of structurallycontrolled veins and pods of high grade mineralisation. However, the principalstructural controls are not yet understood. Potential northern extensions of themineralisation will be tested in the next quarter. The radiometric anomaly at Zona 7 appears to be part of a larger northeasttrending regional anomaly which parallels the granite contact to the west.Topographic modelling indicates a strong relationship between the distributionand nature of these anomalies and topography, particularly between Zona 7 andCristina. This relationship has been previously recognised at Retortillo, andtherefore similar geological processes of mineralisation are indicated. A strongradiometric anomaly extends over approximately 4kms from Zona 7 to Cristina andhistoric data (diamond and percussion drilling, trenching and a small shaft),and outcrop indicate widespread, near surface mineralisation within the Cristinaanomaly. Drilling will commence shortly. Santidad Drilling at Santidad comprised 59 reverse circulation holes totalling 3,679.9 mand 7 diamond drill holes totalling 537.6m. This drilling was designed to test for: 1. potential extensions of the Santidad stratigraphy beneath tertiarycover to the north-west of the Santidad deposit (see aerial survey announcementdated 5 February 2008), and 2. a potential parallel structure to the north of the Santidad deposit,indicated by previous positive drill results and the aeromagnetic andradiometric survey. Two lines of reverse circulation drillholes, 2.4 km apart (profiles 166E and262E), were drilled to test the full width of the Santidad stratigraphy. Notable intersections (at an assay cut off grade of 200ppm U3O8) include: Hole SAN-144 1.0 metre @ 0.056% U3O8 from 30.0m 2.0 metres @ 0.051% U3O8 from 34.0m 1.0 metre @ 0.074% U3O8 from 51.5m and 5.0 metres @ 0.039% U3O8 from 59.0m Hole SAN-156 10.7 metres @ 0.034% U3O8 from 13m 3.3 metres @ 0.056% U3O8 from 26.0m and 5.6 metres @ 0.036% U3O8 from 30.5m Hole SAN-167 6.1 metres @ 0.034% U3O8 from 18.9m 7.8 metre @ 0.062% U3O8 from 59.2m Hole SANR-192 2.0 metres @ 0.063% U3O8 from 38.0m 1.0 metre @ 0.068% U3O8 from 58.0m While results seem to have limited the potential of the northern radiometrictarget (-262E), mineralisation of similar grade to the Santidad inferredresource (382ppm U3O8 at a cut off grade of 200ppm U3O8) has been recorded inseveral holes up to 3.5km from the main Santidad orebody (Hole SANR-192 onProfile 262E), emphasizing the extent of the mineralized system. Having confirmed continuity of the Santidad stratigraphy and mineralisation toalmost the western granite contact, further drilling is required to test the2.4km gap between profiles -166E and -262E. Salamanca II Berkeley also completed interpretation of a 1,122 line kilometre helicoptersurvey over the main areas of the Company's Salamanca II project. This area liesbetween and around a number of uranium State Reserves (not the property of theCompany) which include the Fe Mine area, and the Alameda and Esperanza deposits. Seven diamond drill holes totalling 331.2m were drilled in the Barquilla licenseto test a number of radiometric anomalies. Notable intersections (at an assay cut off grade of 200ppm U3O8) include: Hole BAR 002 5.3 metres @ 0.095% U3O8 from 2.5m Hole BAR 003 2.0 metres @ 0.023%U3O8 from 1.0m Hole BAR 005 4.0 metres @ 0.038%U3O8 from 0.0m Mineralisation comprises surface accumulations above the redox zone within athin zone of clay and weathered rock derived from the insitu weathering of theunderlying basement. Uranium concentrations have a strong association with ironoxides developed in fractures in the oxide zone and the potential for asignificant resource from this style of mineralisation is considered low.Further mapping and the use of other geophysical technologies is now required toassist in defining new exploration targets for larger areas of structurallycontrolled mineralisation, similar to that at the Mine Fe mine, to thesoutheast. Caceres VI Project Diamond and Reverse Circulation drill testing of historic prospects and newradiometric anomalies at the Gambuta and Ojaranzo projects commenced and willcontinue until the end of May 2008, when fire restrictions will preclude access. Gambuta Four diamond drill holes totalling 314.3m were completed within a north easttrending area of Precambrian phyllites measuring 900m by 400m, to clarifyresults from roto-percussion drilling undertaken by CISA (a joint venturebetween COGEMA (now Areva) and ENUSA) in the 1990's. All four holes intersected significant near surface uranium mineralisation, andnotable intersections (at an assay cut off grade of 200ppm U3O8) include: Hole GAM 001 8.0 metres @ 0.059% U3O8 from surface Hole GAM 002 12.5 metres @ 0.074% U3O8 from surface, and 4.0 metres @ 0.100% U3O8 from 28.0m Hole GAM 003 3.0 metres @ 0.028% U3O8 from 8.0m 4.0 metres @ 0.036% U3O8 from 12.0m 3.2 metres @ 0.054% U3O8 from 25.0m, and 6.5 metres @ 0.056% U3O8 from 29.5m Hole GAM 004 17.7metres @ 0.029% U3O8 from 11.5m, including 7.0 metres @ 0.043% U3O8 from 14.5m These very encouraging results confirm the presence of extensive near surfaceuranium mineralisation, at potentially economic grades, and validate the downhole radiometric information available for the 21 positive holes drilled by CISA(out of a total of 24 holes drilled) in the early 1990's. Within the target area, previously untested zones contain a high potential forthe discovery of "blind" mineralisation beneath Tertiary cover, both within thedrilled area and along strike to the northwest where the deposit remains open. Three styles of mineralisation have been recognised: 1. High level secondary mineralisation located in the oxide zone, often infractures. 2. Quartz sulphide mineralisation below the redox zone, within structuresand possible shear zones. 3. As "disseminations" within the phyllite package. A reverse circulation drilling program to test for mineralisation beneath theTertiary cover and to better define the extent and tenor of the knownmineralisation commenced in April, 2008. Ojaranzo Prospect A short program of diamond drilling to confirm positive historical results forthe Ojaranzo prospect commenced in April. Ground radiometrics and geologicalmapping have confirmed the radiometric anomalies generated by the aerial surveyand located secondary uranium minerals within the Precambrian phyllites. The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based oninformation compiled by Mr Peter Ellis, who is a Member of The Australian Institute of Geoscientists and an employee ofBerkeley Resources Limited. Mr Ellis has sufficient experience which is relevant to the style of mineralisation andtype of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves'. Mr Ellis consents to the inclusion in the report of the matters based on his information in the form andcontext in which it appears. Positive Results from Zona 7 Drilling (31.03.08) HOLE ID UTM UTM North RL Inclination End of Minimum Intersections > East Hole 200ppm U3O8 metres metres metres Degrees metres From To Int U3O8 (%) (m) Z7-001 714962 4528727 728 -90 100.20 0.00 8.50 8.50 0.2841 Z7-002 715555 4528530 718 -90 84.65 31.10 32.10 1.00 0.0242 Z7-004 714860 4528709 733 -90 49.15 7.20 8.60 1.40 0.0421 10.65 11.90 1.25 0.0284 Z7-005 715043 4528750 725 -90 60.10 4.11 5.65 1.54 0.0338 10.60 12.00 1.40 0.0285 Z7-007 715432 4528570 724 -90 61.10 2.00 10.95 8.95 0.0630 14.85 24.40 9.45 0.1830 ZN7R-010 715470 4528514 719 -90 70.0 16.00 19.00 3.00 0.1174 ZN7R-019 714698 4528500 718 -90 56.0 6.00 7.00 1.00 0.0801 12.00 13.00 1.00 0.0345 25.00 26.00 1.00 0.0790 37.00 39.00 2.00 0.0386 ZN7R-020 714745 4528477 722 -90 50.0 17.00 20.00 3.00 0.0268 21.00 23.00 2.00 0.0395 ZN7R-021 714656 4528524 716 -90 50.0 35.00 36.00 1.00 0.0309 42.00 43.00 1.00 0.0360 ZN7R-022 714786 4528450 726 -90 50.0 14.00 16.00 2.00 0.0636 23.00 24.00 1.00 0.0465 25.00 28.00 3.00 0.0709 ZN7R-023 714614 4528545 715 -90 50.0 23.00 25.00 2.00 0.0814 ZN7R-026 714431 4528303 723 -90 70.0 5.00 7.00 2.00 0.0270 12.00 13.00 1.00 0.0217 15.00 18.00 3.00 0.0836 21.00 22.00 1.00 0.0213 23.00 34.00 11.00 0.0485 23.00 30.00 7.00 0.0679 40.00 51.00 11.00 0.0664 ZN7R-027 714476 4528277 723 -90 65.0 26.00 27.00 1.00 0.0200 39.00 40.00 1.00 0.0414 43.00 44.00 1.00 0.0309 49.00 52.00 3.00 0.0300 ZN7R-028 714517 4528251 725 -90 60.0 Radiometrically Anomalous - Awaiting Assays ZN7R-030 714828 4528428 724 -90 65.0 3.00 4.00 1.00 0.0242 9.00 10.00 1.00 0.0200 47.00 49.00 2.00 0.0374 ZN7R-032 715181 4528749 701 -90 70.0 Radiometrically Anomalous - Awaiting Assays ZN7R-033 715172 4528714 704 -90 50.0 Radiometrically Anomalous - Awaiting Assays ZN7R-034 715153 4528661 711 -90 50.0 Radiometrically Anomalous - Awaiting Assays ZN7R-036 715317 4528690 697 -90 60.0 Radiometrically Anomalous - Awaiting Assays NOTE: All assays are by Delayed Nuetron Count by Actlabs and only results for positive holes are shown Positive Results from Santidad Drilling (31.03.08) HOLE ID UTM UTM North RL Inclination End of Hole Minimum Intersections > 200ppm U3O8 East metres metres metres Degrees metres From To Int (m) U3O8 (%) SAN-144 715757 4523364 752 -90 95.35 17.00 22.00 5.00 0.0564 24.00 27.00 3.00 0.0229 28.00 29.00 1.00 0.0251 30.00 31.00 1.00 0.0555 34.00 36.00 2.00 0.0511 51.50 52.50 1.00 0.0745 59.00 64.00 5.00 0.0392SANR-153 714753 4524019 800 -90 60.00 56.00 57.00 1.00 0.0246SANR-155 714706 4523942 805 -90 85.00 57.00 60.00 3.00 0.0264SAN-156 716530 4522702 762 -90 61.15 13.00 23.65 10.65 0.0337 26.00 29.35 3.35 0.0558 30.45 36.00 5.55 0.0364SAN-167 715910 4523244 729 -90 102.45 18.89 24.98 6.09 0.0344 59.20 67.00 7.80 0.0622SANR-169 716273 4523379 732 -90 51.00 29.00 30.00 1.00 0.0284SANR-170 716284 4523412 737 -90 60.00 4.00 5.00 1.00 0.0241SANR-182 715980 4522923 762 -90 50.00 29.00 32.00 3.00 0.0267SAN-185 715837 4523169 732 -90 100.20 54.90 56.10 1.20 0.0251SANR-192 712859 4525593 781 -90 85.00 38.00 40.00 2.00 0.0636 58.00 59.00 1.00 0.0685 69.00 71.00 2.00 0.0462 75.00 76.00 1.00 0.0298SANR-194 712805 4525487 785 -90 80.00 40.00 41.00 1.00 0.0237SANR-199 712682 4525272 797 -90 70.00 60.00 61.00 1.00 0.0429SANR-200 712660 4525230 800 -90 70.00 46.00 47.00 1.00 0.0205 NOTE: All assays are by Delayed Nuetron Count by Actlabs and only results for positive holes are shown Positive Results from Barquilla Drilling (31.03.08) HOLE ID UTM UTM North RL Inclination Recovery End of Minimum Intersections > East Hole 200ppm U3O8 metres metres metres Degrees % metres From To Int U3O8 (%) (m) BAR-002 692,373 4,509,353 697.394 -90 90.8 50.2 2.50 7.80 5.30 0.0954 BAR-003 693,307 4,509,052 715.246 -90 93.71 60.3 1.00 3.00 2.00 0.0233 BAR-005 691,844 4,507,657 713.818 -90 95.76 54.0 0.00 4.00 4.00 0.0380 BAR-006 693,259 4,509,198 711.774 -90 97.64 51.3 2.50 3.00 0.50 0.0288 BAR-007 692,578 4,508,591 701.885 -90 92.48 25.3 Radiometrically Anomalous - Awaiting Assays NOTE: All assays are by Delayed Nuetron Count by Actlabs and only results for positive holes are shown Positive Results from Gambuta Drilling (31.03.08) HOLE ID UTM UTM North RL Inclination Recovery End of Minimum Intersections > East Hole 200ppm U3O8 metres metres metres Degrees % metres From To Int U3O8 (%) (m) GAM-001 291,730 4,404,118 387 -60 to 000 97.09 103.00 0.00 8.00 8.00 0.0586 10.00 11.00 1.00 0.0218 19.00 20.00 1.00 0.0512 34.00 35.50 1.50 0.0301 37.50 38.50 1.00 0.0389 45.00 46.00 1.00 0.0768 55.00 56.00 1.00 0.0543 58.50 59.50 1.00 0.0338 GAM-002 292,381 4,403,899 369 -60 to 000 96.36% 85.00 0.00 12.50 12.50 0.0741 21.50 22.50 1.00 0.0312 24.00 25.00 1.00 0.0394 28.00 32.00 4.00 0.0997 34.50 35.50 1.00 0.0340 GAM-003 292,368 4,403,827 353 -80 to 000 85.28% 64.60 8.00 11.00 3.00 0.0281 12.00 16.00 4.00 0.0359 20.50 22.50 2.00 0.0340 23.30 24.20 1.00 0.0707 25.00 28.20 3.20 0.0540 29.50 36.00 6.50 0.0561 GAM-004 292,368 4,403,828 353 -70 to 180 97.41% 61.70 11.50 12.30 0.80 0.0218 14.50 21.50 7.00 0.0431 22.50 23.50 1.00 0.0397 24.50 25.50 1.00 0.0531 27.00 29.20 2.20 0.0256 34.00 35.00 1.00 0.0285 GAM-005 292,368 4,403,827 353 -80 to 000 98.06% 36.00 7.50 36.00 28.50 0.0451 7.50 10.50 3.00 0.0218 13.80 36.00 22.20 0.0541 NOTE: All assays are by Delayed Nuetron Count by Actlabs and only results for positive holes are shown This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Berkeley Eng