30th Oct 2007 08:16
Berkeley Resources Limited30 October 2007 QUARTERLY ACTIVITIES REPORT For the Quarter Ended 30th September 2007 KEY DEVELOPMENTS • Discovery of an important new uranium deposit at Santidad, 2km northwest of the Company's main Retortillo deposit. • At the end of the quarter the flat lying Santidad deposit had dimensions of over 700m along strike (still open ended to the north west and south east) and 100 to 150m in width, with indications that the structures widens to the southeast. Most mineralization occurs within 40m of surface and thickness ranges up to 30m. • Initial ground radiometric surveys to the northwest of Santidad were completed in September, with encouraging results, and are now being extended another 3 km along favourable stratigraphy. • At Retortillo diamond drilling continued at the northern boundaries of the deposit, further defining the structural contacts and geological controls. • A revised resource calculation is expected in the December quarter. • A contract was signed with Aretech Solutions for the completion of an airborne magnetic and radiometric survey over the Salamanca I, Salamanca II and Caceres VI areas. Enquiries - Managing Director:Matt Syme Telephone: +61 417 906 717 Email: [email protected] RBC Capital Markets: Martin Eales Telephone: +44 (0) 20 7029 7881 SALAMANCA PROVINCE. Exploration during the quarter focused on diamond and reverse circulation (RC)drilling at the Retortillo deposit and the new Santidad discovery, locatedapproximately 2km to the northwest of Retortillo. Two diamond drill rigs and atrack mounted RC drill rig completed 32 diamond drill holes (2,856m) and 56 RCdrill holes (2,092m) for a total of 4,948m of drilling in 88 holes on the twodeposits. Ground radiometrics are being extended northwest of the Santidad deposit tocover the strike extension of the favourable Retortillo/Santidad stratigraphyfor a distance of almost four kilometres to a crosscutting granite contact.Results to date indicate continuation of anomalous radiometrics for a distanceof about 1 kilometre to the northwest of the Santidad deposit before the anomalyappears to be interrupted and masked by younger Tertiary cover. Santidad Testing of the Santidad ground radiometric anomaly commenced in July andresulted in the discovery of a new deposit 2 km to the northwest of theRetortillo deposit. By the end of the quarter a continuous zone ofmineralisation had been defined over a strike length of more than 700m by 55 RCholes and 5 diamond drill holes (totalling 3204m), spaced at 50m intervals along8 traverses which are located 50-100m apart. The northwest striking zone is openalong strike in both directions and RC and diamond drilling will continuethroughout the December quarter. The Santidad deposit occurs within a 3km long radiometric anomaly associatedwith northwest striking Ordovician slates and shales adjacent to outcroppingquartzites. Its stratigraphic association and radiometric expression are similarto the Retortillo deposit, and attenuation of the anomaly to the northwestappears to coincide with younger cover of Tertiary gravels, a mirror image ofthe occurrence of Tertiary cover over the southeastern half of the Retortillodeposit. Outcropping quartzites indicates that the favourable stratigraphy continues tothe northwest for another 4 km beyond the radiometric anomaly, until terminatedby crosscutting granite. Extensive coverage of this area by ground radiometricsis in progress. Consistent results from RC drilling indicate an essentially continuous, flatlying, near surface body of mineralisation that is approximately 150m wide. The geology is similar to Retortillo, with host rocks of Ordovician grey-blackshales, bounded to the southwest by sub-cropping to outcropping quartzites.Shales have a sub-vertical penetrative S1 cleavage with an orientation of 120 to1400. Uranium mineralisation occurs between 0 and 20m below the surface and canextends up to about 50m below surface; thin granitic intrusions occur in somemineralised holes. The dominant uranium minerals appear to be secondarytorbernite and autunite. A thin cover of quartzite scree and/or the remnants of Tertiary cover is common,above a thin, weak weathering profile, 1-5m thick. The average thickness to dateis about 12.7m and grades range from 171ppm U3O8 to 3071ppm U3O8, with mostintersections within the range of 300-400ppm U3O8. An additional line of holes (SANR-012 to SANR-017) was drilled to test a largeradiometric anomaly four to five hundred metres to the northeast of the Santidadmineralisation. Intersections in holes SANR-013 and SANR-060, spaced 100m apartalong strike, indicate another zone of mineralisation in shales, which mayrepresent a lithological repetition across a synclinal axis. This area will alsobe tested in the December quarter. Notable RC intersections, based on chemical assays and a cut off grade of200ppm U308, include:- Hole SANR- 001 9 metres @ 0.036% U308 from 0m Hole SANR- 007 30 metres @ 0.044% U308 from 5m Including 10metres @ 0.077% U308 from 21m Hole SANR- 008 21 metres @ 0.039% U308 from 0m Hole SANR- 022 5metres @ 0.040% U308 from 29m Hole SANR- 023 26metres @ 0.040% U308 from 26m Including 15 metres @ 0.050% U308 from 21m Hole SANR- 024 8metres @ 0.030% U308 from 21m Including 2 metres @ 0.080% U308 from 21m Hole SANR-028 6 metres @ 0.310% U308 from 22m 5 metres @ 0.040% U308 from 36m Hole SANR- 036 7 metres @ 0.030% U308 from 3m Hole SANR-037 6 metres @ 0.079% U308 from 9m 3 metres @ 0.046% U308 from 29m Hole SANR-041 3 metres @ 0.098% U308 from 16m 2 metres @ 0.064% U308 from 42m In general, there is good correlation between grade estimates based on downholeradiometric surveys and chemical assays, for those holes where all sampleintervals were assayed - for example: Hole No Radiometric survey Chemical assay SANR-023 13 - 40m @ 0.033%eU3O8 13 - 40m @ 0.037% U3O8 SANR-024 21 - 29m @ 0.030% eU3O8 21 - 29m @ 0.032% U3O8 SANR-028 19 - 28m @ 0.132% eU3O8 19 - 28m @ 0.209% U3O8) However, in some holes where selection of samples for assay was based onscintillometer assessment of drill chips in the field, and therefore someintervals were left un-sampled, significant variations between radiometric andassayed grades can occur. Variations appear to result from the omission of somemineralised intervals from samples selected for assay and therefore allunassayed intervals are now being submitted for analysis. For example: SANR-022with 9 - 13m @ 0.026% eU3O8 and 29 - 34m @ 0.031 eU3O8,versus 9 - 13m @ 0.019 %U3O8 and 29 - 34m @ 0.040% U3O8 - assuming 0 for non-sampled intervals. Similardifferences occur in SANR-029 and SANR-024. The veracity of the RC drill results has been tested by twinning of vertical RChole SANR-007 with vertical diamond hole SAN-061. In addition, a traverse of 5diamond holes (SAN-042 to SAN-046) was drilled between adjacent traverses of RCholes (SANR-007 to SANR-009 to the southeast and SANR-027 to SANR-029 to thenorthwest). Comparison of the downhole radiometrics for SANR-007 and SAN-061indicate very good correlations and point to the integrity of RC drill results.However, assay results for SAN-061 have recently been received and indicatelower average grade over a similar, but reduced, intersection width (SAN-061:7.0 to 31.0m - 24.0m @ 0.0219% U3O8; RC hole SANR-007: 5.0 to 35.0m - 30.0m @0.0438%). There are several factors that may account for this difference, including:inherent variability within the deposit; the less representative samples fromSAN-061 (half core versus homogenised total hole material in RC samples); lossof secondary uranium minerals from SAN-061 during drilling and cutting of core;and possible variability in the integrity of the RC face-sampling hammer method.These alternatives are being addressed in the current quarter by means ofadditional twinned holes and more detailed analysis. When results becomeavailable for the diamond traverse (SAN-042 to SAN-046) they will enableindependent calibration of downhole radiometrics versus assays for diamond holesat Santidad, and comparison of correlations for the two drilling methods. Retortillo Twenty seven diamond drill holes (totalling 2,544m) and a single 100m RC holewere drilled at Retortillo during the quarter. This work was focussed onextending the deposit to the south-east, and improving definition of previouslydrilled areas prior to a new resource estimate in the December quarter. South East Extension Drilling on traverses spaced at 100-200m intervals extended the deposit by about400m to the south-east to line 128E. The mineralisation appears to narrow anddeepen as it plunges to the south-east beneath thicker Tertiary cover. Thesixteen hole program (total of 1,358m) tested the stratigraphy along strike to144E. Notable intersections (at a cut off grade of 200ppm U308) include:- Hole RTO-042 2.55metres @ 0.079% U308 from 77.2m 5.0metres @ 0.080% U308 from 81.5m 3.6metres @ 0.022% U308 from 91.5m Hole RTO - 055 2.0metres @ 0.337% U308 from 56m Retortillo Definition Drilling The remainder of the drilling at Retortillo was designed to upgrade resourcesand increase confidence in the geological, structural and mineralogicalinterpretations for the new resource estimate. Four holes (totalling 394m), weredrilled in the central and southern areas of the deposit to establishcontinuity of mineralisation, and eight angled diamond drill holes (totalling892m) were completed on traverses 65E, 70E, 84E and 96E, to determine thelocation and nature of the north-east boundary. Results from the angled holes indicate extensions of mineralisation to the northand at depth and an absence of bounding structures. It now appears that thesharp northern boundary of the Retortillo mineralisation may be controlled bylithology, rather than structure. Progress assays include the following intersections (at a cut off grade of200ppm U308):- Hole RTO-051 13metres@ 0.161% U308 from 24.0m 1.0metre@ 0.020% U308 from 27.0m Hole RTO-052 10.3metres@ 0.161% U308 from 24.7m 4.0metres @ 0.098% U308 from 43.0m 1.0metre @ 0.031% U308from 51.0m Hole RTO-056 8.0 metres @ 0.053% U308 from 18.0m 2.0metres @ 0.024% U308 from 33.0m 8.0metres @ 0.067% U308 from 37.0m 2.0metres @ 0.105% U308 from 49.0m Salamanca II A preliminary assessment of the Barquilla area was undertaken. Secondary uraniumminerals were observed on surface in several locations suggesting that thislicense area has significant exploration potential. It is anticipated that thetenement will be granted in the December Quarter and a programme of groundradiometrics will be initiated and followed by a drilling programme which willalso incorporate targets from the forthcoming airborne survey. Salamanca III No exploration during the quarter. CACERES PROVINCE A topographic survey at Saguazal (Caceres III) was completed to assist with,interpretation of the encouraging drill results reported in the June quarter.Early stage geological work at Caceres VI identified several new prospects, inparticular Gambuta, where positive results were reported in down holeradiometrics from RC drilling in 1992, More detailed work at Caceres VI isplanned for the December quarter. Caceres III A detailed topographic survey located all Berkeley drill collars as well as manyof the historical drill collars and enabled an improved interpretation of therecent drill results. It indicates that a shallow north-dipping, clay-filledstructure provides a base to the mineralised zone which appears to be aflat-lying explosive breccia zone in which the uranium occurs in associationwith pyrite, some of which is also brecciated. Associated wall rockmineralisation is minimal, while more widespread potassic alteration has noapparent association with mineralisation. The implications of this interpretation are being considered in terms ofprospectivity elsewhere along the Saguazal radiometrically anomalous zone. Caceres VI Land access agreements are currently being negotiated for all of the significantprospects, including the Gambuta and Ojaranzo mineralised zones (previouslydrilled by ENUSA and Areva), and the timing of these agreements will determinethe level of work in the December quarter. The recently identified Gambuta prospect in the western part of Caceres VIappears similar to Ojaranzo, with uranium mineralisation in steeply dippingshales. However, the presence of Tertiary cover suggests significant additionalpotential at Gambuta where percussion drilling by CISA, and associatedradiometrics, indicate mineralisation over an area of approximately 900 x 550m.A programme of ground radiometrics and initial drill testing is planned onceaccess arrangements are finalised. Reconnaissance work has located several other radiometric anomalies in smallwindows in the Tertiary cover in geologically favourable positions andadditional tenement applications are being prepared. AIRBORNE GEOPHYSICAL SURVEY A contract with Aretech Solutions for the flying of a 5500 line kilometre, lowlevel, close-spaced airborne magnetic and radiometric survey was signed on the6th September. This survey will cover Salamanca I, part of the Salamanca II, andthe Caceres VI and Toledo II areas. It is expected to commence at the beginningof November. This survey has two objectives: to better define controllingstructures and host lithologies associated with uranium mineralisation; and toprovide direct and indirect criteria for targeting new areas with potential formineralisation, particularly in areas of partial or complete cover. The information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Mr Peter Ellis,who is a Member of The Australian Institute of Geoscientists and a consultant ofBerkeley Resources Limited. Mr Ellis has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as definedin the 2004 Edition of the 'Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves'. Mr Ellis consents to the inclusionin the report of the matters based on his information in the form and context inwhich it appears. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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