5th Feb 2008 07:00
Berkeley Resources Limited05 February 2008 5 February 2008 BERKELEY RESOURCES LIMITED AERIAL SURVEY CONFIRMS POTENTIAL OF SALAMANCA I PROJECT The Directors of Berkeley Resources Limited (AIM: BKY.L) are pleased to presentthe interpreted results of the aerial radiometric and magnetic survey recentlyflown over the Company's Salamanca I project. The survey has confirmed and extended the potential to add additional uraniumresources in outcropping and covered areas in proximity to the existing resourcebase of almost 17 million lbs of U3O8. In particular, it has significantly enlarged target areas associated with knownuranium mineralisation at the Zona 7 deposit, and at the two previously minedareas, Mina Caridad and Mina Cristina. It has also identified covered extensionsof favourable lithology along strike from the Retortillo and Santidad deposits. An extensive new program of RC drilling has commenced with the aim of assessingthe highest priority targets over the next six months. A full version of this announcement including radiometric and magnetic dataimages can be downloaded from Berkeley's website at www.berkeleyresources.com.au. Enquiries - Managing Director: Matt Syme Telephone: +61 417 906 717 Email: [email protected] Background The helicopter-borne survey over the Salamanca I area comprised 3,336 linekilometres flown by an internationally recognised contractor on 100m spacednorth - south lines using a towed magnetic sensor at a nominal height of 35mwith a spectrometer inside the aircraft. The survey specifications, supervision, quality control and data interpretationwere undertaken in conjunction with Berkeley's senior geophysical consultant,Bob White. Bob is a geologist and geophysicist with an MSc in Geology/Geophysicsand 30 years experience in the industry. He has worked worldwide for Cominco,Pancontinental Mining, Getty Oil (Jabiluka), Queensland Mines (Nabarlek), andNewcrest Mining amongst others. The area flown includes the Retortillo, Santidad and Zona 7 deposits and alsothe Mina Caridad and Mina Cristina areas, where previous trial mining by Spanishgovernment entities confirmed the presence of significant uraniummineralisation. The survey area is bounded to the South East by a series ofoutcropping quartzite ridges, to the North West by the Villavieja granites andto the East by extensive Tertiary cover, of which a substantial part occurswithin the survey area. The quality of the data set is extremely good due to excellent flying conditionsand rigorous QAQC protocols on flying and the processing procedures. The radiometric survey (uranium channel only shown) defines the granites to theNorth and West and also shows the strong radiometric anomalies associated withthe Retortillo, Santidad and Zona 7 deposits and the historic Cristina andCaridad mines. Importantly, these anomalies extend well beyond currently knownmineralization. The large radiometric low in the centre and South Eastrepresents almost continuous Tertiary cover over potentially prospectivemeta-sediments. The aeromagnetic data confirms potential extensions of favourable lithologiesbeneath cover for 5 km to the South East of the Retortillo deposit and for 3 kmto the North West of the Santidad deposit. It has also provided newlithostructural information to guide exploration of the significant targetextensions at Zona 7, Caridad and Cristina. TARGET AREAS Retortillo SE Extension The presence of Tertiary sediments over the southern half of the Retortillodeposit and any possible extensions to the South East prevents the use ofradiometrics as a guide to mineralization. However, the aeromagnetic datasuggests continuation of favourable Retortillo lithologies to the South East fora strike length of over 5 km. In addition, this data indicates a structuralbreak coinciding with the end of known mineralisation (as defined by drilling)and a possible shallowing of Tertiary cover to the South East. Initial drilltesting of covered stratigraphy will commence in the current quarter. Santidad Interpretation of the airborne data indicates continuation of favourableSantidad stratigraphy and anomalous magnetics for another 3km to the North Westof current drilling, up to the granite contact. Tertiary cover extends over mostof this strike length, however, radiometric data suggests thinning to the NorthWest. Drilling at Santidad has also indicated the potential for a parallel zoneof mineralization 200m to the North West of the Santidad deposit. This potentialzone coincides with a magnetic anomaly that also extends to the granite contact. Drill testing of these potential extensions will be undertaken in the currentquarter. Zona 7 At Zona 7, approximately 14km north of Retortillo, uranium mineralisation wasdiscovered in the late 1960's and confirmed in diamond drilling by Berkeley in2007. Mineralisation was intersected over a strike length of approximately 1kmand previously announced intersections including: • ZN7-001 0 to 25m @ 0.11% U308; and • ZN7-007 2 to 25.8m @ 0.123% U308 highlight the shallow, high grade potential of this deposit. The airborne survey indicates a significant increase in potential withcontinuation of the main radiometric anomaly for an additional 2km to the SouthWest of the deposit, within the favourable contact metamorphic zone. Inaddition, the radiometrics indicate extension of the deposit anomaly for another1.5km to the South East, within the prospective stratigraphy. Aeromagnetic dataalso suggests the possibility of further untested potential to the South East,beneath Tertiary cover. Systematic RC testing of Zona 7 targets will follow current work at Santidad. Mina Cristina Mina Cristina was the site of a limited surface mining operation by the JuntaEnergia Nuclear (JEN) in the 1960's and some workings remain, with high surfaceradiometric readings and secondary uranium showings at surface. The airborneradiometric data indicates that the Cristina mineralisation is much moreextensive than previously identified and has identified new anomalies in themetamorphic aureole to the North East of Cristina. Aeromagnetic data highlightsthe potential for possible stratigraphic extensions beneath the Tertiary coverto the South East. Mina Caridad Caridad was also the site of a limited JEN mining operation in the 1960's whichincluded underground development as well as a small open pit. The combinedradiometric and magnetic survey results suggest significant extension ofmineralization within a specific stratigraphic unit for approximately 1.0km tothe south and 1.5km to the south east of the historical mine. Initial assessment of the Cristina and Caridad prospects by RC drilling willfollow work at Zona 7, with the aim of completing this work within 6 months. AERIAL SURVEY DATA FOR SALAMANCA II AND CACERES VI Following completion of the Salamanca I survey in November, a further 2,590 linekm was flown at the Salamanca II and Caceres VI projects. Results of thesesurveys will be released in the next few weeks, when the final processed dataand interpretations have been received. 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 an employee 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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