Quarterly Activities Report
21 Luglio 2009 - 10:48AM
UK Regulatory
TIDMBKY
RNS Number : 0069W
Berkeley Resources Limited
21 July 2009
Quarterly Activities Report
For the Quarter Ended
30 June 2009
Key Developments
Corporate
· The Co-operation Agreement with ENUSA was approved by the Spanish Council of
Ministers.
· A deposit of EUR5m for the ENUSA assets was paid and acquisition and assessment
of the historical database for the Salamanca State Reserves and the Quercus
uranium processing plant commenced, signalling the commencement of Berkeley's
feasibility study process on the Salamanca Uranium Project.
· Berkeley completed a placement and rights issue to shareholders, raising
approximately $10m in total (before costs), which is expected to fully fund the
feasibility study process.
· Mr Stephen Dattels joined the Board, representing Polo Resources Limited, the
cornerstone shareholder in the placement.
Salamanca Uranium Project
· Acquisition of the ENUSA database is proceeding well with digital data for
drilling and resource modelling now secured, as well as initial hard copy data
relating to environmental and radiological management and metallurgy and
processing.
· An initial review of historic drilling data confirms Berkeley's understanding
of the quantum and quality of drilling and assaying undertaken, with very
extensive diamond and percussion drilling undertaken at the Sageras/Zona M and
Mina D deposits, near the Quercus plant, and substantial diamond drilling
undertaken at the more distant Alameda deposits.
· Significant additional exploration potential is emerging from the review of
historic drilling and radiometric data and also from new radiometric surveys by
Berkeley.
· Very encouraging results were achieved from column leach tests on 2 composite
samples from the Retortillo deposit, indicating good potential for heap
leaching.
Enquiries - Managing Director: Matt Syme Tel: +61 417 906 717
RBC Capital Markets: Martin Eales Tel: +44 20 7029
7881
Corporate
Berkeley's Co-operation Agreement with ENUSA - pursuant to which Berkeley may
acquire 90% of ENUSA's uranium mining assets in Salamanca, Spain - was approved
by the Spanish Council of Ministers in April.
Berkeley then paid a deposit of EUR5m and commenced acquisition of ENUSA's
historical database for the assets in May.
For full details of the ENUSA Co-operation Agreement and the ENSUA assets,
please refer to the Stock Exchange announcement on 10 December 2008.
In order to ensure funding through the anticipated 18 month period of the
feasibility study process, Berkeley completed a share placement and a concurrent
rights issue to shareholders, raising approximately $10m in total (before
costs). The cornerstone investor in the placement was Polo Resources Limited, an
AIM listed energy resources investor chaired by Mr Stephen Dattels (see
www.poloresources.com ).
Mr Dattels, who joined the Berkeley Board subsequent to the placement, was
previously a founder and Director of Uramin Inc, which was sold for USA$2.5
billion to Areva in mid 2007.
Salamanca Uranium Project - Feasibility Study Process
Berkeley commenced the Feasibility Study process on the Salamanca Uranium
Project on 26 May. The Feasibility Study is expected to take up to 18 months.
The Salamanca Uranium Project incorporates the Mina Fe deposits (Sageras/Zona M
and Mina D) and the nearby Quercus Plant, as well as the more distant Alameda
and the Retortillo deposits. The Feasibility Study will focus initially on
mining the Mina Fe deposits for processing through the Quercus Plant utilising
heap leaching or dynamic leaching, or a combination of the two. The Study will
also address the potential for subsequently sourcing additional feed for the
plant from the Alameda and Retortillo deposits.
Initial work has focussed on assessment of the scope and quality of the
historical data and its potential to contribute to the feasibility study
process, particularly in the mining and processing fields. Progress to date is
described below.
The historical data will also lead to a new program of near mine exploration
during the 18 months of the Project, with the aim of defining additional
resources with the potential to extend mine life, or increase production.
A new wholly owned Spanish holding company - Berkeley Minera Espana SA (BME) -
has been established to manage the Project and a number of international
consulting companies have been engaged to assist with the Project, including:
· AMC Consulting - resource modelling and mining
· Aker Solutions - processing and metallurgy
· Kappes Cassiday - heap leaching
· Golder Associates - environmental and permitting
· Ingemisa SA - radiological protection.
A number of other consultants are under consideration for various roles
over the Feasibility Study process.
Environmental Studies, Radiological Protection and Community Awareness
Environmental responsibility, radiological protection and community awareness,
engagement and support are paramount considerations for the success of
Berkeley's Salamanca Uranium Project. Environmental and Radiological Protection
studies, which comprise a vital component of the Feasibility Study, will be been
undertaken by Golder Associates and Ingemisa SA. Work during June included:
· Initial site reconnaissance was undertaken with ENUSA personnel,
involving
the Quercus Plant, tailings dam, restored areas of Mine Fe and the
Sageras
area.
· Accessing ENUSA's records of previous Environmental Assessments (Quercus
Plant, Mina D, tailings dam), Ecological and Risk Assessment studies,
Hydrological Studies, Restoration Projects, Hydrogeological Monitoring, Quality
Assurance Program and the Operational Program of Monitoring and Control of Water
(superficial and underground).
· Hydrological and hydrogeological information for the Duero basin Hydrological
Plan has been collected and reviewed, together with meteorological information
for stations in proximity to the site.
The exiting environmental and radiological conditions of the site are being
reviewed with the aim of establishing a mutually agreed environmental and
radiological baseline for the property and protocols for the ongoing monitoring
controls and reporting. This work will be completed by Berkeley, Golder
Associates and Ingemisa.
A community engagement program was initiated.
Metallurgical and Processing
The review of historical metallurgical and processing data is being undertaken
by Aker Solutions and Berkeley's internal consultant, with support from Golder
Associates. Progress to date included:
* Preliminary review of the current state of the installations.
* Review of the documentation made available by ENUSA, including:
* Plant layout and equipment
* Mass balances
* Monthly /annual reports from the plant
* Plant characteristics
* Substation characteristics
* Production and consumption data for the static (heap) leaching circuit
Work in the current quarter will include an initial review of the processing
options by Kappes Cassiday and Aker Solutions, with a view to establishing the
optimum process route for the feasibility study.
The Salamanca Uranium Deposits
ENUSA discovered six uranium deposits within its State Reserves, but mining was
limited to the Mina Fe deposit and to shallow mineralisation in the Mina D
deposit. Berkeley's feasibility study process will be focussed initially on the
Mina Fe area deposits (including Sageras/Zona M and Mina D) and the Alameda
deposits, and will also investigate opportunities to incorporate Berkeley's
existing resources in the Retortillo area.
The Mina Fe area deposits are located within close proximity to the Quercus
plant and are essentially part of the Mina Fe mineralised system. The Alameda
deposits are located 12km to the west of the Quercus plant and have not been
explored as extensively as those at Mina Fe.
Berkeley gained access to ENUSA's data in early June and substantial progress
was achieved during the month:
* 18GB (980 files) have been scanned in the ENUSA archive at Ciudad Rodrigo. The
scanned data predominantly consist of historical reports, maps and drill logs.
The most relevant information from these scans is being transformed into digital
format and incorporated into Berkeley's data base.
* ENUSA has provided digital data including maps and drill hole data as well as
resource model data for the main deposits under investigation.
* Ground radiometrics have been completed over the Sageras and Zona M deposits and
extended to the west to cover a large radiometric anomaly apparent in the
historic data. This anomaly remains open and follow up work will define its
extent and source. (see exploration summary).
* Oblique aerial photography has been flown over most of the near mine area to
provide a reference surface image.
* More than 250 drill collars have been surveyed at Sageras, Zona M and Mina D
together with a number of tracks and buildings. This data will enable the
transformation of the ENUSA local coordinates to the national UTM system.
* Down hole radiometric logging of open drill holes at Sageras commenced with the
Berkeley gamma probe and comparisons from the first 17 holes indicate very good
agreement with ENUSA data. The principal difference is in anomaly amplitudes,
which reflects the difference in gamma probe tools used.
* ENUSA's extensive diamond drill core facility has been cleaned up and work is
underway to identify core suitable for geological logging, chemical assay and
density measurements.
* Approximately 60% of the roto percussion drill holes at Sageras and Mina D were
originally surveyed with a down hole gyroscope and some show significant
deviations at relatively shallow depths (50 to 70 metres). A selection of 12
holes, including deviated and non-deviated holes, were re-surveyed by Berkeley
and these confirmed the hole deviations. A new program to have all the holes
surveyed will commence this month.
* Geological mapping was commenced in the Sageras and Alameda areas.
* A provisional drilling program has been planned for the Sageras-M, Mina D and
Alameda South deposits, and work programs lodged. These holes will provide
material for comprehensive metallurgical testwork and geological data to guide
resource calculations.
In addition to this activity, considerable effort has been devoted to
investigating the resource models provided by ENUSA for the main deposits. Based
on ENUSA's historical work, Berkeley has established exploration targets
totaling 16-19.5mt at 400-500ppm (for 14- 21.5mlbs of U3O8) for the Mina Fe area
deposits, all of which are located in close proximity to the Quercus processing
plant.
In addition, Berkeley has previously established exploration targets in the
Alameda area of 25.5-29.0mt at grades ranging from 450-500ppm (approx 28-29m lbs
of U3O8), based on ENUSA's historical calculations.
Details of ENUSA's historic work on these deposits is included in the 10
December 2008 Stock Exchange announcement.
The Mina Fe area and Alameda deposits have been extensively explored by ENUSA
but do not presently have JORC compliant resources. Berkeley's targets are
conceptual in nature and based on a review of the available data on the projects
to date. As there has been insufficient exploration to define a JORC compliant
Mineral Resource, it is uncertain whether further exploration will result in the
determination of a Mineral Resource.
The Mina Fe deposit(s) was largely mined and the pit backfilled and
rehabilitated together with three shallow pits at Mina D. No mining has occurred
in the Alameda area.
The Sageras-Zona M Deposit
The Sageras-Zona M deposit is interpreted as the North West extension of Mina Fe
and is located within 3 km of the Quercus processing plant. Sageras is the part
of the deposit located inside ENUSA owned land and Zona M is the part located
outside.
The mineralisation is hosted in Palaeozoic phyllites and metasediments and
occurs at or close to the surface. It extends for a distance of about 1.5 km in
a north-westerly direction from the restored Mina Fe open pit and occurs as a
sub-horizontal body of continuous and semi continuous mineralisation ranging
from 10m to 50m in thickness and from surface to 100m deep. It is open at depth
in several areas. The width varies from about 150m in the south east up to 300m
in the North West. Surface topography is open, relatively flat and well suited
for shallow open pit mining.
The deposit appears to be divided in the middle by a NNE structure that offsets
the mineralisation and marks a distinct change in width and orientation. This
structural zone has been located in the field and it appears to coincide with a
fold axis and some displacement of lithologies.
Despite no specific metallurgical testwork having been identified in the
archives to date, the 2007 ENUSA Viability Study for the deposit does not
contemplate any variation in the processing and mining routes from those
employed at Mina Fe and D. This would indicate the metallurgical properties of
mineralisation in the Sageras - Zona M deposit are very similar to those for ore
mined in other portions of the mineralised system and is consistent with the
geological continuity of the mineralisation.
ENUSA provided Berkeley with a digital drill hole database for Sageras-Zona
M containing 2,140 drill holes. This database was devoid of critical metadata
for the holes, which has been captured by Berkeley employees from scanned
reports, maps and drill logs by Berkeley employees. Of the 2,141 known holes,
140 are diamond and 2,001 are roto-percussion.
The grade data supplied in digital form consists of a combination of chemical
assays and e-grades; chemical assays for the diamond drill holes and e-grades
generated from downhole radiometrics for the roto-percussion drill holes. For a
more detailed discussion of the ENUSA drilling methods and uranium grades,
please refer to Berkeley's Stock Exchange announcement of 10 December 2008.
The majority of the Sageras deposit has been drilled out on a 10m x 10m drill
hole spacing by roto-percussion, whereas Zona M has been drilled out on a 50m x
50m spacing using diamond drilling. A complete set of 10 metre cross sections
have been generated and geological interpretation has commenced. The ENUSA
resource model is also being reviewed.
The Mina D Deposit
The Mina D deposit is separated from Mina Fe by the Agueda River and was
partially mined in 3 shallow open pits at its northern end by ENUSA in the
1990's. These pits are now restored.
The intensely drilled northern portion of the deposit appears to be separated
into two distinct zones that strike NNW and dip at a low angle to the west. The
mineralisation appears to plunge gently southwards becoming progressively deeper
in this direction beneath Tertiary cover.
ENUSA provided a digital drill hole data set for Mina D consisting of 3,020
drill holes. This data has been supplemented with information entered from
scanned reports, maps and drill logs. Of the 3,020 known holes, 406 are diamond
and 2,614 are roto-percussion. The diamond drill holes have been drilled on a
50m x 50m drill pattern and then infilled on a 10m x 10m pattern by
roto-percussion in the northern part of the deposit.
Berkeley has also been supplied by ENUSA with a resource model for Mina D
calculated by the University of Granada in 1991. This model is currently being
reviewed. A complete set of cross sections have been generated and geological
interpretation has commenced.
The Alameda Deposits
There are two main deposits at Alameda - Alameda North and Alameda South. Both
have additional exploration potential. Whilst their geology is similar to
Fe, the carbonaceous metasediment host rocks have been hornfelsed by nearby
granite and are significantly harder. ENUSA data indicates that almost 75% of
the contained resource is in the Alameda South deposit and this will be the main
focus of Berkeley's work during the feasibility study process.
ENUSA provided a digital drill hole data set consisting of 407 diamond drill
holes for the southern deposit and 274 diamond drill holes for the northern
deposit. The deposits were drilled on a 50m x 50m pattern with centre holes
effectively yielding a 35m x 35m pattern over the centre of the deposits. All of
the uranium grades in the database appear to be chemical assays derived from the
diamond drill core.
Alameda South shows good continuity of mineralisation, generally within 100m of
surface and a resource model estimated by the University of Granada in 1991 has
been provided by ENUSA and is currently being reviewed.
Exploration Potential
As well as the deposits described above, ENUSA identified the Esperanza deposit
and six other prospective areas through a combination of radiometrics and
drilling: Marialba, Cuellar- Nil, Carpio, Gallegos, Barquilla and north of Zona
M. In addition, Berkeley's experience indicates the high prospectivity of
extensive areas of favourable stratigraphy below Tertiary and recent cover,
where radiometrics are ineffective.
All of these prospects have been located since gaining access to the ENUSA data.
The radiometric anomalies are underlain by fertile basement metasediments and
coincide with the prospects. The fact that all of these targets were known
before the airborne surveys highlights the efficiency of early ground
radiometric prospecting in locating outcropping uranium mineralisation.
Table 1 below offers a revised summary of the drilling activities on the
prospects away from the main deposits. A full review of this information will be
undertaken in the following quarter. Most noteworthy at this stage is almost
10,000m of drilling at Marialba, 4km south west of Fe, and the 32,000m drilled
at Esperanza, 20km to the north of the Quercus plant.
+-------------+----------+---------+----------------+----------+---------+------------+
| Zone | Number | DDH |Rotopercussion | Total | Start | End date |
| | of | | | meters | date | |
| | Drills | | | | | |
+-------------+----------+---------+----------------+----------+---------+------------+
| Marialba | 171 | 66 | 105 | 9,980 | 1966 | 1991 |
+-------------+----------+---------+----------------+----------+---------+------------+
| Carpio de | 66 | 13 | 53 | 4,519 | 1967 | 1991 |
| Azaba | | | | | | |
+-------------+----------+---------+----------------+----------+---------+------------+
| Gallegos | 20 | 20 | 0 | 1,025 | 1967 | 1967 |
+-------------+----------+---------+----------------+----------+---------+------------+
| Cuellar | 9 | 0 | 9 | 552 | 1991 | 1991 |
+-------------+----------+---------+----------------+----------+---------+------------+
| Esperanza | 729 | 163 | 336 | 32,807 | 1965 | 1991 |
+-------------+----------+---------+----------------+----------+---------+------------+
Table 1 - Drilling summary historic exploration prospects
Ground radiometric surveys undertaken by Berkeley during June have located a
large radiometric anomaly west of Zona M which remains open to the North West.
The anomaly has been drilled in the past. Some of these holes intersected
mineralisation, but the drill data must be compiled and reconciled with surface
mapping and radiometrics before the remaining exploration potential can be
clearly understood.
Metallurgical Testwork: Retortillo
Column leach testwork on two representative samples of "oxidized" (Top Composite
sample) and "transition/fresh" (Bottom Composite sample) mineralisation from the
Retortillo deposit was completed during the quarter with very encouraging
results, as described below. Results for comminution, bottle roll, agglomeration
and percolation tests on these samples, conducted by SGS Lakeside Oretest Pty
Ltd in Perth, were reported in the March quarter.
The 60 day column leach tests were based on 4m columns, 100mm in diameter, with
each containing about 60 kg of mineralisation crushed to 80% passing 10mm. The
samples were agglomerated using about 25% of the anticipated acid consumption
(based on bottle roll tests), to provide an acid "cure" and uniform exposure to
acid within the loaded column.
Column leaching commenced on 9 March with an acid concentration of 2.5gpl,
increasing to 4.0gpl on day 21, 6.0 gpl on day 36 and 10, 0 gpl on day 52.
Ferric ion was added on day 21 with an immediate and substantial impact in both
samples. After 42 days both the high grade Top Composite (1600ppm U3O8) and the
lower grade Bottom Composite (500ppm U3O8) returned excellent recoveries (84%
and 82% respectively) with acid consumption of only about 12.5 kg/t. By day 50
both recovery curves indicated about 84% recovery with about 15.5 kg/t acid
consumption, and had developed an asymptotic trend that suggested maximum
recoveries under those conditions.
The final increase in acid concentration on day 52, increased recovery in the
Bottom Composite to 90% on day 60, but with acid consumption now 22.3 kg/t, and
had only a marginal impact on the Top Composite with recovery at 85% for similar
acid consumption. Progress assays on solutions during column leach test must
estimate the U3O8 in loaded solution within columns and are therefore
approximations. However, recoveries calculated after incorporating analysis of
the column residues and wash solutions are higher by several percent. These
final reconciled results are currently subject to checking, but nevertheless it
appears that recoveries in the range of 80-85% with very moderate acid
consumptions may be achievable.
Based on the column test data as reported, and assuming addition of Ferric iron
at the beginning, the leach time in the Top Composite column appears to have
been sufficient at Day 42, which would translate to around 50 days under typical
field leach conditions for a lift height of 4 metres. This would increase to
around 120 days for an 8-metre lift height.
Since the Bottom Composite was still leaching at the end of the
60-day laboratory period, field leach requirements are more difficult to
determine and more information on optimum acid application is required However,
based on the data to hand, a field leach time of some 80 days may be required
for an optimum 4-metre lift, increasing to 200 days for an 8-metre lift.
Both samples agglomerated very well, although the higher fines content of the
Top Composite required addition of 200 g/t of polymer binder along with
sulphuric acid. Slumping in both tests was minimal and no issues with
permeability were observed. The low mass loss from acid leaching of less than 2%
indicates good heap stability and long-term permeability
The leach columns were washed over a 10-day period with the equivalent of 1.6 to
1.8 kL of wash solution per tonne of ore, starting with 0.3 to 0.4 kL/t of
barren rinse solution at pH 1.5 then followed by 1.3 to 1.4 kL/t of deionised
water. Compared to general standards for stock water supply (Australia and New
Zealand water quality); uranium was washed down to an acceptable standard (0.2
mg/L). Vanadium levels remained higher (1.0 vs. 0.1 mg/l); however this may
reflect the high acid dosage in the latter part of the tests. Aluminium values
were well below the standards.
These encouraging column leach results for the two representative Retortillo
samples open up the possibility of a heap leach operation providing additional
U3O8 for final recovery at the Quercus plant.
Please see www.berkeleyresources.com.au for a version of this announcement
including maps and figures.
This information is provided by RNS
The company news service from the London Stock Exchange
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