TIDMBKY
RNS Number : 7686V
Berkeley Resources Limited
31 October 2014
31 OCTOBER 2014 ASX/AIM:BKY
BERKELEY RESOURCES LIMITED
SEPTEMBER 2014 QUARTERLY REPORT
Berkeley Resources Limited ('Berkeley' or the 'the Company') is
pleased to present its quarterly report for the period ended 30
September 2014. The Company's primary focus during the period
continued to be the advancement of the Salamanca Project located in
Spain. Highlights during the quarter include:
-- 2014 drilling program at Zona 7 completed:
Ø 2013 drilling program at Zona 7, the largest of the Retortillo
Satellite Deposits, recorded significant high grade intersections
at shallow depths and essentially doubled the strike extent of the
mineralised zone;
Ø 2014 drill program, completed in September, was aimed at
infilling the zone of mineralisation delineated by 2013 drilling
and extending it further to the south-west;
Ø High grade mineralisation has again been intersected at
shallow depths (from surface to a maximum of 73 metres), with
thicknesses up to 25 metres;
Ø Outstanding intercepts from the initial 16 reverse circulation
drill holes include:
Ø 21 metres @ 3,101 ppm U(3) O(8)
Ø 25 metres @ 2,005 ppm U(3) O(8)
Ø 21 metres @ 1,535 ppm U(3) O(8)
Ø 17 metres @ 1,517 ppm U(3) O(8)
Ø 16 metres @ 1,014 ppm U(3) O(8)
Ø These results confirm continuity of the mineralised zone
extending well beyond the current resource boundary, and highlight
the significant exploration and resource growth potential of the
broader Salamanca Project.
Ø Assay results from the remaining drill holes will be available
shortly and the Company expects an upgraded Inferred Mineral
Resource for Zona 7 to be completed in the current quarter.
-- Key inputs for the Salamanca Project Definitive Feasibility Study ('DFS') progressing:
Ø DFS focussed on the integrated development of Retortillo and
Alameda commenced in the June 2014 Quarter;
Ø A number of work programs providing key inputs to the DFS,
including resource drilling at Retortillo, hydrogeological studies
and metallurgical testwork, advanced during the quarter.
Enquiries:
Robert Behets
Berkeley Resources
+61 8 9322 6322
John Prior / James Black / Paul Gillam - Nomad & Broker
Numis Securities
+44 (0) 207 260 1000
OPERATIONS
Berkeley Resources Limited ('Berkeley' or 'the Company') is a
uranium exploration and development company with a high quality
resource base in Spain. Berkeley is currently focused on advancing
its wholly owned flagship Salamanca Project.
Salamanca Project
Berkeley's flagship Salamanca Project ('the Project') comprises
the Retortillo, Alameda, Gambuta and Zona 7 deposits, plus a number
of other Satellite deposits located in western Spain.
The Company has completed a Preliminary Feasibility Study
('PFS') on the integrated development of Retortillo and Alameda,
which clearly demonstrated the Project's potential to support a
significant scale, long life uranium mining operation (refer ASX
announcement dated 26 September 2013).
Using only the current Mineral Resource Estimates ('MRE') for
Retortillo and Alameda, which total 34.5 million pounds U(3) O(8)
(36.9 million tonnes at 424 ppm; 200 ppm U(3) O(8) cut-off grade),
as a base case scenario, the PFS showed that the Project can
support an average annual production of 3.3 million pounds of U(3)
O(8) during the seven years of steady state operation and 2.7
million pounds of U(3) O(8) over a minimum eleven year mine life.
There is strong potential to increase the production profile and/or
mine life through the exploitation of additional resources held by
the Company (totalling 27.1 million pounds U(3) O(8) ) and with
ongoing exploration work.
Definitive Feasibility Study
The Definitive Feasibility Study ('DFS') for the Project
commenced in 2014 following finalisation of the Scope of Work.
The key areas of focus for the DFS include:
-- Resource infill drilling programs aimed at upgrading the
classification of specific portions of the current Retortillo and
Alameda MRE's to the Measured category;
-- Further metallurgical testwork programs, including additional
column leach work (six metre columns), in combination with ion
exchange ('IX') at Alameda and solvent extraction ('SX') and
ammonium diuranate ('ADU') precipitation at Retortillo to generate
more detailed information relating to the pH and acid consumption
optimisation, design and sizing of the IX and SX units, and final
product specification;
-- Development of a Geo-Met model which will incorporate
additional geological and metallurgical parameters into the
resource block model to support metallurgical process modelling and
mine planning and optimisation;
-- Open pit optimisation, detailed mine design and production
scheduling using the upgraded MRE block models;
-- Enhanced design of the project infrastructure and site facilities;
-- Undertaking engineering studies to support capital and
operating cost estimates for the Project to a level of accuracy of
nominally +/-10%; and
-- Undertaking an evaluation of the various alternatives for
funding the development of the Project and the sale of future
uranium production (including uranium marketing and off-take
arrangements).
During the quarter a number of work programs providing key
inputs to the DFS, including the resource infill drilling program
at Retortillo, the metallurgical testwork program and
hydrogeological studies for both sites, were advanced.
Geology and Drilling
An infill drilling program at Retortillo, aimed at upgrading the
resource classification of the areas to be mined during the initial
two years of the PFS production schedule to the Measured category,
commenced during the quarter.
The program has been designed to close the existing drill
pattern down to a notional 35 metre by 35 metre pattern within the
areas targeted while the core obtained from the diamond ('DD')
drilling will facilitate enhanced geological and structural
understanding of the deposit.
The reverse circulation ('RC') component of the program was
completed in September, with a total of 69 RC holes for 4,693
metres drilled. Assay results are pending.
Two of the four planned DD holes have been drilled to date, with
the program scheduled for completion in mid-November.
The data obtained from this infill drilling program will form
the basis for a revised MRE, which is anticipated to be completed
and announced in the first quarter of 2015.
Hydrogeology
During the quarter, four 72 hour pumping tests were conducted in
the southern pit area at Retortillo in order to:
-- Identify groundwater flows in non-fractured and fractured areas;
-- Identify groundwater flow in sandstone; and
-- Identify groundwater flow in a productive area.
The results are currently being interpreted and will be used to
update the hydrogeological model for the site.
At Alameda, work on updating the hydrogeological model for the
site was completed and confirmed the outcome of the previous model
included in the PFS.
Metallurgical Testwork
Preparation for the three master composite samples,
representative of various mining phases at Retortillo, was
completed, the six metre columns loaded with agglomerated material,
and the leaching testwork program commenced at the Mintek
facilities in Johannesburg during the quarter. Although the
testwork program is still underway, the leaching characteristics
observed to date are generally in line with expectation.
Preparation for the master composite samples for Alameda is
nearing completion and it is anticipated that the six metre columns
will be loaded with agglomerated material, and the testwork program
will commence in late 2014/early 2015.
The first phase of radiological characterisation of the ripios
at Retortillo, which comprises sample homogenisation, conditioning,
chemical and radiological characterisation and column percolation
tests, was completed. Results from laboratory analysis are
pending.
Permitting
Following the grant of the Mining Licence in April, the approval
processes associated with other key permits including the Initial
Authorisation of the process plant as a radioactive facility and
the Authorisation for Exceptional Use of the Land (application for
reclassification from rural to industrial use) of the affected
surface land area at Retortillo, continued to be the focus of
permitting related activities during the quarter.
The Exploitation and Rehabilitation and Closure Plans for
Alameda were submitted to the Ministry of Industry of the Central
Government in October.
Exploration - Zona 7
The 2014 phase of drilling at Zona 7 was completed during the
quarter.
Zona 7 is located approximately 10 kilometres to the northwest
of the proposed location of the centralised processing plant at
Retortillo and currently hosts an Inferred Mineral Resource
Estimate ('MRE') of 3.9 million tonnes averaging 414 ppm U(3) O(8)
for a contained 3.6 million pounds of U(3) O(8) at a lower cut-off
grade of 200 ppm U(3) O(8) (refer ASX June 2012 Quarterly
Report).
The potential extension of Zona 7 to the southwest towards Las
Carbas was identified as a priority drill target following a review
of all available data for the regional tenements surrounding the
existing resources. An 18 hole, 1,133 metre RC drill program was
subsequently completed in mid-2013 to test this priority
target.
Assay results returned from this drilling program in August 2013
confirmed that the Zona 7 mineralisation extends a further 1,200m
to the southwest of the current resource area. The drilling, which
was carried out on an approximately 400 metre by 100 metre grid,
essentially doubled the strike extent of the mineralised zone and
it remains open. Significant high grade intersections were recorded
at shallow depths (from 9 metres to a maximum depth of 84 metres),
with thicknesses up to 29 metres. Better intercepts included 29
metres @ 3,391 ppm U(3) O(8) , 17 metres @ 1,260 ppm U(3) O(8) , 15
metres @ 1,392 ppm U(3) O(8) , 25 metres @ 683 ppm U(3) O(8) and 13
metres @ 1,161 ppm U(3) O(8) (refer ASX announcement dated 7 August
2013).
The 2014 drilling program at Zona 7, which comprised 45 RC holes
for 2,888 metres and 4 diamond core ('DD') holes for 391 metres,
was aimed at infilling the zone of mineralisation defined by the
2013 drilling and extending it further along strike. The program
was designed to close the broadly spaced 2013 drill pattern down to
a notional 100 metre by 100 metre grid to facilitate the estimation
of a revised Inferred Mineral Resource for the prospect.
Drilling Results
Assay results from the initial 16 RC drill holes from the 2014
program were received and reported during the quarter (refer ASX
announcement dated 18 August 2014).
The mineralisation intersected in the new infill holes has shown
good continuity of both thickness and grade exists between the
previous broader spaced drill holes within the Zona 7 extension.
Significant high grade intersections have been recorded at shallow
depths (from surface metres to a maximum depth of 73 metres), with
thicknesses up to 25 metres. Select intercepts are reported in
Table 1.
Table 1: Select Intercepts - Zona 7 2014 Drilling Program
(initial 16 holes)
Hole No. Down Hole Intercept From Depth
(Down Hole)
21m @ 3,101 ppm U(3)
Z7R-102 O(8) 5m
----------------------- -------------
25m @ 2,005 ppm U(3)
O(8)
17m @ 1,517 ppm U(3) 11m
Z7R-101 O(8) 50m
----------------------- -------------
21m @ 1,535 ppm U(3)
Z7R-104 O(8) 2m
10m @ 501 ppm U(3)
O(8) 26m
---------------------------------- -------------
16m @ 1,014 ppm U(3)
Z7R-096 O(8) 5m
----------------------- -------------
14m @ 891 ppm U(3)
Z7R-103 O(8) 7m
----------------------- -------------
11m @ 1,087 ppm U(3)
Z7R-105 O(8) 17m
14m @ 543 ppm U(3)
O(8) 31m
---------------------------------- -------------
7m @ 845 ppm U(3)
Z7R-106 O(8) 13m
13m @ 530 ppm U(3)
O(8) 29m
---------------------------------- -------------
Z7R-095 10m @ 575 ppm U(3) Surface
O(8)
----------------------- -------------
These results confirm continuity of the mineralised zone
extending well beyond the current resource boundary, and highlight
the significant exploration and resource growth potential of the
broader Salamanca Project.
Assay results from the remaining drill holes will be available
shortly and the Company expects an upgraded Inferred Mineral
Resource for Zona 7, which will incorporate data obtained from both
the 2013 and 2014 drilling programs, to be completed in the current
quarter.
CORPORATE
At 30 September 2014, the Company had cash reserves of A$18.3
million.
The Company continues to maintain a strong focus on cost control
across all areas of the business.
Competent Persons Statement
The information in this announcement that relates to 2014
Exploration Results is extracted from Berkeley's ASX announcement
dated 18 August 2014 which is available to view on
www.berkeleyresources.com.au. The information in the original ASX
Announcement was based on information compiled by Robert Behets,
who is a Fellow of The Australasian Institute of Mining and
Metallurgy. Mr. Behets is a holder of shares, options and
performance rights in, and is a director of Berkeley Resources
Limited. Mr. Behets has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. The Company confirms that it is not
aware of any new information or data that materially affects the
information included in the original market announcement. The
Company confirms that the form and context in which the Competent
Person's findings are presented have not been materially modified
from the original market announcement.
The information in this announcement that relates to earlier
Exploration Results and Mineral Resources is extracted from
Berkeley's ASX announcements dated 31 July 2012 (June 2012
Quarterly Report), 7 August 2013 and 26 September 2013 which are
available to view on Berkeley's website at
www.berkeleyresources.com.au. The information in the original ASX
announcements was based on information compiled by Craig Gwatkin,
who is a Member of The Australian Institute of Mining and
Metallurgy and was an employee of Berkeley Resources Limited. Mr.
Gwatkin has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr. Gwatkin consents to the inclusion in the report of
the matters based on his information in the form and context in
which it appears. This information was prepared and first disclosed
under the JORC Code 2004. It has not been updated since to comply
with the JORC Code 2012 on the basis that the information has not
materially changed since it was last reported.
The information in this Report that relates to the
Pre-Feasibility Study is extracted from Berkeley's ASX announcement
dated 26 September 2013 which is available to view on Berkeley's
website at www.berkeleyresources.com.au. The information in the
original ASX announcement was based on information compiled by Neil
Senior of SENET (Pty) Ltd. Mr. Senior is a Fellow of The South
African Institute of Mining and Metallurgy and has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr. Senior consents
to the inclusion in the report of the matters based on his
information in the form and context in which it appears. This
information was prepared and first disclosed under the JORC Code
2004. It has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed
since it was last reported.
Production Target
The Production Target stated in this Report is based on the
Company's Pre-Feasibility Study ('PFS') for the Salamanca Project
as released to the ASX on 26 September 2013. The information in
relation to the Production Target that the Company is required to
include in a public report in accordance with ASX Listing Rule 5.16
was included in the Company's June 2014 Quarterly Report released
to the ASX on 24 July 2014.
The Company confirms that the material assumptions underpinning
the PFS and Production Target referenced in the 26 September 2013
and 24 July 2014 releases continue to apply and have not materially
changed.
Forward Looking Statement
Statements regarding plans with respect to the Company's mineral
properties are forward-looking statements. There can be no
assurance that the Company's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that the Company will be able to confirm the presence of
additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of
the Company's mineral properties.
Appendix 1: Summary of Mining Tenements
As at 30 September 2014, the Company had an interest in the
following tenements:
Location Tenement Name Interest Status
------------- ----------------------------- --------- ---------
Spain
Salamanca D.S.R Salamanca 28 (Alameda) 100% Granted
D.S.R Salamanca 29 (Villar) 100% Granted
E.C Retortillo-Santidad 100% Granted
I.P. Abedules 100% Granted
I.P. Abetos 100% Granted
I.P. Alcornoques 100% Granted
I.P. Alisos 100% Granted
I.P. Bardal 100% Granted
I.P. Barquilla 100% Granted
I.P. Berzosa 100% Granted
I.P. Campillo 100% Granted
I.P. Castaños 2 100% Granted
I.P. Ciervo 100% Granted
I.P. Dehesa 100% Granted
I.P. El Águlia 100% Granted
I.P. Espinera 100% Granted
I.P. Horcajada 100% Granted
I.P. Mailleras 100% Granted
I.P. Mimbre 100% Granted
I.P. Oñoro 100% Granted
I.P. Pedreras 100% Granted
I.P. Alimoche 100% Pending
I.P. El Vaqueril 100% Pending
I.P. Halcón 100% Pending
Cáceres I.P. Almendro 100% Granted
I.P. Ibor 100% Granted
I.P. Olmos 100% Granted
Badajoz I.P Don Benito Este - 100% Pending
U
I.P Don Benito Este - 100% Pending
C
I.P Don Benito Oeste 100% Pending
- U
I.P Don Benito Oeste 100% Pending
- C
Ciudad Real I.P Damkina Fraccion 100% Granted
1
I.P Damkina Fraccion 100% Granted
2
I.P Damkina Fraccion 100% Granted
3
No tenements were acquired or disposed of during the quarter
ended 30 September 2014. There were no changes to beneficial
interest in any mining tenements due to Farm-in or Farm-out
agreements. No beneficial interest in Farm-in or Farm-out
agreements were acquired or disposed during the quarter.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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