TIDMBKY
RNS Number : 0208Y
Berkeley Resources Limited
26 November 2014
BERKELEY RESOURCES LIMITED
AIM RELEASE | 26 NOVEMBER 2014 | ASX/AIM:BKY
SALAMANCA PROJECT TOTAL RESOURCE INCREASED BY 43% TO 88.2 Mlbs
U(3) O(8) FOLLOWING SUBSTANTIAL INCREASE IN ZONA 7 RESOURCE
Highlights:
-- Zona 7 Mineral Resource Estimate ('MRE') increased to 30.1
Mlbs U(3) O(8) (previously 3.6 Mlbs);
-- Average grade of the MRE increased by 42% to 589 ppm U(3) O(8) ;
-- 90% of the MRE within 50 metres of surface;
-- Zona 7 now the largest deposit within the Salamanca Project;
-- Salamanca Project total resource base increased by 43% to 88.2 Mlbs U(3) O(8) ;
-- The successful exploration drilling at Zona 7 highlights the exploration and resource growth
potential of the broader Salamanca Project; and
-- Scoping Study commenced to determine the optimum integration of Zona 7 with the development
of Retortillo and Alameda, thereby potentially increasing the
scale and/or mine life of the Project.
Berkeley Resources Limited ('Berkeley' or 'the Company') is
pleased to announce an updated Mineral Resource Estimate ('MRE')
for Zona 7, the largest of the Retortillo Satellite Deposits and
part of the Company's Salamanca Project in Spain.
This Inferred MRE has been estimated at 23.2 million tonnes
averaging 589 ppm U(3) O(8) for a contained 30.1 million pounds of
U(3) O(8) at a lower cut-off grade of 200 ppm U(3) O(8) .
The updated MRE incorporates the drilling results from the
successful 2013 and 2014 campaigns which essentially doubled the
strike length of the Zona 7 mineralisation, extending it by 1,200
metres to the southwest. Significant shallow, high grade
intersections were recorded and the mineralisation remains open
along the north-western margin and along strike. Both areas will be
targeted in subsequent drilling campaigns.
Given the significant scale, high grade and shallow depth of the
Zona 7 deposit, the Company has advanced its evaluation to the
Scoping Study stage. A Scoping Study has commenced with completion
scheduled for the March quarter of 2015.
As Zona 7 is located within 10 kilometres of the proposed
centralised processing plant at Retortillo, there is scope to
integrate it with planned development of Retortillo and Alameda,
and potentially increase the level of production and/or mine life
of the Salamanca Project.
Enquiries: Robert Behets
Berkeley Resources
+61 8 9322 6322
John Prior / Paul Gillam - Nomad & Broker
Numis Securities
+44 (0) 207 260 1000
Prospect Location and Geology
Zona 7 is the largest of the Retortillo Satellite Deposits and
part of the Berkeley's Salamanca Project (the 'Project') in
central-western Spain.
The Company completed a Pre-Feasibility Study ('PFS') for the
integrated development of the Retortillo and Alameda deposits in
late 2013. The results of this PFS demonstrated the potential of
the Salamanca Project to support a significant scale, long life
uranium mining operation (refer Announcement dated 26 September
2013). Following completion of the PFS, Berkeley has commenced a
Definitive Feasibility Study ('DFS') for the Project.
Significantly, the Zona 7 deposit is located within 10
kilometres of the proposed centralised processing plant at
Retortillo. Given the PFS was based solely on the Mineral Resource
Estimates ('MRE's') for Retortillo and Alameda, it is considered a
base case scenario and Zona 7 will ultimately be integrated with
Retortillo and Alameda, with a view to potentially increasing the
level of production and/or mine life of the Project.
Zona 7 is a vein type uranium deposit hosted in a sequence of
fine grained metasediments which are overlain by a conglomerate
unit and adjacent to a granite intrusive. The mineralised envelope
is interpreted to be sub-horizontal to shallowly dipping, and
occurs from surface and to maximum depth of approximately 90
metres. The style of the uranium mineralisation includes veins,
stockwork and disseminated mineralisation in joint/fracture filling
associated with brittle deformation. The uranium mineralisation
occurs both within the partially weathered zone and fresh rock.
Uraninite and coffinite are the primary uranium minerals. Secondary
uranium mineralisation is developed in 'supergene-like' tabular
zones corresponding to the depth of weathering.
Drilling
Three phases of drilling, totalling 215 holes for 12,706 metres,
have been carried out at Zona 7 (Table 1).
The initial phase relates to historical drilling conducted
during the period from the 1960's to 1980's by Junta de Energía
Nuclear ('JEN'), a Spanish state run company. A total of 72 diamond
('DD') holes were drilled for 4,024 metres (32% of total
drilling).
The second phase of drilling was conducted in 2007 and 2008 by
Berkeley. During this period, 66 reverse circulation ('RC') holes
and 9 DD holes for a combined 4,240 metres (33% of total drilling)
were drilled to test the area of mineralisation defined by the
historical drilling.
A third phase of drilling has been completed during 2013 and
2014. 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 in late 2012. An 18 hole, 1,128 metre RC
drill program was subsequently completed in mid-2013 to test this
priority target. This drilling, which was carried out on an
approximately 400 metre by 100 metre grid, resulted in the
mineralised zone being extended a further 1,200 metres to the
southwest of the previous resource area. The recently completed
2014 drilling program, which comprised 45 RC holes for 2,923 metres
and five DD holes (including one redrill) for 391 metres, was aimed
at infilling the Zona 7 extension on a notional 100 metre by 100
metre grid.
Table 1: Summary of drill holes used in the resource update
Drill Type Pre-2007 2007-2008 2013-2014 Total
--------------------- --------------- --------------- --------------- ---------------------
Holes Metres Holes Metres Holes Metres Holes Metres %
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Reverse Circulation - - 66 3,579 63 4,051 129 7,630 60
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Diamond Core 72 4,024 9 661 5 391 86 5,076 40
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Total 72 4,024 75 4,240 68 4,442 215 12,706 100
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ----
The majority of the Berkeley drilling was undertaken on a 100
metre by 100 metre grid, with section lines orientated
approximately northwest-southeast across the interpreted strike of
the mineralisation. Some of the historical drilling was completed
on a closer spaced 35 metre x 35 metre grid. The majority of the
drill holes are vertical.
RC drill samples were collected over one metre intervals and
these samples were split to achieve 0.7 -1.0 kilogram samples which
were sent to external laboratories for sample preparation and
uranium analysis. Sample splitting employed either a riffle
splitter or a cone and quarter method. Field tests of the two
methods found that both produce representative samples. Sampling of
diamond core was completed using 0.25 metre to 1.85 metre sample
lengths. For the historical DD, whole core samples were used whilst
for the Berkeley DD, core was cut to achieve either half or quarter
core samples. DD core recoveries typically exceed 90%.
Sample preparation of all drill samples involved oven drying,
crushing and pulverising to achieve a grind size of 85% passing
75<MU>m. Sample pulps from the Berkeley drilling were
analysed for uranium using either of the delayed neutron counting
('DNC') or pressed powder x-ray fluorescence ('XRF') methods.
Historical drilling samples were analysed for uranium using the
XRF, atomic absorption spectrometry ('AAS') or fluorometric
methods. Berkeley sample batches were prepared with standards,
blanks and field duplicates inserted prior to dispatch to the
laboratory. Approximately 15-20% of all samples relate to quality
control. There is no data available regarding quality assurance and
quality control ('QAQC') from the historical drilling.
All Berkeley drill holes were down-hole gamma logged and
'equivalent' U(3) O(8) grades or eU(3) O(8) grades calculated from
down-hole gamma emissions recorded using standard gamma logging
systems, with appropriate QAQC procedures in place. The gamma
response was converted to an estimated uranium grade by correcting
for radon, hole diameter, and air/water, and a deconvolution filter
was applied to reflect the nature of mineralisation. Assay data is
the primary method for grade estimation in the resource modelling
process and eU(3) O(8) data was only used where there was no assay
data available.
Resource Model
Geological interpretation was undertaken on 100 metre spaced
sections with wireframes interpreted around the mineralised
intercepts taking into account geology and structure where
possible. These sectional interpretations were joined to create a
series of three dimensional ('3D') mineralised wireframes (domains)
that showed continuity of grade along and across strike.
Topographic control is based on a digital terrain model ('DTM')
with sub metric accuracy sourced from the Spanish Geographical
Institute (Instituto Geográfico Nacional). The DTM was verified
from drill hole collar surveys completed by a qualified surveyor
using a differential global positioning system ('DGPS').
A volume block model was constructed using a parent block size
of 25 metres (X) by 25 metres (Y) by 6 metres (Z) with cells being
permitted to split once in any direction where bounding surfaces of
the mineralised wireframes were intersected.
Basic statistics and variogram modelling was completed using one
metre sample composites within each domain. As most sample
populations had significant positive skewness, grade top cuts were
applied nominally approximating the 97.5 population percentile. The
domains were assessed independently and a top cut grade was applied
to the drilling data for each domain, up to a maximum of 5,000 ppm
U(3) O(8) .
Grade Estimate
The uranium grade was estimated into the parent cells using
Ordinary Kriging ('OK'). Variography was used to derive appropriate
orientation and weighting factors employed by the Kriging
algorithm. Suitable sample search distances, minimum and maximum
sample numbers required to make a grade estimate and search ellipse
anisotropy to honour the mineralisation trends were derived. These
parameters were selected to ensure that the resource model honours
both the global and local grade distribution of the uranium
mineralisation.
Bulk density values were derived from over 300 solid--fluid
pycnometer measurements. In situ dry bulk densities were applied to
all blocks in the resource model based on the degree of weathering
as follows: 2.33 tonnes per cubic metre for completely weathered
material, 2.43 tonnes per cubic metre for partially weathered
material and 2.66 tonnes per cubic metre for fresh rock.
Validation of the models included visual inspection of the grade
distribution compared to the drill hole data, comparison of block
model and drill hole statistics and creation and assessment of
swath plots. Overall the grade estimate showed a good
representation of the drill hole data for the resource.
Mineral Resource Estimate
The MRE for Zona 7 has been updated, incorporating additional
drilling and sampling information from the 2013 and 2014 drilling
campaigns.
The MRE has been classified as Inferred based on the guidelines
recommended in the JORC Code (2012). When classifying the resource
estimate the following has been considered:
-- Quality and reliability of raw data (sampling, assaying, surveying);
-- Confidence in the geological interpretation;
-- Number, spacing and orientation of intercepts through mineralised zones;
-- Knowledge of grade continuities gained from observations and geostatistical analyses; and
-- The potential prospect for eventual economic extraction.
The MRE is reported at a lower cut-off grade of 200 ppm U(3)
O(8) (Table 2), along with estimates showing the range of U(3) O(8)
cut-off grades that would span the range applicable to open pit
mining (Table 3).
Table 2: Zona 7 - Mineral Resource Estimate
Zona 7 - Inferred Mineral Resource Estimate as at 25
November 2014
Reported at a lower cut-off grade of 200 ppm U(3) O(8)
----------------------------------------------------------------------
Domain Tonnage Grade Contained U(3)
O(8)
(million tonnes) (U(3) O(8) (million pounds)
ppm)
---------------- ------------------ ------------ ------------------
2 / 3 / 4 /
5 5.1 318 3.6
---------------- ------------------ ------------ ------------------
6 18.1 665 26.6
---------------- ------------------ ------------ ------------------
Total Inferred 23.2 589 30.1
---------------- ------------------ ------------ ------------------
All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding.
Table 3: Zona 7 - Grade Tonnage Table
Zona 7 - Inferred Mineral Resource Estimate as at 25
November 2014
-----------------------------------------------------------------------
Lower Cut-off Tonnage Grade Contained U(3)
Grade O(8)
(U(3) O(8) ppm) (million tonnes) (U(3) O(8) (million pounds)
ppm)
----------------- ------------------ ------------ ------------------
100 35.7 434 34.2
----------------- ------------------ ------------ ------------------
200 23.2 589 30.1
----------------- ------------------ ------------ ------------------
300 15.7 754 26.1
----------------- ------------------ ------------ ------------------
400 11.9 882 23.2
----------------- ------------------ ------------ ------------------
500 9.4 1,001 20.7
----------------- ------------------ ------------ ------------------
Comparison with previous Mineral Resource Estimate
An Inferred 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) was previously reported for Zona
7 in June 2012 (refer June 2012 Quarterly Report dated 31 July
2012). Since then the following significant changes have
occurred:
-- An additional 63 RC holes for 4,051 metres and five DD holes
for 391 metres were drilled during 2013 and 2014. This represents
an approximately 54% increase in the amount of drilling data
available for incorporation in the MRE;
-- Mineralisation was extended 1,200 metres along strike to the southwest by drilling; and
-- Thick, high grade intersections were recorded at shallow
depths in the 2013 and 2014 drilling.
Table 4 presents a summary of the differences between the
current and previous MRE's and highlights the significant increase
in tonnes, grade and contained uranium as a consequence of the
delineation of the zone of thick, high grade mineralisation
extending well beyond (1,200 metres) the previous resource boundary
at Zona 7.
Table 4: Zona 7 - Comparison of June 2012 MRE and November 2014
MRE
Zona 7 - Comparison between June 2012 MRE and November 2014
MRE (200 ppm U(3) O(8) cut-off grade)
---------------------------------------------------------------------------------------------------------
Category Tonnage Grade Contained U(3)
O(8)
(million tonnes) (U(3) O(8) ppm) (million pounds)
----------------------------- ------------------------------ -----------------------------
Jun-12 Nov-14 Difference Jun-12 Nov-14 Difference Jun-12 Nov-14 Difference
----------- ------- ------- ----------- ------- ------- ------------ ------- ------- -----------
Inferred 3.9 23.2 495% 414 589 42% 3.6 30.1 745%
----------- ------- ------- ----------- ------- ------- ------------ ------- ------- -----------
Further technical details on the Zona 7 MRE are included in
Appendix A. The updated Berkeley Mineral Resource Statement is
included in Appendix B. The Mineral Resource Statement is listed by
deposit, all of which form part of the Salamanca Project.
A full version of this announcement, including figures, can be
downloaded from Berkeley's website:
www.berkeleyresources.com.au
Competent Persons Statement
The information in this report that relates to the 2014 Mineral
Resources for Zona 7 is based on information compiled by Malcolm
Titley, a Competent Person who is a Member of The Australasian
Institute of Mining and Metallurgy. Mr Titley is employed by Maja
Mining Limited, an independent consulting company. Mr Titley 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'. Mr Titley has reviewed the announcement and consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
The information in this report that relates to the 2014
Exploration Results is based on information compiled by Robert
Behets, a Competent Person who is a Fellow of The Australasian
Institute of Mining and Metallurgy and a Member of the Australian
Institute of Geoscientists. 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'. Mr Behets has reviewed the
announcement and consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
The information in this report that relates to earlier
Exploration Results and Mineral Resources (refer announcements
dated 31 July 2012 (June 2012 Quarterly Report), 31 October 2012
(September 2012 Quarterly Report), 7 August 2013 and 26 September
2013) is based on information compiled by Craig Gwatkin, who is a
Member of The Australasian Institute of Mining and Metallurgy and
was an employee of Berkeley Resources Limited at the time of
initial disclosure. 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 (refer announcement dated 26 September 2013)
is 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 this 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.
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.
Summary of Resource Estimate and Reporting Criteria
This announcement has been prepared in compliance with JORC Code
2012 Edition and the ASX Listing Rules. The Company has included in
Appendix A, the Table 1 Checklist of Assessment and Reporting
Criteria for Zona 7 as prescribed by the JORC Code (2012) and the
ASX Listing Rules.
The following is a summary of the pertinent information used in
the MRE.
Geology and Geological Interpretation
Zona 7 is a vein type uranium deposit hosted in a sequence of
fine grained metasediments which are overlain by a conglomerate
unit and adjacent to a granite intrusive. The mineralised envelope
is interpreted to be sub-horizontal to shallowly dipping, and
occurs from surface and to maximum depth of approximately 90m. The
style of the uranium mineralisation includes veins, stockwork and
disseminated mineralisation in joint/fracture filling associated
with brittle deformation. The uranium mineralisation occurs both
within the partially weathered zone and fresh rock. Uraninite and
coffinite are the primary uranium minerals. Secondary uranium
mineralisation is developed in 'supergene-like' tabular zones
corresponding to the depth of weathering.
Drilling and Sampling Techniques
The MRE is based upon data obtained from three phases of
drilling (historical 1960's to 1980's, 2007-2008 and 2013-2014)
totalling 215 holes for 12,706m. The drilling comprised 86 diamond
holes and 129 RC holes.
The majority of the Berkeley drilling was undertaken on a 100m
by 100m grid, with section lines orientated approximately
northwest-southeast across the interpreted strike of the
mineralisation. Some of the historical drilling was completed on a
closer spaced 35m x 35m grid. The majority of the drill holes are
vertical.
Berkeley drill hole collar locations were surveyed by qualified
surveyors using standard DGPS equipment achieving sub decimetre
accuracy in horizontal and vertical position. Berkeley down-hole
surveys were undertaken using a Geovista down-hole deviation probe.
Measurements were taken every 1cm down hole and averaged every 10m.
All diamond and RC drill samples were geologically logged, with all
relevant data being recorded. Diamond core was also geotechnically
logged. Berkeley core boxes and samples and RC samples and chip
trays were photographed for future reference.
Diamond core was quarter or half cut and sampled on 0.25-1.85m
intervals. RC samples were collected over 1m intervals and split in
the field using two riffle splitters in cascade or a cone and
quarter method to provide an approximately 3-5kg sample. Samples
were further split in the core shed using a riffle splitter such
that 0.7-1kg samples were sent to external laboratories for
preparation and analysis. Quality assurance procedures were
employed, including the use of standards, blanks and
duplicates.
Down-hole gamma logging was undertaken for all probe accessible
holes drilled by Berkeley to provide eU(3) O(8) data. The down-hole
gamma response was converted eU(3) O(8) by correcting for radon,
hole diameter, air/water and a deconvolution filter was also
applied. eU(3) O(8) data was only considered in the mineral
resource estimation process when chemical assay data was not
available.
Bulk density values were derived from over 300 solid--fluid
pycnometer measurements. In situ dry bulk densities were applied to
all blocks in the resource model based on the degree of
weathering.
Sample Analysis Method
Sample preparation of all drill samples involved oven drying,
crushing and pulverising to achieve a grind size of 85% passing
75<MU>m. Sample pulps from the Berkeley drilling were
analysed for uranium using either of the DNC or pressed powder XRF
methods. Historical drilling samples were analysed for uranium
using the XRF, AAS or fluorometric methods.
Resource Estimation Methodology
Surpac software was used for geological modelling, block
modelling, grade interpolation, MRE classification and reporting.
Sectional geological interpretations were joined to create a series
of 3D mineralised wireframes (domains) that showed continuity above
a grade of 100 ppm U(3) O(8) . Statistical and geostatistical
variogram modelling was used to determine appropriate parameters
for estimation of uranium grade using Ordinary Kriging.
Cut-off Grades
The MRE has been reported using a lower cut-off grade of 200 ppm
U(3) O(8) , which is consistent with the grade used to report
previous MRE's for this style of mineralisation.
Mining and Metallurgical methods and parameters
No mining studies or metallurgical testwork have been undertaken
however, feasibility studies have been completed for deposits
hosted in similar geological settings in close proximity to the
Zona 7 deposit. Based on the results of these studies, it is
assumed that the Zona 7 MRE could potentially be extracted using
open pit mining methods, with the recovery of uranium through the
application of acid heap leach methods.
Resource Classification Criteria
The MRE has been classified and is reported as Inferred based on
guidelines recommended in the JORC Code (2012). The reported MRE
has been classified with consideration of the quality and
reliability of the raw data, the confidence of the geological
interpretation, the number, spacing and orientation of intercepts
through the mineralised zones, and knowledge of grade continuity
gained from observations and geostatistical analysis. There is
adequate mining, metallurgy and processing knowledge from
feasibility studies on geologically similar deposits within the
region to imply reasonable prospects for eventual economic
extraction.
Glossary of Key Terms
'Competent Person' is a minerals industry professional who is a
Member or Fellow of The Australasian Institute of Mining and
Metallurgy, or of the Australian Institute of Geoscientists, or of
a 'Recognised Professional Organisation' (RPO), as included in a
list available on the JORC and ASX websites.
'Inferred Mineral Resource' is that part of a Mineral Resource
for which quantity and grade (or quality) are estimated on the
basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade
(or quality) continuity. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill
holes.
'Indicated Mineral Resource' is that part of a Mineral Resource
for which quantity, grade (or quality), densities, shape and
physical characteristics are estimated with sufficient confidence
to allow the application of Modifying Factors in sufficient detail
to support mine planning and evaluation of the economic viability
of the deposit.
'JORC'means the Joint Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Mineral Council of Australia.
'JORC Code (2012)' means the 2012 edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves.
'Mineral Resource' means a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
Appendix A: JORC Code, 2012 Edition - Table 1 report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
------------------ ------------------------------------------- -----------------------------------------------
Sampling Nature and quality of sampling Berkeley DD core was sampled using
techniques (eg cut channels, random chips, 0.25-1.85m intervals in the mineralised
or specific specialised industry zones, including areas of internal
standard measurement tools appropriate low grade or waste. In addition,
to the minerals under investigation, the sampling was extended 3-5m up
such as down hole gamma sondes, and down hole from the interpreted
or handheld XRF instruments, mineralised zone. Half or quarter
etc). These examples should core was used for sampling.
not be taken as limiting the Berkeley reverse circulation (RC)
broad meaning of sampling. drill samples are collected over
1m intervals and split on site using
two riffle splitters in cascade
to provide an approximately 3-5kg
sample. In rare cases, wet samples
are split using a cone and quarter
method. Field tests show that both
methods produce representative samples.
Junta de Energía Nuclear (JEN)
diamond drill (DD) core was sampled
using 0.25m, 0.50m and 1.00m intervals
in the mineralised zones, with 0.25m
intervals being the most frequent
sample length.
------------------------------------------- -----------------------------------------------
Include reference to measures Berkeley sampling protocols include
taken to ensure sample representivity the insertion of standards and blanks
and the appropriate calibration into the sample stream to assess
of any measurement tools or the accuracy, precision and methodology
systems used. of the external laboratories used.
In addition, field duplicate samples
are inserted to assess the variability
of the uranium mineralisation. Approximately
15-20% of all samples relate to
quality control. In addition, the
laboratories undertake their own
duplicate sampling as part of their
internal Quality Assurance/Quality
Control (QA/QC) processes. Examination
of the QA/QC sample data indicates
satisfactory performance of field
sampling protocols and assay laboratories
providing acceptable levels of precision
and accuracy.
Berkeley drill hole collar locations
were surveyed by qualified surveyors
(Cubica Ingeniería Metrica
S.L.) using standard differential
global positioning system (DGPS)
equipment achieving sub decimetre
accuracy in horizontal and vertical
position. Down-hole surveys were
undertaken using a Geovista down-hole
deviation probe. Measurements are
taken every 1cm down hole and averaged
every 10m. No strongly magnetic
rocks are present within the deposit
which may affect magnetic based
readings.
Berkeley uses two down-hole gamma
probes to provide eU(3) O(8) ("equivalent"
U(3) O(8) grade and e-grade) data.
The probes were originally calibrated
by the manufacturer (Geovista, UK)
and are currently sent, on an annual
basis, to Borehole Wireline Pty
Ltd in South Australia for their
recalibration in their test pits.
Calibration includes the determination
of k-factor, deadtime, bore hole
diameter and fluid corrections,
which are reported in the "Primary
Probe Calibration" document. All
parameters are then applied during
the in-house e-grade calculation
process.
JEN sampled whole core using 0.25m,
0.50m and 1.00m interval lengths.
QA/QC protocols used are unknown.
------------------------------------------- -----------------------------------------------
Aspects of the determination Berkeley RC drill samples are collected
of mineralisation that are Material over 1m intervals and split on site
to the Public Report. In cases using cone and quarter method (2008
where 'industry standard' work and 2013 campaigns) or two riffle
has been done this would be splitters in cascade (2014 campaign)
relatively simple (eg 'reverse to provide an approximate 3-5kg
circulation drilling was used sample.
to obtain 1 m samples from which Scintillometer measurements were
3 kg was pulverised to produce taken on all Berkeley RC samples
a 30 g charge for fire assay'). and this data was then used to select
In other cases more explanation the samples to be sent to external
may be required, such as where laboratories for sample preparation
there is coarse gold that has and analysis. Indicative mineralised
inherent sampling problems. intervals were determined from this
Unusual commodities or mineralisation data and the sampling extended up
types (eg submarine nodules) and down hole by at least 2-5m.
may warrant disclosure of detailed Samples were further split in the
information. core shed using a riffle splitter
such that 0.7-1kg samples were sent
to ALS laboratories for preparation
(Seville, Spain) and analysis (Loughrea,
Ireland and Vancouver, Canada).
Samples were dried, fine crushed
down to 70% below 2mm, split to
obtain 250g and pulverised with
at least 85% of the sample passing
75um. 10g of sample was used for
uranium analysis by the pressed
powder X-ray fluorescence (XRF)
method (2013 and 2014 drilling campaigns).
Samples from the 2007 and 2008 drilling
campaigns were sent to Actlabs Canada
for uranium analysis by the Delayed
Neutron Counting (DNC) method.
JEN core samples were prepared in
internal company laboratories and
assayed for uranium using XRF, Atomic
absorption spectroscopy (AAS) or
fluorometric methods.
------------------ ------------------------------------------- -----------------------------------------------
Drilling Drill type (eg core, reverse Berkeley drilling comprised both
techniques circulation, open-hole hammer, DD (HQ) and RC drilling using a
rotary air blast, auger, Bangka, 140mm diameter face sampling hammer.
sonic, etc) and details (eg For angled DD oriented core was
core diameter, triple or standard achieved using DeviCore measurements
tube, depth of diamond tails, (2014).
face-sampling bit or other type, The historical JEN drilling, which
whether core is oriented and accounts for approximately 30% of
if so, by what method, etc). the total drilling, was used DD
(NQ).
------------------ ------------------------------------------- -----------------------------------------------
Drill sample Method of recording and assessing Berkeley and JEN DD typically recorded
recovery core and chip sample recoveries overall core recoveries in excess
and results assessed. of 90%, which is considered acceptable.
Berkeley RC drill samples are collected
over 1m intervals through a cyclone.
Plastic sample bags are strapped
to the cyclone to maximise sample
recovery. Individual sample bags
were not weighed to assess sample
recovery but a visual inspection
was made by the Company geologist
to ensure all samples are of approximately
equivalent size.
------------------------------------------- -----------------------------------------------
Measures taken to maximise sample The DD drilling rigs used face discharge
recovery and ensure representative bits to ensure a low contact between
nature of the samples. the rock and drilling fluids, minimising
ore washing. Core was cut using
a water saw with care taken to ensure
minimal ore loss.
The RC drilling rigs utilised suitably
sized compressors to ensure dry
samples where possible. Plastic
sample bags were strapped to the
cyclone to maximise sample recovery.
Sample logs record whether the sample
was dry, moist or wet.
------------------------------------------- -----------------------------------------------
Whether a relationship exists Due to the solubility and mobility
between sample recovery and of the uranium minerals the use
grade and whether sample bias of water in core recovery in DD
may have occurred due to preferential is controlled.
loss/gain of fine/coarse material. The core and RC sample recoveries
are of an acceptable level and no
bias is expected from any sample
losses.
------------------ ------------------------------------------- -----------------------------------------------
Logging Whether core and chip samples Berkeley geological logging of DD
have been geologically and geotechnically core included recording descriptions
logged to a level of detail of lithology, age, colour, oxidation,
to support appropriate Mineral mineralisation, alteration, weathering,
Resource estimation, mining structures, textures, grain size
studies and metallurgical studies. and mineralogy.
Berkeley geotechnical logging of
DD core included recording descriptions
of integrity (recovery and RQD),
materials (lithology, rock strength
and depth oxide staining), structures
(type, angle, contact type, infill,
weathering)
Berkeley structural logging of DD
core included recording descriptions
of structure type, structural angles,
contact type, infill, line type
and slip direction.
Berkeley alteration logging of DD
core included recording descriptions
of metamorphic textures, alteration
mineralogy and mineralisation style.
Berkeley geological logging of RC
chip samples included recording
descriptions of lithology, weathering,
alteration and mineralisation. A
scintillometer reading of counts
per second (cps) was recorded for
each 1m sample (quantitative).
JEN geological logging of DD core
included recording descriptions
of lithology, iron oxides, sulphides,
uranium mineralogy, fracturing and
no recovery zones.
------------------------------------------- -----------------------------------------------
Whether logging is qualitative Geological logging is qualitative
or quantitative in nature. Core in nature.
(or costean, channel, etc) photography. Berkeley DD core boxes and samples
and RC samples and chip trays were
photographed.
JEN did not take photographs of
drill core.
------------------------------------------- -----------------------------------------------
The total length and percentage All DD and RC drill holes were logged
of the relevant intersections in full by geologists employed by
logged. the Companies.
------------------ ------------------------------------------- -----------------------------------------------
Sub-sampling If core, whether cut or sawn Berkeley DD core was sampled using
techniques and whether quarter, half or 0.25-1.85m intervals in the mineralised
and sample all core taken. zones, including areas of internal
preparation low grade or waste. In addition,
the sampling was extended 3-5m up
and down hole from the interpreted
mineralised zone. Half or quarter
core was used for sampling.
JEN DD core was sampled using 0.25m,
0.50m and 1.00m intervals in the
mineralised zones, with 0.25m intervals
being the most frequent sample length.
Whole core was used for sampling.
------------------------------------------- -----------------------------------------------
If non-core, whether riffled, Berkeley RC drill samples were collected
tube sampled, rotary split, at 1m intervals. RC intervals were
etc. and whether sampled wet sampled by splitting dry samples
or dry. in the field to 3-5kg using cone
and quarter method (2008 and 2013
campaigns) or two riffle splitters
in cascade (2014 campaign) and further
split in the core shed to 0.7-1kg
using a riffle splitter. Where samples
were wet they were dried prior to
spitting. In rare cases, wet samples
were split using a cone and quarter
method.
------------------------------------------- -----------------------------------------------
For all sample types, the nature, Berkeley samples (2013 and 2014
quality and appropriateness drilling campaigns) were sent to
of the sample preparation technique. ALS laboratories for preparation
and analysis. Samples were dried,
fine crushed down to 70% below 2mm,
split to obtain 250g and pulverised
with at least 85% of the sample
passing 75um. 10g of sample was
used for uranium analysis by pressed
powder XRF method. Samples from
the 2007 and 2008 drilling campaigns
were sent to Actlabs Canada for
uranium analysis by the DNC method.
These methods are considered appropriate
for this style of uranium mineralisation.
JEN core samples were prepared and
assayed for uranium at internal
company laboratories using XRF,
AAS or fluorometric methods.
------------------------------------------- -----------------------------------------------
Quality control procedures adopted Previous Berkeley's field tests
for all sub-sampling stages determined that the sample size
to maximise representivity of and method of sampling produce representative
samples. RC samples. QA/QC procedures involved
the use of standards and blanks
which were inserted into sample
batches at a frequency of approximately
15%.
Quality control procedures used
by JEN are unknown.
------------------------------------------- -----------------------------------------------
Measures taken to ensure that Duplicate splits of RC samples were
the sampling is representative taken every 10m down hole within
of the in situ material collected, the sampled intervals by Berkeley.
including for instance results The results from these duplicates
for field duplicate/second-half generally show acceptable repeatability,
sampling. however indications of inhomogeneity
were observed in a number of duplicates.
------------------------------------------- -----------------------------------------------
Whether sample sizes are appropriate The uranium is typically very fine
to the grain size of the material grained. Previous test work carried
being sampled. out by Berkeley using different
sample sizes demonstrated that the
selected sample size is appropriate.
------------------ ------------------------------------------- -----------------------------------------------
Quality The nature, quality and appropriateness Berkeley assayed samples for uranium
of assay of the assaying and laboratory using the DNC method during the
data and procedures used and whether 2007 and 2008 drilling campaigns
laboratory the technique is considered and pressed powder XRF during the
tests partial or total. 2013 and 2014 drilling campaigns.
These analytical methods report
total uranium content.
JEN assayed samples for uranium
were completed at internal company
laboratories using XRF, AAS or fluorometric
methods. No QA/QC data is available
for this historical data.
------------------------------------------- -----------------------------------------------
For geophysical tools, spectrometers, Down-hole gamma logging was undertaken
handheld XRF instruments, etc, for all probe accessible holes drilled
the parameters used in determining by Berkeley to provide eU(3) O(8)
the analysis including instrument data. The down-hole gamma response
make and model, reading times, was converted eU(3) O(8) by correcting
calibrations factors applied for radon, hole diameter, air/water
and their derivation, etc. and a deconvolution filter was also
applied. eU(3) O(8) data was only
considered in the mineral resource
estimation process when chemical
assay data was not available.
------------------------------------------- -----------------------------------------------
Nature of quality control procedures Standards, blanks and duplicates
adopted (eg standards, blanks, were regularly inserted into the
duplicates, external laboratory sample stream by Berkeley, with
checks) and whether acceptable approximately 15-20% of all samples
levels of accuracy (ie lack related to quality control. The
of bias) and precision have external laboratories used also
been established. maintain their own process of QA/QC
utilising standards, repeats and
duplicates.
Review of the Berkeley quality control
samples, as well as the external
laboratory quality QA/QC reports,
has shown no sample preparation
issues, acceptable levels of accuracy
and precision and no bias in the
analytical datasets.
JEN used internal company laboratories.
No QA/QC data is available for this
historic data.
------------------ ------------------------------------------- -----------------------------------------------
Verification The verification of significant Reported significant intersections
of sampling intersections by either independent were checked and verified by Senior
and assaying or alternative company personnel. Geological management.
------------------------------------------- -----------------------------------------------
The use of twinned holes. No twinned holes were drilled for
the current mineral resource estimation
process.
------------------------------------------- -----------------------------------------------
Documentation of primary data, All primary data was recorded in
data entry procedures, data templates designed by Berkeley.
verification, data storage (physical Assay data from the external laboratory
and electronic) protocols. is received in spreadsheets and
downloaded directly into an Access
Database managed by the Company.
Data is entered into controlled
excel templates for validation.
The validated data is then loaded
into a password secured relational
database by a designated Company
geologist. Daily backups of all
digital data are undertaken. These
procedures are documented in the
Berkeley Technical Procedures and
Protocols manual.
JEN primary paper data was digitalized
and recoded following the Berkeley
protocols. The validated data was
then loaded into a password secured
relational database by a designated
Company geologist.
------------------------------------------- -----------------------------------------------
Discuss any adjustment to assay Uranium (ppm) assays received from
data. the external laboratory were converted
to U(3) O(8) (ppm) using the stoichiometric
factor of 1.179.
------------------ ------------------------------------------- -----------------------------------------------
Location Accuracy and quality of surveys Berkeley drill hole collar locations
of data used to locate drill holes (collar were surveyed by qualified surveyors
points and down-hole surveys), trenches, (Cubica Ingeniería Metrica
mine workings and other locations S.L) using standard DGPS equipment
used in Mineral Resource estimation. achieving sub decimetre accuracy
in horizontal and vertical position.
Berkeley down-hole surveys were
undertaken using a Geovista down-hole
deviation probe. Measurements were
taken every 1cm down hole and averaged
every 10m. No strongly magnetic
rocks are present within the deposit
which may affect magnetic based
readings.
JEN holes were drilled on grid coordinates
and were not surveyed after drilling.
------------------------------------------- -----------------------------------------------
Specification of the grid system The grid system is UTM ED1950 Zone
used. 29N.
------------------------------------------- -----------------------------------------------
Quality and adequacy of topographic Topographic control was based on
control. a digital terrain model with sub
metric accuracy sourced from the
Spanish Geographical Institute (Instituto
Geográfico Nacional) and was
verified through detailed drill
hole collar surveys by a qualified
surveyor using a DGPS.
------------------ ------------------------------------------- -----------------------------------------------
Data spacing Data spacing for reporting of The majority of the Berkeley drilling
and distribution Exploration Results. was undertaken on a notional 100m
by 100m grid, with section lines
orientated approximately perpendicular
to the interpreted strike of the
mineralisation.
The historical JEN drilling was
completed on a closer spaced 35m
by 35m grid within the previous
resource area.
------------------------------------------- -----------------------------------------------
Whether the data spacing and The data spacing (notionally 100m
distribution is sufficient to by 100m) is considered sufficient
establish the degree of geological to imply but not verify geological
and grade continuity appropriate and grade continuity, and allow
for the Mineral Resource and the estimation of Inferred Mineral
Ore Reserve estimation procedure(s) Resources.
and classifications applied.
------------------------------------------- -----------------------------------------------
Whether sample compositing has No compositing of RC samples in
been applied. the field has been undertaken.
------------------ ------------------------------------------- -----------------------------------------------
Orientation Whether the orientation of sampling The mineralised zone is a 2-3km
of data achieves unbiased sampling of scale fold structure with the dominant
in relation possible structures and the strike direction being NNE-SSW.
to geological extent to which this is known, Despite the general dip of the host
structure considering the deposit type. geological units and structures
ranging from 50-80deg, the mineralised
zone is interpreted to be sub-horizontal
(due to post mineralisation supergene
processes) to shallowly dipping.
------------------------------------------- -----------------------------------------------
If the relationship between The majority of DD and RC drill
the drilling orientation and holes are vertical. Due to the interpreted
the orientation of key mineralised flat lying nature of the mineralisation,
structures is considered to no sampling bias is considered to
have introduced a sampling bias, have been introduced by the orientation
this should be assessed and of the drilling.
reported if material.
------------------ ------------------------------------------- -----------------------------------------------
Sample The measures taken to ensure Chain of custody is managed by Berkeley.
security sample security. Samples were transported from the
drill site by Company vehicle to
a sample preparation shed where
samples were prepared for dispatch.
Samples were sent directly from
the sample preparation shed to the
laboratory using a certified courier
or a Berkeley owned vehicle authorised
for radioactive materials transport.
No other freight was transported
with the samples which were taken
directly from the Berkeley facility
to the external laboratory. Sample
submission forms were sent in paper
form with the samples as well as
electronically to the laboratory.
Reconciliation of samples occurred
prior to commencement of sample
preparation for assaying.
The historical drilling samples
were prepared and analysis using
internal company laboratories. The
chain of custody is unknown.
------------------ ------------------------------------------- -----------------------------------------------
Audits The results of any audits or Sampling techniques and procedures,
or reviews reviews of sampling techniques as well as QA/QC data, are reviewed
and data. internally an ongoing basis. Malcolm
Titley (CP, Geology Consultant,
Maja Mining Limited) has independently
reviewed the sampling techniques,
procedures and data. He has undertaken
a number of site visits to review
and inspect the application of procedures.
These reviews have concluded that
the sampling and analytical results
have resulted in data suitable for
incorporation into Mineral Resource
estimation.
------------------ ------------------------------------------- -----------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
----------------- ------------------------------------------- -----------------------------------------------
Mineral Type, reference name/number, The Zona 7 Prospect lies on the
tenement location and ownership including Alisos Investigation Permit PI 6605-20
and land agreements or material issues which is 100% owned by Berkeley
tenure status with third parties such as Minera España S.L, a wholly
joint ventures, partnerships, owned subsidiary of Berkeley Resources
overriding royalties, native Limited.
title interests, historical The Alisos Investigation Permit
sites, wilderness or national is currently in the first year of
park and environmental settings. its second three year term and will
expire on 4 January 2017.
No historical sites or national
parks are located within the Permit.
The Zona 7 Prospect is located adjacent
to the village of Villavieja de
Yeltes.
---------------------------------------- -----------------------------------------------
The security of the tenure Tenure in the form of an Investigation
held at the time of reporting Permit has been granted and is considered
along with any known impediments secure. There are no known impediments
to obtaining a licence to to obtaining a licence to operate
operate in the area. in this area.
-------------------- ---------------------------------------- -----------------------------------------------
Exploration Acknowledgment and appraisal Previous exploration at Zona 7 was
done by of exploration by other parties. completed initially by Junta de
other parties Energía Nuclear (JEN) and then
Empresa Nacional de Uranio S.A.
(ENUSA), both Spanish state run
companies, from the late 1950's
through to the mid 1980's. Work
completed by JEN and ENUSA included
mapping, radiometric surveys, trenching
and diamond and open-hole drilling.
A detailed data assessment and verification
of the historical data supplied
by JEN and ENUSA has been undertaken
by Berkeley. No significant issues
with the data were detected.
-------------------- ---------------------------------------- -----------------------------------------------
Geology Deposit type, geological setting The uranium mineralisation is hosted
and style of mineralisation. within Ordovician metasediments
adjacent to granite. The mineralisation
typically occurs as a sub-horizontal
to shallowly dipping layer occurring
between surface and 100m depth.
The style of the uranium mineralisation
includes veins, stockwork and disseminated
mineralisation in joint/fracture
filling associated with brittle
deformation. Uraninite and coffinite
are the primary uranium minerals.
Secondary uranium mineralisation
is developed in "supergene-like"
tabular zones corresponding to the
depth of weathering. Most of the
mineralisation is hosted within
partially weathered and unweathered
metasediment. This deposit falls
into the category defined by the
International Atomic Energy Association
(IAEA) as Vein Type, Sub Type Iberian
Type.
-------------------- ---------------------------------------- -----------------------------------------------
Drill hole A summary of all information No new exploration results are included
Information material to the understanding in this release.
of the exploration results
including a tabulation of
the following information
for all Material drill holes:
o easting and northing of
the drill hole collar
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill
hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
---------------------------------------- -----------------------------------------------
If the exclusion of this information All Berkeley drill holes within
is justified on the basis the resource area have previously
that the information is not been reported in releases to the
Material and this exclusion ASX providing collar easting, northing,
does not detract from the elevation, dip, azimuth and length
understanding of the report, of hole and mineralised intercepts
the Competent Person should as encountered.
clearly explain why this is
the case.
-------------------- ---------------------------------------- -----------------------------------------------
Data aggregation In reporting Exploration Results, No new exploration results are included
methods weighting averaging techniques, in this release. All Berkeley drill
maximum and/or minimum grade holes within the resource area have
truncations (eg cutting of previously been reported.
high grades) and cut-off grades
are usually Material and should
be stated.
---------------------------------------- -----------------------------------------------
Where aggregate intercepts No new exploration results are included
incorporate short lengths in this release. All Berkeley drill
of high grade results and holes within the resource area have
longer lengths of low grade previously been reported.
results, the procedure used
for such aggregation should
be stated and some typical
examples of such aggregations
should be shown in detail.
---------------------------------------- -----------------------------------------------
The assumptions used for any No metal equivalent values were
reporting of metal equivalent used.
values should be clearly stated.
-------------------- ---------------------------------------- -----------------------------------------------
Relationship These relationships are particularly All drilling was planned in such
between important in the reporting a way as to intersect expected mineralisation
mineralisation of Exploration Results. If in a perpendicular manner. The uranium
widths and the geometry of the mineralisation mineralisation is interpreted to
intercept with respect to the drill be flat lying to shallowly dipping
lengths hole angle is known, its nature so all of the RC holes were drilled
should be reported. vertically. The previously reported
(no new exploration results are
included in this release) down-hole
intervals were therefore interpreted
to approximate true widths however,
given the early stage nature of
the work, confidence in the orientation
of the mineralisation is low.
---------------------------------------- -----------------------------------------------
If it is not known and only The previously reported (no new
the down hole lengths are exploration results are included
reported, there should be in this release) down-hole intervals
a clear statement to this were interpreted to approximate
effect (eg 'down hole length, true widths however, given the early
true width not known'). stage nature of the work, confidence
in the orientation of the mineralisation
is low.
-------------------- ---------------------------------------- -----------------------------------------------
Diagrams Appropriate maps and sections Appropriate diagrams, including
(with scales) and tabulations a drill plan and cross sections,
of intercepts should be included are included in the main body of
for any significant discovery the ASX version of this release.
being reported These should
include, but not be limited
to a plan view of drill hole
collar locations and appropriate
sectional views.
-------------------- ---------------------------------------- -----------------------------------------------
Balanced Where comprehensive reporting No new exploration results are included
reporting of all Exploration Results in this release. All Berkeley drill
is not practicable, representative holes within the resource area have
reporting of both low and previously been reported.
high grades and/or widths
should be practiced to avoid
misleading reporting of Exploration
Results.
-------------------- ---------------------------------------- -----------------------------------------------
Other substantive Other exploration data, if Down-hole gamma logging of all Berkeley
exploration meaningful and material, should holes was undertaken to provide
data be reported including (but eU(3) O(8) data. Prior comparisons
not limited to): geological of eU(3) O(8) data with chemical
observations; geophysical assay data have shown that on average
survey results; geochemical eU(3) O(8) tends to underestimate
survey results; bulk samples at higher grades (>500ppm) and overestimate
- size and method of treatment; at lower grades (<200ppm). Accordingly,
metallurgical test results; the eU(3) O(8) data is not considered
bulk density, groundwater, of sufficient quality to replace
geotechnical and rock characteristics; chemical assay data for the purposes
potential deleterious or contaminating of resource estimation. The Mineral
substances. Resources reported in this release
are estimated using chemical assay
data as the primary method for grade
estimation in the resource modelling
process and eU(3) O(8) data is only
used where there were no assay data
available.
-------------------- ---------------------------------------- -----------------------------------------------
Further The nature and scale of planned Further work planned for the Zona
work further work (eg tests for 7 Prospect includes infill drilling
lateral extensions or depth that would be focused on improving
extensions or large-scale geological confidence and resource
step-out drilling). classification.
The mineralisation remains open
along the north-western margin and
along strike, with both areas to
be targeted in subsequent drilling
campaigns
Geological studies will include
detailed interpretation of lithology,
structure and weathering and an
assessment of potential relationships
between these factors and uranium
grade distribution.
Further work is also planned on
a number of other exploration targets
within the Retortillo Region.
---------------------------------------- -----------------------------------------------
Diagrams clearly highlighting These are shown in the main body
the areas of possible extensions, of the ASX version of this release.
including the main geological
interpretations and future
drilling areas, provided this
information is not commercially
sensitive.
-------------------- ---------------------------------------- -----------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
---------------- ---------------------------------- ----------------------------------------------------------------
Database Measures taken to ensure that Drill hole data is stored in a
integrity data has not been corrupted password protected relational database
by, for example, transcription (Access). Drill data recorded in
or keying errors, between its a spreadsheet is transferred to
initial collection and its the database by the project geologist
use for Mineral Resource who is responsible for reviewing
estimation and validating the data. Assay
purposes. data is received from the external
laboratories in digital format
and is loaded directly into the
database.
Geological logging is restricted
to appropriate codes relevant to
the local geology, mineralisation,
weathering and alteration setting.
A copy of the master database is
linked to Surpac mining software
for Mineral Resource Estimation
(MRE).
---------------------------------- ----------------------------------------------------------------
Data validation procedures Database validation checks including
used. collar survey position, down hole
survey control, assay limits, e-grade
profiles, sample intervals and
logging codes are completed prior
to the data being transferred to
the master database.
---------------- ---------------------------------- ----------------------------------------------------------------
Site visits Comment on any site visits Sampling techniques and procedures,
undertaken by the Competent as well as QA/QC data, are reviewed
Person and the outcome of those internally an ongoing basis. Malcolm
visits. Titley, (CP, Geology Consultant,
Maja Mining Limited) has reviewed
the sampling techniques, procedures,
data and resource estimation methodology.
He has undertaken a number of site
visits, the latest being in September
2014, to review and inspect the
application of these procedures.
He concludes that the sampling
and analytical results available
are appropriate for estimation
of the Mineral Resource.
---------------------------------- ----------------------------------------------------------------
If no site visits have been Site visits have been undertaken.
undertaken indicate why this
is the case.
---------------- ---------------------------------- ----------------------------------------------------------------
Geological Confidence in (or conversely, The confidence of the geological
interpretation the uncertainty of) the interpretation is appropriate for
geological the current level of resource estimation.
interpretation of the mineral The resource is defined within
deposit. mineralised envelopes which encompass
all zones of significant mineralisation.
---------------------------------- ----------------------------------------------------------------
Nature of the data used and Geology and mineralisation interpretation
of any assumptions made. is based on geological logging
and sample assays derived from
RC and DD drilling, along with
cross sectional interpretations
which include surface mapping information
and geophysical studies.
---------------------------------- ----------------------------------------------------------------
The effect, if any, of Structural studies show dips of
alternative structures vary between 50deg and
interpretations on Mineral 80deg however; the uranium mineralisation
Resource estimation. has undergone supergene remobilisation
and is interpreted to be flat lying
to shallowly dipping and generally
within 100m from surface.
---------------------------------- ----------------------------------------------------------------
The use of geology in guiding On the deposit scale the uranium
and controlling Mineral Resource grade is controlled by both lithology
estimation. and structure, while on a local
scale the grade is interpreted
to be influenced by supergene processes.
---------------------------------- ----------------------------------------------------------------
The factors affecting continuity Geological logging and uranium
both of grade and geology. assay of samples from drill holes
has demonstrated the continuity
of the grade and lithology between
mineralised sections. Breaks in
continuity are likely due to structural
offsets, some of which have been
observed or interpreted from surface
mapping.
---------------- ---------------------------------- ----------------------------------------------------------------
Dimensions The extent and variability The Zona 7 uranium mineralisation
of the Mineral Resource expressed covers an area of approximately
as length (along strike or 3.0km by 0.4km and generally occurs
otherwise), plan width, and within 100m of surface.
depth below surface to the
upper and lower limits of the
Mineral Resource.
---------------- ---------------------------------- ----------------------------------------------------------------
Estimation The nature and appropriateness A mineralised envelope at Zona
and modelling of the estimation technique(s) 7 is created encompassing all zones
techniques applied and key assumptions, of significant mineralisation.
including treatment of extreme A number of different domains have
grade values, domaining, been interpreted.
interpolation Geostatistical variogram modelling
parameters and maximum distance was used to determine appropriate
of extrapolation from data parameters for estimation of uranium
points. If a computer assisted grade using Ordinary Kriging (OK).
estimation method was chosen Surpac software was used for mineralisation
include a description of computer volume interpretation and uranium
software and parameters used. grade estimation.
Three sources of drillhole uranium
grade data was used:
* Chemical U(3) O(8) (ppm): 62%
* Radiometric Equivalent (ppm): 6%
* Background based on XRF and Gamma probe results (10
ppm U(3) O(8) ): 32%
The drill hole spacing is nominally
100m by 100m, with some closer
spacing at 50m by 50m or 35m by
35m.
Five mineralisation domains were
identified (D2, D3, D4, D5 and
D6). 1m samples were used to estimate
grade into 25m by 25m by 6m parent
blocks.
In order to reduce local bias due
to extreme high grades, top cuts
were applied:
* D2: 1,800ppmU(3) O(8)
* D3: none
* D4: 3,400ppmU(3) O(8)
* D5: 1,300ppmU(3) O(8)
* D6: 5,000ppmU(3) O(8)
Number of 1m samples required to
make an estimate:
* Minimum samples = 6
* Maximum samples = 30
Search ellipse radii variable per
domain in meters, along strike/
down-dip/across-strike:
* D2: 40/60/120
* D3: 55/80/160
* D4: 55/80/160
* D5: 95/140/280
* D6: 95/140/280
Search orientation variable per
domain (dip, plunge, dip dir):
* D2: (130, 0, 0)
* D3: (165, 0, 0)
* D4: (50, 0, 0)
* D5: (40, 0, 0)
* D6: (25, 0, 0)
Search radii used for OK were increased
by a factor of 2-2-1 and 4-3-2
(major-semi-major-minor) to estimate
a grade for blocks not estimated
in the 1(st) or 2(nd) pass respectively.
In-situ dry bulk densities were
assigned based on zones of weathering
intensity and used to estimate
tonnage.
---------------------------------- ----------------------------------------------------------------
The availability of check The current resource estimate was
estimates, compared with the previous resource
previous estimates and/or mine estimate (February 2010) which
production records and whether was based on earlier drill campaigns
the Mineral Resource estimate (historical, 2007 and 2008) and
takes appropriate account of to a polygonal estimation. Both
such data. of which support the current results.
No mining production has taken
place at Zona 7.
---------------------------------- ----------------------------------------------------------------
The assumptions made regarding The resource model only estimates
recovery of by-products. uranium.
---------------------------------- ----------------------------------------------------------------
Estimation of deleterious At this stage, there are no deleterious
elements elements or other non-grade variables
or other non-grade variables identified as being of economic
of economic significance (eg significance at Zona7.
sulphur for acid mine drainage
characterisation).
---------------------------------- ----------------------------------------------------------------
In the case of block model The uranium grade is estimated
interpolation, the block size into the 25m (X) by 25m (Y) by
in relation to the average 6m (Z) blocks. This compares to
sample spacing and the search the average drill spacing of 50-100m
employed. in X and Y and an assumed mining
bench height of 6m. This block
size was chosen to match the potential
open cut mining methodology.
---------------------------------- ----------------------------------------------------------------
Any assumptions behind modelling Selective mining unit dimensions
of selective mining units. have not been considered in the
current model.
---------------------------------- ----------------------------------------------------------------
Any assumptions about correlation Uranium is the only economic metals
between variables. estimated in the current resource
model.
---------------------------------- ----------------------------------------------------------------
Description of how the geological Geological interpretation controlled
interpretation was used to the volume of the resource estimate
control the resource estimates. by restricting the interpretation
of the mineralisation volume and
associated samples to material
with continuity above a 100 ppm
U(3) O(8) grade.
The domains are based on geology,
structure and uranium grade with
defined zones of mineralisation
that show continuity along and
across strike.
A further division of the model
into completely weathered, partially
weathered and fresh rock is applied
by triangulated surfaces interpreted
from the logging of the drill samples.
This division is only applied for
density purposes.
---------------------------------- ----------------------------------------------------------------
Discussion of basis for using Uranium grade distribution exhibits
or not using grade cutting a strong positive skewness, so
or capping. a top cut was applied to reduce
local bias by extreme grades outliers
- nominally approximating the 97.5
population percentile. The domains
were assessed independently and
a top cut grade was determined
for each domain.
---------------------------------- ----------------------------------------------------------------
The process of validation, Validation of the MRE included
the checking process used, visual inspection of the grade
the comparison of model data distribution compared to the drill
to drill hole data, and use data, comparison of block model
of reconciliation data if statistics to the sample statistics
available. and generation of swath plots.
These confirmed that the MRE appropriately
represents the grade and tonnage
distribution of the uranium mineralisation
at the confidence levels reported.
---------------- ---------------------------------- ----------------------------------------------------------------
Moisture Whether the tonnages are The resource tonnage is reported
estimated on a dry bulk density basis. In-situ
on a dry basis or with natural dry bulk density measurements were
moisture, and the method of completed on dry core and sample
determination of the moisture grades are reported using dry weight.
content. No moisture content of drill core
has been determined.
---------------- ---------------------------------- ----------------------------------------------------------------
Cut-off The basis of the adopted cut-off The MRE has been reported using
parameters grade(s) or quality parameters a 200ppm U(3) O(8) cut-off grade.
applied. Recent feasibility studies on adjacent
properties have demonstrated that
a 100ppm U(3) O(8) cut-off is economic.
Based on the current uranium market,
reporting of the MRE at a 200 ppm
cut-off grade is both justifiable
and consistent with previous published
MRE's for this style of mineralisation.
---------------- ---------------------------------- ----------------------------------------------------------------
Mining factors Assumptions made regarding The resource can potentially be
or assumptions possible mining methods, minimum extracted using open pit mining
mining dimensions and internal methods, with the recovery of uranium
(or, if applicable, external) through the application of acid
mining dilution. It is always heap leach methods.
necessary as part of the process Indicative parameters used for
of determining reasonable pit optimisation purposes in recent
prospects feasibility studies on adjacent
for eventual economic extraction properties are:
to consider potential mining Uranium selling price: US$65/lb
methods, but the assumptions U(3) O(8) ,
made regarding mining methods Total Mining Cost: US$7.5/lb U(3)
and parameters when estimating O(8)
Mineral Resources may not always Mining recovery: 97.5%
be rigorous. Where this is Mining dilution: 2.5%
the case, this should be reported Plant Process Cost: US$7.4/lb U(3)
with an explanation of the O(8)
basis of the mining assumptions Recovery U(3) O(8) : 85%
made. Royalties: 1.2%
---------------- ---------------------------------- ----------------------------------------------------------------
Metallurgical The basis for assumptions or No metallurgical testwork has been
factors predictions regarding undertaken for Zona 7 however,
or assumptions metallurgical numerous metallurgical testwork
amenability. It is always programs have been completed for
necessary deposits hosted in similar geological
as part of the process of settings in close proximity to
determining the Zona 7 deposit. The results
reasonable prospects for eventual of this testwork showed the mineralisation
economic extraction to consider to be amenable to convention acid
potential metallurgical methods, heap leach, with uranium recoveries
but the assumptions regarding in the order of 85%.
metallurgical treatment processes
and parameters made when
reporting
Mineral Resources may not always
be rigorous. Where this is
the case, this should be reported
with an explanation of the
basis of the metallurgical
assumptions made.
---------------- ---------------------------------- ----------------------------------------------------------------
Environmental Assumptions made regarding It is planned that all spent heap
factors possible waste and process leach (ripios) material will be
or assumptions residue disposal options. It returned to the open pit which
is always necessary as part will be lined so as to encapsulate
of the process of determining the ripios. Any Naturally Occurring
reasonable prospects for eventual Radioactive Material (NORM) or
economic extraction to consider Acid Rock Drainage (ARD) waste
the potential environmental will also be stored within the
impacts of the mining and lined pit.
processing An Environmental Scoping Study
operation. While at this stage will serve to define the scope
the determination of potential and content of the Environmental
environmental impacts, and Social Impact Assessment.
particularly
for a greenfields project,
may not always be well advanced,
the status of early consideration
of these potential environmental
impacts should be reported.
Where these aspects have not
been considered this should
be reported with an explanation
of the environmental assumptions
made.
---------------- ---------------------------------- ----------------------------------------------------------------
Bulk density Whether assumed or determined. Bulk density values were derived
If assumed, the basis for the from 304 solid--fluid pycnometer
assumptions. If determined, measurements. These values have
the method used, whether wet been validated with diamond core
or dry, the frequency of the bulk density results obtained using
measurements, the nature, size the water immersion method. The
and representativeness of the in-situ dry bulk density values
samples. are:
Completely weathered: 2.33 g/cm(3)
Partially weathered: 2.43 g/cm(3)
Fresh rock: 2.66 g/cm(3)
---------------------------------- ----------------------------------------------------------------
The bulk density for bulk Fresh and slightly weathered rock
material is competent enough to ensure the
must have been measured by method used takes into account
methods that adequately account any rock porosity. A factor derived
for void spaces (vugs, porosity, from comparison with DD core was
etc), moisture and differences used to adjust the weathered material.
between rock and alteration
zones within the deposit.
---------------------------------- ----------------------------------------------------------------
Discuss assumptions for bulk The density measurements have been
density estimates used in the classified by weathering intensity,
evaluation process of the defined by the geological logging.
different Three dominant zones have been
materials. identified - completely weathered,
partially weathered and fresh rock.
The average of the density data
from each zone was applied in the
resource model.
---------------- ---------------------------------- ----------------------------------------------------------------
Classification The basis for the classification The reported MRE has been classified
of the Mineral Resources into as Inferred after consideration
varying confidence categories. of the following:
* Adequate geological evidence and drill hole sampling
is available to imply geological and grade
continuity.
* Adequate in-situ dry bulk density data is available
to estimate appropriate tonnage factors.
* Adequate mining, metallurgy and processing knowledge
to imply potential prospect for eventual economic
extraction.
---------------------------------- ----------------------------------------------------------------
Whether appropriate account The reported MRE has been classified
has been taken of all relevant with consideration of the quality
factors (ie relative confidence and reliability of the raw data,
in tonnage/grade estimations, the confidence of the geological
reliability of input data, interpretation, the number, spacing
confidence in continuity of and orientations of intercepts
geology and metal values, through the mineralised zones and
quality, knowledge of grade continuity gained
quantity and distribution of from observations and geostatistical
the data). analysis.
---------------------------------- ----------------------------------------------------------------
Whether the result appropriately The reported MRE and its classification
reflects the Competent Person's are consistent with the Competent
view of the deposit. Person's (CP) view of the deposit.
The CP was responsible for determining
the resource classification.
---------------- ---------------------------------- ----------------------------------------------------------------
Audits or The results of any audits or Berkeley has undertaken a review
reviews reviews of Mineral Resource of the previous MRE and concluded
estimates. that the estimate was developed
using industry standard methods
and that the estimate was considered
to reflect the understanding of
the geology and grade continuity.
Malcolm Titley (CP, Geology Consultant,
Maja Mining Limited) reviewed the
reported MRE and concluded that
the estimate appropriately represents
the grade and tonnage distribution
of uranium mineralisation at confidence
levels commensurate with the Inferred
resource classification.
---------------- ---------------------------------- ----------------------------------------------------------------
Discussion Where appropriate a statement The confidence level is reflected
of relative of the relative accuracy and in the resource classification
accuracy/ confidence level in the Mineral category chosen for the reported
confidence Resource estimate using an MRE. The definition of Inferred
approach or procedure deemed Mineral Resources is appropriate
appropriate by the Competent for the level of study and the
Person. For example, the geological confidence imparted
application by the drilling grid.
of statistical or geostatistical The reported MRE is considered
procedures to quantify the appropriate and representative
relative accuracy of the resource of the grade and tonnage at the
within stated confidence limits, 200ppm U(3) O(8) cut-off grade.
or, if such an approach is The application of geostatistical
not deemed appropriate, a methods has helped to increase
qualitative the confidence of the model and
discussion of the factors that quantify the relative accuracy
could affect the relative of the resource on a global scale.
accuracy It relies on historical data being
and confidence of the estimate. of similar standard as recent infill
drilling. The relevant tonnages
and grade are variable on a local
scale.
The nature of the mineralisation
and the relatively high nugget
effect may result in local grade
estimates being lower confidence,
with significant smoothing of the
grade tonnage distribution at cut-off
grades above 200ppm U(3) O(8) .
A review of the grade estimation
methodology is recommended before
analysing the any potential resource
at cut-off grades above 200ppm
U(3) O(8) .
The CP considers that the current
drilling grid is insufficient for
classification of the Mineral Resource
as Indicated or Measured.
---------------------------------- ----------------------------------------------------------------
The statement should specify The Zona 7 deposit is likely to
whether it relates to global have local variability. The global
or local estimates, and, if assessment is an indication of
local, state the relevant the average tonnages and grade
tonnages, estimate for each geological domain.
which should be relevant to
technical and economic
evaluation.
Documentation should include
assumptions made and the
procedures
used.
---------------------------------- ----------------------------------------------------------------
These statements of relative No production has been carried
accuracy and confidence of out at Zona 7.
the estimate should be compared
with production data, where
available.
---------------- ---------------------------------- ----------------------------------------------------------------
Appendix B: Summary of Mineral Resource Estimatesas at 25
November 2014
Reported at a cut-off grade of 200 ppm U(3) O(8)
November 2014
========================== =========== ==========================
Deposit Resource Tonnes U(3) U(3)
O(8) O(8)
Name Category (Mt) (ppm) (Mlbs)
========================== =========== ======= ======= ========
Retortillo Indicated 14.4 378 12.0
Inferred 1.8 359 1.4
-------------------------------------- ------- ------- --------
Total 16.2 376 13.4
-------------------------------------- ------- ------- --------
Zona 7 Inferred 23.2 589 30.1
-------------------------- ----------- ------- ------- --------
Las Carbas Inferred 0.6 443 0.6
Cristina Inferred 0.8 460 0.8
Caridad Inferred 0.4 382 0.4
Villares Inferred 0.7 672 1.1
Villares North Inferred 0.3 388 0.2
-------------------------- ----------- ------- ------- --------
Total Retortillo
Satellites Inferred 2.8 492 3.0
-------------------------- ----------- ------- ------- --------
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
-------------------------------------- ------- ------- --------
Total 20.7 462 21.1
-------------------------------------- ------- ------- --------
Villar Inferred 5.0 446 4.9
Alameda Nth Zone
2 Inferred 1.2 472 1.3
Alameda Nth Zone
19 Inferred 1.1 492 1.2
Alameda Nth Zone
21 Inferred 1.8 531 2.1
-------------------------- ----------- ------- ------- --------
Total Alameda Satellites Inferred 9.1 472 9.5
-------------------------- ----------- ------- ------- --------
Gambuta Inferred 12.7 394 11.1
========================== =========== ======= ======= ========
Salamanca Project Indicated 34.4 423 32.0
==========================
Inferred 50.3 506 56.1
-------------------------------------- ------- ------- --------
Total 84.7 472 88.2
====================================== ======= ======= ========
All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding.
Zona 7 MRE reported in accordance with the JORC Code (2012)
All remaining MRE's reported in accordance with the JORC Code
(2004). The 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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