Commencement of Drilling

RNS Number : 3193O

Berkeley Resources Limited

28 June 2010

 



28 June 2010

BERKELEY RESOURCES LIMITED

Reverse Circulation Drilling - Salamanca Uranium Project

Berkeley is pleased to announce the commencement of the first phase of Reverse Circulation (RC) drilling at the Salamanca Uranium Project in Spain.  Three rigs have been mobilized to site and are drilling with another rig to commence shortly.  This new programme aims to achieve the following objectives:

·     To upgrade the current resource classifications from Indicated to Measured and from Inferred to Indicated

·     To test for lateral and depth extensions of the current resource in areas where recent diamond drilling has shown the deposits are open

·     To test a number of high priority targets identified by surface mapping and ground radiometrics that are proximal to the existing resource

·     To complete sterilization drilling of the area to the north of Sageras where the conceptual waste dump and crushing facility have been located.

The total number of planned holes are summarised in Table 1 and it is anticipated that the programme will be completed by the end of July.

Deposit	Phase 1		Phase 2		Total
	Holes	Metres	Holes	Metres	Holes	Metres
Palacios North			10	1,085	10	1,085
Sageras	35	2,260	35	2,005	70	4,265
Alameda South	25	2,770			25	2,770
Total	60	5,030	45	3,090	105	8,120

Table 1 - Planned RC Drilling

Commenting on the start of the RC drilling campaign, the Managing Director of Berkeley Resources Mr. Ian Stalker said:

"The RC drilling campaign in addition to upgrading the current resource classifications into indicated and measured categories, will also test the potential extensions of the current resources and additional exploration targets in the area"

Enquiries -       Managing Director:                 Ian Stalker       Tel:  [phone]  

                        RBC Capital Markets:            Martin Eales    Tel:  [phone]

Salamanca Uranium Project

The Salamanca Uranium Project (SUP) consists of four areas containing a number of metasedimentary hosted uranium deposits located in the western part of Salamanca Province. These deposits are near surface accumulations of open pittable uranium within close proximity to the Quercus uranium ore processing plant.

The SUP study is focused initially on the Águila (Palacios North and Sageras deposits) and Alameda (Alameda South deposit) areas, with possible extension to the Retortillo (Retortillo and Santidad deposits) and Villar areas.

Berkeley has already completed an extended diamond drilling campaign designed to confirm the historical data, enable the calculation of Mineral Resource estimates and generate sufficient material for metallurgical test work now underway at SGS in Perth.  Following completion of the confirmatory diamond drilling program in March, Berkeley announced initial Mineral Resource Estimates for the Sageras, Palacios North and Alameda South deposits (Table 2).

Deposit	Resource	Tonnes	U3O8	U3O8	U3O8	Category	Berkeley	U3O8
Name	Category	(Mt)	(ppm)	(t)	(Mlbs)	(%)	(%)	(Mlbs)
	Measured	4.7	380	1,779	3.9	46%	90%	3.5
	Indicated	2.3	430	977	2.2	25%	90%	1.9
	Subtotal M+I	7.0	396	2,755	6.1	71%	90%	5.5
	Inferred	2.8	410	1,143	2.5	29%	90%	2.3
Sageras	Total	9.7	400	3,899	8.6	100%	90%	7.7
	Measured	0.9	515	483	1.1	23%	90%	1.0
	Indicated	2.9	502	1,438	3.2	67%	90%	2.9
	Subtotal M+I	3.8	505	1,922	4.2	90%	90%	3.8
	Inferred	0.4	531	211	0.5	10%	90%	0.4
Palacios North	Total	4.2	508	2,133	4.7	100%	90%	4.2
	Indicated	8.6	480	4,133	9.1	49%	90%	8.2
	Inferred	9.8	439	4,280	9.4	51%	90%	8.5
Alameda South	Total	18.4	458	8,413	18.5	100%	90%	16.7
	Measured	5.6	403	2,262	5.0	16%	90%	4.5
	Indicated	13.7	476	6,548	14.4	45%	90%	13.0
	Subtotal M+I	19.4	455	8,810	19.4	61%	90%	17.5
SUP	Inferred	12.9	436	5,635	12.4	39%	90%	11.2
Study	Total	32.3	447	14,445	31.8	100%	90%	28.7

Table 2 - Mineral Resource Estimates

Reverse Circulation Drilling

Following recent approval by the Salamanca Mines Department, RC drilling commenced in June with one rig located at Sageras and another at Alameda South. The drilling campaign is being conducted in two phases:

Phase 1 - This phase is aimed at upgrading the Inferred mineral resources at Sageras and Alameda South into the Measured and Indicated categories. The Mineral Resource Estimates will then be updated followed by detailed pit optimization studies.

Phase 2 - This phase is focused on extensions to the current mineral resources at Sageras and Palacios where the confirmatory diamond drilling program demonstrated potential. 

Diamond drilling at Sageras intersected significant mineralization below the limits of the historical drilling and these areas will now be targeted with angled RC drill holes.  Additional potential exists on the western margin of the Sageras deposit (previously referred to as Zona M) where two traverses of holes are planned to test for possible extensions. 

A further nine RC holes have been planned to test the area immediately to the north of the Sageras deposit where the conceptual design for the waste dumps has been located.

At Palacios North, new geological modelling has identified a number of important structural zones potentially connecting the two main mineralized domains that are previously untested by the historical drilling.  These targets will be tested with a number of angled RC holes. Potential for continuation of the southerly extensions of the eastern mineralized domain will also be targeted with a number of holes during this campaign.

A full version of this announcement, including maps and images, is available on the Company's website, www.berkeleyresources.com.au. 

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Ross Corben, who is a Member of The Australian Institute of Mining and Metallurgy and an employee of Berkeley Resources Limited. Mr. Corben 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. Corben consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

END

 

 

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