Major land acquisition completed at Salamanca mine

RNS Number : 0161R

Berkeley Energia Limited

06 December 2016

 

BERKELEY ENERGIA LIMITED

NEWS RELEASE | 6 December 2016 cquisitions completed ahead of commencement of Salamanca mine Construction

Berkeley Energia is pleased to announce that following the recently oversubscribed US$30 million equity raising the Company has completed key land acquisitions which will accelerate the development of its 100% owned Salamanca mine in Western Spain.

The successful acquisition and lease of over five hundred hectares of land will allow for the completion of the initial infrastructure currently underway and the commencement of construction of the processing plant in the first quarter of 2017 along with construction of a medium voltage substation, reagent storage facilities and buildings.

FTSE 250 listed Amec Foster Wheeler, which is carrying out the Front End Engineering Design, has made contractual enquiries for the key equipment for the crushing circuit with the intention of completing purchase orders before the calendar year end.

Initial construction of the Salamanca mine commenced in August this year with the re-routing of the existing electrical power line to service the project and a five kilometre realignment of an existing road ahead of the commencement of mining.

Commenting on the progress of the Salamanca mine, Managing Director Paul Atherley, stated:

"Following the strong financial backing from London's blue chip institutions we are accelerating the development of the Salamanca mine, bringing forward the commencement of construction of the processing plant by several months and moving closer to our goal of becoming one of the world's lowest cost uranium producers, reliably supplying long term customers from the heart of the European Union."

For further information please contact:

Berkeley Energia Limited	[phone]
Paul Atherley, Managing Director	[e-mail]
Hugo Schumann, Corporate Manager
Peel Hunt LLP (Joint Broker)	[phone]
Matthew Armitt
Ross Allister
Chris Burrows
WH Ireland Limited (Nominated Adviser)	[phone]
Paul Shackleton
Nick Prowting
Jay Ashfield
Buchanan	[phone]
Bobby Morse, Senior Partner	[e-mail]
Anna Michniewicz, Account Director

Further background:

Berkeley Energia's Salamanca mine

Berkeley Energia's objective is to be one of the world's lowest cost producers reliably supplying the world's leading utilities with fuel for base load clean energy from the heart of the European Union. Once in production the mine will be one of the world's biggest producers supplying over four million pounds of uranium concentrate a year, equivalent to approximately 10% of the continent's total requirement.

An independent study published in July 2016 by MDM Engineering (part of AMEC Foster Wheeler Group) reported that the project has an NPV of over US$530 million and will produce 4.4 million pounds of uranium per annum at a cash costs of US$15.39 per pound, making it one of the world's lowest cost and a top ten global producer of uranium.

The mine will rejuvenate a community suffering from lack of investment and badly hit by long-term unemployment. Skills training programmes are being run for locals to equip them for the 454 jobs the mine will create once in full production. In addition, it has been estimated that over time the mine will generate indirectly an estimated further 2,295 jobs in the region. Local businesses are being prioritized and the local municipalities and communities will be fully supported throughout the life of the mine.

Uranium has been mined in this area of Spain since the 1950's, initially on a smaller scale until the 1970s when the Mina Fe uranium mine in Salamanca began production, producing a total of 5,500 tonnes of uranium concentrate before its closure in 2000. Spain currently has seven nuclear reactors which generate one fifth of its electricity requirement. Production from the Salamanca mine will exceed Spain's current domestic demand for uranium by 30%.   

Further information is available on www.berkeleyenergia.com.

Competent Persons Statement

The information in this announcement that relates to the Definitive Feasibility Study, Mineral Resources for Zona 7, Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure, Production Targets and Cost Estimation is extracted from the announcement entitled 'Study confirms the Salamanca project as one of the world's lowest cost uranium producers' dated 14 July 2016, which is available to view on Berkeley's website at www.berkeleyenergia.com.

Berkeley Energia Limited (Berkeley) confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Mineral Resources, Ore Reserve Estimate, Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially modified from the original announcements.

The information in the original announcement that relates to the Definitive Feasibility Study is based on, and fairly represents, information compiled or reviewed by Mr. Jeffrey Peter Stevens, a Competent Person who is a Member of The Southern African Institute of Mining & Metallurgy, a 'Recognised Professional Organisation' (RPO) included in a list posted on the ASX website from time to time. Mr. Stevens is employed by MDM Engineering (part of the Amec Foster Wheeler Group). Mr. Stevens has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

The information in the original announcement that relates to the Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure, Production Targets and Cost Estimation is based on, and fairly represents, information compiled or reviewed by Mr. Andrew David Pooley, a Competent Person who is a Member of The Southern African Institute of Mining and Metallurgy', a Recognised Professional Organisation' (RPO) included in a list posted on the ASX website from time to time. Mr. Pooley is employed by Bara Consulting (Pty) Ltd. Mr. Pooley has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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'.

Forward Looking Statement

Statements regarding plans with respect to Berkeley's mineral properties are forward-looking statements. There can be no assurance that Berkeley's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Berkeley 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 Berkeley's mineral properties.

 

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