March 2015 Quarterly Report

RNS Number : 6465L
Berkeley Resources Limited
29 April 2015
 

 

BERKELEY RESOURCES LIMITED

 

AIM RELEASE  |  29 APRIL 2015  HTMLPIPESYMBOL  ASX/AIM:BKY

 

MARCH 2015 QUARTERLY REPORT

Berkeley Resources Limited ('Berkeley' or 'the Company') is pleased to present its quarterly report for the period ended 31 March 2015. The Company's primary focus during the period continued to be the advancement of the Salamanca Project ('the Project') located in Spain.

 

Highlights during the quarter include:

·     Substantial progress on the Scoping Study 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:

Ø The metallurgical testwork program is well advanced. The scope of work includes bond crushability and bond abrasion tests, mineralogy, diagnostic leach tests, stacking tests and 1m column leach tests at different crush sizes on representative samples of weathered and fresh ore.

Ø Hydrogeological and geotechnical studies have been completed and technical reports compiled by independent consultants for inclusion in the Scoping Study.

Ø Mining studies, including pit optimisation and sensitivity analysis, pit design, mining phase definition, waste dump design and waste/ripios backfill scheduling, have been completed.

Ø A materials movement trade-off study which compares the options available to transport material from Zona 7 to the proposed centralised processing facility at Retortillo is well advanced.

Ø The Scoping Study is scheduled to be completed in the current quarter, following which the next phase of resource infill drilling at Zona 7 will commence. The objective of the drilling program is to upgrade the classification of the high grade portion of the Zona 7 Mineral Resource Estimate ('MRE') to the Indicated category.

·     Salamanca Project Definitive Feasibility Study ('DFS') advanced:

Ø The DFS is currently focussed on the integrated development of Retortillo and Alameda however, Zona 7 will be incorporated following completion of the Scoping Study and infill drilling program.

Ø Final assay results from the resource infill drilling program at Retortillo, which was aimed at upgrading sections of the resource to the Measured category, were received:

§ Assay results returned from 69 reverse circulation ('RC') drill holes have shown that there is good continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes in the area of the deposit planned to be mined during the initial two years of production as per the Pre-feasibility Study ('PFS) mining schedule.  

§ Significant high grade intersections have been recorded at shallow depths (from 14 metres below surface to a maximum depth of 94 metres), with thicknesses up to 30 metres. Better intercepts included 30 metres @ 1,670 ppm U3O8, 13 metres @ 2,484 ppm U3O8, 16 metres @ 1,329 ppm U3O8, and 10 metres @ 1,909 ppm U3O8.

Ø The Retortillo MRE has been updated with the results of the 2014resource infill drilling program:

§ Updated MRE totals 16.6Mt at 367 ppm U3O8 for a contained 13.5Mlbs U3O8 at a lower cut-off grade of 200 ppm U3O8.

§ 4.4Mlbs U3O8 or 33% of the MRE is now classified in the Measured category.

§ The portion of the deposit to be mined during the initial two years of production as per the PFS mining schedule upgraded to Measured.

§ Comparison with the previous MRE (September 2013) highlights the initial estimation of Measured Resources, and shows a small increase in overall tonnage (+3%) and contained U3O8 (+1%) with a slight decrease in average grade (-2%).

Ø The metallurgical testwork program for Retortillo is nearing completion:

§ Solvent extraction ('SX') characterisation tests continued with batch SX performed to remove uranium from the pregnant liquor solutions from the Retortillo 6m columns. The resultant 'loaded organic' has been scrubbed and stripped and ammonium diuranate ('ADU' or 'yellowcake') precipitated from the liquor.

Ø The Retortillo hydrogeological model has been updated based on the results of permeability and hydraulic conductivity tests, along with pumping tests, undertaken in the previous quarter.  

·     Positive progress continues to be made on the permitting of Retortillo:

Ø Following granting of the Environmental Licence in 2013 and the Mining Licence in 2014, the approval processes associated with other key permits including the Initial Authorisation of the process plant as a radioactive facility and the Authorisation for Exceptional Use of the Land (application for reclassification from rural to industrial use) for the affected surface land area at Retortillo, continued to be the focus of permitting related activities:

§ All documentation required for the Initial Authorisation of the process plant as a radioactive facility, including the Radiological Analytical Study and Pre-Operational Surveillance Plan have been submitted by Berkeley and reviewed by technical staff within the Nuclear Safety Council ('NSC'). The Initial Authorisation is now pending review and approval of the documentation by the NSC Board.

§ The Company has submitted further documentation pertaining to the application for Exceptional Use of the Land to the municipalities of Retortillo and Villavieja de Yeltes, as requested by the Commission of Environment and Urbanism of Salamanca (the substantive authority).  A number of follow-up meetings have been held with the relevant authorities and Berkeley's application will be placed on the agenda of a meeting of the Commission in the coming months.

§ Significantly, Berkeley has recently been granted an important Water Permit. The formal resolution granting authorisation to undertake mining works within the public water domain, to undertake mining works and to locate mining infrastructure adjacent to local creeks and water courses, and to temporally deviate a creek in the Retortillo area, has been received. The authorisation has been granted by the Duero River Water Authority, an agency of the Ministry of Environment of the Central Government.

 

Enquiries:                  Robert Behets                                  

                                                Berkeley Resources            

+61 8 9322 6322

 

John Prior / Paul Gillam - Nomad & Broker

Numis Securities

+44 (0) 207 260 1000

 

 

OPERATIONS

Berkeley Resources Limited ('Berkeley' or 'the Company') is a uranium exploration and development company with a high quality resource base in Spain. Berkeley is currently focused on advancing its wholly owned flagship Salamanca Project.

 

Salamanca Project

Berkeley's flagship Salamanca Project ('the Project') comprises the Retortillo, Alameda, Zona 7 and Gambuta deposits, plus a number of other Satellite deposits located in western Spain.

 

The Company has completed a Preliminary Feasibility Study ('PFS') on the integrated development of Retortillo and Alameda, which clearly demonstrated the Project's potential to support a significant scale, long life uranium mining operation (refer to announcement dated 26 September 2013).

 

Using the previous Mineral Resource Estimates ('MRE') for Retortillo and Alameda, which totalled 34.5Mlbs U3O8 (36.9Mt at 424 ppm; 200 ppm U3O8 cut-off grade), as a base case scenario, the PFS showed that the Project can support an average annual production of 3.3Mlbs of U3O8 during the 7 years of steady state operation and 2.7Mlbs of U3O8 over a minimum 11 year mine life. Given the positive results of the PFS, the Company has advanced the evaluation of the Project to the Definitive Feasibility Study ('DFS') stage.

 

Following an update of the Zona 7 MRE which now totals 30.1Mlbs U3O8 (refer to announcement dated 26 November 2014), the Company has also commenced a Scoping Study to determine the optimum integration of Zona 7 with the development of Retortillo and Alameda, thereby potentially increasing the production rate and/or mine life of the Project.

Zona 7 - Scoping Study

Substantial progress has been made during the quarter on the Scoping Study being undertaken to determine the optimum integration of Zona 7 with the development of Retortillo and Alameda. The key considerations for the study are the preferred mining and processing route, scale, throughput rate, mine life, infrastructure, community and environmental impacts.

 

Metallurgical Testwork

The scope of work includes initial metallurgical testwork on representative samples of weathered and fresh ore, including bond crushability and bond abrasion tests, mineralogy, diagnostic leach tests, stacking tests and 1m column leach tests at different crush sizes.

 

The bond crushability and bond abrasion tests have been completed for the three composite samples (1 partially weathered and 2 fresh ore samples), with the results demonstrating that none of the material types are difficult to crush and all have low abrasion indexes.

 

As with the Retortillo and Alameda deposits, mineralogical analysis has shown that uraninite and coffinite are the primary uranium minerals at Zona 7.

 

The 1m column leaching testwork is well advanced. A total of 6 columns, which comprised the three composite samples at crush sizes of 12mm and 40mm, were loaded and irrigated for 30 days. The residues were then discharged from the columns and subjected to geomechanical load tests, the results of which have confirmed that the assumed stacking of the agglomerated material in 6m lifts is appropriate for the design of the heap. The residues are now being screened and assayed for the reconstituted head and metal accountability analysis. Whilst final results are pending, the leaching characteristics and acid consumptions observed from the 1m column test work are very encouraging, being similar to those recorded in previous metallurgical testwork for the Retortillo deposit.

 

Hydrogeology / Geotechnical / Mining

During the quarter, 30 permeability tests and one pumping test were carried out at Zona 7. The results have been incorporated into a Hydrogeological Report compiled by independent consultant Ingemisa, for inclusion in the Scoping Study. A total of 55 piezometers are also currently being measured and 6 level recorders have been installed to monitor water level fluctuations.

 

Analysis of the geotechnical logging has been completed in order to characterize the different rock types and fracture systems at Zona 7. A Geotechnical Report, based on the data logged from the drill cores and supplemented by field observations, has been compiled by independent consultant CRS Ingeniería and will be incorporated into the Scoping Study.

 

Mining related activities have included pit optimisation and sensitivity analysis, pit design, mining phase definition, waste dump design, and waste rock and ripios (spent ore from the on-off heap leach pads) backfill scheduling. A materials movement trade-off study which compares the various options available to transport material from Zona 7 to the proposed centralised processing facility at Retortillo (~8.5km to the SE) has also been advanced.

 

The Scoping Study assumes the mining of ore and waste using conventional open pit methods. Diesel-powered truck and shovel excavation with an effective drill and blast plan have been considered. Pit optimisation focussed exclusively on the higher grade portion of the Zona 7 MRE (Domain 6), has defined an open pit with dimensions of approximately 1000m in length, 500m in width and to a maximum depth of 100m.

 

The mining method will be 'transfer mining' which allows the open pit to be continuously backfilled whilst minimising waste dump volumes and waste rehandling. It also facilitates continuous rehabilitation to minimise environmental impact. The preliminary pit design and mine scheduling process have resulted in 6 phases of pit development over a 7 year period, with mining advancing from the SW to NE.

 

The Scoping Study is scheduled to be completed in the current quarter, following which the next phase of resource infill drilling at Zona 7 will commence. The objective of the drilling program is to upgrade the classification of the high grade portion of the current MRE to the Indicated category.

 

The Company will subsequently incorporate Zona 7 into the DFS, with the expanded scope to be focussed on the integrated development of the Zona 7, Retortillo and Alameda deposits.

 

Retortillo/Alameda - Definitive Feasibility Study

The DFS for the Project commenced in 2014, with the key areas of focus including:

·     Resource infill drilling programs aimed at upgrading the classification of specific portions of the current Retortillo and Alameda MRE's to the Measured category;

·     Further metallurgical testwork programs, including additional column leach work (6m columns), in combination with ion exchange ('IX') at Alameda and solvent extraction ('SX') and ammonium diuranate ('ADU') precipitation at Retortillo to generate more detailed information relating to the pH and acid consumption optimisation, design and sizing of the IX and SX units, and final product specification;

·     Development of a Geo-Met model which will incorporate additional geological and metallurgical parameters into the resource block model to support metallurgical process modelling and mine planning and optimisation;

·     Open pit optimisation, detailed mine design and production scheduling using the upgraded MRE block models;

·     Enhanced design of the project infrastructure and site facilities;

·     Undertaking engineering studies to support capital and operating cost estimates for the Project to a level of accuracy of nominally ±10%; and

·     Undertaking an evaluation of the various alternatives for funding the development of the Project and the sale of future uranium production (including uranium marketing and off-take arrangements).

 

During the quarter a number of work programs providing key inputs to the DFS, including the upgraded MRE for Retortillo, the metallurgical testwork program for Retortillo, and hydrogeological studies for both sites, were advanced or completed.

 

Retortillo Drilling and Mineral Resource Estimate

An infill drilling program at Retortillo, aimed at upgrading the resource classification of the areas to be mined during the initial two years of the PFS production schedule to the Measured category, was completed in late 2014. A total of 75 reverse circulation ('RC') holes for 4,785m, 4 diamond ('DD') holes for 291m and 4 open holes ('OH') holes for 150m were drilled, forming the basis for the updated MRE reported herein.

 

The final assay results from the 69 RC drill holes sampled have shown that there is good continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes in the targeted area of the deposit. 

 

Significant high grade intersections were recorded at shallow depths (from 14m below surface to a maximum depth of 94m), with thicknesses up to 30m. High grade intercepts included 30m @ 1,670 ppm U3O8, 13m @ 2,484 ppm U3O8, 16m @ 1,329 ppm U3O8 and 10m @ 1,909 ppm U3O8.

 

All significant intersections returned from the 2014 drill holes, along with the details of the collar positions, drilling orientations and depths, are presented in Appendix A.

 

Location and Geology

Retortillo forms part of Berkeley's Salamanca Project in central-western Spain. It is a vein type uranium deposit hosted in a sequence of fine grained metasediments 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 100m. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling associated with brittle deformation. Most of the uranium mineralisation occurs within the partially weathered zone. Uraninite and coffinite are the primary uranium minerals.

 

Drilling

Three phases of drilling, totalling 1,105 holes for 74,099m, have been carried out at Retortillo (Table 1).

 

The initial phase relates to historical drilling conducted during the 1960's to 1980's by Junta de Energía Nuclear ('JEN') and Empresa Nacional de Uranio ('ENUSA'), two Spanish state run companies. 230 DD holes and 42 OH holes were drilled for a combined 20,453m (28% of total drilling). 

 

The second phase of drilling was conducted from 2006 to 2013 by Berkeley. During this period, 571 RC holes, 162 DD holes and 17 OH holes for a combined 48,420m (65% of total drilling) were drilled to test the area of mineralisation defined by the historical drilling.  

 

A third phase of drilling was completed in 2014. The 2014 drilling campaign, which comprised 75 RC holes for 4,785m, 4 DD holes for 291m and 4 OH holes for 150m, was aimed at upgrading the resource classification of the areas to be mined during the initial two years of the PFS production schedule to the Measured category.

Table 1: Summary of drill holes used in the resource update

Drill Type

Pre-2006

2006-2013

2014

Total

Holes

Metres

Holes

Metres

Holes

Metres

Holes

Metres

%

Reverse Circulation

-

-

571

34,585

75

4,785

646

39,370

53%

Diamond Core

230

16,666

162

12,877

4

291

396

29,834

40%

Open Hole

42

3,787

17

958

4

150

63

4,895

7%

Total

272

20,453

750

48,420

83

5,226

1,105

74,099

100%

 

The majority of the Berkeley drilling was undertaken on a 50m by 50m grid along section lines orientated approximately northeast-southwest across the interpreted strike of the mineralisation. The 2014 infill drilling has resulted in a closer spaced 35m by 35m grid in the areas to be mined during the initial two years of the PFS production schedule. The majority of the drill holes at Retortillo are vertical however, select 2014 drill holes were inclined to validate the interpreted orientation of the mineralised zone.

 

RC drill samples were collected over 1m intervals and these samples were split to achieve 0.7-1.0kg sub-samples which were sent to external laboratories for sample preparation and uranium analysis. Samples were split using 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 0.3m to 2.5m sample lengths. For the historical DD, whole core samples were crushed for sample analysis 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 75μm. Sample pulps from the Berkeley drilling were analysed for uranium using either 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' U3O8 grades or eU3O8 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 with a deconvolution filter applied to reflect the nature of mineralisation. Assay data is the primary method for grade estimation in the resource modelling process and eU3O8 data was only used where there was no assay data available.

 

Resource Model

Geological interpretation was undertaken on 50m or 35m 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 wireframe domains honouring the continuity of grade along and across strike.

 

Topographic control is based on a digital terrain model ('DTM') with sub-metre 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 10m (X) by 10m (Y) by 3m (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 1m sample composites within each domain. As most sample populations had significant positive skewness, grade top cuts were applied approximating the 97.5 population percentile. The domains were assessed independently and a top cut grade was applied to the drilling data for most domains, up to a maximum of 3,800 ppm U3O8.

 

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 470 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: 2.28 t/m3 for completely weathered material, 2.39 t/m3 for partially weathered material and 2.62 t/m3 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 Retortillo has been updated, incorporating additional drilling and sampling information from the 2014 drilling campaign.

 

The MRE has been classified as Measured, Indicated or 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 cut-off grade of 200 ppm U3O8 (Table 2), along with estimates showing the range of U3O8 cut-off grades that would span the range applicable to open pit mining (Table 3).

Table 2: Retortillo - Mineral Resource Estimate, April 2015

Category

Tonnage

(million tonnes)

Grade

(U3O8 ppm)

Contained U3O8

(million pounds)

Measured

4.8

412

4.4

Indicated

11.7

349

9.0

Inferred

0.2

373

0.1

Total

16.6

367

13.5

All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding.

Table 3: Retortillo - Grade Tonnage Table

Lower Cut-off Grade

(U3O8 ppm)

Tonnage

(million tonnes)

Grade

(U3O8 ppm)

Contained U3O8

(million pounds)

100

38.0

240

20.1

200

16.6

367

13.5

300

8.2

493

9.0

400

4.5

617

6.1

500

2.6

740

4.3

 

Comparison with previous Mineral Resource Estimate

An Indicated MRE of 14.4Mt averaging 378 ppm U3O8 for a contained 12Mlbs of U3O8 and an Inferred MRE of 1.8Mt averaging 359 ppm U3O8 for a contained 1.4Mlbs of U3O8 at a lower cut-off grade of 200 ppm U3O8 was previously reported for Retortillo in September 2013 (refer to Announcement dated 26 September 2013). Since then the following significant changes have occurred:

·     An additional 75 RC holes for 4,785m, 4 DD holes for 291m and 4 OH holes for 150m were drilled during 2014;

·     The infill drilling has resulted in a closer spaced 35m by 35m grid in the areas to be mined during the initial two years of the PFS production schedule; and 

·     The data spacing in these areas is considered sufficient to verify geological and grade continuity, and allow the estimation of Measured Mineral Resources (33% of total MRE).

 

Table 4 presents a summary of the differences between the current and previous MRE's which highlights the initial Measured Resource estimate, small increases in tonnage and contained U3O8 and a slight decrease in grade.

Table 4: Retortillo - Comparison of September 2013 MRE and April 2015 MRE

Retortillo - Comparison between September 2013 MRE and April 2015 MRE (200 ppm U3O8 cut-off grade)

Category

Tonnage

(million tonnes)

Grade

(U3O8 ppm)

Contained U3O8

(million pounds)


Sept 13

Apr 15

Difference

Sept 13

Apr 15

 Difference

Sept 13

Apr 15

Difference

Measured

0

4.8

new

0

412

new

0

4.4

new

Indicated

14.4

11.7

-19%

378

349

-8%

12.0

9.0

-25%

Inferred

1.8

0.2

-91%

359

373

4%

1.4

0.1

-90%

Total

16.2

16.6

3%

376

367

-2%

13.4

13.5

1%

 

Further technical details on the Retortillo MRE are included in Appendix B (Summary of Resource Estimate and Reporting Criteria) and Appendix C (JORC Code, 2012 Edition - Table 1 Report).

 

The updated Berkeley Mineral Resource Statement is included in Appendix D. The Mineral Resource Statement is listed by deposit, all of which form part of the Salamanca Project.

 

Metallurgical Testwork

The metallurgical testwork program being undertaken for three master composite samples, representative of various mining phases at Retortillo, continued during the quarter at the Mintek facilities in Johannesburg.

 

The initial 6m column leaching testwork, which comprised 8 columns, has been completed. After approximately 85 days leaching, the residues were discharged in 1m sections and the wet masses recorded. The residues were then composited in 2m intervals (3 composites per column), wet-screened, and assay-by-screen-size performed. A composite residue sample was subsequently reconstituted and analysed for ICP-OES for a suite of elements. This information will enable the overall mass balances for the columns to be finalised. Whilst final results are pending, the leaching characteristics and reagent consumptions observed are generally in line with expectation.

 

An additional "low acid" 6m column was loaded and placed under irrigation during the quarter. The objective of the additional column is to assess the potential to reduce the acid doses during agglomeration and the impact of the lower acid addition on the leach kinetics and uranium recovery.

 

Solvent extraction characterisation tests continued during the quarter. Batch solvent extraction was performed to remove uranium from the recirculating pregnant liquor solutions ('PLS') from the 8 Retortillo columns, whilst minimizing the co-extraction of impurities. The loaded organic generated during the batch extractions for individual columns was blended and stored as 'loaded organic' for scrubbing and stripping test work. This 'loaded organic' is deemed the most representative of what could be expected on the full scale plant for this specific ore.

 

The bulk 'loaded organic' has now been scrubbed and stripped and ADU ('yellowcake') precipitated from the liquor. The 'loaded organic' was scrubbed using demineralised water at pH 1.8 to remove impurities prior to stripping using ammonium sulphate solution. The ADU precipitated from the liquor was filtered and washed prior to being dried at 50oC in an oven. The ADU will now be analysed to ensure that there are no impurities at levels that could adversely impact the quality of the yellowcake.

 

Hydrogeology

The Retortillo hydrogeological model was updated to incorporate the results of permeability and hydraulic conductivity tests carried out during the previous quarter. The results of these field tests have provided important information on the general permeability (increased from 10-2 m/day to 10-1 m/day) and reservoir capacity of the area, and have identified fractures with capacity to transmit water. 

 

Pre-operational Surveillance Plan maps have also been generated for water quality and water table level at Retortillo based on the interpretation of the analytical results of the underground water monitoring program completed during the quarter.

 

Permitting

Following granting of the Environmental Licence in 2013 and the Mining Licence in 2014, the approval processes associated with other key permits including the Initial Authorisation of the process plant as a radioactive facility and the Authorisation for Exceptional Use of the Land (application for reclassification from rural to industrial use) for the affected surface land area at Retortillo, continued to be the focus of permitting related activities during the quarter.

 

All documentation required for the Initial Authorisation of the process plant as a radioactive facility, including the Radiological Analytical Study and Pre-Operational Surveillance Plan have been submitted by Berkeley and reviewed by technical staff within the Nuclear Safety Council ('NSC'). The Company has subsequently provided responses to all queries/requests for clarification put forward by the NSC technical staff. The Initial Authorisation is pending review and approval of the documentation by the NSC Board.

 

The Company submitted further documentation pertaining to the application for Exceptional Use of the Land at Retortillo to the municipalities of Retortillo and Villavieja de Yeltes in January, as requested by the Commission of Environment and Urbanism of Salamanca.  A number of follow-up meetings have been held with the relevant authorities and Berkeley's application will be placed on the agenda of a meeting of the Commission of Environment and Urbanism of Salamanca (the substantive authority) in the coming months.

 

Significantly, the Company has recently received the formal resolution granting authorisation to undertake mining works within the public water domain (dominio público hidráulico), to undertake mining works and to locate mining infrastructure adjacent to local creeks and water courses, and to temporally deviate a creek in the Retortillo project area. The said authorisation has been granted by the Duero River Water Authority, an agency of the Ministry of Environment of the Central Government.

 

The permitting process for Alameda continued during the quarter, and following review by the Ministry of Industry, the Environmental Scoping Document ('ESD') has now been forwarded to the Ministry for Environment for review and comment. The next step in the process involves the ESD being subjected to a compulsory 2 month consultation period.

 

All key documentation associated with the Initial Authorisation of the processing facilities at Alameda as a radioactive facility has been compiled and is ready to be submitted, along with the Environmental and Social Impact Assessment ('ESIA'), once the ESD consultation period has been concluded. 

 

A stand-alone permitting process is required for Zona 7 however; the substantive regulatory authorities are the same as those involved in the Retortillo process. The documents required to commence the Environmental and Mining Licence processes will be prepared and submitted following completion of the Zona 7 Scoping Study and initial Environmental and Radiological Protection baseline studies.

 

 

CORPORATE

At 31 March 2015, the Company had cash reserves of A$14.9 million. The Company continues to maintain a strong focus on cost control across all areas of the business.

 

Competent Persons Statement

The information in this report that relates to the 2015 Mineral Resources for Retortillo 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 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 Exploration Results from the Retortillo 2014 drilling program 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 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 2014 Mineral Resources for Zona 7 is extracted from the report entitled 'Salamanca Project Total Resource increased by 43% to 88.2 Mlbs U3O8 following substantial increase in Zona 7 Resource' dated 26 November 2014 and is available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original Announcement that relates to the 2014 Mineral Resources for Zona 7 was 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'.  The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to 2014 Exploration Results is extracted from the reports entitled 'Thick, High Grade Mineralisation Intersected at Zona 7' dated 18 August 2014 and 'Further Thick, High Grade Drill Intersections at Zona 7' dated 10 November 2014 which are available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original Announcements that relate 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. Mr Behets is a holder of shares, options and performance rights in, and is a director of, Berkeley Resources Limited. Mr Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to earlier Exploration Results and Mineral Resources is extracted from Berkeley's announcements dated 31 July 2012 (June 2012 Quarterly Report), 31 October 2012 (September 2012 Quarterly Report), 7 August 2013 and 26 September 2013 which are available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original announcements was based on information compiled by Craig Gwatkin, who is a Member of The Australian Institute of Mining and Metallurgy and was an employee of Berkeley Resources Limited.  Mr Gwatkin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Mr Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The information in this report that relates to the Pre-Feasibility Study is extracted from Berkeley's announcement dated 26 September 2013 which is available to view on Berkeley's website at www.berkeleyresources.com.au. The information in the original announcement was based on information compiled by Neil Senior of SENET (Pty) Ltd. Mr Senior is a Fellow of The South African Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Senior consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

 

Production Target

The Production Target stated in this Report is based on the Company's Pre-Feasibility Study ('PFS') for the Salamanca Project as released on 26 September 2013. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 was included in the Company's June 2014 Quarterly Report released to the ASX on 24 July 2014.

The Company confirms that the material assumptions underpinning the PFS and Production Target referenced in the 26 September 2013 and 24 July 2014 releases continue to apply and have not materially changed.

Forward Looking Statement

Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

 

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.

 

'Feasibility Study' (or Definitive Feasibility Study) is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable Modifying Factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study.

 

'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 (2004)'means the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

 

'JORC Code (2012)' means the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

 

'Measured Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

 

'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.

 

'Modifying Factors' are considerations used to convert Mineral Resources to Ore Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

 

'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors.

 

'Preliminary Feasibility Study' (or Pre-Feasibility Study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includes a financial analysis based on reasonable assumptions on the Modifying Factors and the evaluation of any other relevant factors which are sufficient for a Competent Person, acting reasonably, to determine if all or part of the Mineral Resources may be converted to an Ore Reserve at the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a Feasibility Study.

 

'Scoping Study' is an order of magnitude technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments of realistically assumed Modifying Factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be reasonably justified.

 

Appendix A:  Summary of Significant RC Drill Intersections - Retortillo (200 ppm U3O8 cut-off)

 

Drill Hole ID

Easting

(m)

Northing

(m)

Elevation

(m)

Azimuth

(o)

Dip

(o)

Depth

(m)


From

(m)

To

(m)

Interval

(m)

U3O8 ppm

RTR-407

719957

4520087

740

360

-90

60


21

37

16








incl.

22

23

1








incl.

25

26

1








incl.

30

31

1








incl.

36

37

1









40

41

1

270

RTR-408

719969

4520090

740

360

-90

60


23

39

16








incl.

31

32

1

4,327

RTR-409

719961

4520094

740

360

-90

60


21

36

15








incl.

31

33

2

5,211

RTR-410

719963

4520089

740

360

-90

60


24

37

13








incl.

24

28

4








incl.

35

36

1









45

46

1

529

RTR-411

719963

4520082

740

360

-90

64


22

33

11








incl.

23

24

1








incl.

26

27

1

9,786

RTR-412

719961

4520075

740

360

-90

60


24

34

10

371

RTR-413

719959

4520081

741

360

-90

60


26

37

11

1,136








incl.

30

33

3

2,957

RTR-414

719956

4520093

741

360

-90

60


22

25

3

1,406








incl.

23

24

1

3,065









29

37

8

1,733








incl.

35

36

1

9,786









41

43

2

1,468

RTR-415

719953

4520098

741

360

-90

61


22

29

7

1,624









32

39

7

270

RTR-416

719949

4520091

741

360

-90

58


28

41

13

1,005








incl.

32

33

1

4,280








incl.

36

37

1

3,431









49

53

4

421

RTR-417

719951

4520085

741

360

-90

58


25

37

12









45

49

4









53

54

1

200

RTR-418

719953

4520079

741

360

-90

59


23

33

10

1,315

RTR-419

719945

4520083

742

360

-90

60


26

32

6








incl.

27

29

2









36

42

6









47

48

1

296

RTR-420

719924

4520078

743

360

-90

50


31

36

5









49

50

1

244

RTR-421

719946

4520121

743

360

-90

58


23

38

15








incl.

26

28

2









49

55

6

329

RTR-422

719970

4520165

740

360

-90

60


No Significant Intercepts

RTR-423

720147

4519831

744

360

-90

90


35

36

1









40

43

3









45

46

1









84

85

1

261

RTR-424

720136

4519809

746

360

-90

82


40

44

4









48

51

3









62

63

1

226

RTR-425

720101

4519983

735

360

-90

50


No Significant Intercepts

RTR-426

720126

4520027

729

360

-90

70


22

23

1

338

RTR-427

720150

4520074

724

360

-90

82


14

21

7









26

30

4









38

41

3









47

51

4

432

RTR-428

720077

4519939

740

360

-90

63


22

27

5









30

31

1

265

RTR-429

720149

4519823

744

360

-90

90


39

43

4

1,089

RTR-430

720097

4520084

726

28

-60

75


19

22

3

456

RTR-431

720144

4519840

743

360

-90

90


30

39

9








incl.

32

33

1








incl.

35

36

2









42

43

1









46

49

3








incl.

47

48

1

2,853

RTR-432

720076

4520030

736

28

-60

91


26

28

2









35

37

2









50

51

1









60

61

1









64

86

22








incl.

73

74

1








incl.

85

86

1

5,341

RTR-433

720127

4519807

746

360

-90

90


48

49

1

299

RTR-434

720016

4520084

733

118

-60

67


21

30

9








incl.

26

28

2









45

51

6








incl.

45

46

1









63

64

1

302

RTR-435

720118

4519802

747

360

-90

97


48

54

6









83

86

3

283

RTR-436

720039

4520124

727

118

-60

65


No Significant Intercepts

RTR-437

720143

4519847

743

360

-90

88


31

34

3









38

41

3









50

51

1









62

63

1

283

RTR-438

719995

4520039

739

118

-60

60


26

27

1









31

51

20








incl.

34

36

2

4,398

RTR-439

720143

4519812

745

360

-90

90


53

55

2









66

67

1









71

72

1









74

75

1









76

77

1

209

RTR-440

720013

4520141

733

360

-90

50


No Significant Intercepts

RTR-441

720157

4519797

745

360

-90

94


39

43

4









46

48

2









69

70

1









75

80

5









86

87

1

220

RTR-442

719990

4520092

736

360

-90

60


19

35

16









50

55

5

426

RTR-443

720185

4519769

746

118

-60

88


47

61

14









67

68

1









77

78

1









80

81

1

329

RTR-444

719874

4520091

747

360

-90

55


33

41

8

415

RTR-445

720169

4519820

743

360

-90

90


43

44

1

400

RTR-446

719873

4520027

747

360

-90

52


No Significant Intercepts

RTR-447

720092

4519840

745

208

-60

100


39

49

10









54

68

14









85

86

1









92

94

2

435

RTR-450

719899

4520032

746

360

-90

50


No Significant Intercepts

RTR-451

720111

4519895

741

208

-60

86


31

42

11









49

69

20









77

79

2

430

RTR-452

719945

4520009

744

360

-90

50


41

44

3

441

RTR-453

720131

4519933

740

208

-60

78


52

54

2









57

58

1









65

73

8

428

RTR-454

719966

4519940

746

118

-60

70


46

48

2









55

56

1









63

64

1

238

RTR-455

720209

4519972

735

28

-60

75


No Significant Intercepts

RTR-456

720047

4519988

740

28

-60

77


44

74

30








incl.

53

57

4








incl.

63

64

1

10,965

RTR-457

720055

4519895

743

360

-90

60


No Significant Intercepts

RTR-458

720192

4520045

729

360

-90

60


No Significant Intercepts

RTR-459

720024

4519945

743

28

-60

68


38

48

10








incl.

44

46

2









52

63

11








incl.

60

61

1

3,820

RTR-460

720237

4520019

729

360

-90

60


No Significant Intercepts

RTR-461

719817

4520130

745

118

-60

65


33

34

1

224

RTR-462

720279

4519995

728

360

-90

64


No Significant Intercepts

RTR-463

719803

4520080

747

360

-90

58


36

37

1









43

44

1









52

54

2

325

RTR-464

720420

4519925

735

298

-60

49


20

21

1

469

RTR-465

720350

4519909

731

360

-90

50


No Significant Intercepts

RTR-466

720398

4519887

736

298

-60

55


No Significant Intercepts

RTR-467

719770

4520101

745

360

-90

55


36

38

2









43

49

6

508

RTR-468

720318

4519755

743

360

-90

57


37

45

8

576

RTR-469

719856

4520059

747

360

-90

55


48

49

1

2,393

RTR-470

720277

4519781

742

208

-60

70


39

40

1









44

48

4

607

RTR-471

720360

4519620

751

360

-90

64


49

51

2

861

RTR-472

720308

4519647

749

360

-90

79


47

64

17









67

69

2

294

RTR-473

720345

4519691

746

360

-90

62


40

41

1

322

RTR-474

720356

4519655

749

360

-90

70


48

55

7

530

RTR-475

720275

4519670

749

360

-90

60


45

47

2

407

RTR-476

720247

4519700

748

28

-60

80


55

60

5









64

66

2









69

79

10

512

RTR-477

720218

4519723

748

360

-90

91


50

67

17








incl.

55

57

2









78

79

1

634

 

Appendix B: Summary of Resource Estimate and Reporting Criteria

 

Geology and Geological Interpretation

Retortillo is a vein type uranium deposit hosted within Ordovician metasediments adjacent to granite. The mineralised envelope is interpreted to be sub-horizontal to shallowly dipping, and occurs from surface and to maximum depth of approximately 100m. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling associated with brittle deformation. Most of the uranium mineralisation occurs within the partially weathered zone. Uraninite and coffinite are the primary uranium minerals. The deposit falls into the category defined by the International Atomic Energy Association ('IAEA') as Vein Type, Sub Type Iberian Type.

Drilling and Sampling Techniques

Sample Analysis Method

Sample preparation of all drill samples involved oven drying, crushing and pulverising to achieve a grind size of 85% passing 75μm. 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

Cut-off Grades

The MRE has been reported using a lower cut-off grade of 200 ppm U3O8, which is consistent with the grade used to report previous MRE's for this style of mineralisation.

Mining and Metallurgical methods and parameters

The PFS demonstrated that the Retortillo resource can potentially be extracted using open pit mining methods, with the recovery of uranium through the application of acid heap leach methods.

Berkeley has completed a number of metallurgical testwork programs for Retortillo as part of the Scoping Study, PFS and DFS, including column leach tests at commercial stack heights (6m). The results of these testwork programs have shown that heap leaching can achieve uranium recoveries in the order of 85%.

Resource Classification Criteria

The MRE has been classified and is reported as Measured, Indicated or 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 to imply reasonable prospects for eventual economic extraction.

 

Appendix C: 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 techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.


Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.


Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

 


Measures taken to maximise sample recovery and ensure representative nature of the samples.

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 between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

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 includes recording descriptions of lithology, Fe oxides, sulphides, uranium mineralogy fracturing and no recovering zones.


Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.


The total length and percentage of the relevant intersections logged.

All DD and RC drill holes were logged in full by geologists employed by the relevant companies.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.


If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Berkeley RC drill samples were collected at 1m intervals. RC intervals were sampled by splitting dry samples in the field to 3-5kg using cone and quarter method (previous campaigns) or two riffle splitters in cascade (2014 campaign) and further split in the core shed to 0.7-1kg using a riffle splitter.


For all sample types, the nature, quality and appropriateness of the sample preparation technique.


Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.


Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.


Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 


For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.


Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Standards, blanks and duplicates were regularly inserted into the sample stream by Berkeley, with approximately 15-20% of all samples used for quality control. The external laboratories maintain their own process of QA/QC utilising internal standards, repeats and duplicates.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

 

Reported significant intersections were checked and verified by Senior Geological management.


The use of twinned holes.


Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.


Discuss any adjustment to assay data.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Berkeley drill hole collar locations were surveyed by qualified surveyors (Cubica Ingeniería Metrica S.L) using standard DGPS equipment achieving sub decimetre accuracy in horizontal and vertical position.

 


Specification of the grid system used.

The grid system is UTM ED1950 Zone 29N.


Quality and adequacy of topographic control.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

The majority of the Berkeley drilling was undertaken on a nominal 50m by 50m grid, with closer spaced drilling on 35m by 35m within open pit areas scheduled to be mined during the initial two years of production based on the Pre-Feasibility Study (PFS).


Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The data spacing (notionally 35m by 35m) is considered sufficient to verify geological and grade continuity, and allow the estimation of Measured and Indicated Mineral Resources.

 


Whether sample compositing has been applied.

No compositing of RC samples in the field has been undertaken.

 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.


If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

The majority of DD and RC drill holes are vertical. Due to the interpreted flat lying nature of the mineralisation, no sampling bias is considered to have been introduced by the orientation of the drilling. This has been validated by the drilling of 50 inclined DD holes and 25 inclined RC holes.

 

Sample security

The measures taken to ensure sample security.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.


The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Tenure in the form of an Exploitation Concession has been granted and is considered secure. There are no known impediments to obtaining a licence to operate in this area.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Geology

Deposit type, geological setting and style of mineralisation.

Drill hole Information

A summary of all information material to the understanding 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 is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

All of this information is Material and has been included in Appendix A of this release.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Reported drill intersections are based on chemical assay data and are calculated using a 200ppm U3O8 cut-off, no high grade cut, and may include up to 2m of internal dilution.


Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

High grade intervals that are internal to broader zones of uranium mineralisation are reported as included intervals.


The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values were used.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.


If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Appropriate diagrams, including a drill plan and cross sections, are included in the main body of this release.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All new exploration results are reported in Appendix A of this release.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

 


Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

These are shown in the main body of this release.

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 integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.


Data validation procedures used.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.


If no site visits have been undertaken indicate why this is the case.

Site visits have been undertaken.

Geological interpretation

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.


Nature of the data used and of any assumptions made.


The effect, if any, of alternative interpretations on Mineral Resource estimation.


The use of geology in guiding and controlling Mineral Resource estimation.


The factors affecting continuity both of grade and geology.

Dimensions

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

Four sources of drillhole uranium grade data was used:

·     Chemical U3O8 (ppm): 66.3%

·     Radiometric Equivalent (ppm): 30.7%

·     Portable XRF (ppm): 0.4%

·     Background waste values based on XRF and Gamma probe results (10ppm U3O8): 2.6%

In order to reduce local bias due to extreme high grades, top cuts were applied:

·      R2: 1,100ppmU3O8

·      R3: 1,800ppmU3O8

·      R4: not applied

·      R5: 3,800ppmU3O8

·      R6: 2,000ppmU3O8

·      R7: not applied

·      S2: 2,500ppmU3O8

·      S3: 2,500ppmU3O8

Number of 1m samples required to make an estimate per pass: 

·      Minimum samples = 18/12/6

·      Maximum samples = 30/18/18

Search ellipse radii variable per domain in meters, along strike /across-strike/down-dip:

·      R2: 45/30/6

·      R3: 45/30/6

·      R4: 45/30/6

·      R5: 45/30/6

·      R6: 45/30/6

·      R7: 45/30/6

·      S2: 30/30/6

·      S3: 30/30/6

Search orientation variable per domain (dip, plunge, dip dir.):

·      R2: (0, 0, 120)

·      R3: (0, 0, 120)

·      R4: (0, 0, 120)

·      R5: (0, 0, 120)

·      R6: (0, 0, 120)

·      R7: (0, 0, 120)

·      S2: (0, 0, 120)

·      S3: (0, 0, 120)

Search radii used for OK were increased by a factor of 1.5/1.5/1.5 and 7.5/9/10 (major/semi-major/minor) for the main deposit (R2 to R7) to estimate a grade for blocks not estimated in the 1st or 2nd pass respectively. For the smaller deposit to the NW (S2 and S3), being a 2 pass estimation process, the search radii were doubled on the second pass resulting in 60/60/12.


The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.


The assumptions made regarding recovery of by-products.

The resource model only estimates uranium.


Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

At this stage, there are no deleterious elements or other non-grade variables identified as being of economic significance at Retortillo.


In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.


Any assumptions behind modelling of selective mining units.

Three selective mining units dimensions have been considered in the current model:

·      Main deposit (R3 to R7) in the SE covering an area of 1.8km by 0.6km within 100m of surface.

·      Main deposit satellite (R2) immediately northwest of the Main deposit with an area of 0.7km by 0.4km within 70m of surface.

·      Smaller Deposit (S2 and S3) to the NW with an area of 2.5km by 0.2km within 60m of surface.


Any assumptions about correlation between variables.

Uranium is the only economic metals estimated in the current resource model.


Description of how the geological interpretation was used to control the resource estimates.


Discussion of basis for using or not using grade cutting or capping.


The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

Moisture

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

Indicative parameters used for pit optimisation purposes were:

Uranium selling price: US$65/lb U3O8,

Total Mining Cost: US$14.5/lb U3O8

Mining recovery: 98%

Mining dilution: 2%

Plant Process Cost: US$12.8/lb U3O8

Recovery U3O8: 85%

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding 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.

Environmen-tal factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, 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.

The Company's waste management and rehabilitation assumptions were detailed in the ESIA and Reclamation and Closure Plan.

Bulk density

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

The in-situ dry bulk density values are:

·      Completely weathered: 2.28g/cm3

·      Partially weathered: 2.39g/cm3

·      Fresh rock: 2.62g/cm3


The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

Fresh and slightly weathered rock is competent enough to ensure the method used takes into account any rock porosity. A factor derived from comparison with DD core was used to adjust the weathered material.


Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

Classification

The basis for the classification of the Mineral Resources into varying confidence categories.

The reported MRE has been classified as Measured, Indicated or Inferred after consideration 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 has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

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 and spacing of intercepts through the mineralised zones and knowledge of grade continuity gained from observation and geostatistical analysis.


Whether the result appropriately reflects the Competent Person's view of the deposit.

Audits or reviews

The results of any audits or reviews of Mineral Resource estimates.

Discussion of relative accuracy/ confidence

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.


The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

The Retortillo deposits are likely to have local variability. The global assessment is an indication of the average tonnages and grade estimate for each geological domain.


These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

No production has been carried out at Retortillo.

 

Appendix D: Summary of Mineral Resource Estimates as at April 2015

      (Reported at a cut-off grade of 200 ppm U3O8)


April 2015

Deposit

Name

Resource

Category

Tonnes

(Mt)

U3O8

(ppm)

U3O8

(Mlbs)

Retortillo

Measured

4.8

412

4.4


Indicated

11.7

349

9.0


Inferred

0.2

373

0.1


Total

16.6

367

13.5

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

Measured

4.8

412

4.4

Indicated

31.7

416

29.1

Inferred

48.7

511

54.8

Total

85.2

470

88.2

       All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding.

 

Appendix E: Summary of Mining Tenements

As at 31 March 2015, the Company had an interest in the following tenements:

 

Location

Tenement Name

Interest

Status

Spain




Salamanca

D.S.R Salamanca 28 (Alameda)

100%

Granted


D.S.R Salamanca 29 (Villar)

E.C. Retortillo-Santidad         

100%

100%

Granted

Granted


I.P. Abedules

100%

Granted


I.P. Abetos

100%

Granted


I.P. Alcornoques

100%

Granted


I.P. Alisos

100%

Granted


I.P. Bardal

100%

Granted


I.P. Barquilla

100%

Granted


I.P. Berzosa

100%

Granted


I.P. Campillo

100%

Granted


I.P. Castaños 2

100%

Granted


I.P. Ciervo

100%

Granted


I.P. Dehesa

100%

Granted


I.P. El Águlia

100%

Granted


I.P. Espinera

100%

Granted


I.P. Horcajada

100%

Granted


I.P. Mailleras

100%

Granted


I.P. Mimbre

100%

Granted


I.P. Oñoro

100%

Granted


I.P. Pedreras

100%

Granted


I.P. El Vaqueril

100%

Pending


I.P. Halcón

100%

Pending


E.P. Herradura

100%

Pending





Cáceres

I.P. Almendro

100%

Granted


I.P. Ibor

100%

Granted


I.P. Olmos

100%

Granted





Badajoz

I.P Don Benito Este - U

100%

Granted


I.P Don Benito Este - C

100%

Granted


I.P Don Benito Oeste - U

100%

Granted


I.P Don Benito Oeste - C

100%

Granted





Ciudad Real

I.P Damkina Fraccion 1

100%

Granted


I.P Damkina Fraccion 2

100%

Granted


I.P Damkina Fraccion 3

100%

Granted

A new application for Exploration Permit Herradura was submitted, replacing Investigation Permit Alimoche which was surrendered during the quarter. There were no changes to beneficial interest in any mining tenements due to Farm-in or Farm-out agreements. No beneficial interest in Farm-in or Farm-out agreements were acquired or disposed during the quarter.

 


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