Quarterly Activities Report

RNS Number : 2481A

Berkeley Resources Limited

31 July 2008

 



Quarterly Activities Report

For the Quarter Ended

30 June 2008

KEY DEVELOPMENTS

Corporate

• After a competitive tender, Berkeley was chosen by ENUSA to conduct a feasibility study on, and ultimately develop, ENUSA's uranium assets in Salamanca Province, which are very complementary to Berkeley's own assets in the area. The companies are working to complete the structure of the transaction.

Exploration

• Drilling at the Gambuta deposit extended continuous mineralisation over 1,500 metres, providing adequate data for an initial resource calculation.

• The Gambuta deposit remains open to the northwest, with potential for an additional 1,300m of strike. Further drilling is expected after the current fire season.

• Initial drilling at the Ojaranzo prospect confirmed the presence of widespread, shallow uranium mineralisation, within a large anomalous zone.

• Drilling at the Zona 7, Las Carbas and Caridad prospects, all within the Salamanca I Project, defined a number of areas of apparently continuous mineralisation, with the potential to add further resources to the Project.

• A number of new targets have been generated from ongoing interpretation of aerial survey data and Berkeley's developing geological models.

Enquiries - Managing Director:      Matt Syme    Telephone: [phone]

           RBC Capital Markets:     Martin Eales    Telephone: [phone]

  CORPORATE

ENUSA Assets Tender

The Spanish State Uranium Company - ENUSA - conducted a tender for its uranium mining assets in Salamanca Province, with tenders closing on 31 May 2008. The ENUSA assets include a number of State Reserve licence areas which have been the subject of extensive uranium exploration and development, as well as access to ENUSA's Quercus uranium processing plant which was operated until 2003 and has since been on care and maintenance. The State Reserves are in close proximity to, or contiguous with, Berkeley's permits in Salamanca, so there is considerable synergy to be achieved by combining exploration and development of the assets.

Berkeley was advised in July that the Company had been chosen as ENUSA's partner to conduct a feasibility study upon and ultimately develop ENUSA's uranium mining assets.

The companies are continuing to negotiate the terms of the partnership and do not expect this will be completed until after the Spanish summer vacation. The agreement will then be submitted to the Spanish Council of Ministers for approval. 

Further details are contained in Berkeley's announcement dated 16 July 2008.

EXPLORATION

Caceres VI Project

The Caceres VI Project includes a number of uranium anomalies previously identified by past explorers through regional radiometric surveys and shallow drilling. During the June quarter, exploration was focussed on mapping anomalous zones, confirming past drilling results, obtaining geological information from diamond drilling and generating sufficient RC drilling data to allow an initial resource calculation at the Gambuta deposit.

Gambuta Deposit

A further six diamond drill holes and 28 reverse circulation holes were drilled at Gambuta during the quarter, increasing the original area of mineralisation identified by CISA (a joint venture between Areva and ENUSA) to a structurally controlled zone of mineralisation 250 - 350m wide and extending for 1,500m in a north westerly direction. The mineralisation is open to the northwest.

A total of 36 holes have now been drilled at Gambuta, with 30 holes encountering mineralisation. All assay results have been received, with results not previously announced including: 

GAMR 020    17.5metres @ 0.0422% U3O8 from 34.5m

GAMR 023    17.0metres @ 0.0243% U3O8 from 17.0m

GAMR 024    7.0metres @ 0.0427% U3O8 from 10.0m

GAMR 027    8.0metres @ 0.0767% U3O8 from 18.0m

GAMR 028    16.0metres @ 0.1461% U3O8 from 3.0m

GAMR 032    9.0metres @ 0.0338% U3O8 from 40.0m

GAMR 035    11.0metres @ 0.0691% U3O8 from 40.0m

The uranium mineralisation at Gambuta occurs within a sequence of Proterozoic spotted and banded grey to black phyllites which have been contact metamorphosed by Hercynian granites. The contacts between the phyllites and the granite to the east and northeast are tectonic. The sequence of host phyllites at Gambuta is similar to those hosting the Retortillo mineralisation.

As at Retortillo, the Gambuta uranium mineralisation is generally sub-horizontal and associated with the weathering profile with most of the mineralisation occurring in the zone of partial oxidation. Deeper mineralisation is associated with oxidation along steeply dipping shears and fractures dominantly sub-parallel to the mineralised trends.

Uranium mineralisation occurs within the schistosity, particularly in zones of shearing and fracturing. The only visible uranium noted is in the secondary minerals autunite and torbernite.

The deposit is open to the northwest, with topography indicating potential for extensions beneath Tertiary and Quaternary cover for a further 1.3km. Drilling to test the potential extension will continue after the high risk fire season.

Infill drilling will also be undertaken in order to better define the limits of the mineralisation, in particular, the zone of higher grade mineralisation.

Ojaranzo Prospect

The Ojaranzo project is located 4-5km southwest of the village of Puente del Arzobispo in the eastern part of Berkeley's Cáceres VI Almendro license. 

Two diamond core holes were drilled by Berkeley to test the results of historical roto-percussion holes within a northeast trending radiometric anomaly measuring approximately 1,200m by 550m. 

Both holes intersected significant shallow uranium mineralisation including (at a cut off grade of 0.01% U3O8):

Hole OJA-001     23.0 metres @ 0.020% U3O8 from 0.0m, 

    including 2.3 metres @ 0.065% U3O8 from 16.3m, and

                                                4.0 metres @ 0.079% U3O8 from 47.0m

Hole OJA-002    6.5 metres @ 0.049% U3O8 from 15.5m, 

           including 4.0 metres @ 0.071% U3O8 from 18.0m

These results confirm the presence of extensive, near surface uranium mineralisation, at potentially economic grades.

Salamanca I Project

Work at the Salamanca I Project was focussed on initial drill testing of a number of new exploration targets to determine their potential to add to the existing project resources base of 16.9m lbs of U3O8. These targets were identified from a combination of geological mapping, historic drill results and workings and the aerial radiometric and magnetic survey undertaken by Berkeley in late 2007.

Overall, the results defined a number of new areas of mineralisation which appear likely to add resources to the Project. Each of these areas remains open and will require further drilling prior to resource calculations, probably later this year.

Berkeley's geological model for the area continues to evolve with drilling outcomes and further interpretation of the aerial survey and a number of additional targets, including beneath Tertiary cover, have been identified for further work. 

Zona 7

A total of 38 RC holes were drilled at Zona 7 during the quarter to define the limits of mineralisation and obtain a better understanding of the structural and lithological controls. 

Mineralisation appears to have been closed off on the narrower eastern limb of the deposit, however the southwestern limit remains open, with holes on the most southwestern profile (reported last quarter) containing some of the best intersections.  

The distribution of mineralisation indicates an interplay of horizontal controls related to weathering and more steeply dipping components linked to structure, resulting in significant thickness and grade variation. Mineralisation in the southwestern limb of the deposit is in fresh to moderately weathered rocks while in the east limb it occurs in moderately to strongly weathered rocks, indicating a shallow plunge from east to west. Individual 1m samples show occasional grades of up to 0.1% U308 but most intersections fall within the range of 300-500ppm. 

Results for holes drilled in the June quarter included:

Hole ZN7R-028    8.0 metres @ 0.0531% U3O8 from 12.0m, and

      8.0 metres @ 0.0309% U3O8 from 32.0m

Hole ZN7R-051    6.0 metres @ 0.0498% U3O8 from 7.0m, and

      3.0 metres @ 0.0323% U3O8 from 15.0m

Hole ZN7R-058    6.0 metres @ 0.0436% U3O8 from 20.0m 

Hole ZN7R-063    11.0 metres @ 0.0850% U3O8 from 7.0m, and

                              1.0 metre @ 0.0657% U3O8 from 20.0m

Given the apparent strong structural control on mineralisation, a number of inclined diamond holes are planned for next quarter to help clarify the detailed distribution of uranium and its relation to structure. 

Las Carbas Prospect

Las Carbas represents the second stand alone discovery for the Company in less than a year. The mineralisation is blind, occurs beneath Tertiary cover and has not been subject to previous exploration.

Interpretation of the airborne magnetic and radiometric survey data indicated potential extensions of  Zona 7 mineralisation some 2-3 kms to the south beneath masking Tertiary cover. Geological mapping confirmed the Tertiary cover and located a water bore in the Las Carbas area.

A radiometric probe of the water bore confirmed the presence of uranium mineralisation and an initial program of 20 RC drill holes on 200m spaced lines was commenced to test the prospective stratigraphy between the Zona 7 deposit and Las Carbas. Uranium mineralisation has been intersected over a strike length of about 500m with a width of 50-100m and with depths to mineralisation ranging from 20-50m.

Significant intersections include:

Hole LCRR-001        10.0 metres @ 0.0423% U3O8 from 26.0m 

Hole LCRR-002        4.0 metres @ 0.0228% U3O8 from 31.0m and                        

                                   5.0 metres @ 0.0421% U3O8 from 39.0m and                        

                                   1.0 metres @ 0.0202% U3O8 from 50.0m

                  Hole LCRR-009        4.0 metres @ 0.0505% U3O8 from 34.0m and

                                                     7.0 metres @ 0.1055% U3O8 from 44.0m and

                                                     4.0 metres @ 0.0386% U3O8 from 65.0m

Further drilling is planned for next quarter to test the 1.25 km gap between the Las Carbas mineralisation and Zona 7, and to test for other potential zones of mineralisation in the area.

Caridad Prospect

Interpretation of the airborne survey showed the Mina Caridad prospect to have two strong radiometric anomalies in an area of black shales and phyllites coincident with the nose of a large fold. One anomaly occurred over a small historical uranium mine, with a second anomaly 500m to the northeast. It appears these anomalies are on opposites sides of the fold nose. A total of 31 RC holes totalling 1,512m were drilled this quarter with significant mineralisation intersected in both the anomalies.

The results are encouraging, and indicate supergene uranium mineralisation down to 30m. Mineralisation is found in association with both iron oxides and primary sulphides, mainly pyrite. Notable intersections include: 

Hole CARR-002         6.0 metres @ 0.0816% U3O8 from 12.0

Hole CARR-007        6.0 metres @ 0.0807% U3O8 from 3.0m, and

                              2.0 metres @ 0.0760% U3O8 from 11.0m

Hole CARR-022        4.0 metres @ 0.0763% U3O8 from 5.0m

Hole CARR-029        4.0 metres @ 0.0323% U3O8 from 4.0m, and

                                   2.0 metres @ 0.0997% U3O8 from 21.0m

Host rocks are similar to Zona 7 - that is, a monotonous sequence of outcropping deformed meta-pelites and phyllites. However, at Caridad the mineralisation appears to be more influenced by folding and deformation, than by crosscutting structures.

The northern and southern areas of mineralisation appear to be hosted by the same shale horizon and drilling to test the likely continuity over a strike length of at least 1 km is planned for the current quarter. 

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Peter Ellis, who is a Member of The Australian Institute of Geoscientists and an employee of Berkeley Resources Limited. Mr Ellis 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 Ellis 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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