Berkeley Energia Resumes Drilling at Salamanca
The ‘Zona 7 deep drilling programme’ comprises of twelve 250 deep holes through which Berkeley tests the continuity high grade mineralisation intersections.
Berkeley Energia (ASX:BKY) has resumed drilling at its 100% owned Salamanca project in Spain. The company’s major exploration program testing extensions of the Zona 7 deposit is designed to discover potential extensions to previous high grade mineralisation discoveries in the area.
The ‘Zona 7 deep drilling programme’ comprises of twelve 250 deep holes through which Berkeley tests the continuity high grade mineralisation intersections. Furthermore, an additional fifteen holes will be drilled south of Zona 7.
Berkeley to Commence Drilling at Las Eras
At another deposit, Las Eras, Berkeley will drill eleven shallow holes to a depth of 80 metres to follow up with previous results reported in the region. A Spanish state owned entity reported high grade intersections similar to those in Zona 7, however documented information is no longer available. Berkeley Energia believes that the geological setting of the area combined with geophysical data and a ‘large anomaly’ provides the basis for the company’s decision to commence drilling.
Managing Director Paul Atherley comments on the outlook for the Salamanca Project: “The Zona 7 deposit has transformed the economics of the Salamanca project and provided the basis for us to commence development. This 38 hole drill programme follows up recent high grade intersections at Zona 7 and a new target Las Eras, locates just five kilometres to the north.”
Commencement of Development at Salamanca
Earlier this year Berkeley announced that development of the Salamanca project has begun, following a decade of exploration and feasibility studies. The company as well as major investment partners have invested more than US$60 million in the project to date.
Salamanca has an estimated Net Present Value (“NPV”) of US$871.3 (~A$1190m) and a mine life of 18 years. While the NPV estimate is based is based on a long-term Uranium price of US$65 per pound, price volatility is the primary catalyst.
Overall Wise-owl believes that Berkeley is well positioned develop one of the lowest cost uranium projects in the world. Berkeley is transitioning from explorer to producer which should yield interest towards the stock.
Author: Simon Herrmann
Jun 14, 2016
Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.