Berkeley Energy Limited (ASX:BKY) realised its final results from the recently completed infill drill programme at the Zona 7 deposit and have confirmed the overall continuity of the mineralisation and have reported significant higher grades.
The company stated that a number of the most recent results have recorded broad intersections with grades nearly fifteen times higher than the previously reported resource grade.
It is anticipated that the results will increase the overall grade of the upgraded mineral resource estimate which is currently being estimated and will be reported shortly.
Outstanding intercepts include high grade intersections recorded from shallow depths of just four metres from the surface with thickness up to 52 metres.
The programme comprised ninety drill holes for 6,226 metres and has been designed to upgrade the resource to the Indicated category enabling the Zona 7 deposit to be incorporated into a Pre-Feasibility Study for the 100% owned Salamanca project which will be reported during the current quarter.
The inclusion of the deposit into the study will enable the overall economics of the project to be reported for the first time. The increase in the resource grade foreshadowed by these latest results combined with the recently reported impressive metallurgical test work results is expected to increase the already significant positive impact the deposit will have on the overall economics of the project.
The deposit is located within ten kilometres of the approved location of the proposed processing plant and currently hosts an Inferred Mineral Resource Estimate of 23.2 million tonnes averaging 589 ppm U3O8 for 30.1 million pounds of U3O8 (at a 200 ppm U3O8 cut-off grade).
As previously advised given the very positive impact the deposit is expected to have on the project’s economics, the Board has decided to push ahead with the permitting required to rapidly incorporate this resource into the overall development of the Salamanca project.
Author: Ben Visser
Sep 28, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.