TIDMBKY
RNS Number : 8409R
Berkeley Resources Limited
31 October 2013
BERKELEY RESOURCES LIMITED
AIM RELEASE | 31 OCTOBER 2013 | ASX/AIM:BKY
SEPTEMBER 2013 QUARTERLY REPORT
Berkeley Resources Limited ('Berkeley' or the 'the Company') is
pleased to present its quarterly report for the period ended 30
September 2013. The Company's primary focus during the period
continued to be the advancement of the Salamanca Project located in
Spain.
Highlights during and subsequent to the end of the quarter
include:
-- Completion of the Pre-Feasibility Study ('PFS') confirming
the technical and economic viability of the Salamanca Project,
including:
Ø Steady state annual production of 3.3 million pounds U(3) O(8)
over a 7 year period, with average annual production of 2.7 million
pounds U(3) O(8) over an initial 11 year life of mine;
Ø Average operating costs (C1 cash costs) of US$24.60 per pound
of U(3) O(8) over the life of mine;
Ø Upfront capital cost of US$95.1 million to deliver initial
production. A further US$74.4 million, incurred in the second year
of production, to achieve steady state operation; and
Ø PFS considered a base case scenario, with strong potential to
increase the production profile and/or mine life.
-- Significant progress on the permitting of Retortillo:
Ø Regional Government has granted a Favourable Declaration of
Environmental Impact ('Environmental Licence') following submission
and extensive review of the Company's Environmental and Social
Impact Assessment ('ESIA') together with the Exploitation Plan and
the Reclamation and Closure Plan;
Ø The Nuclear Safety Council ('NSC') has submitted a favourable
recommendation report regarding the granting of the Exploitation
Concession ('Mining Licence') to the Regional Government; and
Ø Approval of the Company's Exploitation and Reclamation and
Closure Plans is now the only outstanding prerequisite for the
granting of the Mining Licence for Retortillo.
-- High grade mineralisation intersected at shallow depths (from
9 metres to a maximum of 84 metres), with thicknesses up to 29
metres at Zona 7, the largest of the Retortillo Satellite
Deposits:
Ø Drilling extends mineralisation a further 1,200 metres to the
southwest of the current resource area;
Ø Better intercepts include 29 metres @ 3,391 ppm U(3) O(8) , 17
metres @ 1,260 ppm U(3) O(8) , 15 metres @ 1,392 ppm U(3) O(8) , 25
metres @ 683 ppm U(3) O(8) and 13 metres @ 1,161 ppm U(3) O(8) ;
and
Ø Shallow, high grade mineralisation extending well beyond the
current resource boundary at Zona 7 is a clear demonstration of the
exploration and resource growth potential of the Salamanca
Project.
-- Updated Mineral Resource Estimate ('MRE') for Retortillo
deposit of 16.2 million tonnes averaging 376 ppm U(3) O(8) for a
contained 13.4 million pounds of U(3) O(8) at a lower cut-off grade
of 200 ppm U(3) O(8) was reported. A comparison with the prior MRE
(July 2012) highlighted an increase in Indicated resources from 61%
to 90% of the total MRE, and an increase in the total contained
uranium of 5%.
-- Continued Scoping Study on the Gambuta deposit with
completion anticipated in the December 2013 Quarter.
Enquiries: Robert Behets
Berkeley Resources
+61 8 9322 6322
Martin Eales
RBC Capital Markets
+44 20 7653 4000
OPERATIONS
Berkeley Resources Limited ('Berkeley' or 'the Company') is a
uranium exploration and development company with a quality resource
base in Spain. Berkeley is currently focused on advancing its
wholly owned flagship Salamanca Project.
Salamanca Project
Berkeley's flagship Salamanca Project ('Project') comprises the
Retortillo, Alameda and Gambuta deposits, plus a number of other
Satellite deposits located in western Spain.
In November 2012, the Company completed an initial assessment of
the integrated development of Retortillo and Alameda and reported
the results of the Scoping Study, which clearly demonstrated the
potential of the Salamanca Project to support a significant scale,
long life uranium mining operation.
Following completion of the Scoping Study, Berkeley commenced a
Pre-Feasibility Study ('PFS') on the Salamanca Project. The results
of the PFS were reported in September 2013, confirming the
technical and economic viability of the Project.
The Company is now undertaking a review process, with a view to
assessing the opportunities to further enhance the Project
economics through capital and operating cost reductions that were
identified in the PFS and defining key work programs to be
incorporated into the final scope of the Definitive Feasibility
Study ('DFS'). The DFS is anticipated to be awarded by the end of
2013 and completed by the end of 2014.
Pre-Feasibility Study
The PFS was managed by SENET and was completed by a number of
industry recognised specialist consultants including SRK Consulting
for mine design, Knight Piésold for heap leach design, Duro
Felguera for project cost estimates and URS for environmental
management.
The key considerations for the PFS were preferred mining method
and mining schedule, preferred processing route, scale, throughput
rate, project life, as well as development of the associated
infrastructure taking due cognisance of community and environmental
impacts.
The basic approach to the development of Retortillo and Alameda
contemplated in the PFS included:
-- Mining to commence at Retortillo. Alameda integrated into production in Year 3;
-- Open pit mining at both sites (transfer mining to facilitate continuous rehabilitation);
-- Heap leaching using on-off leach pads at both sites;
-- Centralised solvent extraction ('SX') and ammonium diuranate
('ADU') precipitation plant, located at Retortillo; and
-- Remote ion exchange ('IX') operation at Alameda, with loaded
resin trucked to the centralised plant for final extraction and
purification.
Key parameters used in the PFS include:
-- Ore Processing Rate 5,500,000 tonnes per annum (steady state)
-- Mining Cut-off Grades 105 ppm U(3) O(8) for Retortillo and 90
ppm U(3) O(8) for Alameda
-- Metallurgical Recovery 85%
-- Uranium Price US$65 per pound U(3) O(8)
-- Exchange Rate US$/EUR 1.28
The PFS was based solely on the MREs for Retortillo and Alameda
and the minimum Project life of eleven years (including seven years
of steady state operation) is considered a base case scenario.
Given the significant additional Mineral Resources and exploration
upside associated with Gambuta, Zona 7 and other Satellite
Deposits, significant potential exists to increase the production
profile and/or project life.
Mineral Resources
The PFS was based solely on the MREs for Retortillo and Alameda
(Table 1), prepared by Berkeley and reported in accordance with the
JORC Code (2004).
The Alameda MRE was unchanged from that reported in July 2012
and was based on data from approximately 41,000 metres of
historical DD drilling and 11,000 metres of DD and RC drilling
undertaken by Berkeley.
The Retortillo MRE was updated during the quarter to incorporate
the results of a recent RC infill drilling program which comprised
67 RC drill holes for 4,382 metres. The Retortillo MRE was
previously reported in July 2012.
Table 1 - Summary of MREs used as the basis of the PFS
Retortillo and Alameda
Mineral Resource Estimates - September 2013
Reported at a lower cut-off grade of 200 ppm U(3) O(8)
--------------------------------------------------------------------------------
Category Tonnage Grade Contained U(3)
O(8)
(million tonnes) (U(3) O(8) (million pounds)
ppm)
------------ ------------ ------------------ ------------ ------------------
Retortillo Indicated 14.4 378 12.0
------------ ------------ ------------------ ------------ ------------------
Inferred 1.8 359 1.4
------------------------- ------------------ ------------ ------------------
Sub Total 16.2 376 13.4
------------------------- ------------------ ------------ ------------------
Alameda Indicated 20.0 455 20.1
------------ ------------ ------------------ ------------ ------------------
Inferred 0.7 657 1.0
------------------------- ------------------ ------------ ------------------
Sub Total 20.7 462 21.1
------------------------- ------------------ ------------ ------------------
Combined Indicated 34.4 423 32.1
------------ ------------ ------------------ ------------ ------------------
Inferred 2.5 443 2.4
------------------------- ------------------ ------------ ------------------
Total 36.9 424 34.5
------------------------- ------------------ ------------ ------------------
A comparison between the Retortillo September 2013 MRE and July
2012 MRE highlights the following:
-- Total tonnes have increased by 7% (16.2 million tonnes vs. 15.2 million tonnes);
-- Average grade has decreased by 2% (376 ppm U(3) O(8) vs. 383 ppm U(3) O(8) );
-- Total contained uranium has increased by 5% (13.4 million
pounds U(3) O(8) vs. 12.8 million pounds U(3) O(8) ); and
-- Indicated Resources have increased from 61% to 90% of total MRE.
These changes are largely attributable to the inclusion of the
results of the recent infill drilling, which were mostly in line
with expectations based on the previous July 2012 resource model,
and they also confirmed that the mineralisation extends a further
200 metres to the northwest beyond the previous resource
boundary.
Mining
The mining of ore and waste is a conventional open pit
operation. Diesel-powered truck and shovel operations, in
combination with an effective drill and blast plan was considered
for both deposits.
As part of the PFS, a series of Whittle optimisations were
completed on the Retortillo and Alameda July 2012 MREs. Materials
classified in the Indicated and Inferred categories for Retortillo
and Indicated category for Alameda were used in the optimisation
process. A subsequent infill drilling program at Retortillo
resulted in that portion of the Inferred Resource in the July 2012
MRE which fell within the optimised pit outline being upgraded to
the Indicated category in the revised September 2013 MRE. Given
that there was no material change to the revised September 2013
MRE, other than the upgraded classification, the initial optimised
pit based on the July 2012 MRE was used for the Retortillo pit
design and mine scheduling.
Inputs for the Whittle optimisation process included: overall
pit wall slope angles of 35-45 degrees for Retortillo and 30-55
degrees for Alameda; 85% metallurgical recovery for both Retortillo
and Alameda; US$65 per pound U(3) O(8) ; and an 8% discount
rate.
The economic cut-off grade used to determine the mineable ore
within the optimum pit shell to be delivered to run of mine ('ROM')
pad was developed using the Whittle optimisation method, resulting
in economic cut-off grades of 105 ppm U(3) O(8) for Retortillo and
90 ppm U(3) O(8) for Alameda.
Practical pit designs, waste dump designs and life of mine
('LOM') mining schedules were then completed to determine the
optimal long term mine plan.
The mining schedule extends over 11 years with initial mining at
Retortillo. The seven year period of steady state operation begins
in Year 3, when mining commences at Alameda.
An average of 5.5 million tonnes per annum of combined ore
production is scheduled during steady state operation (Retortillo -
2.2 million tonnes per annum; Alameda - 3.3 million tonnes per
annum). At its peak, the mining schedule contemplates the movement
of a combined 18.1 million tonnes per annum (both waste and ore).
The open pits are shallow with the maximum depths being 90 metres
at Retortillo and 135 metres at Alameda. Strip ratios for the
Project are low with the average LOM strip ratio being 1:2.1 ore to
waste (Retortillo 1:2.6; Alameda 1:1.8). Over the LOM, a total of
20.0 million tonnes at an average grade of 306 ppm U(3) O(8) and
29.9 million tonnes at an average grade of 322 ppm U(3) O(8) are
mined at Retortillo and Alameda respectively.
The mining method will be 'transfer mining' which allows the
open pits to be continuously backfilled whilst, minimising waste
dump volumes and waste rehandling. It also facilitates continuous
rehabilitation to minimise environmental impact.
Processing
Extensive metallurgical testwork has previously been carried out
on an approximately 5 tonne representative sample of the Alameda
deposit at the SGS laboratories in Perth (including tank leach and
heap leach scenarios) and on a 5.5 tonne bulk sample,
representative of the Retortillo deposit, at Mintek's mineral
processing facility in Johannesburg (heap leach scenario).
Additional metallurgical testwork programs were conducted at
Mintek and the Australian Nuclear Science and Technology
Organisation ('ANSTO') facilities in Sydney as part of the PFS. The
testwork program at Mintek was aimed at confirming the heap leach
recovery for each phase of the respective mine schedules and
testing ore variability with respect to geo-mechanical behaviour at
both Retortillo and Alameda, as well as the determine the optimal
heap leach feed size for Alameda. The ANSTO testwork program was
designed to facilitate the selection of the optimal backend of the
process with the performance of direct SX and ADU precipitation
being compared with that of IX and UO(4) precipitation. For further
details on the PFS metallurgical testwork programs refer to the
Company's ASX June 2013 Quarterly Report.
The results of this comprehensive metallurgical testwork have
been used to select the preferred process route and design the
flowsheet.
The process flowsheet comprises crushing, screening,
agglomeration, stacking and heap leaching using on-off leach pads,
followed by uranium recovery and purification by SX, ADU
precipitation and calcination at a centralised plant, located at
Retortillo. Pregnant liquor solution ('PLS') from the heap leach
process at Alameda will be passed through a IX adsorption columns,
with the loaded resin trucked to the centralised plant for final
extraction and purification.
A heap leach versus tank leach trade-off study was completed,
with heap leach technology being selected as the preferred leaching
option due to the high efficiency shown during testwork. Testwork
indicated high recoveries and good leach kinetics are achieved at
relatively coarse crush sizes of 40 mm for Retortillo and 12 mm for
Alameda, significantly lower capital and operating costs, and
important environmental benefits, including backfill of spent ore
from the on-off heap leach pads ('ripios') into the mined pits,
thus removing the requirement for a tailings storage facility.
Two stage crushing of ROM ore will be undertaken at Retortillo
(target product size of 40 mm), while three stage crushing is
required at Alameda to deliver the finer product (12 mm) required
for optimum uranium recovery. Crushed ore will be agglomerated
before stacking by direct feed into a conventional drum where spray
bars will dose the ore with raffinate and sulphuric acid. The
agglomerates are conveyed overland to the heap leach pad and then
stacked with radial stackers.
The heap leach comprises an on-off pad subdivided into cells to
define areas for stacking, leaching, rinsing/draining and
reclaiming. This facility is complete with ponds for makeup water,
barren, immediate and pregnant leach solutions, storm water and all
associated pumping and reagent storage facilities. The pad design
includes a triple insulation system including two high density
polyethylene ('HDPE') sheets and a clay layer.
The agglomerated material is stacked in 6 metre lifts and
irrigated with diluted sulphuric acid solution using drip emitters.
Testwork indicates a commercial leach cycle of 140 days. At
Retortillo, the heap leach pad will measure 832 metres long by 260
metres wide at its base and the design comprises 13 cells in the
1st lift and 10 cells in the 2nd lift resulting in a total capacity
of 3.3 million tonnes. The Alameda heap leach pad will measure 475
metres long by 624 metres wide at its base and the design comprises
12 cells in the 1st lift and 10 cells in the 2nd lift resulting in
a total capacity of 5 million tonnes.
The ripios will be removed from the heap leach pad and
backfilled into isolated and lined (clay layer and HDPE liner)
areas within the mined pits on a continuous basis once mining has
advanced sufficiently to accommodate this (approximately 19 months
and 15.5 months after commencement of mining at Retortillo and
Alameda respectively).
Acid consumption for the heap leach at both sites is 18 kg/t,
inclusive of the addition of approximately 8 kg/t to 10 kg/t of
acid in the agglomeration process. An opportunity to improve acid
consumption by optimising the pH at which uranium can be dissolved
(minimising the dissolution of other elements, principally iron)
will be evaluated in the next phase of testwork.
At Retortillo, the heap leach PLS feed directly into the SX
facility. The Alameda heap leach PLS will be loaded onto resin in
an IX adsorption column and the loaded resin transported a distance
of approximately 50 kilometres by road to the centralised plant at
Retortillo. Once the resin has been stripped, the eluate containing
uranium will be combined with the Retortillo PLS and fed into the
SX plant for further processing.
The concentrated uranium solution from the SX plant is treated
to precipitate the uranium as ADU using anhydrous ammonia. The ADU
slurry from the precipitation is pumped into a thickener for
dewatering and the underflow dewatered further with centrifuges.
The centrifuge cake is finally calcined to produce U(3) O(8) which
is drummed and prepared for shipping.
Analysis of the PLS during the testwork programs indicates that
there are no impurities at levels that could adversely impact the
quality of the yellowcake to be produced.
Annual production averages 3.3 million pounds of U(3) O(8)
during a minimum of seven years of steady state operation, and 2.7
million pounds of U(3) O(8) over the entire eleven year mine
life.
Infrastructure
The Project is favourably located with respect to existing
infrastructure.
Both Retortillo and Alameda are readily accessible from the
existing public road network, with only a 4.1 kilometre road
deviation being required at Retortillo and the upgrade (widening
and tarring) of 6.4 kilometres of an existing road necessary at
Alameda.
The total power requirements for the Project are low at an
estimated 3.7 megawatts ('MW') of consumed power at Retortillo and
3.2 MW at Alameda. It will be supplied from the nearby Spanish
National Distribution Grid at a cost of US$0.10 per kilowatt hour,
excluding capital, with connection requiring construction of a 22
kilometre 45 kilovolt ('kV') powerline at Retortillo and a 13
kilometre 45 kV powerline at Alameda. Installed power will be 5.8
MW at Retortillo and 5.4 MW at Alameda.
Water will be available from adjacent water courses and on-site
sources such as pit dewatering bore holes and collection systems
designed to capture rain and surface run-off water during the wet
season. In general, the water balance at both sites changes from
being negative during the initial years of production to positive
for the remainder of the LOM when discharge will be required to
accommodate all water sources. Contact water (process and mine
water requiring pre-discharge treatment) will be neutralised in
Water Treatment Plants at Retortillo and Alameda prior to any
required discharge.
Given the Project's proximity to the city of Salamanca (70 km to
the northeast of Retortillo) and local towns and villages, on-site
accommodation facilities are not required. An on-site sulphuric
acid plant is also not required for the Project as sulphuric acid
is readily available from two in-country sources at a cost of
US$124 per tonne delivered to site.
Capital Costs
The initial capital cost for the mine, processing facilities and
associated infrastructure for Retortillo was estimated at US$95.1
million. This cost is inclusive of all infrastructure and indirect
costs required to develop and commence production at
Retortillo.
The capital cost for the mine, processing facilities and
associated infrastructure for Alameda was estimated at US$74.4
million. This cost, which will be incurred in the second year of
production, includes all infrastructure and indirect costs required
for the Project to achieve a steady state production profile
averaging 3.3 million pounds of U(3) O(8) per annum.
The indirect costs include the first fill of reagents,
Engineering, Procurement and Construction Management ('EPCM')
costs, Preliminary and General ('P&G') costs and a 15%
contingency. No allowance was made for the acquisition of mining
fleet (included in operating costs), as mining will be outsourced
to a specialist contractor.
Working capital, amounting to US$23.8 million, is required to
support eight months of operation after start-up at Retortillo and
has been included in the Year 1 operating cost estimate.
The engineering studies supporting the capital cost estimates
for the Project, allow for a level of accuracy of nominally +/-
20%. A summary of major capital costs is shown in Tables 2 and
3.
Table 2 - Summary of Retortillo Capital Costs
(nominally +/- 20% accuracy)
Description Cost
(US$m)
------------------------------ --------
Mining:
Mining Fleet (included in
Opex) 0
Pre-Strip 8.6
Processing:
ROM Pad 0.3
Crushing 6.6
Agglomeration 1.5
Heap Leach 13.4
Water Treatment Plant 1.8
SX 6.2
Refinery 7.7
Reagents and Utilities 4.7
Infrastructure:
Buildings, internal roads
etc. 2.7
Power Supply 8.0
Road Diversion 1.2
Temporary/Waste Dumps 3.2
Water Management Facilities 3.3
Land Acquisition 5.0
General and Administration
('G&A'): 2.2
Indirect Costs:
First Fill and Spares 1.2
EPCM 5.6
Contingency 9.0
P&G 3.0
Total 95.1
============================== ========
Note: Apparent differences in Totals occur due to rounding
Table 3 - Summary of Alameda Capital Costs
(nominally +/- 20% accuracy)
Description Cost
(US$m)
------------------------------ --------
Mining:
Mining Fleet (included in
Opex) 0
Pre-Strip 5.1
Processing:
ROM Pad 0.6
Crushing 7.4
Agglomeration 1.6
Heap Leach 13.5
Water Treatment Plant 1.3
IX 5.5
Reagents and Utilities 2.2
Infrastructure:
Buildings, internal roads
etc. 2.4
Power Supply 6.0
Road Diversion 0.6
Temporary/Waste Dumps 4.5
Water Management Facilities 3.6
Land Acquisition 3.9
G&A: (included in Opex) 0
Indirect Costs:
First Fill and Spares 1.9
EPCM 4.7
Contingency 7.2
P&G 2.3
Total 74.4
============================== ========
Operating Costs
The average LOM operating cost was estimated at US$24.60 per
pound of U(3) O(8) produced. The operating costs (C1 cash costs)
are defined as the direct operating costs including contract
mining, processing, ripios backfill, water treatment, and
G&A.
Operating costs were estimated in conjunction with the PFS
process design criteria, block flow diagram, mechanical equipment
lists, metallurgical testwork results to determine reagent
consumptions, in-country labour rates, in-country reagent
(including sulphuric acid) and fuel supply prices, National
distribution grid power rates and quoted local mining contractor
rates.
Key operating cost data is summarised in Table 4.
Table 4 - Summary of LOM Operating Costs (nominally +/- 20%
accuracy)
Description Cost (US$/lb U(3)
O(8) )
-------------------------------
Retortillo Alameda
------------------------------- ----------- --------
Mining 14.50 9.76
Processing (including ripios
backfill) 12.80 10.41
G&A 2.03 1.56
------------------------------- ----------- --------
Subtotal by Area 29.33 21.73
=============================== =========== ========
Total Operating Costs 24.60
=============================== =====================
In addition to the C1 cash operating costs are marketing and
transport costs, estimated at 1.5% of the gross value of the final
product (US$0.97 per pound U(3) O(8) produced), and royalties which
average US$1.75 per pound U(3) O(8) produced over the LOM. The
royalties are defined as a percentage of the net value of the
product (gross value less commercialisation) and include the State
Reserves Royalty (2.5% and only applicable to Alameda production),
Municipality Royalty (0.2%) and an Anglo Pacific Royalty
(1.0%).
Waste Management and Rehabilitation
Waste was characterised and classified into four types:
-- Oxide waste ('inert waste') - an inert waste that can be handled as a typical mining waste;
-- Acid Rock Drainage ('ARD') - potential acid generator due to a marginal sulphide content;
-- Natural Occurring Radioactive Materials ('NORM') - rock
containing very low residual uranium below the mining cut-off
grade; and
-- Ripios - spent ore from the dynamic on-off heap leach pads
which can be considered equivalent to ARD and/or NORM waste due to
its similar physical and chemical characteristics.
As noted earlier, open pit mining will be undertaken using the
transfer mining method to allow continuous backfilling of the pits
with waste, thus minimising waste dump volumes and waste
rehandling, whilst also allowing for a continuous rehabilitation
program that minimises the environmental impact.
Ripios will be stored on the heap leach pads during the initial
approximately 18 months of production and subsequently backfilled
into isolated and lined (clay layer and HDPE liner) areas within
the mined pits on a continuous basis once sufficient space is
available.
Inert waste will be managed using standard industry procedures,
placing the material on permanent waste dumps or backfilling the
material directly into mined areas within the pits.
ARD and NORM waste will be placed onto temporary dumps designed
with the required isolation system (clay layer and HDPE liner)
until the waste is backfilled into the mined pits towards the end
of the mine life. At the end of the mine life, the entire volume of
ripios, ARD and NORM waste will be fully encapsulated within the
mined pits, and the surface rehabilitated as per the existing
profile and vegetation.
The costs associated with the continuous rehabilitation programs
(excluding ripios backfilling which is included in the operating
cost estimate) are estimated at US$16.8 million for Retortillo and
US$20.8 million for Alameda. These capital costs, which are
incurred from the second year of mining through to the end of the
mine life at each site, are reasonably evenly distributed on an
annual basis. In addition, final rehabilitation and closure costs,
which include waste rehandling, pit encapsulation and re-vegetation
and are incurred after the completion of mining at each site, are
estimated at US$45.0 million for Retortillo and US$53.5 million for
Alameda. Post closure surveillance costs are estimated at US$2.5
million for each site.
For further detailed information on the PFS, please refer to the
ASX announcement dated 26 September 2013.
Gambuta
The Gambuta deposit, which is located approximately 145
kilometres southeast of Retortillo, has an Inferred MRE of 12.7
million tonnes at 394 ppm U(3) O(8) for a total of 11.1 million
pounds of U(3) O(8) at a 200 ppm U(3) O(8) cut-off grade (refer
September 2012 Quarterly Report).
The geometry, average thickness and depth of the mineralisation
make it amenable to shallow open pit mining with a low ore to waste
strip ratio.
Following the positive results of a Desktop Study completed on
Gambuta, the Company has advanced the evaluation of the deposit to
the Scoping Study stage. The conceptual approach is based on open
pit mining, heap leaching, and a remote ion exchange operation,
with the loaded resin being trucked to the proposed centralised
plant at Retortillo for final extraction and purification.
The scope of work has included initial metallurgical testwork on
a 330 kilogram representative sample, comprising bond crushability
and bond abrasion tests, diagnostic leach tests, mineralogy and
column leach tests at various crush sizes. The results of the
testwork showed that uranium recovery improves with finer crushing
and averages 80% across the various material types at a 12 mm crush
size. Geomechanical tests also confirmed that the ore (and
residues) could be stacked up to eight metres, with the heap leach
pad design conservatively assuming the ore will be stacked in two 6
metre lifts.
Additional work including geotechnical evaluation, open pit
optimisation and mine design, heap leach pad design, and a site
layout and infrastructure assessment has also continued during the
quarter, with the completion of the Study anticipated in the
December 2013 Quarter.
Exploration
A comprehensive review of all available data for the tenements
surrounding the Company's existing resources, undertaken in early
2013, identified the potential extension of Zona 7 to the southwest
as a priority drill target.
Zona 7 is the largest of the Retortillo Satellite Deposits and
currently hosts an Inferred MRE of 3.9 million tonnes averaging 414
ppm U(3) O(8) for a contained 3.6 million pounds of U(3) O(8) at a
200 ppm U(3) O(8) cut-off grade (refer ASX June 2012 Quarterly
Report). It is located within 10 kilometres of the proposed
location of the centralised processing plant at Retortillo.
A RC drill program comprising 18 holes for 1,133 metres was
carried out on an approximately 400 metre by 100 metre grid to test
this priority target in the June 2013 Quarter.
Assay results returned from the 18 RC holes and reported during
the quarter highlighted that the Zona 7 mineralisation extends a
further 1,200 metres to the southwest of the current resource area
along the granite-sediment contact. The drilling has essentially
doubled the strike extent of the mineralised zone and it remains
open to the southwest. Significant high grade intersections were
recorded at shallow depths (from 9 metres to a maximum depth of 84
metres), with thicknesses up to 29 metres. Select intercepts
include:
Hole No. Down Hole Intercept From Depth
(Down Hole)
---------- ----------------------- -------------
29m @ 3,391 ppm U(3)
Z7R-084 O(8) 9m
---------- ----------------------- -------------
17m @ 1,260 ppm U(3)
Z7R-088 O(8) 37m
---------- ----------------------- -------------
4m @ 2,365 ppm U(3)
O(8)
15m @ 1,392 ppm U(3)
O(8) 39m
2 @ 2,759 ppm U(3) 63m
Z7R-089 O(8) 82m
---------- ----------------------- -------------
25m @ 683 ppm U(3)
Z7R-087 O(8) 27m
---------- ----------------------- -------------
13m @ 1,161 ppm U(3)
Z7R-090 O(8) 17m
---------- ----------------------- -------------
16m @ 764 ppm U(3)
Z7R-085 O(8) 33m
---------- ----------------------- -------------
Zona 7 is a vein type deposit hosted in a sequence of fine
grained metasediments which are overlain by a conglomerate unit and
adjacent to a granite intrusive. The mineralised envelope is
generally sub-horizontal and the mineralisation is contained within
a stockwork of veins. The uranium mineralisation occurs both within
the partially weathered zone and fresh rock.
Whilst the original drilling within the current resource area
recorded a number of thick, high grade intersections including 26
metres at 1,356 ppm U(3) O(8) and 12 metres at 2,078 ppm U(3) O(8)
, the recent drilling has highlighted a thicker and potentially
more continuous zone of high grade mineralisation to the southwest,
albeit based on a broad spaced drill pattern.
For further detailed information on the Zona 7 drilling results,
please refer to the ASX announcement dated 7 August 2013.
Permitting
The permitting processes for Retortillo, Alameda and Gambuta
continued to advance during the quarter.
In early October 2013, a Favourable Declaration of Environmental
Impact ('Environmental Licence') for Retortillo was granted by the
Regional Government of Castilla and León (refer ASX announcement
dated 8 October 2013). This follows submission and extensive review
of the Company's Environmental and Social Impact Assessment
('ESIA')
The grant of the Environmental Licence is a major milestone for
the Company and follows substantial work over the last 24 months
directed towards permitting of the Project, including environmental
and social baseline studies and culminating with the submission of
the ESIA, together with the Exploitation Plan and the Reclamation
and Closure Plan for Retortillo.
The ESIA and associated documentation were subjected to
extensive review by all relevant authorities and key stakeholders,
including a 30 day Public Information Period, prior to the grant of
the Environmental Licence. The Environmental Licence covers all
mining and processing activities, including treatment of loaded
resin transported to Retortillo from other deposits.
Following its review of the Company's plans for exploitation,
reclamation and closure, the Nuclear Safety Council ('NSC')
submitted a favourable recommendation report regarding the granting
of the Exploitation Concession to the Ministry of Economy and
Employment of the Regional Government in August 2013.
Regarding the Initial Authorisation of the process plant as a
radioactive facility, the NSC has communicated that its
recommendation report will be will be issued to the Ministry of
Industry, Commerce and Tourism of the Central Government, once the
Exploitation Concession has been granted.
With the grant of the Environmental Licence and the favourable
recommendation report recently submitted by the Nuclear Safety
Council to the Regional Government, approval of the Company's
Exploitation and Reclamation and Closure Plans is now the only
outstanding prerequisite for the granting of the Mining Licence for
Retortillo.
The permitting process for Alameda commenced in late 2012 with
the submission of the Environmental Scoping Document ('ESD') and
documentation associated with the Exceptional Authorisation for
Land Use. Preparation of the documents required for the next phase
of permitting at Alameda, including the Exploitation Plan,
Reclamation and Closure Plans, and the ESIA is well advanced and it
is anticipated that these documents will be submitted to the
relevant authorities during the December 2013 Quarter. The ESD will
also be re-submitted following updates to incorporate the latest
results from the PFS and inputs from the recent granting of the
Environment License for Retortillo.
The Company has started to receive feedback from the relevant
authorities following submission of the ESD for Gambuta. A complete
list of comments is expected in the coming months and, once
received, Berkeley will prepare responses to be included in the
ESIA. The Gambuta ESIA will also incorporate the results from the
current Scoping Study.
CORPORATE
At 30 September 2013 the Company had cash reserves of A$25.2
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 Exploration
Results and Mineral Resources is based on information compiled by
Craig Gwatkin, who is a Member of The Australian Institute of
Mining and Metallurgy and is 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.
The information in this Report that relates to the
Pre-Feasibility Study is 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 this Report of the matters based on his
information in the form and context in which it appears.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Berkeley Energia (LSE:BKY)
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Berkeley Energia (LSE:BKY)
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