TIDMBKY
RNS Number : 4839B
Berkeley Energy Limited
07 October 2015
BERKELEY ENERGY LIMITED
AIM RELEASE | 7 OCTOBER 2015 | AIM/ASX:BKY
Increase in Zona 7 grade
Expected to boost Salamanca Project economics
The updated JORC Compliant Mineral Resource Estimate for the
Zona 7 deposit has reported grades comparable to the world's
highest grade open pit mines in operation, with the bulk of the
resource lying within fifty metres of the surface.
Following the recently completed infill drill programme, the
Mineral Resource Estimate for Zona 7 has been updated, reporting a
significant increase in resource grade, an increase in resource
pounds and with almost ninety percent of the resource upgraded to
the Indicated category.
The inclusion of the important Zona 7 deposit is expected to
fundamentally improve the economics of the Salamanca project, even
at current Uranium prices, by significantly increasing the mine
life, the production rates and by reducing the operating costs from
the levels previously reported.
Managing Director Paul Atherley commented "With high grades,
good recoveries and the potential for some of the lowest costs in
the industry the Salamanca project is rapidly emerging as one of
the best new projects around."
A Pre-Feasibility Study which will include the Zona 7 deposit
will allow the overall economics of the project to be reported for
the first time and is expected to be published this quarter.
Early indications from the study are that the project will have
lower capital costs than previously reported, benefitting from
favourable movements in exchange rates and due to the high grade,
low strip ratio and impressive metallurgy it is expected that
operating costs will reduce significantly.
The total resource for Zona 7 now stands at 31.4 million pounds
of U(3) O(8) (at a cut-off grade of 200 ppm) including an Indicated
resource of 17.1 million tonnes at 735 ppm containing 27.8 million
pounds of U(3) O(8) .
The overall Mineral Resource Estimate for the Salamanca Project
now stands at 89.5 million pounds of U(3) O(8) .
Following the Board's decision to push ahead with the overall
development of the project and the recent positive announcements on
approvals, drill results and metallurgical testwork, the company
has received a number of approaches from potential financiers which
are now being advanced.
For further information contact:
Paul Atherley Hugo Schumann John Prior / Paul
Gillam
Managing Director Corporate Manager Numis Securities
Nomad & Broker
+44 207 478 3900 +44 207 478 3900 +44 207 260 1000
info@berkeleyenergy.com
Appendix A: Summary of Mineral Resource Estimate and Reporting
Criteria
Prospect Location, Geology and Geological Interpretation
Zona 7 is the largest deposit within the Salamanca Project
located in central-western Spain.
Significantly, the Zona 7 deposit is located within 10km of the
approved location of the proposed processing plant at
Retortillo.
Zona 7 is a vein type uranium 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 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. The uranium mineralisation
occurs both within the partially weathered zone and fresh rock.
Uraninite and coffinite are the primary uranium minerals. Secondary
uranium mineralisation is developed in 'supergene-like' tabular
zones corresponding to the depth of weathering.
Drilling and Sampling Techniques
The Mineral Resource Estimate ('MRE') is based on data obtained
from three phases of drilling (historical 1960's to 1980's,
2007-2008, 2013-2015) totalling 312 holes for 19,393m. The drilling
comprised 93 diamond holes ('DD') and 219 reverse circulation
('RC') holes (Table 1).
The majority of drilling conducted by Berkeley prior to 2015 was
undertaken on a 100m by 100m grid, with section lines orientated
approximately northwest-southeast across the interpreted strike of
the mineralisation. The 2015 infill drilling campaign closed the
spacing in Domain 6 to a 50m x 50m grid, in order to improve
confidence in this part of the MRE. Some of the historical drilling
was completed on a closer spaced 35m x 35m grid. The majority of
the drill holes are vertical.
The drill hole collar locations were surveyed by qualified
surveyors using standard DGPS equipment achieving sub decimetre
accuracy in horizontal and vertical position. Down-hole surveys
were undertaken using a Geovista down-hole deviation probe.
Measurements were taken every 1cm down hole and averaged every 10m.
All DD and RC drill samples were geologically logged, with all
relevant data being recorded. Diamond core was also geotechnically
logged. Core boxes and samples and RC samples and chip trays were
photographed for future reference.
Diamond core was quarter or half cut and sampled on 0.25-1.85m
intervals. RC samples were collected over 1m intervals and split in
the field using two riffle splitters in cascade or a cone and
quarter method to provide an approximately 3-5kg sample. Samples
were further split in the core shed using a scoop to generate
0.7-1kg samples which were sent to external laboratories for
preparation and analysis. Quality assurance procedures were
employed, including the use of standards, blanks and
duplicates.
Down-hole gamma logging was undertaken for all probe accessible
holes drilled by Berkeley to provide a gamma equivalent U(3) O(8)
('eU(3) O(8) ') grade. The down-hole gamma response was converted
to eU(3) O(8) after correcting for radon, hole diameter, air/water
and application of a deconvolution filter. eU(3) O(8) data was only
used in the MRE when chemical assay data was not available.
Bulk density values were derived from 462 solid--fluid
pycnometer measurements. In situ dry bulk densities were applied to
all blocks in the resource model based on the degree of
weathering.
Table 1: Summary of drill holes used in the MRE update
Drill Type Pre-2007 2007-2008 2013-2014 2015 Total
--------------------- --------------- --------------- --------------- --------------- ---------------------
Holes Metres Holes Metres Holes Metres Holes Metres Holes Metres %
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Reverse Circulation - - 66 3,579 63 4,051 90 6,226 219 13,856 71
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Diamond Core 72 4,024 9 661 5 391 7 461 93 5,537 29
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Total 72 4,024 75 4,240 68 4,442 97 6,687 312 19,393 100
--------------------- ------ ------- ------ ------- ------ ------- ------ ------- ------ ------- ----
Sample Analysis Methods
Sample preparation of all drill samples involved oven drying,
crushing and pulverising to achieve a grind size of 85% passing
75<MU>m. Sample pulps from the drilling program were analysed
for uranium using either of the Delayed Neutron Counting ('DNC') or
pressed powder X-ray fluorescence ('XRF') methods. Historical
drilling samples were analysed for uranium using the XRF, atomic
absorption spectroscopy ('AAS') or fluorometric methods.
Resource Model
Surpac and Isatis software was used for geological modelling,
block modelling, grade estimation, MRE classification and
reporting. Sectional geological interpretations were joined to
create a series of 3D mineralised wireframe domains that showed
continuity above a grade of 100 ppm U(3) O(8) . Statistical and
geostatistical variogram modelling was used to determine
appropriate parameters for estimation of uranium grade using
Ordinary Kriging ('OK') and Uniform Conditioning ('UC').
The resource model for Domains 5 and 6 (>88% of the Zona 7
MRE) has been updated with the 2015 infill drilling, and the
upgrades to these Domains are the subject of this release. As a
result of the closer spaced infill drilling, improvements in sample
support, geological continuity and variography, Domain 6 was
determined to be suitable for the application of UC and Local
Uniform Conditioning ('LUC'). LUC provides a simulation of the
expected grade and tonnage selectivity at the Pre-Feasibility Study
Selective Mining Unit ('SMU') dimensions.
Grade Estimate
The uranium grade was estimated into a 25m by 25m x 6m panel
using OK for all domains followed by the application of UC and LUC
to simulate the grade tonnage distribution based on SMU dimensions
of 5m x 5m x 6m for Domain 6 only. Domain 5 was updated using OK.
All other domains (2, 3 & 4) were unchanged from the November
2014 OK estimate.
Variography was used to derive appropriate orientation and
weighting factors employed by the OK, UC and LUC algorithms.
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.
Cut-off Grades
The MRE has been reported using a cut-off grade of 200 ppm U(3)
O(8) , which is consistent with the grade used to report previous
MRE's for this style of mineralisation.
Mining and Metallurgical methods and parameters
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Based on the results of metallurgical testwork carried out on
representative samples from the Zona 7 deposit and the shallowness
of the deposit, it is assumed that the Zona 7 MRE could potentially
be extracted using open pit mining methods, with the recovery of
uranium through the application of acid heap leach methods.
Bulk density values were updated for Domains 5 and 6 from 462
solid--fluid pycnometer measurements, a 50% increase in bulk
density data. Updated in-situ dry bulk densities were applied to
all Domain 5 and 6 blocks in the resource model based on the degree
of weathering as follows: 2.28 t/m(3) for completely weathered
material; 2.40 t/m(3) for partially weathered material; and 2.64
t/m(3) for fresh rock. Note that both the bulk density and MRE are
unchanged for Domains 2, 3 and 4 which were unaffected by the 2015
drilling program.
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 and Classification Criteria
The MRE for Zona 7 Domains 5 and 6 has been updated,
incorporating additional drilling and sampling information from the
2015 drilling campaign.
The MRE has been classified and is reported as Indicated and
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 from
feasibility studies on geologically similar deposits within the
region to imply reasonable prospects for eventual economic
extraction.
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 U(3) O(8)
(Table 2), along with estimates showing the range of U(3) O(8)
cut-off grades that would span the range applicable to open pit
mining (Table 3).
Table 2: Zona 7 - Mineral Resource Estimate
Zona 7 - Mineral Resource Estimate as at 5
October 2015
Reported at a cut-off grade of 200 ppm U(3)
O(8)
--------------------------------------------------------------
Resource Tonnage Grade Contained U(3)
O(8)
Category (million tonnes) (U(3) O(8) (million pounds)
ppm)
----------- ----------------- ----------- -----------------
Indicated 17.1 735 27.8
----------- ----------------- ----------- -----------------
Inferred 4.9 333 3.6
----------- ----------------- ----------- -----------------
Total 22.1 645 31.4
----------- ----------------- ----------- -----------------
All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding.
Table 3: Zona 7 - Grade Tonnage Table
Zona 7 - Mineral Resource Estimate as at 5 October 2015
-------------------------------------------------------------------
Lower Cut-off Tonnage Grade Contained U(3)
Grade O(8)
(U(3) O(8) ppm) (million tonnes) (U(3) O(8) (million pounds)
ppm)
---------------- ----------------- ----------- -----------------
100 35.6 455 35.7
---------------- ----------------- ----------- -----------------
200 22.1 645 31.4
---------------- ----------------- ----------- -----------------
300 15.4 819 27.8
---------------- ----------------- ----------- -----------------
400 11.5 979 24.9
---------------- ----------------- ----------- -----------------
500 9.0 1,132 22.3
---------------- ----------------- ----------- -----------------
Table 4: Salamanca Project Global Mineral Resource Estimate
October 2015
----------------------------- ----------- --------------------------
Deposit Resource Tonnes U(3) U(3)
O(8) O(8)
Name Category (Mt) (ppm) (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 Indicated 17.1 735 27.8
Inferred 4.9 333 3.6
----------------------------------------- ------- ------- --------
Total 22.1 645 31.4
----------------------------------------- ------- ------- --------
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 48.8 528 56.8
Inferred 30.4 422 28.3
----------------------------------------- ------- ------- --------
Total 84.1 483 89.5
========================================= ======= ======= ========
All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding.
Competent Persons Statement
The information in this report that relates to the 2015
Exploration Results and Mineral Resources for Zona 7 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 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.berkeleyenergy.com. The information in the original ASX
Announcements 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 Energy
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
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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 the Mineral
Resources for Retortillo is extracted from the report entitled
'March 2015 Quarterly Report' dated 29 April 2015 and is available
to view on Berkeley's website at www.berkeleyenergy.com. The
information in the original ASX Announcement that relates to the
Mineral Resources for Retortillo 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 earlier
Exploration Results and Mineral Resources (other than the Zona 7
and Retortillo deposits) (refer ASX announcements dated 31 July
2012, 31 October 2012, 7 August 2013 and 26 September 2013) is
based on information compiled by Craig Gwatkin, who is a Member of
The Australasian Institute of Mining and Metallurgy and was an
employee of Berkeley Energy Limited at the time of initial
disclosure. 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 (refer ASX announcement dated 26 September
2013) 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. 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.
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.
Appendix A: 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 Nature and quality of sampling Berkeley diamond drill (DD)
techniques (eg cut channels, random core was sampled using 0.25-1.85m
chips, or specific specialised intervals in the mineralised
industry standard measurement zones, including areas of internal
tools appropriate to the low grade or waste. In addition,
minerals under investigation, the sampling was extended 3
such as down hole gamma sondes, to 5m up and down hole from
or handheld XRF instruments, the interpreted mineralised
etc). These examples should zone. Half or quarter core was
not be taken as limiting used for sampling.
the broad meaning of sampling. Berkeley reverse circulation
(RC) drill samples are collected
over 1m intervals. Multiple
methods were used to determine
uranium mineralisation intervals
including down hole gamma analysis,
hand held scintillometer measurements
and portable XRF analysis. Intervals
containing uranium mineralisation
were selected and submitted
for laboratory assay analysis.
Junta de Energía Nuclear
(JEN) DD core was sampled using
0.25m, 0.50m and 1.00m intervals
in the mineralised zones, with
0.25m intervals being the most
frequent sample length.
------------------ ---------------------------------------- --------------------------------------------
Include reference to measures Standards and blanks are inserted
taken to ensure sample representivity into the sample stream to assess
and the appropriate calibration the accuracy, precision and
of any measurement tools methodology of the external
or systems used. laboratories used. In addition,
field duplicate samples are
inserted to assess the variability
of the uranium mineralisation.
Approximately 15-20% of all
samples relate to quality control.
In addition, the laboratories
undertake their own duplicate
sampling as part of their internal
QA/QC processes. Examination
of the QA/QC sample data indicates
satisfactory performance of
field sampling protocols and
assay laboratories providing
acceptable levels of precision
and accuracy.
Berkeley drill hole collar locations
were surveyed by qualified surveyors
(Cubica Ingeniería Metrica
S.L.) using standard differential
global positioning system (DGPS)
equipment achieving sub decimetre
accuracy in horizontal and vertical
position. Down-hole surveys
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were undertaken using a Geovista
down-hole deviation probe. Measurements
are taken every 1cm down hole
and averaged every 10m. No strongly
magnetic rocks are present within
the deposit which may affect
magnetic based readings.
Berkeley uses two down-hole
gamma probes to provide eU(3)
O(8) ("equivalent" U(3) O(8)
grade and e-grade) data. The
probes were originally calibrated
by the manufacturer (Geovista,
UK) and are currently sent,
on an annual basis, to Borehole
Wireline Pty Ltd in South Australia
for their recalibration in their
test pits. Calibration includes
the determination of k-factor,
deadtime, bore hole diameter
and fluid corrections, which
are reported in the "Primary
Probe Calibration" document.
All parameters are then applied
during the in-house e-grade
calculation process.
JEN sampled whole core using
0.25m, 0.50m and 1.00m interval
lengths. QA/QC protocols used
are unknown.
------------------ ---------------------------------------- --------------------------------------------
Aspects of the determination RC drill samples are collected
of mineralisation that are over 1m intervals, manually
Material to the Public Report. homogenised before being split
In cases where 'industry on site using a three tier riffle
standard' work has been done splitter to provide an approximate
this would be relatively 3-5kg sample. In rare cases,
simple (eg 'reverse circulation wet samples are split using
drilling was used to obtain a cone and quarter method.
1 m samples from which 3
kg was pulverised to produce Scintillometer measurements
a 30 g charge for fire assay'). are taken on all samples and
In other cases more explanation this data is used to select
may be required, such as the samples to be sent to external
where there is coarse gold laboratories for sample preparation
that has inherent sampling and analysis. Indicative mineralised
problems. Unusual commodities intervals are determined from
or mineralisation types (eg this data and the sampling extended
submarine nodules) may warrant up and down hole by at least
disclosure of detailed information. 2-5m.
Samples are further split in
the core shed using a scoop
such that 0.7-1kg samples are
sent to the preparation laboratories
of ALS and AGQ (Seville, Spain)
and analytical laboratory of
ALS (Loughrea, Ireland). Samples
are dried, fine crushed down
to 70% below 2mm, split to obtain
250g and pulverised with at
least 85% of the sample passing
75um. 10g of sample is used
for uranium analysis by pressed
powder X-ray fluorescence (XRF)
method (2013, 2014 and 2015
drilling campaigns).
Samples from the 2007 and 2008
drilling campaigns were sent
to Actlabs Canada for uranium
analysis by the Delayed Neutron
Counting (DNC) method.
JEN core samples were prepared
in internal company laboratories
and assayed for uranium using
XRF, Atomic absorption spectroscopy
(AAS) or fluorometric methods.
------------------ ---------------------------------------- --------------------------------------------
Drilling Drill type (eg core, reverse Berkeley drilling comprised
techniques circulation, open-hole hammer, both DD (HQ) and RC drilling
rotary air blast, auger, using a 140mm diameter face
Bangka, sonic, etc) and details sampling hammer.
(eg core diameter, triple For angled DD oriented core
or standard tube, depth of was achieved using DeviCore
diamond tails, face-sampling measurements (2014 and 2015
bit or other type, whether drilling campaigns).
core is oriented and if so, The historical JEN drilling
by what method, etc). is DD (NQ), which accounts for
approximately 21% of the total
drilling.
------------------ ---------------------------------------- --------------------------------------------
Drill sample Method of recording and assessing Berkeley and JEN DD typically
recovery core and chip sample recoveries recorded overall core recoveries
and results assessed. in excess of 90%, which is considered
acceptable.
Berkeley RC drill samples are
collected over 1m intervals
through a cyclone. Plastic sample
bags are strapped to the cyclone
to maximise sample recovery.
Individual sample bags were
not weighed to assess sample
recovery but a visual inspection
was made by the Company geologist
to ensure all samples are of
approximately equivalent size.
------------------ ---------------------------------------- --------------------------------------------
Measures taken to maximise The DD drilling rigs used face
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sample recovery and ensure discharge bits to ensure a low
representative nature of contact between the rock and
the samples. drilling fluids, minimising
ore washing. Core was cut using
a water saw with care taken
to ensure minimal ore loss.
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 Due to the solubility and mobility
between sample recovery and of the uranium minerals the
grade and whether sample use of water in core recovery
bias may have occurred due in DD is controlled.
to preferential loss/gain There is no known relationship
of fine/coarse material. between sample recovery and
grade.
The core and RC sample recoveries
are of an acceptable level and
no bias is expected from any
sample losses.
------------------ ---------------------------------------- --------------------------------------------
Logging Whether core and chip samples Berkeley logging of DD core
have been geologically and included recording descriptions
geotechnically logged to of lithology, age, colour, oxidation,
a level of detail to support mineralisation, alteration,
appropriate Mineral Resource weathering, structures, textures,
estimation, mining studies grain size and mineralogy.
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 of DD
core included recording descriptions
of lithology, iron oxides, sulphides,
uranium mineralogy, fracturing
and no recovery zones.
------------------ ---------------------------------------- --------------------------------------------
Whether logging is qualitative Geological logging is qualitative
or quantitative in nature. in nature.
Core (or costean, channel, Berkeley DD core boxes and samples
etc) photography. and RC samples and chip trays
were photographed.
JEN did not take photographs
of drill core.
------------------ ---------------------------------------- --------------------------------------------
The total length and percentage All DD and RC drill holes were
of the relevant intersections logged in full by geologists
logged. employed by the Companies.
------------------ ---------------------------------------- --------------------------------------------
Sub-sampling If core, whether cut or sawn Berkeley DD core was sampled
techniques and whether quarter, half using 0.25-1.85m intervals in
and sample or all core taken. the mineralised zones, including
preparation areas of internal low grade
or waste. In addition, the sampling
was extended 3-5m up and down
hole from the interpreted mineralised
zone. Half or quarter core was
used for sampling.
JEN DD core was sampled using
0.25m, 0.50m and 1.00m intervals
in the mineralised zones, with
0.25m intervals being the most
frequent sample length. Whole
core was used for sampling.
------------------ ---------------------------------------- --------------------------------------------
If non-core, whether riffled, Berkeley RC drill samples were
tube sampled, rotary split, collected at 1m intervals. RC
etc. and whether sampled intervals were sampled by splitting
wet or dry. dry samples in the field to
3-5kg using cone and quarter
method (2008 and 2013 drilling
campaigns), three tier riffle
splitter (2014 drilling campaign)
or manually homogenised before
being split on site using a
three tier riffle splitter (2015
drilling campaign) and further
split in the core shed to 0.7-1kg
using a scoop. Where samples
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were wet they were dried prior
to spitting. In rare cases,
wet samples were split using
a cone and quarter method.
------------------ ---------------------------------------- --------------------------------------------
For all sample types, the Berkeley samples (2013, 2014
nature, quality and appropriateness and 2015 drilling campaigns)
of the sample preparation were sent to ALS and AGQ laboratories
technique. for preparation and ALS laboratories
for analysis. Samples were dried,
fine crushed down to 70% below
2mm, split to obtain 250g and
pulverised with at least 85%
of the sample passing 75um.
10g of sample was used for uranium
analysis by pressed powder XRF
method. Samples from the 2007
and 2008 drilling campaigns
were sent to Actlabs Canada
for uranium analysis by the
DNC method. These methods are
considered appropriate for this
style of uranium mineralisation.
JEN core samples were prepared
and assayed for uranium at internal
company laboratories using XRF,
AAS or fluorometric methods.
------------------ ---------------------------------------- --------------------------------------------
Quality control procedures Previous field tests have determined
adopted for all sub-sampling that the sample size and method
stages to maximise representivity of sampling produce representative
of samples. RC samples. QA/QC procedures
involved the use of standards,
duplicates and blanks which
were inserted into sample batches
at a frequency of approximately
15-20%.
Quality control procedures used
by JEN are unknown.
------------------ ---------------------------------------- --------------------------------------------
Measures taken to ensure Duplicate splits of RC samples
that the sampling is representative were taken every 10m down hole
of the in situ material collected, within the sampled intervals
including for instance results by Berkeley. The results from
for field duplicate/second-half these duplicates generally show
sampling. acceptable repeatability, however
indications of inhomogeneity
were observed in a number of
duplicates.
------------------ ---------------------------------------- --------------------------------------------
Whether sample sizes are The uranium is typically very
appropriate to the grain fine grained. Previous test
size of the material being work carried out by Berkeley
sampled. using different sample sizes
demonstrated that the selected
sample size is appropriate.
------------------ ---------------------------------------- --------------------------------------------
Quality The nature, quality and appropriateness Berkeley assayed samples for
of assay of the assaying and laboratory uranium using the DNC method
data and procedures used and whether during the 2007 and 2008 drilling
laboratory the technique is considered campaigns and pressed powder
tests partial or total. XRF during the 2013, 2014 and
2015 drilling campaigns. These
analytical methods report total
uranium content.
JEN assayed samples for uranium
were completed at internal company
laboratories using XRF, AAS
or fluorometric methods. No
QA/QC data is available for
this historical data.
------------------ ---------------------------------------- --------------------------------------------
For geophysical tools, spectrometers, Down-hole gamma logging was
handheld XRF instruments, undertaken for all probe accessible
etc, the parameters used holes drilled by Berkeley to
in determining the analysis provide eU(3) O(8) ("equivalent"
including instrument make U(3) O(8) grade) data. The down-hole
and model, reading times, gamma response was converted
calibrations factors applied to eU(3) O(8) by correcting
and their derivation, etc. for radon, hole diameter, air/water
and a deconvolution filter was
also applied. eU(3) O(8) data
was only considered in the mineral
resource estimation process
when chemical assay data was
not available.
------------------ ---------------------------------------- --------------------------------------------
Nature of quality control Standards, blanks and duplicates
procedures adopted (eg standards, were regularly inserted into
blanks, duplicates, external the sample stream by Berkeley,
laboratory checks) and whether with approximately 15-20% of
acceptable levels of accuracy all samples related to quality
(ie lack of bias) and precision control. The external laboratories
have been established. used also maintain their own
process of QA/QC utilising standards,
pulp repeats, sample duplicates
and blanks.
Review of the Berkeley quality
control samples, as well as
the external laboratory quality
QA/QC reports, has shown no
sample preparation issues, acceptable
levels of accuracy and precision
and no bias in the analytical
datasets.
JEN used internal company laboratories.
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No QA/QC data is available for
this historic data.
------------------ ---------------------------------------- --------------------------------------------
Verification The verification of significant Reported significant intersections
of sampling intersections by either independent were checked and verified by
and assaying or alternative company personnel. Senior Geological management
and Independent CP Malcolm Titley.
------------------ ---------------------------------------- --------------------------------------------
The use of twinned holes. No twinned holes were drilled
for the current mineral resource
estimation process.
------------------ ---------------------------------------- --------------------------------------------
Documentation of primary All primary data was recorded
data, data entry procedures, in templates designed by Berkeley.
data verification, data storage Assay data from the external
(physical and electronic) laboratory is received in spreadsheets
protocols. and downloaded directly into
an Access Database managed by
the Company. Data is entered
into controlled excel templates
for validation. The validated
data is then loaded into a password
secured relational database
by a designated Company geologist.
Daily backups of all digital
data are undertaken. These procedures
are documented in the Berkeley
Technical Procedures and Protocols
manual.
JEN primary paper data was digitalized
and recoded following the Berkeley
protocols. The validated data
was then loaded into a password
secured relational database
by a designated Company geologist.
------------------ ---------------------------------------- --------------------------------------------
Discuss any adjustment to Uranium (ppm) assays received
assay data. from the external laboratory
were converted to U(3) O(8)
(ppm) using the stoichiometric
factor of 1.179.
------------------ ---------------------------------------- --------------------------------------------
Location Accuracy and quality of surveys Berkeley drill hole collar locations
of data used to locate drill holes were surveyed by qualified surveyors
points (collar and down-hole surveys), (Cubica Ingeniería Metrica
trenches, mine workings and S.L) using standard DGPS equipment
other locations used in Mineral achieving sub decimetre accuracy
Resource estimation. in horizontal and vertical position.
Berkeley down-hole surveys were
undertaken using a Geovista
down-hole deviation probe. Measurements
were taken every 1cm down hole
and averaged every 10m. No strongly
magnetic rocks are present within
the deposit which may affect
magnetic based readings.
JEN holes were drilled on grid
coordinates and were not surveyed
after drilling.
------------------ ---------------------------------------- --------------------------------------------
Specification of the grid The grid system is ETRS 1989
system used. UTM Zone 29N.
------------------ ---------------------------------------- --------------------------------------------
Quality and adequacy of topographic Topographic control was based
control. on a digital terrain model with
sub metric accuracy sourced
from the Spanish Geographical
Institute (Instituto Geográfico
Nacional) and was verified through
detailed drill hole collar surveys
by a qualified surveyor using
a DGPS.
------------------ ---------------------------------------- --------------------------------------------
Data spacing Data spacing for reporting The majority of the Berkeley
and distribution of Exploration Results. drilling was undertaken on a
notional 50m by 50m grid within
Domain 6 and 100m by 100m is
the other smaller domains, with
section lines orientated approximately
perpendicular to the interpreted
strike of the mineralisation.
The historical JEN drilling
was completed on a closer spaced
35m by 35m grid within the previous
resource area.
------------------ ---------------------------------------- --------------------------------------------
Whether the data spacing The data spacing (notionally
and distribution is sufficient 50m by 50m) is considered sufficient
to establish the degree of to assume geological and grade
geological and grade continuity continuity, and allow the estimation
appropriate for the Mineral of Indicated Mineral Resources.
Resource and Ore Reserve
estimation procedure(s) and
classifications applied.
------------------ ---------------------------------------- --------------------------------------------
Whether sample compositing No compositing of RC samples
has been applied. in the field has been undertaken.
------------------ ---------------------------------------- --------------------------------------------
Orientation Whether the orientation of The mineralised zone is a 2-3km
of data sampling achieves unbiased scale fold structure with the
in relation sampling of possible structures dominant strike direction being
to geological and the extent to which this NNE-SSW. Despite the general
structure is known, considering the dip of the host geological units
deposit type. and structures ranging from
50-80deg, the mineralised zone
is interpreted to be sub-horizontal
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to shallowly dipping due to
the nature of the mineralisation
processes.
------------------ ---------------------------------------- --------------------------------------------
If the relationship between The majority of DD and RC drill
the drilling orientation holes are vertical. Due to the
and the orientation of key interpreted flat lying nature
mineralised structures is of the mineralisation, no sampling
considered to have introduced bias is considered to have been
a sampling bias, this should introduced by the orientation
be assessed and reported of the drilling.
if material.
------------------ ---------------------------------------- --------------------------------------------
Sample The measures taken to ensure Chain of custody is managed
security sample security. by Berkeley. Samples were transported
from the drill site by Company
vehicle to a sample preparation
shed where samples were prepared
for dispatch. Samples were sent
directly from the sample preparation
shed to the laboratory using
a certified courier or a Berkeley
owned vehicle authorised for
radioactive materials transport.
No other freight was transported
with the samples which were
taken directly from the Berkeley
facility to the external laboratory.
Sample submission forms were
sent in paper form with the
samples as well as electronically
to the laboratory. Reconciliation
of samples occurred prior to
commencement of sample preparation
for assaying.
The historical drilling samples
were prepared and analysed using
internal company laboratories.
The chain of custody is unknown.
------------------ ---------------------------------------- --------------------------------------------
Audits The results of any audits Sampling techniques and procedures,
or reviews or reviews of sampling techniques as well as QA/QC data, are reviewed
and data. internally an ongoing basis.
Malcolm Titley (CP, Geology
Consultant, Maja Mining Limited)
has independently reviewed the
sampling techniques, procedures
and data. He has completed site
visits to review and inspect
the application of procedures.
These reviews have concluded
that the sampling and analytical
results have resulted in data
suitable for incorporation into
the MRE.
------------------ ---------------------------------------- --------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
------------------ ---------------------------------------- -------------------------------------------
Mineral Type, reference name/number, The Zona 7 Prospect lies on
tenement location and ownership including the Alisos Investigation Permit
and land agreements or material issues PI 6605-20 which is 100% owned
tenure with third parties such as by Berkeley Minera España
status joint ventures, partnerships, S.L, a wholly owned subsidiary
overriding royalties, native of Berkeley Energy Limited.
title interests, historical The Alisos Investigation Permit
sites, wilderness or national is currently in the second year
park and environmental settings. of its second three year term
and will expire on 4 January
2017.
No historical sites, wilderness
or national parks are located
within the Permit. The Zona
7 Prospect is located adjacent
to the village of Villavieja
de Yeltes.
------------------ ---------------------------------------- -------------------------------------------
The security of the tenure Tenure in the form of an Investigation
held at the time of reporting Permit has been granted and
along with any known impediments is considered secure. There
to obtaining a licence to are no known impediments to
operate in the area. obtaining a licence to operate
in this area.
------------------ ---------------------------------------- -------------------------------------------
Exploration Acknowledgment and appraisal Previous exploration at Zona
done by of exploration by other parties. 7 was completed initially by
other parties JEN and then Empresa Nacional
de Uranio S.A. (ENUSA), both
Spanish state run companies,
from the late 1950's through
to the mid 1980's. Work completed
by JEN and ENUSA included mapping,
radiometric surveys, trenching
and diamond and open-hole drilling.
A detailed data assessment and
verification of the historical
data supplied by JEN and ENUSA
has been undertaken by Berkeley.
No significant issues with the
data were detected.
================== ======================================== ===========================================
Geology Deposit type, geological The uranium mineralisation is
setting and style of mineralisation. hosted within Ordovician metasediments
adjacent to granite. The mineralisation
typically occurs as a sub-horizontal
to shallowly dipping layer occurring
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between surface and 100m depth.
The style of the uranium mineralisation
includes veins, stockwork and
disseminated mineralisation
in joint/fracture filling associated
with brittle deformation. Uraninite
and coffinite are the primary
uranium minerals. Secondary
uranium mineralisation is developed
in "supergene-like" tabular
zones corresponding to the depth
of weathering. Most of the mineralisation
is hosted within partially weathered
and unweathered metasediment.
This deposit falls into the
category defined by the International
Atomic Energy Association (IAEA)
as Vein Type, Sub Type Iberian
Type.
------------------ ---------------------------------------- -------------------------------------------
Drill hole A summary of all information No new exploration results are
Information material to the understanding included in this release.
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 All Berkeley drill holes within
information is justified the resource area have previously
on the basis that the information been reported in releases to
is not Material and this the ASX providing collar easting,
exclusion does not detract northing, elevation, dip, azimuth
from the understanding of and length of hole and mineralised
the report, the Competent intercepts as encountered.
Person should clearly explain
why this is the case.
------------------ ---------------------------------------- -------------------------------------------
Data aggregation In reporting Exploration No new exploration results are
methods Results, weighting averaging included in this release. All
techniques, maximum and/or Berkeley drill holes within
minimum grade truncations the resource area have previously
(eg cutting of high grades) been reported.
and cut-off grades are usually
Material and should be stated.
------------------ ---------------------------------------- -------------------------------------------
Where aggregate intercepts No new exploration results are
incorporate short lengths included in this release. All
of high grade results and Berkeley drill holes within
longer lengths of low grade the resource area have previously
results, the procedure used been reported.
for such aggregation should
be stated and some typical
examples of such aggregations
should be shown in detail.
------------------ ---------------------------------------- -------------------------------------------
The assumptions used for No metal equivalent values were
any reporting of metal equivalent used.
values should be clearly
stated.
------------------ ---------------------------------------- -------------------------------------------
Relationship These relationships are particularly All drilling was planned in
between important in the reporting such a way as to intersect expected
mineralisation of Exploration Results. If mineralisation in a perpendicular
widths the geometry of the mineralisation manner. The uranium mineralisation
and intercept with respect to the drill is interpreted to be flat lying
lengths hole angle is known, its to shallowly dipping so the
nature should be reported. majority of the RC holes were
drilled vertically. The previously
reported (no new exploration
results are included in this
release) down-hole intervals
were therefore interpreted to
approximate true widths.
------------------ ---------------------------------------- -------------------------------------------
If it is not known and only The previously reported (no
the down hole lengths are new exploration results are
reported, there should be included in this release) down-hole
a clear statement to this intervals were interpreted to
effect (eg 'down hole length, approximate true widths.
true width not known').
------------------ ---------------------------------------- -------------------------------------------
Diagrams Appropriate maps and sections Appropriate diagrams, including
(with scales) and tabulations a drill plan and cross sections,
of intercepts should be included are included in the main body
for any significant discovery of the ASX version of this release.
being reported These should
include, but not be limited
to a plan view of drill hole
collar locations and appropriate
sectional views.
------------------ ---------------------------------------- -------------------------------------------
Balanced Where comprehensive reporting No new exploration results are
reporting of all Exploration Results included in this release. All
is not practicable, representative Berkeley drill holes within
reporting of both low and the resource area have previously
high grades and/or widths been reported.
should be practiced to avoid
misleading reporting of Exploration
Results.
================== ======================================== ===========================================
Other substantive Other exploration data, if Down-hole gamma logging of all
exploration meaningful and material, Berkeley holes was undertaken
data should be reported including to provide eU(3) O(8) data.
(but not limited to): geological Prior comparisons of eU(3) O(8)
observations; geophysical data with chemical assay data
survey results; geochemical have shown that on average eU(3)
survey results; bulk samples O(8) tends to underestimate
- size and method of treatment; at higher grades (>600ppm) and
metallurgical test results; overestimate at lower grades
bulk density, groundwater, (<100ppm). Accordingly, the
geotechnical and rock characteristics; eU(3) O(8) data is not considered
potential deleterious or of sufficient quality to replace
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contaminating substances. chemical assay data for the
purposes of resource estimation.
The Mineral Resources reported
in this release are estimated
using chemical assay data as
the primary method for grade
estimation in the resource modelling
process and eU(3) O(8) data
is only used where there were
no assay data available.
------------------ ---------------------------------------- -------------------------------------------
Further The nature and scale of planned Further work planned for the
work further work (eg tests for Zona 7 Prospect includes infill
lateral extensions or depth drilling that would be focused
extensions or large-scale on improving geological confidence
step-out drilling). and resource classification.
The mineralisation remains open
along the north-western margin
and along strike, with both
areas to be targeted in subsequent
drilling campaigns
Geological studies will include
detailed interpretation of lithology,
structure and weathering and
an assessment of potential relationships
between these factors and uranium
grade distribution.
Further work is also planned
on a number of other exploration
targets within the Retortillo
Region.
------------------ ---------------------------------------- -------------------------------------------
Diagrams clearly highlighting These are shown in the main
the areas of possible extensions, body of the ASX version of this
including the main geological release.
interpretations and future
drilling areas, provided
this information is not commercially
sensitive.
------------------ ---------------------------------------- -------------------------------------------
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 Measures taken to ensure Drill hole data is stored in
integrity that data has not been corrupted a password protected relational
by, for example, transcription database (Access). Drill data
or keying errors, between recorded in a spreadsheet is
its initial collection and transferred to the database
its use for Mineral Resource by the project geologist who
estimation purposes. is responsible for reviewing
and validating the data. Assay
data is received from the external
laboratories in digital format
and is loaded directly into
the database.
Geological logging is restricted
to appropriate codes relevant
to the local geology, mineralisation,
weathering and alteration setting.
A copy of the master database
is linked to Surpac mining software
for Mineral Resource Estimation
(MRE).
---------------- ---------------------------------- ----------------------------------------------------------------
Data validation procedures Database validation checks including
used. collar survey position, down
hole survey control, assay limits,
e-grade profiles, sample intervals
and logging codes are completed
prior to the data being transferred
to the master database.
---------------- ---------------------------------- ----------------------------------------------------------------
Site visits Comment on any site visits Sampling techniques and procedures,
undertaken by the Competent as well as QA/QC data, are reviewed
Person and the outcome of internally an ongoing basis.
those visits. Malcolm Titley, (CP, Geology
Consultant, Maja Mining Limited)
has reviewed the sampling techniques,
procedures, data and resource
estimation methodology. He has
undertaken a number of site
visits, the most recent being
in August 2015, to review and
inspect the application of these
procedures. He concludes that
the sampling and analytical
results available are appropriate
for estimation of the Mineral
Resource.
---------------- ---------------------------------- ----------------------------------------------------------------
If no site visits have been Site visits have been undertaken.
undertaken indicate why this
is the case.
---------------- ---------------------------------- ----------------------------------------------------------------
Geological Confidence in (or conversely, The confidence of the geological
interpretation the uncertainty of) the interpretation is appropriate
geological for the current level of resource
interpretation of the mineral estimation. The resource is
deposit. defined within mineralised envelopes
which encompass all zones of
significant mineralisation.
---------------- ---------------------------------- ----------------------------------------------------------------
Nature of the data used and Geology and mineralisation interpretation
of any assumptions made. is based on geological logging
and sample assays derived from
RC and DD drilling, along with
cross sectional interpretations
which include surface mapping
information and geophysical
studies.
---------------- ---------------------------------- ----------------------------------------------------------------
The effect, if any, of Structural studies show dips
alternative of structures vary between 50deg
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interpretations on Mineral and 80deg however; the uranium
Resource estimation. mineralisation has undergone
supergene remobilisation in
the first 5-10m and is interpreted
to be flat lying to shallowly
dipping and generally within
100m from surface.
---------------- ---------------------------------- ----------------------------------------------------------------
The use of geology in guiding On the deposit scale the uranium
and controlling Mineral Resource grade is controlled by both
estimation. lithology and structure, while
on a local scale the grade is
interpreted to be more influenced
by structure.
---------------- ---------------------------------- ----------------------------------------------------------------
The factors affecting continuity Geological logging and uranium
both of grade and geology. assay of samples from drill
holes has demonstrated the continuity
of the grade and lithology between
mineralised sections. Breaks
in continuity are likely due
to structural offsets, some
of which have been observed
or interpreted from surface
mapping.
---------------- ---------------------------------- ----------------------------------------------------------------
Dimensions The extent and variability The Zona 7 uranium mineralisation
of the Mineral Resource expressed covers an area of approximately
as length (along strike or 3.0km by 0.4km and generally
otherwise), plan width, and occurs within 100m of surface.
depth below surface to the
upper and lower limits of
the Mineral Resource.
---------------- ---------------------------------- ----------------------------------------------------------------
Estimation The nature and appropriateness A mineralised envelope at Zona
and modelling of the estimation technique(s) 7 is created encompassing all
techniques applied and key assumptions, zones of significant mineralisation.
including treatment of extreme A number of different domains
grade values, domaining, have been interpreted.
interpolation parameters Geostatistical variogram modelling
and maximum distance of was used to determine appropriate
extrapolation parameters for estimation of
from data points. If a computer uranium grade using Ordinary
assisted estimation method Kriging (OK) (for all Domains)
was chosen include a description followed by the application
of computer software and of Uniform Conditioning (UC)
parameters used. and Local Uniform Conditioning
(LUC) using Isatis Software,
in order to simulate the grade
tonnage distribution based on
a Selective Mining Unit (SMU)
of 5m x 5m x 6m for Domain 6
only.
Surpac software was used for
mineralisation volume interpretation
and uranium grade estimation.
Three sources of drillhole uranium
grade data was used:
* Chemical U(3) O(8) (ppm): 68%
* Down hole radiometric equivalent eU(3) O(8) (ppm):
15%
* Background based on XRF and radiometric results (10
ppm U(3) O(8) ): 17%
The drill hole spacing for Domain
6 is nominally 50m by 50m, with
100m by 100m spacing in the
remaining smaller domains. Some
of the historical JEN DD was
drilled at a spacing of 35m
by 35m.
Five mineralisation domains
were identified (D2, D3, D4,
D5 and D6). 1m samples were
used to estimate grade into
25m by 25m by 6m parent blocks
using OK.
Note that the Berkeley 2015
drilling infilled domains 5
and 6 only. So no changes have
been made to the MRE previously
reported in November 2015 for
domains 2, 3 and 4.
In order to reduce local bias
due to extreme high grades,
top cuts were applied:
* D2: 1,800ppm U(3) O(8)
* D3: none
* D4: 3,400ppm U(3) O(8)
* D5: 1,300ppm U(3) O(8)
* D6: 5,5950ppm U(3) O(8)
Number of 1m samples required
to make an estimate:
* Minimum samples = 6
* Maximum samples = 30
Search ellipse radii variable
per domain in meters, along
strike/ down-dip/across-strike:
1(st) pass
* D2: 40/6/20
* D3: 55/6/20
* D4: 55/6/20
* D5: 95/6/50
* D6: 45/6/30
2(nd) pass
* D2: 60/6/40
* D3: 80/6/40
* D4: 80/6/40
* D5: 140/6/100
* D6: 90/6/60
3(rd) pass
* D2: 120/6/60
* D3: 160/6/80
* D4: 160/6/80
* D5: 280/6/150
* D6: 160/6/80
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Search orientation variable
per domain (dip, plunge, dip
dir):
* D2: (130, 0, 0)
* D3: (165, 0, 0)
* D4: (50, 0, 0)
* D5: (40, 0, 0)
* D6: (30, 0, 15)
In-situ dry bulk densities were
assigned based on zones of weathering
intensity and used to estimate
tonnage.
---------------- ---------------------------------- ----------------------------------------------------------------
The availability of check The current resource estimate
estimates, previous estimates was compared with the previous
and/or mine production records resource estimate (November
and whether the Mineral Resource 2014) which was based on earlier
estimate takes appropriate drill campaigns (historical,
account of such data. 2007, 2008, 2013 and 2014) and
to a polygonal estimation. Both
of which support the current
results.
No mining production has taken
place at Zona 7.
---------------- ---------------------------------- ----------------------------------------------------------------
The assumptions made regarding The resource model only estimates
recovery of by-products. uranium.
---------------- ---------------------------------- ----------------------------------------------------------------
Estimation of deleterious At this stage, there are no
elements or other non-grade deleterious elements or other
variables of economic non-grade variables identified
significance as being of economic significance
(eg sulphur for acid mine at Zona7.
drainage characterisation).
---------------- ---------------------------------- ----------------------------------------------------------------
In the case of block model The uranium grade is estimated
interpolation, the block into the 25m (X) by 25m (Y)
size in relation to the average by 6m (Z) blocks using OK. This
sample spacing and the search compares to the average drill
employed. spacing of 50-100m in X and
Y. UC and LUC were used to estimate
the expected grade tonnage distribution
for the chosen SMU of 5m x 5m
x 6m in Domain 6 which contains
>88% of the resource, and contains
the material classified as Indicated,
and is targeted for mining in
the early years of production.
This SMU size was chosen to
match the feasibility study
open cut mining methodology.
OK was used to estimate grade
in the remaining smaller domains
which account for <12% of the
MRE and which have wider spaced
drill data classified as Inferred
material.
---------------- ---------------------------------- ----------------------------------------------------------------
Any assumptions behind modelling SMU dimensions have been chosen
of selective mining units. based on results of the current
open pit feasibility study with
load and haul being conducted
with 125 tonne backhoe excavators
and 100 tonne dump trucks.
---------------- ---------------------------------- ----------------------------------------------------------------
Any assumptions about correlation Uranium is the only economic
between variables. metal estimated in the current
resource model.
---------------- ---------------------------------- ----------------------------------------------------------------
Description of how the geological Geological interpretation controlled
interpretation was used to the volume of the resource estimate
control the resource estimates. by restricting the interpretation
of the mineralisation volume
and associated samples to material
with continuity above a 100
ppm U(3) O(8) grade.
The domains are based on geology,
structure and uranium grade
with defined zones of mineralisation
that show continuity along and
across strike.
A further division of the model
into completely weathered, partially
weathered and fresh rock is
applied by triangulated surfaces
interpreted from the logging
of the drill samples. This division
is only applied for density
and reporting purposes.
---------------- ---------------------------------- ----------------------------------------------------------------
Discussion of basis for using Uranium grade distribution exhibits
or not using grade cutting a strong positive skewness,
or capping. so a top cut was applied to
reduce local bias by extreme
grades outliers around the 97.5
population percentile. The domains
were assessed independently
and a top cut grade was determined
for each domain.
---------------- ---------------------------------- ----------------------------------------------------------------
The process of validation, Validation of the MRE included
the checking process used, visual inspection of the grade
the comparison of model data distribution compared to the
to drill hole data, and use drill data, comparison of block
of reconciliation data if model statistics to the sample
available. statistics and generation of
swath plots. These confirmed
that the MRE appropriately represents
the grade and tonnage distribution
of the uranium mineralisation
at the confidence levels reported.
---------------- ---------------------------------- ----------------------------------------------------------------
Moisture Whether the tonnages are The resource tonnage is reported
estimated on a dry basis on a dry bulk density basis.
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or with natural moisture, In-situ dry bulk density measurements
and the method of determination were completed on dry DD core
of the moisture content. and using a solid pycnometer
method for RC samples. Sample
grades are reported using dry
weight. No moisture content
of DD core has been determined.
---------------- ---------------------------------- ----------------------------------------------------------------
Cut-off The basis of the adopted The MRE has been reported using
parameters cut-off grade(s) or quality a 200ppm U(3) O(8) cut-off grade.
parameters applied. Recent feasibility studies on
adjacent properties have demonstrated
that a 100ppm U(3) O(8) cut-off
is economic. Based on the current
uranium market, reporting of
the MRE at a 200 ppm cut-off
grade is both justifiable and
consistent with previous published
MRE's for this style of mineralisation.
---------------- ---------------------------------- ----------------------------------------------------------------
Mining Assumptions made regarding The resource can potentially
factors possible mining methods, be extracted using open pit
or assumptions minimum mining dimensions mining methods, with the recovery
and internal (or, if applicable, of uranium through the application
external) mining dilution. of acid heap leach methods.
It is always necessary as Indicative parameters used for
part of the process of pit optimisation purposes in
determining recent feasibility studies on
reasonable prospects for adjacent properties are:
eventual economic extraction Uranium selling price: US$65/lb
to consider potential mining U(3) O(8) ,
methods, but the assumptions Total Mining Cost: US$3.9/lb
made regarding mining methods U(3) O(8)
and parameters when estimating Mining recovery: 97.5%
Mineral Resources may not Mining dilution: 2.5%
always be rigorous. Where Plant Process Cost: US$6.25/lb
this is the case, this should U(3) O(8)
be reported with an explanation Recovery U(3) O(8) : 85%
of the basis of the mining Royalties: 1.2%
assumptions made.
---------------- ---------------------------------- ----------------------------------------------------------------
Metallurgical The basis for assumptions Metallurgical testwork on representative
factors or predictions regarding samples across a range of ore
or assumptions metallurgical amenability. types has been undertaken for
It is always necessary as Zona 7. The results of this
part of the process of testwork showed the mineralisation
determining to be amenable to convention
reasonable prospects for acid heap leach, with uranium
eventual economic extraction recoveries in the order of 85%
to consider potential with a low acid consumption
metallurgical of 12-18 kg/t.
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.
---------------- ---------------------------------- ----------------------------------------------------------------
Environmental Assumptions made regarding It is planned that all spent
factors possible waste and process heap leach (ripios) material
or assumptions residue disposal options. will be returned to the open
It is always necessary as pit which will be lined so as
part of the process of to encapsulate the ripios. Any
determining Naturally Occurring Radioactive
reasonable prospects for Material (NORM) or Acid Rock
eventual economic extraction Drainage (ARD) waste will also
to consider the potential be stored within the lined pit.
environmental impacts of An Environmental Scoping Study
the mining and processing will serve to define the scope
operation. While at this and content of the Environmental
stage the determination of and Social Impact Assessment.
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.
---------------- ---------------------------------- ----------------------------------------------------------------
Bulk density Whether assumed or determined. Bulk density values were derived
If assumed, the basis for from 462 solid--fluid pycnometer
the assumptions. If determined, measurements. These values have
the method used, whether been validated with DD core
wet or dry, the frequency bulk density results obtained
of the measurements, the using the water immersion method.
nature, size and The in-situ dry bulk density
representativeness values are:
of the samples. Completely weathered: 2.28 g/cm(3)
Partially weathered: 2.40 g/cm(3)
Fresh rock: 2.64 g/cm(3)
The bulk density values have
been updated from those previously
used in the November 2014 MRE
based on a 50% increase in bulk
desnity data. The values shown
above have been used to estimate
tonnages for the updated domains
5 and 6. Bulk density values
used for domains 2, 3 and 4
are unchanged from those used
in the November 2014 MRE.
---------------- ---------------------------------- ----------------------------------------------------------------
The bulk density for bulk Fresh and slightly weathered
material must have been measured rock is competent enough to
by methods that adequately ensure the method used takes
account for void spaces (vugs, into account any rock porosity.
porosity, etc), moisture A factor derived from comparison
and differences between rock with DD core was used to adjust
and alteration zones within the weathered material.
the deposit.
---------------- ---------------------------------- ----------------------------------------------------------------
Discuss assumptions for bulk The density measurements have
density estimates used in been classified by weathering
the evaluation process of intensity, defined by the geological
the different materials. logging. Three dominant zones
have been identified, namely:
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